Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-02-23

crease of gross earnings for the fiscal
year 1908 amounting TO &436, 1 1891.
This, as shown by its report, was its
entire loss of revenue and was only
about five per cent on it's gross reve-
nue.. Why then was the pay roll cut
$SOS, FPS, nearly twice as much as
the entire loss of revenue?
1.-THE panic was affecting the entire
country. While Georgia was less affected
than other states, It suffered necessarily
to some extent.
Why Was the Cut Made?
1.-THE gross income Of the Central in
Georgia for the fiscal year ending July
lst 1907, was s., S75,516.17. In 1903 1t was
IS, 989, 397. 90. It's loss in gross income was
$780, 1851. It's gross income was larger
in 1908 than It was In 1906 The loss of
gross income for 1908 from that Of 1907 If
distributed partly on owners, partly on
improvements, partly on operatives. would
not have been serious anywhere.
sit was only $438, 1881 and yet
President Hanson admits that his em-
plOyes were discharged to the extent
of sos, 22S. The inquiry is natural,
why did the Central cut its men
sos, Fps. when its gross income ives
Iessened only $486, 1916? What be-
came of the 1872, 40 in excess of the
entire loss in business which the Cen
trail saved by discharging it's menu"
president Hanson declares that the net
| income of his company has fallen of over
one million dollars since 1905 when be-
gan my first campaign for governor, and
vet he declares in effect that scarcely
| anything the road has done for the benefit
| of the public has been required as a re-
| suit of my administration. He should
give the principles have advocated cred
| It for the benefits the public have receiv-
ed or he should not hold them and me re-
sponsible for his loss of net income.
Reduction of Rates
| "I concede that the fight of the Atlanta
Freight Bureau for fair interstate rates
| for Georgia, and the policies which have
advocated caused a reduction of the net
profits of the Central Railroad company
and this reduction has shown in the
statement OF the company since 1905. The
reduction has been accomplished partly
| through concessions by the railroad COM
pany, and partly by the direct action of
| the railroad commission.
During the year 1904 fight began up
on the railroad companies of Georgia
growing out of the fact that the inter
state rates were higher to Georgia points
than they were in neighboring states.
| Georgia was on the pinnacle of high in
terstate rates.
The Atlanta Freight Bureau led in this
| fight. In the spring of 1905 concession
was made by the railroads and many in
! terstate rates were reduced. This reduc-
ton has been variously estimated at a
saving to the people of Georgia of from
one million to two millions of dollars an
nually. ..u-
Increase Followed Smiths Defeat
''The reduction began near the close of
the fiscal year ending July l, 1905, and
therefore showed in the statements for
1906, 1907 and 1908, as compared with the
statements by the road for 1905.
Just after my defeat last June the
railroad companies put back to their for
mer high prices most of these interstate
freight rates. The Georgia railroad com
mission has condemned this advance OF
rates and is now conducting a fight be-
fore the interstate commerce commission
to secure restoration of the lower
rates. ~
| cit is difficult to say just what this
reduction of rates saved to the people
of the state while it continued. 1t has
been placed by my opponents at two mill
lions of dollars annually. I never be-
lieved 1t to be so large an amount. What
ever it was affected net profits after the
statement of 1905, except insofar as an
| increase of business caused by the re-
duction contributed to maintain former
profits.
During my first race for governor I
used as a basis for discussion the finan-
cial statements of the railroads made for
the year ending July l. 1905. and used
also their tax returns and the values of
\ their properties named by them in litiga-
ton over freight rates. Accepting the
true value of their properties to be some
where between the low valuation they
placed upon their properties when they
were seeking to avoid paying taxes to the
state, and the high values they placed
upon them when seeking to Sustain high
freight rates to tax the public, insist
ed that they were keeping too great d
portion of their earnings as net profits.
insisted that the public was entitled to a
reduction based on the 1905 statement of
the roads and I estimated this reduction
at various times by different calculations
making 1t from three to four millions of
dollars.
That Famous Four Million
"The taxes of the railroad compa-
MES have been increased since the be-
ginning of my administration and
therefore since 1905 to an amount
annually of $55O,OOO.
"a saving to the public since 1905
in passenger rates has been accom-
pIished amounting to over 81 ,OOO.-
600.
Production i'm interstate rates as
compared to their 1905 statement
continuing until the fall of 1908,
amounted to annually approximately
100000.
Other Benefits to the Public
'It is to be hoped the interstate COM
merce commission will restore the lower
interstate rates which were taken from
the state about the first of last September.
1.-The pay of employees of the railroads
has been increased since July, 1906. Bet
| ter roadbeds have been kept up. Claims
| against the railroads for overcharges are
more promptly paid. More efficient SER
vice has been rendered. These advant-
ages to the public necessarily cost the
railroads money, and lessen temporarily
at least their net profits.