The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-21


in the states of Alabama. Georgia. Ten
nessee and Kentucky. where the great
volume of it's business Is conducted, is
as follows:
Alabama. Louisville and Nashville
railroad, 1853 miles.
miles.
| Georgia. SO. 75 miles.
i Tennessee, so 40 miles.
| Kentucky, 10094 miles.
No Discrimination in Alabama.
A fair consideration of these figures will
show that there has been no discrim-
nation whatever practiced against the
state of Alabama. The rate per ton per
mile received in Georgia on intra freight
| is more than two and one-half times
1 that received in Alabama, and more than
three times that received by the South
and North Alabama. The revenue per
| ton on products moved in the state of
| Georgia on intrastate business is about
three and one-half times as great as
| the revenue per ton received in Ala
bama The average haul in Georgia In
| intrastate business is greater by 40 per
cent than the average haul In Alabama.
| The interstate rate per ton per mile in
Alabama is decidedly lower than the aver
age in all the states.
| The mileage of the Louisville and
Nashville railroad in Alabama, excluding
the South and North Alabama, is about
one-fourth of the whole system, while its
revenue is only about one. sixth. The
| tons handled In Alabama, including the
| South and North ARE about one-half of
| the tonnage of the system, while the
| freight revenue in Alabama including
the South and North Alabama, is about
one-fourth. This does not look like dis
elimination against Alabama.
| The period beginning July /, 1905. and
ending December 81. 1909 was the most
| prosperous period of the same length of
time in the history of the Louisville and
Nashville Railroad company, and indeed
| it may be fairly asserted Of the people of
the United States. There was one lean
year and there were three and one-half
prosperous years in this period The
supreme court of the United States has
decided that in determining what is fair
rate upon intrastate business, the courts
cannot consider the volume of business
or the profits therefrom in interstate bus
mess, because such business is not with
ing the jurisdiction of the state legisla-
ture, but is within the exclusive juris-
diction of the federal Congress. But
waving that point for the present and
taking the period from July 1905, to
made by the Louisville and Nashville
Railroad company on all its business ap
plying its own rates as charged until
June l. 1909 (when the statutory rates
In Alabama were put into effect. and
making no deduction for depreciation Of
equipment prior to July /, 1908, were only
412 per- cent, while applying the statutory
rates, without deduction for deprecia-
ton in equipment it was only 375 per
pent If depreciation in equipment had
been charged, as 1t should have been,
prior to July l. 1908, then this small return
would have been materially reduced.
This latter is figured upon the cost of
reproduction of it's property. excluding
its stocks and bonds. We are accustomed
to speak of the great tonnage in Ala
bama as If tonnage was synonymous with
revenue. The fact is tonnage is more
nearly synonymous with expense.
Valuation of Property.
1t may be said that the valuation of the
company's property is excessively stated.
Upon the contrary, / insist that the val
uation stated is highly conservative and
this fact is conclusively sustained by the
tax valuations assessed against the Louis
vile and Nashville Railroad company for
the current year on a 60 per cent basis,
which is the rule applied by the state tax
commissioners as two of them have tes-
tif1ed and adding thereto trackage rights
upon which other companies pay taxes
and that portion of the general office
building in Louisville, KY, assigned to
Alabama, and it's proportion of current
assets for the transaction Of business, the
total valuation would be approximately
S37. 500 900, or within about $4,000 900 of the
cost of reproduction with those items in
cluded. If the percentage is worked upon
the tax values it will not materially at
feet the result.