The Birmingham age-herald., 1912-01-09

Montgomery January S.-BdSlnS qlS conclusions upon the yalue of the prop erty of tie Central of Georgia railroad in this state, and. upon this property $ earnings Special Master W. S. Thoring- ton today submitted to Federal Judge Thomas c. Jones. his final report in the Central of Georgia rate case, holding that the Alabama 21s cent passenger rate act and the act regulating freight tariffs uron group of 110 commodities is null and void insofar as it applies to the Cen tlal of Georgia. This report is practically identical in it's effect with that recently rendered by Special Master William A. Gunter in applying the new law, as it bears on the operation of the Louisville and Nashville railroad in this state.
 Judge Thorningtons report sets forth that the earning power of the Alabama properties of the Central of Georgia is not sufficiently great to withstand the drain of so low rates as fixed by the state legislature in 1907, an dholds that the acts therefore is confiscatory and in violation of the fourteenth amendment of the federal constitution In so far as 1t has to do with this particular railroad The road, he holds, has a constitutional right to expect a just and reasonable re- turn upon it's property in Alabama.
 Judge Bloomington has still under con- sderation the complaint against enforce ment of the act as it applies to the Vest ern of Alabama road. Other carriers of the state are awaiting individual action upon their complaints to determine wheth- CT the law is valid as applied to each individual line.
 In declaring that all of the rate stat utes must stand or fall, Judge Thor ington enters into an interesting discus sion. The relation of labor and capital. and what each should expect as a fair return on it's investment, are treated at some length by the special master.
 This question is treated by the special master from the standpoint, both of the stockholders and employees, and, among other things. he says:
 "On the other hand, besides the con- alterations affecting stockholders and state. as above indicated, there is one of the greatest problems involved, in the industrial world, growing out of the relations between labor and capi- tai, the solution of which Is, as yet, far from having been reached. The de- mand on the part of labor for increased compensation seems to be almost per ennial, a demand arising and persisted in with some measure of justice on ac- COuII OI lHt pItStnl H1eii toSt oA nv ing and a necessity for increased com forts and improvements for themselves and families.
 Tt is claimed that the wages now paid employees do not amount to fair share of the profits earned in part with their labor.
 ITO what further extent. if any the labor class is to share in the profits of railroad business in order to secure as t,@,, a1, l1n ,a1 n just proportion of the profits resulting in part from their labor, and thereby increasing operating expenses to the cutting down of net profits of stock holders, it is not possible at this time to foresee. but the proof in the case shows that the Central has been com pelled to yield to such demands and is still confronted with others.
 Tt is a just and equitable principle that, like as capital is entitled to earn fair and reasonable return on the value of it's property devoted to the public use, so labor is entitled to a just and reasonable return on the value of it's toll and skill devoted to the pub lie service, and the adjustment of these dual rights can only be reached by that mutual patience, tolerance, respect and wise conservatism which must come from the realization by both that
 
 Risk of Loss of Profits
 'The one must project, organize, finance and manage and control the common undertaking and assume the accompanying risk of loss of profits. and even of the whole investment; the other must devote faith, interested and efficient service, without arrogating rights belonging to ownership, and must take the accompanying risk of loss of health, limb and life in the serv- ice, a risk which in modern days has been much lessened both by improved rvice conditions and legislation.
 Full compensation to employees should imply something more than a mere sub sistence. To that should be added the possibility of gradual accumulation.
 This would not only be just, but, no doubt, wise policy resulting in an in creased efficiency stimulated by a sense of fair treatment ana assurance of inn proved living conditions for themselves and their families.
 Probably this end could. to some ex- tent, be secured by reducing other ex- penses, but with the present high cost of living to railroads themselves, and with no reasonable prospects for a ma- terial change, 1t would seem that the only method to enable railroad companies to meet other necessary expenses and af- ford their employees adequate compensa- tion, is to permit them to earn a suffi- cient return on their property to meet all reasonable obligations and expenses. including more liberal provision for their employees, and. after necessary improve ments, to make fair return to the stock holders, and then have proper admins trative boards or commissions to see that the income is fairly distributed and ap- piled to the several purposes above men tioned, and that it is. not permitted to bs used from year to year to the en- richment of those not entitled thereto in