The Birmingham age-herald., 1912-05-28

fo Columbia Ala. 1.I0. The total mie age of the lines operated under lease in Alabama Is 104.39 miles, which sNitf the owned lines makes the total mile age of the Central of Georgia Raffwa company in Alabama, 574.77 miles and a total as we have seen of 1,915.Ss mileage in Georgia and Alabama. The proof shows that the affairs or the coupanv have been economically and prudently managed.
 The history of the several lines Tn Alabama. as shown by the evidence amply justifies the master statenien that most of these lines Of road, by reasons of foreclosures, and mergers had rather a precarious existence be fore their absorption by the Central and that none of them, with the eXcep ton of the Columbus Birmingham line can be considered as having peei very profitable or successful
 COMPARISON BETWEEN ALABAMhN
 AND GEORGIA PART OF SYSTEM
 It was shown that as compared with the remainder of the system operated m Georgia, these Alabama lines have noq contributed to the general revenues. freight or passenger. or to the volume OF business, as reflected in tonnage or pas senger. in like proportion to the lines op- erated in Georgia. The proof shows that for the twelve months ending June 3o- 1910. the intrastate freight revenue in Georgia was about six times greater rhan the intrastate freight revenue in Alabama and that the interstate freight revenue in Georgia was about three times that rof Alabama. The total transportation reve-| nue, Georgia intrastate was between fiveI and six times that of Alabama. The num- Der of tons Of freight Georgia intrastate} freight was between four and five times| that of Alabama The ton mileage reve-| nue freight, Georgia intrastate. was some-| thing more than eight times that of Ala bama. The number of revenue passengers Georgia intrastate was nearly twiceI greater than in Alabama. and so was theI number Of revenue passengers Georgia in-' terstate The revenue passengers one mile. Georgia intrastate, was between four andI five times greater than in Alabama. Incl revenue passengers one mile, Georgia in-I terstate. was nearly twice greaterI thar in Alabama. The ton mieI revenue freight Georgia intrastate was| something more than eight times greaterI than in Alabama. It appears. too, that "aI very large part, if not the bulk of theI Centrals freight business in Alabama isl of lower class according to freightI classifications than 1t is in Georgia METHOD OF EXPERIMENTING PARrI OF PROPERTY DEVOTED TO INTRA-I
 STATE BUSINESS IN ALABAMA.
 As the Central operates it's railroadsI both in Alabama and Georgia, 1t Is neces-| sary. in solving the question whether theI Alabama rates complained of are conffs-| catory to ascertain what part of the rev-I enue of the entire system is earned in| Alabama, from both it's Inter and intra- state commerce in Alabama; then. on the| basis of the revenue earned in Alabama| or both businesses, to determine whatl proportion of it's entire property in Ala-| bama is devoted respectively to itsl Inter and intrastate commerce inl Alabama and that found to de-l te-mine whether the net income from in-l trastate commerce in Alabama, allowedl by the statutes, permits the railroad to| earn just compensation on the value oil that proportion of it's property in Ala bama devoted to domestic. commerce.
 The data by which these questions canl be satisfactorily answered are found in the proof before the master, and thel manner in which the Central kept the ac- counts of the system. The proof shows that revenues of the Central system earn ed wholly in Alabama, as from intra- state passenger and freight traffic, switching storage and car service in Ala bama were credited to that state. Reve- nua from interstate traffic earned wholly in Alabama was also credited to this state, and where the revenue was derived from the service of the company in two states, 1t was divided between the states
 
 on what Is known as mileage pro rates. Revenue from express business was di vided in the same way. Revenue from| mail routes was divided on the mileage1 of each particular route in each state. Revenue from freight and passenger. car ried from one point in Alabama to an- other point in the state, was shown by the way-bills. ticket sales and conductors reports, etc. Freight and, passenger busi- ness done in Alabama of ,an interstate character where the terminal was situ- ated in Alabama, was also. easily ascer- taired. For illustrations: Tn shipment of freight originating in another state and destined to a point on the Central in Ala bama, the entire service of the Central In such shipment is performed in Ala bama, and the revenue was easily ascer- tained by the way-bils, expense bills, etc. Where a charge could not be allocated, for instance, the cost of superntendenco common to both states, the expense was charged to the business in the different states, in proportion 10 the mileage over which the superintendence was exercised. Repairs of steam locomotives were divided between the states on the basis of the mileage made in each state the previous month, except engine repairs for each locomotive are divided on the basis of mileage made by that locomotive in each state since the last general repairs on
 
 arc merely cited for illustration, the classification being very voluminous and covering every separate expense.
 To make proper distribution of operat- ing expenses between inter and intrastate business, it was first necessary to make the distribution between freight and pas- senger business and it's respective allied, or derivative, business. While it is generally recognized. that no exact distribution of operating expenses between freight and passenger can be affected, still the Central kept this expense separate, currently with the rendition of the service, in it's &C., counts and the master adopted the proper method in arriving at the distribution, being the method recommended by the interstate commerce commission. After this division of operating expenses was made. the master made the division of operating expenses between inter and in- trastate commerce. on the basis of what has heretofore been explained as a load" on the intrastate business as compared with all business to ascertain the net income, from the intrastate business
 COST OF REPRODUCTION.
 The cost of reproduction of Centrars lines of railway in Alabama, in their existing condition, being one of the fun damental elements in ascertaining their true value. the same careful method of employed as in the Western Railway case, set forth in former part of this opinion. After taking vouminous testimony on the subject. the master found on all the evi- dence that the value of the property used by the Central of Georgia Railway company in all it's business. state and interstate, In Alabama including the