The Birmingham age-herald., 1912-04-11
General Counsel of Road Writes Letter to District
 Counsel at Montgomery
JONES CONFERS WITH
 GOVERNOR O'NEAL
Contended Should L. & N. Continue 2K Cent Passenger Fare in Ala bama Would Force Company
 Make Other Changes

Montgomery, April 1o.-(Special.)- tending that should the Louisville and Nashville Railroad company continue tho 21s cents passenger fare in Alabama 1t would force that company to establish the same basis of passenger fares in all the eight other southern states In which if operates south of the Ohio river, and further outlining the position of the road in advancing the passenger fares from 2ls cents to 3 cents per mile, H. l.. Stone. general counsel of the Louisville and Nashville, with headquarters at Louisville, Ky, has written long letter to George W. Jones, district counsel of Montgomery
 The letter was received by MT. Jones this afternoon, while the governor was in conference with the attorney general and members of the railroad commits sion relative to the proposed action of the state in reference to the rate 1n- creases Immediately upon receiving the letter Colonel Jones hurried to the cap- itol had conference with the governor showing to the executive the communica- tion he had from the general counsel
 General Counsel Stone of the Louis- vile and Nashville outlines In his let ter to MT. Jones the attitude taken by his company in restoring the old pas senger fares. He claims that Alabama Is the only state south of the Ohio river in which the passenger fare is less than 8 cents or more per mile, and that to continue the fare of 2h cents would force the road to establish the same basis in the other eight southern states
 Stone Outlines Attitude
 The general counsel of the Louisville and Nashville says in part:
 Some four years ago an agreement was made and entered into with the rail road commission of Tennessee by the Louisville and Nashville Railroad com pany, Illinois Central Railroad company and Nashville, Chattanooga and St. Louis railway, which imposed the necessity on the part of said companies of including in all intrastate Tennessee tickets a claim coupon and an obligation on the part of each of said companies to refund to the holders F cent per mile in the event that the 21s cent rate per mile was maintained by the final decree of the federal court in the suit of this company against the railroad commission of Alabama.
 While that obligation did not impose on this company the duty of redeeming Tennessee coupons (which would be a very heavy burden for those which have accumulated in the last four years) in the event we continued voluntarily the 21h cent fares in Alabama, still, in the lat ter event, it might be contended that there would be moral obligation on this company to name the same basis of pas senger fares in Tennessee, and If we were now, of our own accord, to continue the 2h cent basis in Alabama 1t would in- evitably, and within a very short time result in this company being forced either of our own voltion or otherwise to establish the same basis of passenger fares in Tennessee, Kentucky, Virginia North Carolina, Georgia, Mississippi Florida and Lousana that is to say, in all the other eight states in which this company operates south of the Ohio river, wherein we at present. and have always heretofore, charged, collected and
 
 cents or more per mile
 Our passenger trains are operated in only two other states, namely: Indiana and Illinois. where a statutory rate has prevailed for few years of cents per mile. but the lines affected in those | states are preparing to litigate the suf- ficiency of such rates, in which move inent this company will join.
 50 you will observe that a flat rate of | 2la cents for in ha mi would lead to the installment of a like rate upon all our lines in the other eight | states south of the Ohio river, above mentioned, resulting in an enormous loss | in the annual revenues of this company, | which 1t cannot afford to incur We would have to treat our patrons in all of l said states alike We would have no ex- ouse to refuse to do so should we vol | untarily submit to the o1a cent passenger | rate in Alabama.
 "Furthermore. voluntary continuance of the present statutory rates in Alabama would result in our being forced to use these passenger fares in the construction of interstate rates, which we have not done up to the present time, and would result in q very serious reduction in our | interstate revenues. Likewise, reduc- ton in the basis of passenger fares in the other states named would result in de- | creased revenue on interstate business obtained and effected by these fares. Penny Script Ticket
 | We have on sale in Kentucky Ten nessee, and other states, d penny scriI ticket, representing transportation to the value of S25.00. which is sold to patrcns at the rate of 5000, giving them by the purchase of this ticket, 20 per cent re- duction It is the purpose of our general passenger agent, when the 2 cent basis shall have been restored in Alabama, to have penny scrip coupon accepted in the | payment of transportation within tEai state at face value, which would give to | passengers where the rate is on asis | of 8 cents per mile net rate of 2.4 cents | per mile. Where the one way rate from | competition or other conditions is on a | basis of less than cents per mile, then 1 the penny scrip would net to the pas | senger 8 proportionately less rate than l2.l certs per mile I may say, also, that l this company will probably meet fares oi | oIr competitors between common points and by so doing we will .'eive betwoer | a large number of points within the .;tate of Alabama a rate considerably less than i 8 cents per mile.
 As an example. it would be necessary, between Birmingham and Mobile, which would yield this company only 2.4 cents per mile. A rate of s1 60 between Birming- ham and Anniston would likely be estab- | lished, which would yield this compny | only 1.61 cents per mile Such competi- tion would also make s1.60 the maximum