The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-06-24
To the Patrons of the Central of
Georgia Railway In Alabama

! harshly upon any particular industry or
community, after an actual test, such
cases will be promptly investigated and
remedied.
The main argument which was made
in favor of the reduction of rates was
that this would stimulate business. The
master found that the increase in our
business durings the period when the re-
duced rates were in effect was only the
normal increase and was not traceable
to the reduced rates. More recently 1t
has been argued that since the reduced
rates were put In effect there has been
a large increase in the business and the
railroads are now able to stand the re-
duction. The fact Is that the growth of
business in the south has been rapid and
almost uninterrupted for more than IL
years, and 1t is only natural that the
gross earnings of the railroads should
have Increased, 1t is likewise true that
during the same period there has been
an increase in the expense of doing the
business, as the result of higher wages
and higher prices for materials and sup
plies that has even exceeded the growth
in business. So far this company Is
concerned there has been no growth in
it's local business In Alabama under the
operation of the reduced rates that was
greater than the growth of It's other bus
mess. Without this normal growth of
the country and the natural increase in
the earnings of the railroads which fol-
low, this company would not have heen
able to sustain itself and 10 supply the
public with the transportation facilities
IL now enjoys.
taken one dollar out of 1t in II years,
no dividends have ever been paid on
any of it's stocks, and no interest has
been paid on any of Its bonds that we
were not compelled to pay. The securi-
ties of the company are not watered. The
resources of the company, after paying
operating expenses, fixed charges and
taxes, have been used altogether for tho
Improvement of the property in the in
terest of the travelling and shipping pub
lie.
The company is now engaged In an ef-
fort to refund It's Indebtedness and raise
money to expend in the further i'm
provement of the property. We cannot
expect the public to invest in new secu-
rites until we have demonstrated our
ability to earn money enough to pay
the interest charges on them.
For many years we have been striig-
Cling with the problem OF rapidly in
creasing operating costs, without any
corresponding advance IN rates, and at
the same time with the insistent de-
mands of the public for more and better
facilities. The best and highest interests
of the public demand an increase in ia
cilities and in safety of operation II
is essential that reasonable rates should
be maintained II these improvements are
to be provided. Unremunerative rates
necessarily make for cheap service Espa-
cially In the passenger service should
the rates be adequate Safety, comfort
and speed are of paramount Importance
and they cannot be attained without q
liberal expenditure of money. No rail-
road can be operated So tisfactorily- to
the public II 1t does not also yield a
reasonable profit to its owners
The density of population along the
lines of the Central of Georgia Railway
company in Alabama is not sufficient to
justify II in operating passenger rates
as low as 21a cents per mile. II is UNI
fair for the public TO expect 1t to do
so, and at the same time demand facili-
ties equal to those enjoyed in more pop
ulous sections of the country.
A scourt of competent Jurisdiction has
established the fact that the rates we
propose to charge are Just and reason
able to the public, and II seems to us
only common justice that acquiescence
should be yielded until the decree of the
court. II it is wrong, is set aside by the
method pointed out by law. Yours very
truly, w. A. WINBURN,
Vice President.
Savannah, Ga, June 20, 1912