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

 business of which the court further re- marks:
 So far as it is given to us to look
 into the future, it seems as certain as
 anything of such nature can be, that
 the demand for gas will increase, and,
 at the reduced price, increase to a con
 siderable extent. An interest in such
 business is as near a safe and se-
 cure investment as can be imagined
 wit regard to any private manufac-
 turing business
 That the business of railroads in Ala bama, which must not only increase thell facilities as the just wants of the publii demand and meet existing competition but face also the contingency of tn. building of new roads which will invade their territory and traffic, and encounter the loss of revenue at uncertain periods from poor crops, or diminished production or movement of manufactures in de. pressed conditions of trade, the prevalence oi epidemics and the Interruption of busi- ness and losses from strikes, floods, and the like, is much more hazardous and uncertain business than that of the Gas company, which the supreme court allowed d return of per cent, is obvious. The legal rate of interest in Alabama is per cent. The Wilcox case is q controlling authority, to say nothing of numerous cases in the state and lower federsl courts, to the effect that under the con dlt;ons attending the business of railroads here that any schedule of rates fixed hy law, which will not permit the carrier where it's charges are just and reasonable in themselves, to earn a return of at least 8 Fer cent per annum upon the value of 1 the property devoted to the service, is conf1scatory.
 PROPER MODE OF AscERTAINING VALUE.
 The factors which must be considered in valuing railroad are carefully stated | ID Smyth vs. Ames, 169 U. s. 466 The value l Of property, unless 1t be of a kind which 1 IS frequently bought and sold and there 1 fore has q market value, must always ta large extent be matter of opinion ], The controlling considerations are gener- ally the use to which the property Is ol | can be put, and the amount for whicl | the property will sell for these purposes or the profit which can be made from its use. Property with us is seldom taxed at it's full value, and it's assessed valua- tion for taxation may be an important although not by any means, controlling, consideration. The price paid for the property at the time the owner acquired it is conditions are similar at the time Of the inquiry, may also be of weight. A fundamental, and generally controlling,
 
 the property in it's existing condition at lhe time of the inquiry.
 In the several rate cases heretofore de- cided by this court (not yet officially re- ported) the court held:
 "The original cost of a railroad may
 in some instances reflect light on, or
 even determine, the present value, as
 when it Is of very recent construction.
 But ordinarily it is of little assistance
 tt hot md eli mo nf
 value may be donations by the gov
 ernment of individuals. 2 or the
 road may have been built long before
 tho period of inquiry at greatly less
 or greatly higher prices than those prevailing at the time of the inquiry or it's original cost might be involved l in obscurity and may include the cost of abandoned or destroyed portions oi the property, which should not figure in the inventory for the present time, or the road may have been bought at q forced sale in times of
 panic at a nominal price or m in-
 hated times at a corresponding price;
 or the road costing little originally,
 may have developed from many causes
 into being property of great value.
 And in every case, after finding the
 original cost, wlan possible to be done.
 tho question would still have to be
 solved as to whether such original
 cost is the same as the present value,
 which would involve the determina-
 ton of the present value for such com
 parison independent of the original
 cost, and in no other or better way
 than on reproduction values"
 In q report made by the Railroad Se- cIrities Commission to the President il Is declared:
 "A fundamental, though not neces-
 sarily a controlling. element in value,
 IS cost of reproduction This is true
 of property in general-it has been
 specifically affirmed of railroad prep
 erty by the Supreme Court of the
 United States. Eminent railroad men
 who have appeared before this com
 mission have stated that in their opinion cost of reproduction or physi-
 cal value was the most important sin
 gle element in determining the truo
 value of railroad as a whole"
 VALUE OF ENTIRE PROPERTY USED BY WESTERN RAILWAY OF ALA BAMA.
 The Western Railway of Alabama was organized in 1883 by the Central Railway and Banking company of Geor- gia and the Georgia Railroad and Bank ing company, which purchased the prop erty of the old Western Railroad of Alabama and conveyed it to the Vest ern railway, for three thousand shares of the capital stock of the par value of S100 per share, and the assumption of certain bonds due by the old Western Railroad of Alabama. At the time of the purchase the Western railroad own ed not only the line of railroad from West Point, Ga to Selma, Ala, but also what was known as the Columbus branch running from Opelika. Ala. to Columbus. Ga. The railway company subsequently, sold this branch road to the Columbus and Western railway, which under the terms of the sale paid a part of the contract price in cash and assumed certain of the outstand- ling bonds. The capitalization of the Western Railway of Alabama. for many years past, has been s3,000.000 of stock and sl l,543,000 of bonds which bear F per cent interest annually. Including about 300 feet of road in Georgia, which is properly treated as part of t.e Alabama properties, the Western Rail- way of Alabama operates railroad | from West Point. Ga, through Mont gomery. Ala, to Selma. Ala. distance of 130.20 miles. With the exception of Opelika there are no towns of any size between West Point and Mont gomery. or between Montgomery and Selma, and at each of these points it has competition in it's interstate busi- ness which constitutes the greater part of it's commerce. The lines of the Western of Alabama railway are of an average age of 50 years and over, and the original cost of its construction is involved in obscurity. What 1t cost the present owners is shown by the pricu paid by them for it. Prior to 1907, Improvements and betterments were charged to operating expenses and we have no separate record of ls