The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-11-01
FIGHT ON RAILROADS
OF GRAVE CONCERN
TO BUSINESS MAN
CONTINUED from Page FivcD

~ AZ ~ kJ41t HkJo 4'AxAA
tCOntinued from Page Five
-
merce commission asking for general in
crease of 5 per cent In freight rates. While
some opposition has been manifested,
there has been so far no pronounced re-
sistance by important shippers. On the
other hand, many of them have recog-
nized the Justice of the request and have
so notified the commission.
I'm the south, however. and in Alabama
particularly, there does not yet appear
to be any disposition on the part of the
general public to look at more than one
side of the question. and yet there seems
to be ground for the contention that the
pubic is as much concerned on one side
as the other.
The Louisville and Nashville
Just now there is In Alabama deter
mined effort to compel the Louisville and
Nashville railroad to reduce it's rates.
About is months ago, when this railroad
had won its litigation for the maintenance
of rates then existing, 1t began the ex-
penditure of large sums of money In dou-
bic tracking it's line between Birmingham
and Nashville, and In augmenting and
lettering it's facilities. These improve
illtHlS lllNblNeu ali OutidJ Vi dDodt %i-fV'"f
90, of which nearly one-half was ex-
pended In Alabama. AT the same time
preliminary surveys were made and plans
we're formulated for a new double track
road from this district through OF near
Selma to Mobile. This road would have
reduced the distance from Birmingham
to Mobile and Pensacola about 45 miles
and the plans provided that the maxi
mum grade should be three-tenths of
nh yro11ld have than
doubled the capacity of each train. This
'ow grade short line would have been OF
incaculable value to this district and 10
the state.
I'VE understand, however. that officers
If the road have announced that the re-
newal of litigation has made it impossible
for the company to float the bonds neces-
sary to build this road, and that the
project has been laid aside indefinitely
Had the plans been carried out as antici-
pated, an order for several hundred thou
sand tons of rails would have resulted,
as well as large orders for lumber. cross
ties and other material. Labor along the
line would have been In active demand.
and the Industrial outlook would have
been far brighter than 1t is today. We
are inclined TO agree with those who hold
that railroad, like any other corpora
ton or like an individual in business, is
entitled to earn a fair return for its in
vestment, and that the proper subject for
regulation is not so much the actual rate
charged per ton of freight or per passen
ger mile. but the Improvement of service
and avoidance of unfair discrimination.
As rule, freight reductions do not BEN
eft the consumer, being generally abb
sorbed by the middleman. Statistics show
that the average length of an intrastate
railroad journey in Alabama is 26 miles,
so that saving of y cent a mile is a
comparatively small matter to each indi-
vidual passenger while the aggregate to
a railroad system is large item, suffi-
cient in the case of the Louisville and
Nashville railroad to materially assist in
paying the interest on the amount of
bonds necessary to have built the pro-
posed line from Birmingham to Mobile.
Pertinent Observations
1--WE do not recall that since the new
freight and passenger rates were put into
effect some years ago on the Southern
railway and other lines in this state that
these roads have made in Alabama any
important extensions. The Illinois Cen
trail, which was supposed to have plans
for building from Haleyville to Birming-
ham. is still running its trains over the
tracks of two other lines With the ex-
ception of the Louisville and Nashville
railroad, the Atlanta, Birmingham and At
ldntlc TdliTOdu, WHICH has DceU III the
hands of a receiver since the time of it's
completion. has been the only line to en-
gage in any new and important construc-
tons work in Alabama. 1t seems to us
that it would be well In contemplating
the possibility of duh times. for the public
to study carefully its real interests.
The Birmingham District
1.-THE prosperity of the Birmingham dis
trict depends in a large measure and
that of the rest of the state in only
slightly smaller degree, upon steady and
successful operation of our great indus
tries engaged in milling, mining and man
ufacturing. To successfully carry on the
iron and steel business, large combina-
tons of capital are necessary, and when
our largest industrial corporation on the
one hand is prevented from diversifying
it's product. and our great transportation
lines on the other are forced to the Sc
verest economies and are compelled to
abandon new construction work, it would
seem that change In our policy toward
such enterprises should be made. Rea-
sonable and proper regulation is desirable,
but the public must not forget that mere
reduction in rates is not wise regulation
unless the carrier Is left with fair re-
turn on it's entire investment. Indiscrim-
mate abuse of railroads and other corpor-
atoms leads to agitation and unrest which
finally unsettles all kinds of business.
THE country is fundamentally prosper
Gus and business big and little eagerly
awaits an opportunity to expand and the
sentiment of the business world today
may be epitomized in the language of the
great soldier to whom the immortal Lee
surrendered after four years of bloody
conflict. Let us have peace
FIRST NATIONAL BANK OF BIR-
MINGHAM."