The Birmingham age-herald., 1914-01-21

the circuit court for q writ of mandamus
to compel the state auditor and the
Montgomery board of revenue to refund
the money and the lower court decided
the case in favor of the state.
The supreme court held, in an opinion
.'..''s.s.s.'..s.'''....... .......s".............
when it might be exploited for merely
private and selfish ends. The lawyers
used to tell us that a railroad was
a quasi public institution, but today,
happily, it might better be described
as quasi private institution. It is
private still in the opportunity it pre-
sents for the exercise of individual ini-
tiative and competitive service, but in
practically every other sense it is now
recognized that it Is public.
Matter of Regret
1T is matter of sincere regret to
every railroad manager that railroad
securities are not more generally held,
directly and Immediately, in the COM
munities which the railroads serve The
lack of such holding deprives him of
a powerful and sympathetic ally in the
relation of public opinion to his prob
lens The time was when the railroad
stocks We're owned Immediately at
home, and by the people who were most
influential in shaping public opinion,
but today while railroad stocks are
generally held by the same kind of
people-by those who, through the ex-
ercise of prudence, industry and cour-
age have laid by a competence, and by
the Women and children for whom they
worked-such investors now do not as
n class reside in the territories in which
they have made their investments
ITO him who insists that the rail-
roads should be judged by their black
sheep, it is fair in answer to invite at-
tention to many eXemplars of high
minded integrity in the administration
of railroad property. We in the south
can cite shining examples of such recti-
tude. I may be forgiven proud refer
ence to my late chief. William Wilson
Finley whose opportunities were not
less than those of any of the flagrant
individuals to whom allusion has been
made, but who after years of devotion
to a public duty and the practice of a
large private charity, left an estate the
amount of which. as announced in the
public press. is at once certificate of
candid character and an illustration oil
just administration. One who knew
them can add to the same roll of honor
two more executives of railroads In the
south who have recently gone 10 the
grave-Thomas M. Emerson and John
W. Thomas. Jr.
Despite the holding of railroad stock
outside of the territories the railroads
serve, and despite the alterations from
Integrity in the administration of some
particular railroads, / believe that
am not claiming too much when | as.
sert that such has been the development
of the recognition in recens years ot
the public nature and responsibility ol
the administration of the railroads, an6
such have been the practical conse-
in every essential a railroad belongs
to the communities it serves.
In this aspect and in a very rea'
sense the Southern railway belongs t.
the people of the south 1t is not only
their highway to market, but its fisca
operations are part of the life of the
communities along its lines.
Represented in South
What becomes of the great revenues
collected i'm the south? Are they hurried
az ay to some cavern in Wall street? No
The fact is that all the moneys collected
IN the south are deposited in southern
banks which are drawn upon from time
to timc only as funds are needed foi
proper fiscal purposes. The funds of the
system thus become an important factor
in strengthening the banks of the terri.
tory, and SO are at all times at the SER
vice of the southern people
Il have said that these funds are with
drawn from southern banks from time to
time only as needed for proper fiscal pur-
poses, but even in that operation, to g
large extent, the moneys collected foi
transportation service on our lines are
not withdrawn at all from the southern
communities in which they are collected
This can be demonstrated by an analysis
of Southern railway expenditures for the
last fiscal year. Such analysis shows that
OF every dollar disbursed, Al Il cents went
10 the pa yment of wages, substantially al
of which are paid along the line of the
road, and so remain in southern banks
a disbursement which, for the Southern
railway proper, averages about S2,000,00t
month. The purchase of materials and
supplies used % 80 cents. and, under ouI
policy of buying as far as practicable
from southern people, 1912 cents of this
was expended in the south, and only 41s
cents i'm other localities. Miscellaneous
operating expenses required 6.09 cents
all spent in the south. Taxes, all paid
In the south, required 3.65 cents. Interest
rentals and other miscellaneous payment.
accounted for 20S3 cents, and the holders
of the company's preferred stock re-
ceived A. 40 cents. 1t is unfortunately i'm.
practicable to determine the proportion oil
interest and dividends paid to southern
owners of Southern railway securities
wish it was all paid to southern people
but leaving these entirely out of account
1t is seen that at least 70.57 cents out
Of every dollar expended by the South.
ern railway remains in or is brought into
the south. 1t may be added that thes,
figures do not take account of expendi
lures for additions and betterments
amounting last year to s3.500o0o. and in II
wears to S27,000,0o0, of which the major
part expended on roadway and struc-
lures, was practically all paid out along
the line of the road. We may then take
It as established that what the southern
people pay the Southern railway lines foi
transportation remains a part of the
working capital of the southern people
but it is interesting to pursue the thought
step further to realization of whai
these disbursements by the Southern rail
way in the south mean in the life and
growth of the southern people. OF the
total of $76000,00o paid out along the
Southern railway lines last year approxi-
mately s43, GOO went to the army of SO.
600 employees, and thus. on the conven-
tional basis of five to a family. directly
supported about $4,000 southern people,
or about six and one-half times the pop-
ulation of Chattanooga at the date of the
last census.
Real Personal Interest
Il have referred to the impracticability
of determining the amounts of interest
and dividends paid to holders of sectIri-
ties living along the line of the road
We know. however that a large percen-
tage of our population have a verv real
though indirect personal interes II &. q
securities even though they ma ~
have seen railroad bond or sto
cate. There are few families in iF rNf
who do NOT hold on Spc,,ropca