The Birmingham age-herald., 1916-01-09
Louisville and Nashville Makes Application to Re duce Rates on Coal to Mo- bile Because of River RATE EXPERT CITES
 EXAMPLES TO SHOW
 EFFECTS ON CITY
J. J. Jackson Says Birming- hams Greatest OppOrtu-
 nifty Is to Get Immediate Connection With Warrior

ham district has experienced from the Warrior river has come.
 The Louisville and Nashville railroad has applied to the Alabama public service commission for the privilege of reducing it's rate from Birmingham to Mobile on coal. The reason assigned by the road is l that the river is offering competition in the matter of handling coal from Bir- mingham to Alabama's seaport. ... A statement to this effect was made last night by B. H. Cooper, member of l the Alabama public service commission. All this in spite of the fact that it is admitted that the amount of coal which is going down the Warrior river at the pres- ent time is so small that it is as nothing in proportion to the total coal tonnage handled by the Louisville and Nashville and other lines to the gulf In presenting the request for reduction to the commits sion, the officials of the railroad admit ted that the amount of coal handled on the river was relatively small, but they explained that in so far as the hauling of coal was concerned, the river was ''com- petition and the railroad proposed to meet it now.
 All railroad and industrial men admit that the rate of $1.10 per ton on coal from Birmingham to Mobile by all rail route is not profitable to any great extent, if it even pays at all Yet to meet the river coal rate, the Louisville and Nashville is already asking for reduction on coal to Mobile.
 EVIDENCE OF BENEFITS
 Further evidences of the benefits which will come to Birmingham if adequate ar engagements are made to connect with the river are given in an interview today with J. J. Jackson, commerce attorney who has specialized in freight rates for a number of years. MT. Jackson contends that so far as the railroad situation of Birmingham is concerned, it is practically fixed. Any great improvements in pres ent conditions cannot be expected even if number of new and competitive lines are brought into the city.
 The only chance for a betterment comes from the opportunities of the Warrior. That there are untold opportunities in the river is demonstrated by MT. Jackson, who cites specific cases and rates showing just what the river transportation will mean to Birmingham in dollars and cents In dis cussing the matter MT. Jackson said:
 "The interstate commerce commission has said that distance was an important element in the determining of rates, and in the absence of other influences con- trolling clement Further, the natural advantages of location have often been offset by the serving carriers making the rates in inverse ratio to the natural advantages.
 MUST HAVE NEW PRINCIPLE
 Hereafter the desire of the carriers serving Birmingham to better her rate situation will have to be supported by some principle in rate making that has or will have the approval of the com mission.
 ''The decision handed down by the in terstate commerce commission in 1914, in- terpreting the long and short haul clause of the fourth section of the act to regu- late commerce and the freight tariffs s- sued in compliance herewith which be- came effective January l. 1916, together ef- fectively fix the rate schedule of Birming- ham, and apparently with the sanction of the commission. This sanction of the commission is accentuated by their act
 in everything the petition of the shippers and commercial organizations of the south. protesting against the proposed rates
 'The commission stated they would hear the complaints from aNy localities and that they had not declared as reasonable every rate in the new schedules. How ever, the burden of proof is now on the complainant, whereas in the past the burden of proof has been on the defend- ant carriers
 ''The United States supreme court has recognized the rule that carrier is en- titled to earn a fair return upon the value of that which it employs for the public convenience'
 REMAIN RELATIVELY THE SAME
 Should this city continue with the same ample railroad service or let there be added one or two more representative
 lines, the relative rate situation would not be substantially changed for years to come. When the valuation committee of the interstate commerce commission has made it's report on the valuation of all the physical property of all the car riers concerned or interested in the rate situation at Birmingham, then the rela- tive rate situation may be taken up again Then olny will it be possible to prove what is fair return upon the value of that which the carriers have employed for the public convenience.
 "The city of Birmingham had not reached it's greatest distributing area un- der the old base point system. The new system will certainly decrease this dis tributing area; the general rule in that the aggregate charge should increase with the distance but the rate per ton mile should decrease, will now be most ef- fective in preventing further expansion. '"The rate situation of Birmingham is