The Birmingham age-herald., 1921-02-26

Following the refusal of the rail road labor board to take up the mat ter of wage readjustment, which the company declared necessary to pre- vent monthly deficit of $100,000, the Atlanta, Birmingham and Atlantic railroad has been placed in the hands of a receiver.
 It was so ordered by Federal Judge Sibley of Atlanta yesterday. This ac- tion followed petition for a receiver filed by the Birmingham Trust and Savings bank, which alleges that it holds note for sso,ooo, which the road is unable to pay
 B. L. Bugg, president of the road, was appointed receiver.
 Counsel for the company in answer to the petition for a receiver ad- mitted that the road was operating at loss and that with the interstate commerce commission fixing rates and the railroad labor board fixing wages It IS powerless to act under present circumstances; that it is insolvent and unable to meet expenses and that in interest of all parties a receiyership Is desirable, therefore joins in request Of the complainant.
 TO KEEP GOING
 The court orders the receiver to systema tically continue operation of the road. Officers, directors, agents and employees of the road are con- manded by the court to obey all or ders of the receiver and are enjoined from i7 f., IL receiver in the discharge of his duties
 contracts fixed by the road here tofore are not binding on the receiver, according to the courts order.
 Speaking of the receivership and the causes leading to it, B. l.. Bugg, presi- dent and receiver made the following statement yesterday evening, wiring it to V. E. Whitaker, superintendent.
 PRESIDENTS MESSAGE
 The appointment of receiver for the Atlanta, Birmingham and Atlantic Railway company is a logical result of the condition in which the road finds itself, due to the relation between the present level of revenue and the rates Of wages hanging over from the war period and the aftermath.
 While the freight rates have been advanced about 56 per cent and the passenger rates about A per cent, the pay of the employees has been more than doubled. In 1915 the total pay roll amounted to $1,347,S7s. which was 41 per cent of the gross earnings. In 1920 the pay roll amounted to $4,203,- 99S. which was 72 per cent of the gross earnings and more than three times the amount of the-s total pay roll tn 1915
 Prior to January 1, 1918. when the railroads were taken under federal control, the Atlanta, Birmingham and Atlantic railway was earning a suf- icient amount to pay the interest on all its bonded indebtedness, and a small surplus besides. During the pe- nod of federal control, and since, 1t Eas been operating at a deficit. which. since September 1, has amounted to approximately $10o.00o per month, not including any interest.
 This condition of the Atlanta, Bir- mingham and Atlantic railway is due principally to the fixing of wages and working conditions the same on all railroads regardless of their local con ditions, the volume of traffic, or their ability to pay.
 The situation an the railroads of the country as whole is far From satisfactory. In the month of Decem- Der 2S roads. comprising 34 per cent Of the total mileage, failed to earn operating expenses by more than s20.- 000, ,000."
 HOW IT STARTED
 The Atlanta, Birmingham and At lantic railroad operates between Bir- mlngham and the port of Brunswick. Ga. with side line to Atlanta. It serves 100000 citizens of Georgia ana Ayabarna who have no other railroad connection.
 The road grew out of the consoIida- tion of several short lines in Georria in 1905 and 1906. and then was built Into Alabama and Birmingham. It vas completed to Pelham and ran it's trains thence into Birmingham over the Louisville and Nashville in 1903 Tn ls10 the link to Birmingham was completed and it operated entirely on it's own rails.
 The road cost $4e.ooo. 900. In 1909 it vents into the hands of receiver and continued SC until es1s. During the it uniformly made oper- sains expenses and sometimes more. Tn lsle. the road earned a net of $500, 900 ana in 1917 one of $4O0,000. Under leoeral control and since it has been operating at deficit.
 securities of tho Atlanta. Birminr- ham and Atlantic railroad are Iisted as follows: Common stock, s40. .ooo. GOO nrst mortgage ponds, $4,0So 900: in- come mortgage bonds. 34.540.OOO. Ronds pear per cent iAterAst