The Birmingham age-herald., 1924-08-28
SERVICE /. BY RAIL LINES
 BELIEVED NEAR
Elimination Of Unprofit- able Units Is Given
 As Reason

Sharp reduction in freight rates or super railway service is expected to develop from the elimination of unpro- fitable passenger trains and agencies ; in this state, according to members of the Alabama Public Service commis- sion in Birmingham Wednesday. It was suggested that millions of dollars may be saved the shippers by the com mission if the practice of operating only profitable runs and wrecking the unprofitable ones is sustained by the public control bodies.
 The intimations developed at the hearing in the Chamber of Commerce building by the commission of a peti ton by the Louisville and Nashville to discontinue passenger trains on the Praco line. It was stated that the rules of the National Labor board con trolled remuneration and that trainmen on the Praco run working four hours per day were paid on a basis of 300 miles for the work of 70 miles or paid on an eight hour basis with over time after seven and one-half hours. Thus the crew is paid while remaining in Birmingham several hours during they could not be used ip any service and that the compensation went on just the same.
 Commissioner Morgan, after the hearing said the l.. & N. and the South ern were petitioning for the elimina- ton of several runs which are unpro- fitable and the question was naturally suggested, whether only a profitable line was to survive and unprofitable ones taken off, even though a service is rendered the public by the retention of the unprofitable operations. He said the railroads never came before the commission but what they had a mighty good case and invariabIe the commission was inclined to grant the eliminations where the situation was decided as one of the unprofitable ope- rating units of a system. However he said if the campaign to discontinue lines continued, there would be a tre- mendous savings to the railroad.
 Earning Fair Return
 At this time the companies are earning an admittedly fair return on their capital" Mir. Morgan explained. That is what all owners are inter ested in chiefly. This is a result even with the unprofitable members of the entire body. Now if we eliminate the lines or agency which is not profitable. on petition of the lines, then it fol- lows that the commission is assisting the railroads to effect tremendous saving. If that follows, it inevitably followers that after the point of a fair return IS reached, as is now the case. then the surplus saved must be re- turned to the people in lower freight L1tes or m super-railway service in Alabama. No one can escape the con Yiction that wastefulness is inexcus- able and this would appear to be tbe result in some operations. And as has been suggested the railway companies always present most convincing case when they ask for the elimination of agencies or lines. The commission has granted many petititions and we have i, others before us. These may or may not be decided in favor of the lines. If go, then the people of Alabama should have this money returned to them in the way of reduced rates or the service and physical properties of all lines should be 100 per cent.
 Issue An Old One
 This issue has been slowly devel- oping and is unacceptable. This pol icy Is being persued by railroads in all parts of America. If then, the commission Is willing to assist the lines in eliminating unproductive branches, the railroads after reaching their point of profit, return the diff ference to the people,"
 Mir. Morgan, in questioning Capt. Evans of the L. & N, brought out the fact that the railroad labor board schedule of compensation for employees was an inhibition which the commission and the railroad companies were pow erless to correct. It was suggested by both Mir. Morgan and Capt. Evans that the decision of the labor. board were grievOusly faulty in many cases.
 No decision was given in the case here Wednesday. After hearing sev- eral officials of the L. & N. who were questioned by Col. Jones, district at- torney for the L. & N. at Montgom- cry, the commission passed the case for a resumption at Montgomery.
 Citizens of Praco were assured by l.. & N. officers that the freight service would be continued in the event the commission granted it's re- quest for the elimination of the pas Eenger service. Several residents of Praco stated that if the service is taken away it will force the residents of that community to ravel 12 miles to Oak man or use automobiles into Birming- ham. So far as is known the petition is not being resisted by local business or commercial interests.
 
 TEACHER DIES