The revenue from freight traffic hauled in the State by all railroads for the year 1907 was $22,935,868.85, derived from handling 2,749, 571,972 tons for one mile, which was an average of .00834 per ton per mile. The freight per ton mile has increased from 1905, 203,478,588 tons and the rate per ton mile increased .00074 per ton which produced a corresponding increase in earnings from freight traffic of $3,586,123.36.

The earnings of all the railroads from other sources than freight and passenger traffic was $2,750,883.98.

While there has been a large increase in the gross revenue during the past two years, the operating expenses seem to have increased in greater ratio. The total operating expenses for 1907 were $28,470,700.59 made up as follows:

Maintenance of Way & Structures--$6,297,080.78 Maintenance of Equipment_.

Conducting Transportation

General Expenses

6,422,942.09

14,759,096.52

991,581.20

leaving a net income from operation of $5,158,611.00 less taxes $988,072.97 paid within the State, leaves a balance as net income of $5,170,538.67 on 1,110.59 per track mile of main line.

The percentage of operating expenses to income as reported by the railroads has increased in two years about 9 per cent. In 1905 they were 73.67; in 1906, 77.68, and 1907, 82.21. By analysis of the reports we find that while there was an increase in 1907 of earnings of 1709 per cent. as compared with 1905, there was an increase of .3037 per cent. in expenses. We find that some of the roads, notably the Southern R. R., has placed the percentage of cost of operating to earnings within Alabama at 20 per cent. greater than the expenses over the whole system, including that part with

in the State. We are sure an actual accounting of the expense would not maintain this percentage and has the effect of placing the cost of operation in Alabama very high.

The lowest percentage of operation to income as shown by any important system is the Western Railway which is .6680 per cent. while the greatest is the Southern Railway, .9631 per cent. The comparative expense of the Southern, however, for their entire system is only .7601 per cent.

The greatest capitalization per mile of road is shown to be the South & North Railroad, a part of the system of the Louisville & Nashville Railroad, which is $79,852.00 per mile.

Respectfully submitted,

CHARLES HENDERSON, President.

W. D. NESBITT,

JNO. G. HARRIS,

Associate Commissioners.

(a) COMPLAINTS-INFORMAL.

Goodall, Brown & Co. vs. Southern Ry. Claim for loss and damage. Claim paid.

Wm. E. W. Yerby, Greensboro, Ala. vs. Southern Ry. Inadequate passenger service, Akron Branch. Adjusted.

Complaint, C. M. Baugh vs. N. C. & St. L. R. R. Rate on cotton from Boaz and Albertsville to Huntsville. Adjusted.

D. I. B. Atkinson, Florala, Ala. vs. L. & N. R. R. Claim for overcharge. Paid.

Chas. J. Silverton vs. L. & N. R. R. Complaint as to passenger depot at Flomaton, Alabama. New passenger station completed; cause for complaint removed.

T. H. Powell vs. Central of Ga. R. R. Rate on lumber, Linwood to Troy. Adjusted.

W. E. Hanchey vs. Central of Ga. R. R. Claim for overcharge on brick. Claim paid.

Prattville Citizens vs. L. & N. R. R. Complaint of passenger service, Prattville Branch. Adjusted.

W. H. Mahan & Son, Randolph, Ala. vs. Southern R. R. Poor freight service. Adjusted

F. F. Johnstone Co. vs. L. & N. R. R. Claim for loss and damage. Claim paid.

Ala. R. R.

McLaughlin-Hoffman Lumber Co. VS. Western of Lumber rates, Tyler, Ala., to Columbus, Adjusted.

Ohio.

Selma Freight Bureau vs. Southern R. R. Rate on brick to Birmingham. Adjusted.

G. M. Bowers, Birmingham, Ala. vs. Southern R. R. Two claims, loss and damage.

Paid.

F. W. Brittin vs. Western of Ala. R. R. Refusal to handle baggage on certain passenger trains for Rome, Ga. Adjusted.

J. M. Weeks vs. St. L. & S. F. R. R. Request for agency at Beaverton, Ala Request complied with.

Dr. J. A. Whaley vs. Central of Ga. R. R. Request to change name of station from Burkitt to Ganer, Ala. Request complied with.

Ad

J. E. Gordon & Bros. vs. L. & N. R. R. Complaint insufficient platform facilities, Deatsville. Ala. justed. New platform built.

J. E. Jones, Safford, Ala. vs. Southern Ry. Claims. Adjusted. Claims paid.

J. M. Clark, Sec. Russellville Commercial Club, Russellville, Ala. vs. Southern R. R.

cilities. Adjusted. Additional lished.

Inadequate mail famail service estab

C. A. Gaston vs. M. & O. R. R. Complaint depot conditions, Coker, Ala. Adjusted.

King Lumber Co., Birmingham, Ala. vs. Southern R. R. Claim, loss and damage. Adjusted. Claim paid.

A. J. Bedsole vs. L. & N. R. R. Loss of shoes from Knoxville, Tenn Adjusted. Shipment located and delivery made.

Wilder & Head, Andalusia, Ala. vs. L. & N. R. R. Claim, loss and damage. Adjusted. Claim paid.

L. P. Coleman, Dallas, Texas, vs. Southern Express Co. Claim, loss and damage. Adjusted. Claim paid.

M. L. Patterson, et. als. vs. Central of Georgia R. R. Petition for depot at Fort Mitchells. Adjusted. Depot built.

Bell Lumber Co. vs. Central of Ga. R. R. Failure to furnish cars. Adjusted.

James Kelso, Jasper Ala. vs. Southern R. R. Claim for loss and damage. Adjusted. Claim paid.

Complaint, A. J .Bedsole, Sellers, Ala. vs. L. & N. R. R. Loss of mail boxes. Adjusted. Boxes recovered and delivery made.

Wilder & Head, Andalusia, Ala. vs. L. & N. R. R. Claim for overcharge. Adjusted. Claim paid.

G. M. Garth vs. Southern R. R. Failure to furnish rates Courtland, Ala. Adjusted.

J. F. Pope, Wilsonville, Ala. vs. Southern R. R. Insufficient passenger service. Adjusted, Southern R. R. putting on two additional passenger trains.