Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1883-11-02
THE BELOIT CASE AGAIN.

The BELOIT CASE AGAIN.
Text OF the Decision or rhe Railroad
commissioner Upon Application or
VIC MAssoun Pacific Railroad for q
ReoPcnfng OF the Case.
The Board Of Railroad C. mmissioners
met on the 10th and Heard the arguments
offered by counsel of the Missouri Pacific
Railroad for a re-opening of the Beioit case
wherein the respondent company fled on
the 18th day of October, 1888, a petition for
a re-hearing of this case, with view to a
modlncatlon or reversal of the decision
heretofore made by the Board, by which
the rates charged over the respondents
railway for the transportation of freight to
and from Beloit were found to be too high,
and deciding that certain rates specified in
said decision were, in the judgment of the
Commissioners, reasonable for such SER
vices. After hearing argument the Board
decided: The showing made in the petition
seemed to the Commissioners to justify
full and careful review Of the case, and the
making OF such notifications in the former
order OF the Board, as should appear to be
just. The showing made in the petition
exhibits deficiency for the year, based on
the estimates of earnings and expenses of
the railway, upon the rates fixed by the
Board of S192,246.37. This estimate is
based upon the earnings and expenses of the
company for the six months, ended June 80,
1888, and assuming that the earnings
and expenses for the coming year-the
period during which the rates would oper-
Qfa-vvOrld dav-f ha old
same. 1t is shown that the gross earnings
for the six months ended June 80, 1888,
were SILL ,3lS.20. That the expenses for the
corresponding period were $4S1 ,95S.72. 1t
is assumed that the earnings and expenses
for the year would be in that proportion, or
gross earning for the year 81 ,422 ,636.5s.
That the reduction in rates would reduce
this sum to 81 POS, 40. That the total ex-
pense Of the company would be 1868, 917.44,
leaving a surplus of earnings over ex-
penses of $241 ,S2l.9S. This leaves the fol.
lowing liabilities of the company to be pro.
vided for, viz:
Annual interest on bonded debt 49, $416 5000
Five per cent. on net earnings to
United States Government (esti-
IndteOD..- ........................... 17,24S.35
Total. .$434, Oss.S5
Leaving deficiency of. $l92 1867
The first question that presents itself is
Is the above showing open to criticism: 1t
is to be observed that the ratio of expenses
to earnings in the above estimate is very
large, being 81 62-1OO per cent. This the
Board cannot consider fair estimate for
the year. The percentage of expenses to
earnings for the year ended June so, 1888,
% A XII Al.
lngs reported for July, August and Septem-
Der, 1888, and the expenses for July and
August, and the ratio of expense to earn
ings is As 1S-100 per cent. 1t is fair to pre-
sumo that the percentage of expenses for
the present will not exceed that of last
year, which would reduce the estimate of
expenses for the year from S963,9l7.A as
claimed in the petition, to 1854, 673.51. But
the reductions in tariff operate on future
business, and while the volume of past bus
mess must be looked to in fixing rates,
where it is shown that the volume of tariff
Is steadily and rapidly increasing, it seems
to us proper to consider that fact also. The
argument of the petitioner is founded upon
the assumption that the reduced rates will
operate upon freight traffic in no wise
greater or more valuable than that which
the road has had the past year. The earn
ings of the present year would be but
slightly affected by the changed rates. As
we have already stated, we have the reports
of the earnings of the road for the nine
months ended September 30, 1885, and the
expenses for the first eight months of 1883,
and we think that the financial statement
for the year (three months estimated) NAV
be approximated in this statement as fol-
lows:
Earnings for first six months of
1888, las reported. ............ 7l1,31S.29
Earnings for July, August and
September las reported). 3,464.OO
Earnings for October, November
and December estimate on
basis of last three months).... SS3 494.O 90
Total earnings for 1883. .......... s1,47s 5000
Operating and other eX-
penses for the first six
months of 1883. ..... S43S5
Operating and other eX-
penses for July, Au-
gust and September. 1G4,25s
Operating and other eX-
penses for Octob'rNo-
vember and Decemb'r,
ESTIMATED on basis of
last three mOnthS). 164.211
Total expenses for year T67,OS4
Net earnings for year.......... 3 III, I'D %
Reduction claimed by
railway company I'M
der rates fixed byCom-
missioners of 20 per
cent. estimated on
freight earning only,
for month of Novem-
Der and December....S 5000
Annual LIABILITIES clam'd
by respondent........ 434068
Total reduction. 41006s.00
Surplus after meeting all liabili-
ties for 1883. ACKNOWLEDGEMENTS. : PAL %
The increase of business on the Central
Branch Railway during the last two years and
nine months is shown in the following state
ment:
Gross earnings for 1891 g76,791.21
Gross earnings for 1852. ......... 1.0l4044.77
Gross earnings for 1850 monthsl 1,094, LOO
Total Gross earnings for the year
1883, including October, Novem-
Der and December, estimated at
earnings of July, August and
september Observation-Disclosures. 1,416,3O6.VO
over 1881. ..........e... -. 37,s53,5s
Increase of earnings for entire
year of 1888 over 1882. 464, 26l. %
| Operating and other expenses
for 1881 ACKNOWLEDGEMENTS. 64S,2i4.6
o. 1ees W A s-1 -Ie 10