The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1883-11-02
THE BELOIT CASE AGAIN.

THE BELOIT CASE AGAIN.
Text or the Decision Of the Railroad
Commissioners Upon Application OF
the Missouri Pacific Railroad for .
Re-opening OF the Case.
The Board of Railroad Commissioners
met on the 18th and heard the arguments
offered by counsel of the Missouri Pacific
Railroad for re-opening of the Beloit case
wherein the respondent company filed on
the 18th day Of October, 1888, petition for
q re-hearing of this case, with view to q
modification 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
oased upon the earnings and expenses of the
company for the six months, ended June 30,
1888, and assuming that the earnings
and expenses for the coming year-the
period during which the rates would oper-
ate-would, under the old rates, remain the
same. 1t is shown that the gross earnings
for the six months ended June 30, 1888,
were Sill 1880. 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 $1,422, 636.5S.
That the reduction in rates would reduce
this sum to 81 ,905, 1912. That the total ex-
pense of the company would be $963, 917.44,
leaving a surplus of earnings over ex-
penses of $241 ,S21.9S. This leaves the fol-
lowing liabilities of the company to be pro-
vided for, viz:
Annual interest on bonded debt. =. SAG, 900
Five per cent. on net earnings to
United States Government (esti-
Total. .s434 .O6s.35
Leaving deficiency .sla2, s4s.37
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,
was So 1910 per cent. We have the earn.
ings reported for July, August and Septem-
Der, 1888, and the expenses for July and
August, and the ratio of expense to earn
ings is 40 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 S9G3,9l7.4 as
claimed in the petition, to $S54, 613.51. 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
upOh liciSus uo "iSO
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, 1888, and the
expenses for the first eight months of 1888,
and we think that the financial statement
for the year (hree months estimated) may
be approximated in this statement as fol-
lows:
Earnings for first six months Of
1883 (as reported. ... s Tn,31S.29
Earnings for July, August and