The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1883-11-01
THE BELOIT CASE AGAIN.

THE BELOIT CASE AGAIN.
Commissioner Upon Application Of
the Missouri Pacific Railroad for a
Re-oPentng 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
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 1872, 246.37. This estimate is
based 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
&c CHI hat ha
for the six months ended June 80, 1883,
were Sill $500. 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 Az, $685.
That the reduction in rates would reduce
this sum to 81 ,2O5, 1912. That the total ex-
pense of the company would be 63,917.44,
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 Oh bonded debt. -. SAG, 1000
Five per cent on net earnings to
United States Government (esti-
matedJ. ........................ 17,24S.35
Total. .s434 ,O6s.35
Leaving deficiency of. S192, 2246.3
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 62-100 per cent. This the
Board cannot consider fair estimate for
the year. The percentage of expenses to
earnings for the year ended June 90, 1888,
was Sc 45-10O 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 1900 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 1865, 917.4 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 a freight traffic in no wise |
greater or more valuable than that which |
the road has had the past year. The earn |
lngs 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 |
ended September 30, 1883, and the /
expenses for the first eight months of 1888, |
and we think that the financial statement |
for the year (three months estimated) may |
be appropriated in this statement as fol- |
lows:
Earnings for first six months of
1883, las reported. ............ q 7I,318.29 |
Earnings for July, August and
September las reported). 3S3, 464O0 |
Earnings for October, November
and December estimate on
basis of last three months)..... 6S3, 44 90 |
Total earnings for 1888. .......... sl,47s,sOses
Operating and other ex-
penses for the first six
months of 1888. ....... S43S.570.
Operating and other eX-
penses for July, Au-
gust and September. 1854 25T
Operating and other ex-
penses for Ootob'r, No
vember and Decembr,
ESTIMATED on basis Of
last three MONTHS. 164,257
Total expenses for year T67,0S4
Net earnings for year. 5 I'll, % |
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....$ 5000
Annual LIABILITIES claim'd
by respondent. 434,06S
Total reduction 4'o,Oss.OO
Surplus after meeting all liabili-
ties for 1883. 5 241, 154.29 |
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 1881. .......... 976,T91.21 |
Gross earnings for 1882 ......... 1,014044.77 |
Gross earnings;for 1859 months) 1,094, SI2.0O |
Total Gross earnings for the year
1888, including October, Novem-
Der and December, estimated at
earnings of July, August and