The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1884-02-08

abssains from the exercise Of the power of
control in respect to the same subject mat
ter. The views here expressed it is be-
lieved are abundantly supported by the
authorities, and by q recent decision OF the
United States Supreme Court in .ae c=se of
Ruggles VS.. the People. 1t might be added
here that, whenever by virtue Of any pro-
vision of the charter, or a general law of
the State or Territory granting corporate
powers, the right to repeal, alter or amend
any special charter granted % reserved,
the power and privileges derived from it
are held subject to such power of repeal or
amendment. At the time this charter was
granted to the respondent company, such
reservation existed in the general law. Its
subsequent repeal would not increase
the powers, rights or privileges origi-
nally conferred by sthe charter grant.
The objection urged next as a ground
for the modification of the order and deci-
sion heretofore made is that the decision is
based upon the operating expenses
of the road for q single year, and
that the expenses for that year
were much below the average. The per
centum of operating expenses to earnings
upon the road for the year ended June 30,
1888, was 80 9-10. The average for the year
past was 81 70-100, or $1,000 above the
average for the year ended June 30, 1888.
But dividing the ten years into periods of
five, we find the average for each period as
follows: For the first five years, 81 70-1O0;
for the last five years, 90 40-1OO per cent"
The Commissioners, after a review of the
progress of new roads and theft compare.
tive earnings, further say: "That part
of the territory through which the
respondent company's lines run, which has
heretofore been the least profitable through
which to operate railways, is quite rapidly
filling up with an enterprising and thrifty
population. The business of the road is in.
creasing, and unless new lines shall be
added to the system, whose operation may
be so unremunerative as to impose an ad-
ditional burden upon it, it is reasonable to
expect that other things, equal the ratio of
expenses to earnings, will be diminished
rather than increased in the future. In the
light Of these facts, and in the absence of
any evidence of circumstances and condi-
tions existing, which would tend to show
that the ratio Of expenses to earnings for
the last year is exceptionally low, we think
the ratio for the last year may be regarded
as fair representative average" In an
swer to the plea that the decision proceeded
upon mistake of facts as to the company's
revenues, in this, that it charged to the
company as part Of its revenue the pro-
ceeds derived from the ale of its
land grants, the Commissioners set
forth the facts as showed by
statistics that the company had large
revenue from the sale of its lands over and
above the amount necessary to liquidate
the remaining part of the land grant bonds,
now unprovided for, and it sis not only
fair to presume, but it may be confidently
expected that the earnings per mile Of the
railroad will continue to increase in the
future as they have in the past. The terri
tory through which the road runs is capable
of indefinite development. 1t lis yet but thin
ly settled. The lands along its lines are
being rapidly absorbed by settlers and
others for practical use. With the growth
of settlement the business of the road must
continue to increase. The gross earnings
per mile of the road have grown
from S3,567.55 in 1876 to $S,137.T in
1882; and the net earnings per mile from
81 ,674.6S in 1876 to s., $50 in 1SS2-more than
one hundred per cent. in each case. In the
meantime the average rate of freight has
been reduced 65 3O-100 per cent" From
the general exhibit of earnings by the
road the Commissioners are unable to APP
prehend financial trouble to the respondent
company from the proposed reduction. To
the objection that 'the tariff rates fixed by
said decision are. injurious. to the best in
terest of said respondent company, and
the people of said State, for the reason that
if carried out will practically result in the
confiscation of the auxiliary and leased
lines Of said respondent company and pre-
vent the construction of new lines in the
future through portions of the State where
such new lines ought to be built" the ar
gument was not sufficiently definite and
clear to enable the Commissioners to ap-
prehend the full meaning of this last OBJ
lection. With
respect to the proposition that the
reductions will retard the building of addi-
tional branch lines, the Board said ''this to
a certain extent may be an indirect result.
Railroad companies do not build railroads
from motives of philanthropy, or mainly
for the purpose of promoting public utili-
ties, but solely from motives of gain. They
are moved just as other persons are in
fluenced to establish banks and other finan-
cial business enterprises. The persons
composing railway companies are as selfish,
not more so, nor any less, as the average of
mankind. They have built branch lines in
the past where and when it seemed to them
it would pay to do so; they will
future" While this might leave the
company less surplus earnings to build
branch lines it, could not be presented upon
any grounds of justice to those who pay the
transportation tax or of legitimate bust
ness principles. The Board could find moth
ing in the arguments presented to induce
change of the former decision. The Com
missioners, however, upon further thought
and investigation deemed it Just and
proper to make several notifications in the
distance tariff schedule, as for the
shorter distance the rates fixed were too
high. The following rates were therefore
scribed for corresponding distances and
classes in the former schedule:
ON rIRsT-cLAss.
Cents.
10 miles and over ACKNOWLEDGEMENTS. 10
~ miles ana over 10 -.----.-.-.--.. Il
on sECoND-CLASS.
10 miles and over ACKNOWLEDGEMENTS. IL
Is miles and over 10. ACKNOWLEDGEMENTS. ID
20 miles and over Is. Observation-Disclosures. Is
% miles and over N