The Wichita daily eagle., 1894-01-16


copy, which is as follows:
Topeka, Kans., Jan. Is, 1904.
CASE NO. 1851.
City of Wichita,
Complainant,
VS..
| Missouri Pacific
Railway Company,
AtchisOn, Topeka Rates on Coal.
& Santa Fe Rail-
way Company, st.
Louis & San Fran
! cisco Railway Com
pany
Respondents
This is case brought by the mayor and
council of the city of Wichita against the
Missouri Pacific Railway company, the
Atchison, Topeka & Santa Fs Railway
company. and the St. Louis g. San Fran
| cisco Railway company, in which com
plant is made that the rates for freight
charged by the above named companies
for the transportation of coal from points
of shipment in Cherokee county, Craw-
ford county. Usage county and Leaven-
worth county, Kansas, to the city of
Wichita, Kansas, are excessive, unjust
and unreasonable.
By mutual agreement between the at
torneys for both sides, three different
argument in this case. The arguments
were exhaustive and the evidence
voluminous. The law requires
that, upon certain conditions, the
commissioners shall "decide what is a
reasonable charge for such rates." The
question as to what is reasonable rate Is
one that is sometimes difficult to answer
with any degree of exactness. The at
tempt on the part of the commissioners to
reach a in at concluSIOn in thIs matter has
delayed the decision longer than perhaps
it should have been delayed. 1t has Occu-
pied a great deal of their careful thought
and research and has no doubt been a
matter of much greater concern to them
than it has been to the parties directly
interested. The consideration of the
numerous questions involved in determin-
ing what are reasonable rates has neceSsa-
rily occupied much time.
The evidence shows that about $4,000
tons of coal are annually consumed In
Wichita and that the great bulk of this
coat is shipped from Cherokee and Craw-
ford counties and points in that vicinity.
The average distance is about 200 miles,
amp the rate Sl00 per ton; or about eight
(S) mills per ton per mile.
On the other hand, the distance from
Frontenac to Argentine is $50 miles and
the rate is eighty (S0) cents, or about five
and two-tenths Is 2-1W mills per ton per
mile. This is an extreme case, but the
evidence shows other instances OF Il like
nature. In each instance where such eX-
tremely low rates are made, it appears TO
be the result of competition between roads,
and the towns deriving the benefits are
fortunately located. The roads making
the low rate haul coal long distance in
competition with coal hauled a short dis
tance over some other road. In other
words. they must haul it at this price. or
not haul it at ali. In this connection we
call attention to an extremely low rate on
81 Pacific railroad from Eldon, Iowa, to
Wichita. The distance is AS miles and
the rate is s., 10, or 4.69 mills per ton per
mile. This is said to be, and probably is,
less than actual cost. Other similar instan-
ces might De cited. Respondent companies
claim that under such circumstances,
rather than do no business at all they eau
better afford to make a rate which, under
ordinary circumstances, would be much
lower than a reasonable rate, with the
hope of thereby increasing their traffic in
other lines of freight. The further claim
that it would be al injustice to require
them to base all rates on rate which is un
reasonably low. This point is practically
conceded pythe attorneys for complainant,
by not asking for rate per ton per mile
as low AS these favored points now have.
would be illogical to assume that because
railroad corporation performs services
for a certain town at a given rate, IL
should perform like service for every
other town in the state for the same COM
pensatioD, when the surrounding condi-
tions might be entirely different. For in-
stance, the volume Of business, the length
of haul, the number of empty cars hauled
one way, and various other things are to
ha
that when all the surrounding conditions
are practically the same there should be
no difference between the prices charged.
Attorneys for the respondent companies
indicate that reduction In rates to
Wichita would benefit that city alone,
and thus be discrimination against other
This does not necessarily
follow. as other towns similarly located,
with similar surrounding conditions,
would be entitled to the same rates. It
has also been said that any reduction III
the coal rate would result to the advan-
tace Of the retail dealer in Wichita, and
that tie consumer of coal would not re-
ceive the benefit. This proposition pre-
supposes a combination of coal dealers in
Wichita for the purpose OF holding the
price OF coal at fixed rate regardless OF
cost 10 the dealer. Such combination
might be entered into By the coal dealers
under the present freight rates. aud is
matter for the citizens OF Wichita to settle
among themselves: 1t IS not proposition
for this board to consider, and has no
bearing on the case before IL. 1t is fair 10
assume. however, that the cost of coal to
the consumer will depend upon its cost TO
the retail dealer.
In their annual report to this board for
the year ending June 80. lo92, the esti
mated cost OF carrying one ton OF freight
one mile is given by the Union Pacific
company at 5s mills; by the
Atchisou, Topeka and Santa Fe Railroad
company at 66S mills; by the Chicago.
Rock Island and Pacific Railroad CON-
pany al T. 20 mills; by the Missouri Pacific
Railroad company AZ 8 81 mills. By tue ST.
I.ouis and Sau Francisco Railroad com
pany at 6, mills, aud by the Missouri, /
X Kansas and Texas Railroad company 1T /
Is mills. On the hearing before the |
board enc witness testified that this cost |
did not include items CT luteress and taxes |
The average cost Tor the year ending !
June 81 1895, Is not given by ali the roads !
IN their last report. Those reporting /
show small increase in cost over the |
previous year. According to the esti- I
mates OF these six roads. the average Cos. 4
'or carrying one ton of freight one mile Is
" mills, This Is evidently supposed TO +,
oe tne cost OF Carrying all Glasses OF |
reight, both high and low. The trauspor-
alton Of all higher classes OF freight. such, !
or instance, a. agricultural implements,
urniiGre and numerous ether /