The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-02-04
DISCRIMINATION THE CAUSE
Railroad Attorneys Argue That
Freight Rates are Not Too High.

Railroad Attorneys argue 4n&t
Freight Rates are Not Too High
If you want to destroy the railroads
of. Kansas; if you want to place the op-
Grafton of the roads in the federal
courts of the state; if you desire to dig
your political graves, then pass this
bill making these great reductions in
freight rates, said 3. p. Waggenner
of the Missouri Pacific to the members
of the house committee on railroads
/ yesterday afternoon
Mr. Waggenner was the first speaker
to address the committee He explain
ed that NJ A Low, general attorney of
| the Rock Island had declined to attend
the hearing having been informed that
the bill which the railroad men were
supposed TO be discussing prior to it's
preparation had been completed and
was ready for introduction in the house
Chairman Brown of the committee
said The subcommittee appointed
by this committee has practically COM
pleted its work but the committee has
not acted. The bill is not completed
We'll I am very glad to hear that
statement from the chairman, although
I had understood that the hearing was
only a matter of form and really would
not benefit US in the least, because the
bill was ready"
In his statement to the committee Mr.
Waggenner said: I understand that
the proposed maximum bill makes a
reduction of about 80 Is per cent. There
is not railroad in Kansas which is
making operating expenses and taxes.
The Missouri Pacific with $500 miles of
line has not made operating expenses
and taxes for five years. Suppose this
legislature should make a law reducing
the rates SO 1-3 per cent when the roads
are losing money all the time and not
earning expenses and taxes. Can you
enforce such a law. Is there any court
in the United States which would sus-
tain such a measure? If such a law
should be passed it would wreck the
companies; drive them out of business
and eventually result in tearing I'D the
tracks of many lines.
The trouble in this country" said
Mr.. Waggener, lis in discrimination.
If the legislature would, in its wisdom.
remedy that then it would solve the
problem What do the farmers of Kan
sas want with local rate. Local bust
ness constitutes perhaps 10 per cent of
the total business A local rate would
not help them. We have no markets
here Farmers must go to St Louis or
other points for markets. a through
demand.
Look at the western part of the
state, where trains run hundreds of
miles without an ounce of freight or a
single passenger. Do you people in
western Kansas want the roads taken
up2 There would be an awful howl
of indigna ton if that should be done
Let the road remain; do not destroy
them; do not compel them to go into
bankruptcy and ruin. Let them live
and bear their burdens OF taxation.
Pass these unreasonable laws and you
will involve the state and railroads in
endless litigation, and law which COM
pels railroad companies to operate at
still greater losses than are now being
experienced will never stand Give US
reasonable legislation and we will abide
by it,
a. A. Hurd, general solicitor for the
Santa Fe in Kansas, made a brief state
statement. He explained that the
ground had been pretty thoroughly COW
cred by Mr.. Waggener. Mr. Hurd said:
7 am preparing a printed statement of
the condition of our company with ref
erence to freight rates, which will be
placed on the desks of the members of
the legislature. The statement will
show that for fifteen years there has
been a general decrease in freight rates
During the past fifteen years the Santa
F'e would have realized over seventeen
millions of dollars in excess of the
amounts received as earnings had we
collected the same rate on freight which
was effective fifteen years ago. The
statement that the condition of the
railroads has been brought about by
bad management is therefore hardly
true. The statement which I will sub
NIT to the members will show beyond
any question the steady decrease of
freight rates during that time. Were
the present conditions applied TO bust
ness fifteen years ago, the Santa Fe
would have declared a dividend of Is
per cent this year. Stock would have
been worth 300. AS it is we have
stock is worth comparatively nothing.
I hope the legislature will refrain from
enacting laws which will drive the rail-
roads out of the state.'
n. H. LOOMS, representing the Union
Pacific, closed the railroad side He
said: This question, it seems to me,
is a simple one-one that requires no
investigation of constitutionaIq questions.
One that requires the exercise of a lit
tie common horse sense. If you want
to bankrupt the railroads, If you want
to destroy their business, pass this pro-
posed bill making these heavy reduc-
lions. If you do not desire to destroy
their business, then you must concede
to them the right to earn a fair rate of
interest upon the investment. Now,
what would be a fair rate? Every man
on this committee, every farmer in
Kansas, comedies that 6 per cent would
be a fair rate. Then, if the companies
are permitted to live, they must be per-
mitted to earn operating expenses and
taxes. There is no argument in an
swer to this. If you want to drive
the railroads out of the state, pass this
proposed legislation, which assure you
will accomplish that purpose
WANT ANOTHER STATE. OFFICE