The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-01-30
GIVE THEIR SIDE.
The Kansas Railroads Before
the Senate Committee
Claim No Satisfactory Rate Bill
Can Be Made.
CAN NOT BE ENFORCED,
And That No Lower Court Will
Enforce Lower Rates.
The Arguments Made by the
Attorneys.

this morning heard the representatives
of the Kansas lines on the question of
the passage of a maximum freight law.
The Santa F'e was represented by Mr..
A A Hurd, the Rock Island by Mr.. NJ.
A. Low, the Missouri acific by Mr.. B. P.
Waggener, the Union Pacific by N. H.
Loomis and Mr.. R. w. Blair. the FRS
co by Mr.. ]. W. Gleed and the Wichita
q Western by Mr. Fred Bentley
me hearing consumed several hours,
and the principal points brought out
by the railway attorneys were the fol-
lowing:
That the railroad lines of Kansas are
at the present time earning only suf-
hcient to poy the operating expenses
maintenance and taxes
That if further reduction was made
IN the rates now charged, it would
mean great reduction in the service
or the lines, and the consequent dis
charge OF hundreds of employees.
That Kansas is not interested in To-
cal rates, but in through rates, for the
reason that Kansas products have no
market in this state, but must seek
market in other parts of the country.
That such law would actually force
a great number of branch lines in the
state out of existence.
That under the present schedule of
rates the Kansas farmers have an ad-
vantage in getting their products to
the market of this country over the
farmers of states where maximum
freight laws are now in force and that
III consequence there IS absolutely
necessity for such a law
That ignorance among the people of
the state as to the real condition of
things is responsible for the belief in
the practice of extOrtiOn in the matter
of rates by railroad companies
General Attorney Low of the Rock
Island was the first speaker before the
committee. He said:
What can you possibly gain by in
Producing a system which will hurt the
railroads and in consequence hurt
yourselves? I believe the people of
this state want to treat the railroads
fair and yet have their rights but they
really don't know what their rights are
don believe there is a man in this
state or in the United States, no matter
how learned he may be on traffic mat
tiers, that could fix a maximum freight
rate for this state that would be sat
isfactory for even one week Why
should legislature, or a board of rail-
road commissioners, attempt to do this
when they both confessedly know but
little about such matter?''
Mr.. B. p. Waggener followed Mr.
Low. Part of his argument was:
Il don't believe the people of this
state are aware of the depressed con-
o1tion of railroad property. Mr.. Love-
former member of the board of rail-
road commissioners of this state tells
me that according to actual figures
there is not a railroad line in Kansas
that is at present earning more than
the actual operating expenses, main
tenance and taxes. Assuming that
this is correct. and it can be proven by
the report of those commissioners, and
you pass a maximum freight law do
you think any court in the land will
sustain that law?
In the state of Nebraska this was
tried, and the enforcement of the max
imum freight law was enjoined The
circuit court sustained the enioinment
the court of appeals affirmed it. and the
question is now pending in the supreme
court of the United States. A railroad
company is entitled to earn at least
operating expenses, the taxes and the
fixed charges, and you can never en-
force law that renders the company
unable to do this.
'Win you take advantage of a preju-
dice which exists against railroads to
ruin these companies and injure your
state? 1 believe if you consider this
matter in the light of fairness and JUS
tice you will say to your people, Stay
the hand of confiscation.' for it would
be confiScatiOn and nothing less
Attorney A A. Rurd of the Santa
Fe submitted a statement at the COM
mencement of his remarks, showing
that on account of competition the av-
erage freight rates per ton per mile on
the Santa Fe had decreased 55.O7 per
cent from 1882 to 1896. Mr.. Hurd said:
1T is believed that the fall in the
price of Santa Fe stock has been occa-
stoned wholly by the mismanagement
of railroad officials This is not true.
1t is because competition has forced a
steady, gradual decline in rates. until
L
as high as 81. 60 is now almost worthless.
A further reduction in these rates
would be absolutely ruinOus to the
Santa Fe and all other railroads doing
business in Kansas"
The committee will examine state
ments in reference to rates submitted
to them by the railroad companies at
the conclusion of the hearing before
any action is taken in reference to
formulating 2 bill 1t is possible that
the railroad committee and the rail-
road attorneys will take up the maxi
mum freight bills section by section
and endeavOr to decide on a measure
which will at least be partially salts
factory to the railroad companies.
Such a plan was suggested by Mr..
Waggener, and Chairman Harris of the
committee favorS it.
AFTERNOON SESSION
after hearing the railroad attorneys on
the maximum freight rate bill this
morning, the senate committee on rail-
roads this afternoon heard the same at
torneys on the bills now before the COM
nittee providing for a reduction in pas
senger rates. reduction of one cent
per mile is advocated, placing the rate
at two cents a mile instead of three
cents.
The attorneys stated that the rail.
ways cannot possibly stand a reduction
in passenger rates. Attorney Hurd of
the Santa Fe stated this afternoon that
on the Santa Fe road the cost of trans
porting each passenger a mile on an
average was found to be Ito cents
and the revenue derived was only PIC
cents. This statement was concurred in
by the other attorneys in relation to
their respective roads
The committee will also hear the rep