The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-05-07
Argument on Cotton Rates to Be
Heard May 81.
VALUATION OF ROADS QUESTIONED
Judge Rcngan Told MIR. Terry Thcy
Were Ftnni-bessonctte Company
Wants II Rate ON Density.

and Mr.. Terry of the Santa Fe called Mr..
Corner. the commissions expert engineer
to the stand and questioned him as to the
manner in which he had valued the diff
fcront railroad properties in Texas In ac-
cordanGe with the commission law, his
purpose being TO show-without question
Ing the accuracy OF MIR. Corners figures
that that gentleman had lost sight of sew
eral elements of value which properly en-
property.
Judge Reagan questioned the relevancy
of Mr. Terry's questions aud said that as
far as the commissions valuations of
Texas railroads was concerned they bad
been made by authority of law and ample
ana liberal allowances made for the cost
OF every element entering INTO che physical
makeup OF railroad. None OF these val :
uations had heretofore been questioned, al
though due notice OF their adoption had
been given ana ample tl'ue allowed parties
Interested TO contest same aud he aid not
think that in a colloquial way the commits
sion could 80 back and reopen the subject
Judge Terry argued that the valuations
made by the commission had been arrived
at under a law providing TO: thoin for the
only purpose OF regulating the Issuance OF
stocks and ooEds and not for the purpose
of affecting the making Of rates. The San
tn Fe had had no occasion to issue stocks
and bonds since the valuations had been
made, therefore 1t had taken no particular
interest in them. Now that 1t WAS pro-
posed TO use them as basis tor rate MAX
ing he thought that the railroads should
be permitted 10 inquire into the rules
adopted In arriving at them and 10 show
if possible that they were too low to be
applicable il that connection.
Judge Reagan saw no use IN ronsumin.,
time arguing the sui ject, as The valuations
were conclusive is so far Us tho commis-
sion was concerned, but he was Willing
that the railroads develop anything that
might apply to tho subject of rate mating.
Mr. Corner explained that he had valued
Texas railroad property at figures Ger
which the same could be replaced today AMI
made liberal allowances for contractors
and sub contractors profits. as well as for
the cost OF material and equipment. Said
that engineers mistakes were not an ele
mcnt that could he legltlmateiy considered
In figuring on the cost OF a railroad, and
maintained that repairs ~ roadhed, re
placements of washed away bridges, etc,
should be charged up to maintenance ac-
count.
Judge Terry said that this charging up
to maintenance account WAS all right
where the railroad earned enough TO take
care OF said account, but Ihnt az the sonia
Fe railroad was about sS,ooo00o short of
having earned enough to make itself even
he thought that It should DO allowed TO
add that in as part of its physical value,
the money having been spent In oetterinh
and preserving its physical coalition
Judge Reagan said that where the rail-
roads invested money in bet arment'. such
as new depots and the like, and added to
the value Of their property hey ere OF Of
course entitled to reveluatiol az sen
as 10 earn a fair interest or said better
meuts.
Chief Engineer Dunn of the Atchisoh,
Topeka and Santa re, having pen p,a,en
on the stand by MI leiry' sld'.u ',''l ~,
the same amount oil money Fuau ooult