The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-06

Members of the Railroad Commits
sion PreseHt-Gray on the Stand.
The examination of the officials Of
the Northern Pacific Railway company
in the North Dakota rate case was re-
sumed yesterday morning in the office
OF Vice President Lamont. before Mas
ter-in-Chancery V. r. Lowell.
Railroad Commissioners George H.
Keyes and ]. E. Phelan were on hand
with Attorney General ]. F. Cowan, Of
North Dakota.
The railways were represented by
General Counsel c. w. Bum, Of the
Northern Pacific, and NJ. d. Grover,
general solicitor for the Great Northern
railway. General Manager j. w. Kend-
rick, of the Northern Pacific, was an
interested listener.
The session did not begin until II
o'clock, though it was scheduled for TO-
The delay was occasioned by the late
arrival in the city of the North Dakota
officials.
The cross-examination of Comptroller
II. A. Gray, Of the Northern Pacific
railway, was Immediately resumed by
Attorney General Cowan.
Have you" he asked, tables and
statements showing the earnings and
operations of the railway"
Il have a statement showing the
gross earnings and expenses per mile
and a separate statement for North
Dakota" replied Mr.. Gray.
Have you prepared a statement Of
facts in reference to the Northern Pa
cific railroad and the Northern Pacific
Railway company since 1890, showing
the facts required by me on Feb. 22?'
81 have" replied Mr.. Gray.
Mr.. Gray then submitted statement
showing the gross earnings, operating
expenses and taxes for the entire line
for the eight years ending June 80, 1897.
DO these statements correspond with
the questions asked at the last session"
asked Mr.. Cowan.
They give the substance of what
was called for
Have you taken the reports made
by the railroad and the railway COM
pany to the commissioners of North
Dakota and subdiVided the operating
eXpenses?"
81 have a statement showing the
operating expenses under the subdivi-
sions"
Mr.. Gray handed to the attorney gen
eral a statement of gross earnings,
operating expenses, taxes, etc, for
North Dakota for the eight years end
Ing June 80 last.
In each of the subdivisions as shown
Dakota there is an item known as eX-
penSes other expenses or general eX-
penses,' said Mr.. Cowan, land I want
the items in each instance so it may
be shown what are the actual expenses
of the system in North Dakota
That will involve an enormous
amount of labor" slid MIR. Gray. 1t
will necessitate going through thou
sands of vouchers"
How long would it take to prepare
it?"
I'VE would have to dig up the records
for the past years. We keep no ac-
count to show that. l have a state
ment of Improvements charged to
operating expenses for six years"
Mr.. Gray gave the attorney general
a statement of operating expenses for
the years ending June 80, from 1890 to
1887.
Under the head of general ex-
penses,'' said Mr.. Cowan, II want you
ITO prepare a statement Of the pro-rata
share Of such expenses in the state of
North Dakota" ---...
Mr.. Gray said he would do so and he
then handed to Mr.. Cowan statements
showing the improvements and better
mentS of the railway in North Dakota,
charged to capital account, for the
years 1S9097, and improvements and
betterments in North Dakota charged
to operating expenses for the years
1S92-97.
Have you a table showing the total
amount of gross earnings of the North
ern Pacific railroad and the Northern
Pacific railway company and showing
the average earnings for each year?"
Mr.. Gray produced the required
statement covering the years 1S90-97.
Have you also a statement showing
the number of passengers carried in
and through the state of North Dakota
free?'
1T cannot be prepared. We have not
the trip passes"
Who has charge of such matters?''
81 do not know"
referring to the stocks and bonds
mentioned at our last session. have you
investigated what was paid for the
several items of stock dividends and
what was paid annually?'
Il have prepared a statement of adj
vances made to the old Northern Pa
cific Railroad company, but it does not
show what was expended in this class
Of investments. They were not pur-
chased on the market, and they might
represent many things"
Was not an account kept of stocks
In the railroad company?"
Yes, but from the accounts kept It
would appear that all stocks cost par"
so the railway company'S books
show that par was paid for all it's
stocks? ?"
I'm the vast majority of instances"
And also bonds?''
Yes"
Your statement shows dividends for
only four years.
That is what you asked"
You misunderstood. 1 want you to
go back to the time the stock was pur-
chased and find what the annual in
come of the road was"
Il can get it,
Are these all the stocks and bonds
purchased and held as assets by the
present company"
Yes. Since you were here before
more stocks have been acquired and
are being acquired, but I don't think
they are needed now"
They would not cut any figure"
Mr.. Gray handed out a statement of
treasurer's securities held by the road.
WAS any money advanced to the
Montana Union Railway company by
the Northern Pacific Railroad company
or the Northern Pacific Railway com
pany?" asked Mr. Cowan.
None"
During the last four years of the
Northern Pacific Railroad company was
any money advanced to the Superior
Consolidated Land company"
THE railroad company advanced $685.
0O0, for which we hold the land COM
pany's notes on account of stock of
that company There was a reorgan-
ization Of that company
The treasurer's securities are value
less?"
"Oh no, many Of them are very good 1"
Il want a statement" said Mr.. Cow
an, ito show all dividends received on
stocks and bonds since>fhe date of their