The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-07
NORTHERN PACIFIC AFFAIRS
COMPTROLLER GRAY AND MR..
HANNAFORD EXAMINED
Second Day OF the Hearing In Tho
North Dakota Rate Case Before
Master I'm Chancery v. r.. Lowell
Statements Showing Opera-
lions and Expenses for Many
Years Past Submttteil.

Years Past Submitted.
Inc nearing in the North Dakota
rate case was continued yesterday be-
tore V. X. Lowell, master in chancery,
IN Vice President Lamont's office in the.
Northern Pacific Railway company's
building.
Attorney General Cowan, of North
Dakota, concluded the cross-examina-
tlon or Comptroller Gray, of the North
ern Pacific, and General Traffic Man
ager ). M. Hannaford gave his testi-
mony.
Mr.. Gray submitted. statements show
ing operations and expenses in North
Dakota and the proportion of the
same as applicable to North Dakota
curing the period beginning with the
nscaI year Of 1890 and ending with that
of 1897.
In accordance with. the previous re-
quest OF Attorney General Cowan, he
ALSO submitted a statement giving the
names of certain stocks and bonds held
by the Northern Pacific Railway COM
pany, on which dividends and interest
had been paid. the amount of such pay
ments and the years in which they
were made.
Through General Counsel c. w.
BUM, Mr. Gray submitted statement
of the interstate business of the com
Eany Ior the four fiscal years ending
June 30, 1894, 1895, 1895 and 1897, re-
spectlvely, showing the ton miles and
earnings, as they would have been d.
Vlded among the respective states
through which the road passes and the
amounts which would have resulted If
the divisions had been made on a basis
or ton miles. Also one showing the
oenciency In local freight earnings in
North Dakota for the same period on
the oasis OF doubling the cost of trans
portat1on With respect to the local bus
mess in the state of North Dakota
There was submitted other state
ments showing the gross earnings, the
operating expenses and taxes in the
state of North Dakota during the four
nscal years Of the company last past;
the improvements and betterments
charged to operating expenses during
that period; what the operati ex-
penses and taxes would have been if
the cost of these improvements and
betterments were deducted from the
total operating expenses and taxes of
the road, and what the percentage Of
expenses to earnings would have been
during these four years, If the improve
mentS and betterments charged to eX-
penses were eliminated.
10 the introduction of all these state
ments, Attorney General Cowan offered
objection, which was duly recorded.
Gray as to the reliability Of the figures
contained in the statements submitted
DID you, personally, prepare any of
these statements from the books and
records of the company" was asked.
did not personality; they were pre-
pared by subordinate officials and
clerks''
You are not prepared to saw. of YOUR
own knowledge, whether these figures
are absolutely correct or not?''
a. Not any more than any other state
ments that I have submitted. I be-
heves them to be correct. They are alb
stracts from the books and records of
the company"
You do not know whether the books
of the company from which the items
were drawn are correct or not?
Il believe them to be correct have
no personal knowledge Of them beyond
that which any eone in a similar posi-
ton, would have. The books are kept
in the usual, standard form in which
books and records are kept by similar
corporations"
In stating the fixed charges of the
Northern Pacific Railroad company you
merely read the items from printed
book, By whom was the matter for
that book prepared?"
1T was prepared by officials and
clerks in the service of the receivers
Of the Northern Pacific Railroad COM
pany."
Were you one of the officials of the
road at that timer
mo, SIR
'Then this book was not prepared
under your supervision, and you are I'M
able to verify the items in the records,
and do not know whether they were
prepared in accordance with the facts
or not?'
ut is the report of the comptroller for
the receivers who were operating the
property under the direction of the cir
cult court Of the United States These
records have been passed upon by the
court
Attorney General Cowan moved to
strike out all the testimony Of the wit
ness in reference to the fixed charges
of the Northern Pacific Railroad COM
pany, and also the statements SUBJ
mitted on the ground that all such tes-
timony was incompetent, irrelevant
and no foundation had been laid for
it's Introduction.
General Traffic Manager, Hannaford
was sworn and examined by Mr.. Bum
He stated that he had been associated
with the traffic department of that
road since May, 1872, in different ca
pacities, from an original clerkship.
He said that the traffic of the COM
and supervision. He submitted a copy
of the distance tariff of the Northern
Pacific applying to the terminal points
east of Montana, which he designated
as ST. Paul. Minneapolis Minnesota
Transfer and Duluth. the same rates
were applying from Ashland, Wis. 1t
went into effect In 1895. y
Does that include ALI your lines in
Wisconsin and North Dakota? % asked
Mr.. Bum.
Eyes sir. all local business. It ap-
plies to Interstate business east Of
Beach, Mont, also'
ATTORNEY General Cowan entered an
objection when it was offered in evil
dence by Mr.. Bum.
What do the red figures in ink in
dicate?'
''Those are the figures prepared by
the railroad commissioner of North
Dakota. which went intol effect JAM 1,
1891. They are placed opposite the
rates for corresponding distances and
class in our regular tariff sheet We
have a tariff on live stock from points
in Minnesota and North Dakota to
Eastern terminals, whether local or
interstate. We call it a terminal tar
iff'
'.What do the figures in purple ink
indicator"
'eThey show the percentage OF reduc-
tion between the tariff as they now
stand and the red figures which are
the figures made by the railway COM
mission of North Dakota. They hap
pen. in each case, to show a reduc-
tion.''
soTake, for instance, your rate from
Grand Forks on horses and mules,
s46.5O per car What would that rate