The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-12-02

other affidavit OF said Sercr In this cauSt
shows that irrespective OF reductions ~
the revenues from iatfstaie and foreign
traffic forced BY the railroad commits
sion's rates, this company actually sus-
tanned for the year ensiing June 80. 1888
ftom the application OF the railroad COM
MISSIONS thrills thai werc In force dur,ne
safd period nst loss IN revenue OF al
least sS7.s45.o1 Add this 10 the ss2i.-
1884 derived during the year from intra-
state freight traffic and tho result Is tina,
seos7oe.oi would have been realized from
the same traffic. had not the commission s
/ rates been In force The perSentaye al
gross operating expenses to gross earnings
FOR said company Tor said year would be
ON this basis Us. per cent. Adj 10 PEI
Il cent 10 this. as was dons IN the Nebraska
case, TO cover the additional cost there
assumed OF hauling lo'ai traffic, making
4 IS,S Der cent chargCahlc to local traffic
for operating expenses. amounting 10 $'t6,4
| 0ba.s0. Deduct th,s from SS2t.S6S,9I, the
| amount actually received from intrastate
i freight traffic. ana there Is a balance OF
! sos ,s0l,2l, applsuaa!S 10 fixed t>safscs, or
MS 4 return on The iIvs sVment, Appor-
4 stioning nov the intcrost and tax chargea
between the local and through freight
traffic upon the same basis as Operating
4 expenses have Just been anportioned, We
find that sii6c6a.7o charged rs operating
expenses 10 local traffic is POTS DOR cent OF
/ ss,t4sS0o.4S, representing the gross operat-
| ing expenses of sntd company, The In
tcrest account and taxes OF satd conway
| for said year WAS Si.5S6.Sll 30.
| 20,IS per cent Of this amount
/ chargonble upon the basis now
| being pursued TO the State
4 TRAFFIC ts.,.,. .,s, - .,.,t,tsS S.",Vso %
| From the payment Of which upon
such basis the state traffic, as
| we have seen. afforded only -. i0S.3ol "a
| Leaving a deS!cit OF ..,,,..,. .$22i, 3Si Us
| AIfiant SAYS That the foregoing appor-
| tlonmsnt OF cNrcnses and inteNtate charges
| is entirely too liberal to the State traffic,
| because, as herclnbefore stated. such traf
! flc ought to be charged With Il good deal
more than 10 per cont to cover the IN
creased cost incident TO 1t rs compared
with through traf e. Nd he verify believes
that ae a general rule and aside from the
peculiar conditions of the traffic OF TINS
company this cost ot local traffic ~ a.
least ten times greater IMAM the cost ot
through traffic.
Az further evidence that the in,rastate
,raflc of said company Is rot bearing IT'S
lust proportion of the burdens apportion-
able 60 1t. let the expenses be appoitionen
on a tonnage basis. sun add only 10 per
cent 10 local tonnage 10 cover the 'owest
estimate of the additional cost OF the 5anr
Upon this basis, thu proportion Of tha e'oss
expenses chargcahc to passcpgrg traUlc
should BIO deducted before appartloc'ng tho
expenses to the freight traiiie II IL hut pes
sihle to appurtion With absolute cer'atn'y
the gross EXPENSE of operation between
passenger aud freight ser,ice an The satec
~ net auportlopcd In the Accounting .
said company. but It has been apoouioned
al different times by different oiiicess upon
different bases. aol the Lowest estimate
that Is arrived At OF tho amount chargenhle
10 passenger earnings was ld,s per cent;
some were is ard some were - and the
highest was 2i.a. Assuming, however, 20
per cent to he corroi and dtduetng 20
per cent from gross eXpeuFrs o. ss,ia5iOnI3
to cover expenses Of .hH passenger service !
and there remaiiia Sc, Tau 5d0lj chaTgelble |
10 freight service, DvP3c This according 10
the entire tcrnage amounting - l22S.oSb |
tone hardlad dnt.ug the year herelnnetore
stated. Snh II VIII be seen TINT u repro |
SCENTS S2.2s TO each ton. Add 10 per cent |
then 10 this aniOuat upon the assumption
That Il represents the additional cost Of |
handling the local freight, as comp ir"a |
with the through freight. upon the asScwr |
ticl ay0vo mentioned and multiply IL hy |
tile number Sal .s52 being the tons Of intra
state freight handled earring said wear and |
the result being SS42 1923 81, repY .Ssnta The
amount of gross expenses chargcA5i" 70 |
intrastate freight traffic upon the assuri1-
tion mentioned. The result then Is as iol- |
lows.
Operating expenses chargcahle TO ntra
state freight traffic, ssi2. 328. 81. revenue
from inlrastatp freight traffic, Ss2l .3Ga.9i |
and we find that tho earnings from tn ~
state freight traffic were Insufficient 20
pay operating expenses cbargeable there
TO By S20.g593S; add 10 this the portion o,
Interest charges and taxes chaigeaDl Ia
intrastnte freight traffic. amounting 10
s4i0 .9s90s: and ii viii be Eeen That upon
such basis tho revenue from lltrastato
..f.. W..
burden chareenbln against II upon sub
iasig BY SiG1 .gis.4e
Afiani ders no; undertake TO say whsth-
n it1sr &, euph baa.5 Il ab.olut,i IT, rA
Nantialiy the correct method Of lstrihu.
M or arporiorlne such oxpanscs, - be
ielioyos that both arc nj least far ani
!beral H. the state traffic. ana tAat uYon
my reasonable theory on basis .hn, nay f.,
Earnings and eyponses ag bei1ye 4 Sate