The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-02-14
LIGHT ON RAILROAD RATES.
ATTORNEYS ron PEOPLE HAVE
THEIR INNINGS.
Appear Before the Joint Com mittee
and Answer Some of the ArEu-
ments Of the Railroad Attorneys.

Special Dispatch to the Post Intelisencer
OLYMPIA Fec. G-At1orneSs repre-
sentinx Ire people in ;2e contest For low
er freight rates. appeared Before the Joint
committee or railroads tonight. TIE ful
committee was not present bat the ses-
sion lasted a fall three hours Another
meeting viii - held tomorrow evening
when the aill s4u - taken gp section 10y
section Cor consiiera ton
H. J. Snively OK North Yakima, sala
there were two main questions in the rate
discussion.
F1rst-Are the railroads charging too
aigh a freight rate, and
second--ff they are can they stand a
reduction
Tie said the supreme court had held
that in fixing a value on railroad prop
erty II VAS necessary TO look at the mar
ket value Of the eoInpany's stocks. and
this value alone they were entitled
10 receive dividends. he referred 10 the
reorg animation and repurchase 81 the
Northern Pacific saying il was reorgan-
azed with siS5 t.o GO stocks in two classes
OF this. sso.qoo,n was preferred stock
with 4 per aenr- guarantee, and y.5bc.-
sS common stock, with no guarantee az
interest. In 1885, the value Of common
stock WAS II cents. today IL is 5l7s cents
preferred stock was some higher in 1897
than common stock. today ii Is - cents
on the dollar an increase. Mr.. Snively
said, OF more than fourfoid Figuring the
market price Of the stock-the actual. not
the satered value-the preferred stock
was worth So, oio.t,9 and the common
stock SIS. -So. 90 and the dividends paid in
lsss would be more than per cent on
the real value OF the stock. This was
excessive he thought and the net
amount for dividends could DC reduced TO
$4,000 along lis line. The legislature
could take this a BASIS and figure out
the reduction the railroads could stand
Mr.. Sa!Feiy went into freight rates be
tween ST. Louis and New York and Chi
cago aud New York, and compared them,
10 show that the rates were about equal
with the +o-ulie haul in Washington.
Flour had been shipped from Spokane TO
Yokohama. Japan, for s. - per ton.
Hamilton Of Pierce said he never knew
of lower rate than 81 80 being given.
Mr.. SniveIy figured that with twenty tons
Of wheat TO the car u trainload OF wheat
70 the Sound gave the company AZ present
rates a proht OF s260a. IT the EortherR
Pacific can afford 10 haul grain fer less
than 81 Is per ton. the Great Northern and
the .. r. Il y must" he said He quoted
from the Stattst!cian and Poors Manual
10 show that the average rate per ton per
mile for roads through the United States
vas &-lo9 OF i cent; in Washington IL was
iSS cents.
Assistant Attorney General Vance said
re desired To go on record on the rate
question. as il was subject on which ev
cry man connected vita the state govern
ment should take determined stand. He
said ne did not know all about freight
rates. possibly less than did the railroad
men who spoke the other evening Il
heard those men the other night" he said.
and was impressed with the fact that they
talked not only determinedly. but nsoiently
as well. But OF course. If you can stand
that. | can. They told you lawyers In
the way OF threat that II you passed this
bill they would defeat II In the courts.
As lawyer also, believe IL you pass this
bill they cannot defeat IL in the courts"
Mr.. Vance said he would like 10 have
any one Of these attorneys meet him I'm
court OF justice and say what they said
nere-that they could not determine TIE
cost OF carrying ron al wheat per mile
IN the state Of Washington No sensible
man believed THAI. Those facts were
brought out III every case tried in the
courts. 1t was al brought out in the Ne
braska case. so often referred TO. The fact
was they dill not want "a do 80.
And yet" he said. the able ana yoiube
attorney Tor the Great Northern told you
that that road kept an account of every
russy coupling pin along lis track Stiii he
could not give you the cost per ton per
mile fer hauling grN4u. Now, Il is a we'll
can furnish this information and VIII not.
they ara entitled 10 be thrown ouI % court q"
Justice Brewer had laid down thr doc
jTiBp that after the point Of profit has
been passed in Judging q q reasonable rae
the legislature haa The right and was COM
petent 30 tx the rates and The courts
could not interfere IN Other words The
courts would stop soon - was shown
that the point Or profit had been reached
The percentage of profit. 10 he allowed WAS
not a question for the courts 10 decide. that
was purely a legislative function. Conhs-
cation. as understood ia law, was when a
rate was axef by the legislature that was
below the cost ~ ouerattou
III you Will pass this bill or someth hing
like this" said Mr.. Vance I Will assure
YOU by The grace Of God OF unless the
good right arm Of the attorney general
should prevent. 10 have within * months
q good and substantial case made up 20
give then a chance 10 test SIS merits In
the courts"
Nj Vance said the Legislature had Moth
ing 10 do with the possible fact that
rate &, Spokane would cover the Paiouse
country rate. That wa> purely qura-
ton 81 competition. II VAS the same
thing that caused the Great Northern 70
charge SI5 "A ton for steel rails from West
Superior TO the Sound ard a IKE rate. for
rails from spokane 20 the Sound as H.
AS&tf&ftA ~ MI 3NhESNtfff, 60 FlE NFeAf
Northern. a reasonable rate from the
Paouse could he ax.d and II competition
reduced that rate II vas not matter FOR
ne Legislature 20 consider TIE railroads
should consider that.
The bin prepared now does not sat-
isfy Mr. EGglehart- the Representative
from Yakima II does not give hls county
the reduction If freight rates on short
er small shipments which Is most i'm
pcrtant 20 hem Car load lots - POTATOES
and onions mentioned IN the bal rop hav.
special rates
ORDER OF FIRTH ABRAHAM