The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-08-08

! RAILROAD RATES
VAST AMOUNT OF WORK DONE
,eY GILLETTE FOR COMMITS
sIoNs OF TWO STATES.

Entire harmony of policies prevails
between the states of Oregon anc
Washington on the issue of lower
freight rates by the railroad compan-
les. Action has been brought in both
states, and will soon be heard by theil
respective railway commissions, witt
a view of bringing legal pressure tc
bear upon the existing high rates, both
on wheat from the interior and COM
modities distributed from tijewater tc
the interior.
Simultaneous Action.
In Oregon, the movement has beer
started by the Portland chambers OF
commerce, in the interest of the ell
tire state. In Washington the COM
plant originated in Ritzville, whea
shipping center, in the form of 6
monster petition to the railway COM
mission for a lowering of the wheat
rates. The Washington commission
decided to prepare itself to fully meer
the arguments Of the railway attorneys
and accordingly set to work with H
P. Gillette and a large staff of rail.
way engineers and accountants, to
arrive at the value of the railroad
properties and from these values Sc
cure a basis for rates.
Gillette is the auburn haired an,
hot tempered young man who acted as
the Spokane mascot in the interstate
commerce hearing held in Portland
some weeks ago. He is thorough
student of railroad construction an6
theoretically is master Of the vari-
Gus branches of that industry. The
railroad engineers say he is a theoris,
altogether and does not know the prac-
teal side of construction and opera
ton.
The work undertaken by Mr.. Gillette
VIII be completed next month. He has
already put in large part of his tes-
t1mony as to railroad values, and in
september the hearing will be re-
sumed for the double purpose of al
lowing him to complete his direct ex-
animation, and giving the railroad at
torneys an opportunity to cross-ex-
anime him.
Vast Amount Of Labor.
Mr.. Gillette'S investigations have
involved vast amount of labor. With
a corps of more than a dozen assist
ants ne has gone into the offices of
the Northern Pacific, the Great North
ern and the Oregon Railroad e. Nav
lgatloL company in Walla Walla. Ia
coma Seattle, Spokane. Portland and
81 Paul, and has obtained all posi-
Ole information from the books of the
railroads regarding cost of construc-
tlon, right of way values. money ex-
tended in permanent Improvement an
petterments, value of equipment, roll
ing stock, etc.
In addition to this every foot of rail-
way in the state has been personally
inspected by Mr.. Gillette's assistant
engineers, and where figures were not
available from the books of the COM
pany as to cost or values, the engi-
neers have cross-sectioned the line of
railway itself, hundreds of miles of
track having been covered in this way.
Statisticians at Work.
During the past three months a
force of statisticians in the employ of
the commission has been at work in
the offices of the Great Northern ard
Northern Pacific in ST. Paul, seggre-
eating the earnings of the railroads
of this state on business, state and in
terstate as we'll as ascertaining the
operating expenses on business, state
and interstate.
All this work has beer. done in ac-
with the United States SUI
preme court decision in what is known
the Nebraska case of Smythe VS..
Ames. In that case the supreme
court declared just what must be done
by a railroad commissian in laying the
foundations for rate reduction on rail-
road freight rates. The railroads, de-
clared the United States supreme
court. are entitled to fair returns or,
their investment, including cost of
construction, cost of reproduction or
present value of their properties which
are necessary for carrying on the pub
lie business.
All of the items enumerated, and
more besides, as laid down by the SUI
preme court requirement, have beer,
fully covered in the investigation car
ried on for the past year by Engineer
Gillette and his assistants. One of the
knotty problems which the commits
sion has had to face in it's valuation
investigation, has been that of right
of way and terminal values in the
cities of Seattle, Tacoma and Spo-
kane
Experts Are Employed.
Four expert right of way men, who
have been in the employ of the rail-
roads for several years past, were en-