The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-04-16
SPOKANE RATE CASE
Interstate Commerce Commissioner
Prouty Resumes Hearing of Charge
Of Discrimination Made Against
Northern Pacific.

Portland, Ore. April 15.-C. A
Prouty, sitting as the interstate com
merce commission, began the third
hearing of the Spokane rate case in
the federal court this morning, but up
to the time Of the noon recess not an
item was introduced that would illus
trate to an outsider the injustice Of
1.-THE Spokane tariffs, the time being oc-
cupied in a continuation of previous
hearings, and the evidence dealt sole
| " with the cost of the Northern Pa
cific and Great Northern railways.
The title of the case is the City of
Spokane VS.. the Northern Pacific,
Therefore the Hill line is most promi-
nent in the proceedings, regardless Of
the fact that the same tariffs are in
effect over the Hartman system.
Charles Donnelly, division counsel
of the Northern Pacific, with headquar-
ters at Helena, Mont, represented the
Northern Pacific, assisted by A. M.
Cannon, attorney for the road at
Spokane Brooks Adams Of Boston
presented Spokane's case, aided by
H. M. Stephens, corporation counsel
of Spokane, and Alex. Winton his as
sistant, Z. G. Gilman, general western
counsel of the Great Northern is on
hand.
The first witness called was e. S.
Pearson, chief engineer Of the coast
extension of the Chicago, Milwaukee
& ST. Paul, in charge of the construc-
ton west of Butte. In answer to
questions of Mr. Donnelly, Mr.. Pear
son said it was customary in making
estimates on the cost of construction
to allow 8 per cent for construction
later would cost more
A. Hogeland, chief engineer of the
Great Northern, presented tabulated
estimate of the cost of reconstruction
Of the Great Northern. The total esti-
mate calls for the expenditure of $415,-
1866 to duplicate 6,633.34 miles of
main tracks, with 1,480.24 miles OF sid
ings, or a total mileage of S,113.58, To-
gether with the present equipment of
all kinds. The witness said the esti-
mate is based on the reconstruction
of the Great Northern system at pres
ent prosperity prices and he has pro
vided for the construction of 1000
miles a year. This would require
eight years to build the system and
would call for the expenditure of $780,,
100000 every year. AS it would be
about two years before the lines would
be earning anything, there would be
practically no interest to pay on
about $5O,OO0,OOO at the time the line
was being built.
Attorney Adams asked the witness
il these figures were based on the ac-
tual cost of the railway, to which MI.
Hogeland replied that the railway did
not have figures showing the original
cost of the road in it's possession. Mr..
Adams replied that the plaintiff knows
the cost and that it was 27,O00 per
mile. Counsel tried to obtain an ad-
mission from Mr.. Hogeland that the
engineer had reported expenses un-
der different captions. Mr.. Prouty
seemed to possess doubts as to the ac-
curacy Of the figures, for he Ques-
toned the witness as to certain items
which Hogeland included in the re-
building of the Great Northern, which
according to witness Pierson are not
included in the present construction
of the st. Paul. In compliance with
the orders of Commissioner Prouty, is
sued at the former hearing OF the Spo-
kane case, tabulated statements of
the traffic of the Northern Pacific and
the Great Northern between Spokane
and the east, were presented by At
torney tDonnelly and Judge Gilman.
According to these figures it was
shown on the proposed basis of ter
minal rates the Northern Pacific would
have lost almost a half million dollars
on business for 1906 and the Great
Northern would have suffered to the
extent of almost $275,O 900. According
to the figures submitted the loss on
both eastern and interstate traffic to
the Northern Pacific, Great Northern
and the Oregon Railroad & Naviga-
ton company for the year would have
amounted to about $2,O0O.O0O.
Tomorrow the coast jobbers will
present evidence with the intent of
proving that the existing rates are the
result of water cnmnafitian