The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-08-17
Interstate Commerce Commits
sion on Kansas Situation.
Railroads Have Enjoyed the
General Prosperity.
MR.STUBBS TESTIMONY
Used as Basis for Estimating
Cost of the Roads.
Why No Reduction on Kansas
City Grain Rates Was Made.

In the full text of the recent Kan
sas- Galveston rate decision of the
Interstate Commerce commission, the
| commission among other interesting
expressions, gives its idea of the testi-
mony presented by w. r. Stubs con-
corning the cost of Kansas railroads
and after analyzing this testimony
and the rebuttal testimony of the
railroads, draws the conclusion thai
there is nothing abnormal in the Kan
sas situation; that the cost of build
ing roads is light, and that the roads
| while they have been making big
| profits, have simply shared in the
general prosperity of the state.
The following is what the commits
sions says about Mr.. Stubs testi-
mony:
1.-The compliments introduced as a
witness railroad contractor, resident
| in Kansas, of very considerable ex-
perience in railway construction and
! familiar with the different lines of the
defendants in that state. This gentle
| man testified that in his opinion the
main lines of the defendants could be
reproduced at the present time for
| $25, 600 per mile, and their branch
lines for $15,000 per mile. Accord
! ing to his definition of main and
| branch lines, about one-half of the
| Santa Fe system in Kansas would be
| main line, while much less proper
ton of the Rock Island system would
| fall into that class. This estimate did
we understand, allow anything for
| cost of right of way, or for special
terminal expense.
This witness was apparently we'll
qualified to testify in the general man
ner in which he did, and it occurs to
us that his estimates, so far as they
went, may not have been far from
correct. He did not, however, profess
-. i
the equipment used by the defendants,
nor did he take into account the ex-
pense of procuring the right of way,
which is much larger than would be
commonly supposed: nor the ever
increasing cost of providing terminals
at towns of considerable size. The
testimony itself was extremely general
in its character and was not based
upon any accurate estimate after a
detailed examination of the work to
be done. About all the conclusion
which can safely be drawn from his
testimony in this case and from the
testimony taken by the commission
itself in other. cases concerning the
territory in question, and which in a
general way we feel at liberty to re-
fer to in deciding this matter, would
be that the lines of the defendants de-
voted to this service are not unusually
expensive to construct and maintain
The character of the country is such
that the amount of grading is not ex-
cessive, the bridges are neither very
numerous nor very expensive. and on
the whole, the cost of building and
maintaining is not unusual. There is
nothing in the physical characteristics
of the railroads of these defendants
under investigation which justifies
the imposition of rates otherwise un-
reasonable or discriminatory.
about all we can say upon this
whole subject is that we find nothing
from this testimony upon either side
abnormal. The revenues of these
companies have been large for the last
few years, but during that time every
kind of business has enjoyed a period
of unusual prosperity. They should
have been large. If owing to any
cause they should be somewhat re-
duced they would still be sufficient.
We do not find. upon the one hand,
that these revenues are so overgrown
that they should be cut down for that
reason. nor upon the other so slender
that we may not properly reduce
rates which otherwise would be un-
reasonable or remove Determinations
which appear to be unjust"
State Legislature to Blame.
The interstate commerce commits
sion says that it does not care to re-
duce rates on grain to Kansas City
because this is really a state PROPOSE
ton, and that the legislature, in MAX
ing a reduction of Is per- cent, has sig
nified that this is all the reduction
needed. Concerning this. situation
there has always been a good deal of
doubt There has been a conflict of
authority The state board of rail-
road commissioners has been afraid to
interfere with the rates to Kansas
City because the railroads have con-
tended that these rates are interstate.
The interstate commerce commission
now holds that the state is RESPONSE
BILE for the regulation of these rates.
The opinion says:
"A very considerable part of the
first instance, to the Missouri river or
field to Kansas City is of very great
Importance to the grain grower of
that state. These rates upon the de-
PENDANT lines are all challenged by this
complaint, the assertion being made
that they are excessive.
Transportation from the Kansas
grain field to Kansas City, Mo, is in
terstate, and therefore subject to the
Jurisdiction of this commission.
Transportation to Kansas City. Kan,
is entirely state, and hence not within
our purview. The elevators in which
this grain is handled are to a consid-
cradle extent situated at Kansas City,
Kan. and it was agreed that no high
err rate could be maintained to Kan
sas City, Mo, from these points of
origin than was in effect to Kansas
CITY. Kan. In substance. therefore,
these rates from the field to the Mis-