The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-16
COMES TO AN END.
Freight Rate Hearing Post
poned Till September 8.
Railway Companies introduced
Much Tabulated Evidence.
NEUTRALITY-SUSPICIOUS.
1t 1t That Figures Do Not Pre-
sent Real Conditions.
Mr.. Conrad's Showing Concern
ing the LeavenwOrth Branch.

The taking of testimony in the Kan
sas freight rate case, which was COM
menced Wednesday before Special
Master 2. T. Hazen, was continued
Wednesday afternoon until Septem-
Der 8. The attorneys in the case de-
sired to go away on their summer va
cations, and the state wanted time to
look over large mass of tabulated
evidence which the railway companies
introduced
The case which came up for hearing
was that of the Leavenworth & Tope-
ka railway company. This Is a short
line owned by the Santa F'e and Union
Pacific railways but operated indie
pendently. The railway companies
introduced evidence showing that the
road has been operated by the two
companies since 1900, and that it has
been operated at loss every year.
The companies will contend that re-
duction in freight rates would involve
still further loss uou-e ~ s-s4=- /
The theory of the attorneys for the
state is that the figures presented by
the railway companies do not present
the true state of affairs; that an effort
is being made to pile up earnings on a
paper valuation"
What the state wants to do" said
S. F. Grattan, attorney for the board.
"iS to follow the ruling of the United
States supreme court and allow the
companies to make reasonable profit
on the actual investment, not on the
amount of bonds and stocks which do
not truly represent the value of the
properties. If this Leavenworth and
Topeka line has been losing money
steadily for years, why do the Santa
Fe and Union Pacific railways contin-
ue to hold and operate it ?''
Aclya h. he n 10 n q ~ Ci or
in the Leavenworth and Topeka rail-
way case would affect the cases
against the other larger railways in
the state. all of which have cases
pending of exactly similar nature Mr..
Grattan said:
Each one of those cases stands
absolutely on it's own bottom. The
decision in one case will not affect
the other cases. If any road can
show that it can not be prof1tably
operated under the proposed schedule
of freight rates, then 1t will be ex-
empted from putting those rates in.
The evidence of each case will be
taken separately"
The evidence which the railway
companies introduced in their behalf
shows they have been at work for
months accommodating exact informa-
ton concerning the effect of the pro-
posed rates. They were able to trace
each freight way bill, showing the
revenue derived from each shipment,
and the amount which would have
been derived under the proposed
new tariff. There is no doubt that
the railway companies are prepared
to make a strong showing before the
United States court. They will fight
the Introduction of the new rates
squarely on the ground that the said
rates are unreasonably low, and con-
fiscatory. They will in all probability
not challenge, the right of the board
to make the order
The attorneys for the state were
given leave to file an application for
more information : concerning the
schedules prepared, land the app1fca-
ton is now being drawn UP.
A E. Helm ofseWichita, the well
known freight rate attorney, and
Democratic candidate for Judge of the
supreme court, has been employed by
the railroad commissioners to assist
the boards attorney, G. F. Grattan, in
trying the case. f. S. jackson. attor-
ney general. is also in the case.
Doesn't Pay Expenses.
1.-THE Leavenworth & Topeka Rail-
road company never earned enough
revenue to pay its expenses. 1t never
paid dividends and paid interest only
by issuing new bonds"
This statement was made upon the
stand by A. L. Conrad, auditor of the
T.
pany. rvs sr:eLUes-s go ~
Conrad then drove home his state
ment with figures for four fiscal years,
from 1904 to 1905 These four years
were elected by the railroad company
to prove its contention that the pro-
posed rate is conf1scatory, and will not
earn sufficient revenue to pay the in
vestment. The figures which Conrad
gave show present conditions, and
show the road to be losing venture
under the rates now in existence. He
stated that in these four years the ex-
penses on this line of railroad had ex-
ceeded the total. freight, passenger and
miscellaneous revenues by $S3, 414.94.
The total net deficits including taxes
and interest on this line are by year:
l9U4-Vo go, lOo.oo
1905-06 NEUTRALITY-SUSPICIOUS.. &c,
1906-07 11.235.3S
For 1e04-5 the revenue was SAG. 512. 10:
rentals. S746. For 1866 the revenue
was $50, 1923. expenses, $6S. 603.67; taxes
s74537S; rentals, $3.50. For 1867 the
revenue was So, 1874 81; expenses, $53.
26S31; taxes, IS, 761 SO: rentals. $945. For
1918 the revenue was s52666.97; ex-
penses. $52.726.19: taxes, $7,101.09; rem
tails, $3.50. For 1905 there was was Sc,
500 interest on the bonded Indebtedness,
for 1906 there was $500 for 1907 there
was $500 and for 1908 there was SO! 1855.
On the interest bearing current liabili-
ties there was 81. 097.92 interest in 1905,
500 in 1906 and $3.50 in 1907. with 1905
not made up yet.
Two Die From Heart Trouble.
Coffeyville, Kan, July 1.-two TER
sons died here late Wednesday from