The Waxahachie daily light. [volume] (Waxahachie, Tex.) 1894-current, 1908-11-19
Such Is the Allegation Of COM
plainants in Interstate Com
merce Hearing.
RATES ARE EXTORTOAATE {
Contention that Texas Railroads Are
Earning More in Valuation Than
the Roads in Other States.
Fix New Basis.

san Antonio. Texas, Nov. l9.-By
proving that Texas railroads are in
reality earning far in excess of the
showing of reports compiled. as well
as that of the 10 per cent advance
in freight rates is extortionate, com
plainants in the interstate com
merce commission hearing in prog
ress in tAis city, expect to knock out
the higher rates.
At least this was the trend of de
yelopments at the second days
, hearing yesterday. AS the case pro-
ceeded it became more clearly ap-
par ent that the exact line of argu-
| lmem the complainants will rely
upon are particularly strong. In es-
tablishing higher earnings, the hope
1 is to TX a basis that Will Justify low
| er rates. Further testimony was adj
lduced from r. A. Thompson, engin-
Ieers of the railroad commission of
| Texas, showing that Texas lines are
charging much heavier per cent of
operating expenses than charged up
against divisions outside of the
Estate. although there is no plausible
ieXplanation of this
The explanation offered by the at
ltOrneys for the complainants is that
the Texas books are plugged Rail
road attorneys attacked this position
and endeaVored to establish reasons
for higher operating expenses il
Texas as due to costlier labor, ma
terial, climatic conditions affectins
maintenance, fuel cost, etc, but did
mot succeeG~ IA s~tfing Engineer
Thompson to agree with their ver-
sion, They also attacked the valua-
tiors as contained in the 1S95-1907
table introduced, succeeding in get
ting Engineer Thompson to admit
that the present valuations are
greatly in excess of the figures shown
in the table. Their object was to nil
the valuations as a basis for arriv-
ing at fair rates that will allow a
fair return upon the Investment. Mr.
Thompson said that valuations of
the fifteen railroads would average
about $50 900 mile as against
iabout So. 900 as shown by the ta-
bic embracing some old valuations.
Much consideration was given to
the source of some $33, 100000
ispent for improvements and testi-
mony showed that It was borrowed
f.om parent lines. The cause for this
vas assigned as the Texas stock and
bond law the roads being bonded
TO the limit of their valuation by
1.-THE commission. AS to why revalua-
itions were not sought for higher
bond issues the railroad maintained
that the refusal in the Rock Island
d lease was acespteds Z o. "a meaning that
Vi Thu eo1HmfsBion would Not increase
1.-THE valuations for bonding purposes
!, Engineer Thompson testified, how
ever that he understood it to be the
lpolicy of the commission to make
revaluations and allow additional
bonds so long as the aggregate
, amount did not exceed the limit o.
the total valuation.
, Attorney Spoonts announced tha
the Fort Worth & Denver City hat
purchased $1,000,O00 worth of neN
!. equipment and when it is received
will submit liens to the commission
for approval for bond issues, thi
being the first intimation that thu
roads will accept the commission
to bond to get new
Ilequipment. en
or signal importance also develop
ed the question OF rate divisions OF
Interstate shipments between tn
Elparent and Texas lines. This wa
brought up by ]. j. Arthur, rate ex
lpert OF the Texas commission, who's
Nltestimony was to the effect that tn
vlKaty of Texas, for example, gets re
markably less on divisions from tn
IKaty system than the Katy system
pays in present lines for similar o
inferior service. In this way the com
plainants evidently contend tn
earnings of Texas lines affiliate
lwith trunk lines are sapped an
Texas roads make fictitiously poo
showing.