The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-11-09
Representatives of Is Railroads
Operating in Missouri
Appear in Federal Court in
Fight With State.
THE TWO CENT FARE
And Maximum Freight Rates
to Be Contested.
Presentation of Evidence Elk.
pected to Take Two Months.

Kansas City, Mo-, Nov. 9.-Represent-
atiVes of the Is leading railroads oper-
ating in Missouri appeared before Fed
eraI Judge Smith Mcpherson here to-
day and began the presentation of evil
dence in an answer to prove their con-
tention that the railroads are unable to
operate with a profit under the two
| cent passenger rate and the maximum
freight laws passed by the last Iegis-
lature. The state of Missouri is the
defendant and it was represented by
Herbert S. Hadley, the attorney gen.
eral the newly elected governor of the
state.
This was Mr. Hadley's first visit to
his home city since his election and
before court opened he was the center
OF a group of friends who took occa-
sion to congratulate him.
The two cent and the maximum
freight rate laws have been in effect
for some time past, the railroad COM
panies having previously agreed not to
contest the laws until it could be
shown by their actual operation wheth-
er or not they were detrimental to
these properties as claimed. Each Of
the Is railroads will present individual;
petitions. showing the effect the laws
have had upon the financial returns of
the particular road. Each railroad will
show its earnings from the date the
laws were put into effect, and in all
cases, - will be declared, it is stated.
that nc - of the roads has been able
to operi -e with profit.
The state will produce figures to dis
prove this claim and it will attempt TO
show that the railways have made
money under the new statutes. These
statistics have been gathered after
months of careful work and the pre-
sentation of the evidence according to
Attorney General Hadley will consume
two months time. The arguments viii
3 1,a nE
period has been reached. The first
evidence produced today was that in
the case of the St. Louis & San Fran
cisco railway.
A general presentation of the rail-
roads case was made today covering
all the eighteen companies. This gen.
eral statement was intended as a sum-
mary of the presentation that was to
be made later individually and in
greater detail in the cases of the vari-
Gus railroads. In effect it showed that
seven of the railroads involved had
lost money through the operation OF
the laws in question, while the earn
ings of the other companies had been
materially if not seriously reduced.
The opening statements were made
by Frank Hagerman, of Kansas City,
for the railroads and by Attorney Cen
eral Hadley for the state. Mr.. Hager-
man said the railroads would contend
that the freight rate law was confisca-
tory.
I'VE WILL" he said, proceed upon the
theory that it costs the railways moro
to handle the state freight business
than it does to handle the Interstate
freight business.
IF our theories are correct" contin-
ped Attorney Hagerman. ''and we do
not see how they could be otherwise,
not one of the railroads in Missouri
would earn more than or 3 per cent
on their investments if the freight rate
laws were enforced and some of the
roads would not earn a dollar on their
Investments"
Attorney General HadIey said:
1--WE agree with Mr.. Hagerman that
it costs the railroads more to handle
the state freight business than the
interstate freight business. But the
railways more than make up for this
in another direction. The state pas
senger business is much more profit
able than the interstate business. On
the longer hauls the passengers pay
smaller rate per mile, and the equip
ment on the interstate passenger
trains is much more expensive than
on the local passenger trains within
the state. I have been an extensive
patron of the railroads recently and 1
am speaking from experience and OBJ
servation.'
Judge Mcpherson interrupted Mr..
Hadley to ask: -
did you ride in the smoking carp
"I had to ride in the smoking car to
get a seat" replied Mr.. Hadley. The
local trains,' he continued. are crowd
ed. The expensive trains for interstate
travel frequently have no more than 10
or 20 passengers in a coach.
Mr. Hadley recently finished a cam
paigning tour for governor that carried
him to every part of the state
BRIGHT WOMEN TO BE THERE.