The Mena weekly star., 1908-10-29
SHORT LINES GET
 OUT INJUNCTION
Claim They Are Losing Money Under the Rates Made by Railroad Commission Unique Methods
 of Figuring It Out.

Little Rock, Oct. 2l.-Passen- gers to Fort Smith from Little Rock are enjoying distinction which few towns of the state are getting advantage of at the pres. ent time. The city is so situated that in order to pet into it from most directions a railroad must be taken which runs for a short distance into Oklahoma, though the line may never be out of sight at any time. This makes the journey an interstate one, and consequently the two-cent pas senger rate applies from most places to that city.
 Nine short lines which are sub sidiaries of the Iron Mountain yesterday afternoon recured re- straining order against the Ark ansas railroad commission, Attor- ney General Kirby and shippers of the various lines, in the Unit ed States circuit court presided over by Judge Jacob Trieber. Each line must file bond of $25,0 within ten days and upon notice of five days the state can come into court with motion to dissolve the temporary injunction. Judge Trieber issued the inJunc- ton upon the grounds that the short lines are losing money un- der the two-cent passenger rate and freight tariffs issued by the railroad commission last Decem- ber. and it is against these rates that the injunction applies. The roads interested in the injunction are, the Pine Bluff X Western, Arkansas Central, Arkansas Mid land, Eldorado & Bastrop, Brink ley, Helena & Indian Bay, Ark ansas Southwestern, Mississippi River, Hamburg X Western, Arkansas & Louisiana, and Cur don & Fort Smith. The method of figuring a deficit by the rail- roads is rather unique. The last halt of 1907 which was a very good season for railroads on ac- count of the heavy business of that period, is taken. The gross income of the railroad for this period is next thrown iu, and from this the gross expenses of the road for like period are de- ducted. Next one-third or the freight trainc receipts and two- thirds of the passenger receipts are taken as the volume of the | interstate business. To get this business aud handle it, 25 per cent additional cost is figured. This manipulation of figures will leave a very, very small sur plus between the operating ex- penses and the receipts for the six months. The amount the railroad represents on the tax books of the state is then taken and doubled, 1t being supposed to represent 50 per cent of the valu. ation of the railroad. Upon the total value ol the railroad, 6 per cent is figured as a fair return for the investment, which usual lly makes real good sum, as such a short line as the Arkausss Cen tral which connects Fort Smith with Paris, Logan county, is val ued at $529, TAG, and should yield $lS.192,2S annually. Then the percentage on the full value oi the road is worked over by the ratio of two.thirds passenger re. ceipls and oue-third freight, and 25 per cent additional cost for iutrastate business. This gener- ally leaves the 6gurer in pretty pad state of nervous prostration, but he is nearly through. Thi' net sum, which should represent the railroads legitimate return at 6 per cent on intrastate busi' ness is deducted from the receipts of the road by its interstate earn ings and the result is iu every Tn
 stance. of the short lines. thal they lost from Sll,000 to s55, 00( each ou the full year of 1907.