The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1909-03-11

ion is that, lille a gas plant Is in
some respects different from a railroad,
that a railroad property, properly built.
and properly managed. should, over
and above expenses, make a return Of
6 per cent per annum. And consider
ing all the evidence, the evidence fair
ly shows that all of these roads We're
properly and economically built and
are being properly and economically
! managed, and that after paying the
for maintenance and opera
ton. that there is less than 6 per cent
of returns. and not more than 3 per
cent, upon any of them and as to some
of them a deficit, taking the property
as above stated within the state of
Missouri at its fair valuation. And
| this is so without reference to bonds,
| because in no case do the bonds bear
6 per cent interest. But tailng the
bonds into consideration. there is still
not to exceed 3 per cent returns, and
many cases a deficit after considering
all debts and credits, upon the true
valuation for the state business. There
is no violence that any of the existing
bonds We're improperly issued, either
as to amounts or rates of interest. In
fixing the value the court has consid-
cred the evidence of witnesses as to the
stock and bonds outstanding. and the
state board for taxing purposes has
valued these properties. OF course,
those findings are not binding nor con-
elusive, but they are persuasive. But
lIlutDtilltIitlS OI SHOCKS ana DOfluS, ana
independently of what the state board
; mas valued these properties for taxing
purposes. the evidence shows the val
nations to be as recited in the findings
OF fact herewith filed, and to which
reference viii be made in the DEGREES.
AS to Valuation.
1T Is absolutely necessary that many
trains, both passenger and freight, do
both u local and interstate business.
Even the fast trains stopping at but
few stations in the state carry state
passengers between such stations. And
the same is true as to freight trains
! carrying freight both i'm carload and
less than carload lots.
The valuation of the roads has been
fixed by the court as shown by the
interstate earnings of each of the roads
within the state is known and fixed to
a certainty. The expenses are shown
and fixed. To apportion these ex-
penses. must be done according to one
of the two theories. and the correct
theory is that according to revenue.
One theory or other must be applied to
both freight and passenger expenses.
and the court should not adopt the one
theory as to part, and the other theory
as to another. The one theory is help
full to the one side. and the other the
DRY helpful to the other side, the one
theory to the one side in freight, and
the other theory to the other side in
pslSSciScI. bui an aTOlIIaTy SDllCtlnE
of theories is Illogical and unfair, and
cannot be recognized. The court has
adopted the revenue theory because a
great humble OF the best railroad ex-
ger.s Of the country, against a very
limited number to the contrary have
so testified. Every court that has ever
had this question before 1t in SO far as
l am advised by the briefs of counsel
and my own Independent Investigation
has so held in the cases of the supreme
i n11 -nP fhn 4 ~ / atN to- A1- k--~
cases, by two circuit judges of this
circuit by three district judges of this
circuit, and by the supreme court Of
Florida, State VS.. Atlantic Coast Line.
And Beale & Wyman, on Railroad
Rates Regulation. such as
being the correct rule. The values Of
the property within the state have been
fixed by the court. The entire earn
ings within the state, interstate and
state, freight. passenger and miscella-
neous Of each, have been fixed. The
entire expense is known, including the
extra cost OF each. To ascertain
whether the result is a profit, and if
so What per cent. or q loss. is but q
shown by Judge Van Devanter in Ar
KANSAS rate cases. There are other
methods equally simple, the resultant
figures of course being the same. These
computations show as to the commod-
tiles covered by the freight rate stat
ute Of 1907, that two roads, the Hanni-
bal & st. Louis. and the Burlington
allowing nothing for extra cost. there
is a deficit. and with all other compa-
MES less thar 2 per cent. But with the
extra cost added, the deficit for the two
companies is much greater. and the
other companies show a deficit.
"The passenger earnings under the
2-cent fare law of 1907, allowing nothing
for extra cost over interstate business
|, give no return whatever to the Rock
Il Island ST TLO1liS &, HANNIBAL. LanSQs
City, Clinton & Springfield. and Great
!, Western. The other companies viii
) have the following: The St. Louis 8
) Kansas City, between 8 and 4 per cent;
the Kansas City Southern, a small
fraction over 2 per cent; the Missouri
/, Kansas & Texas. between 2 n 3 pei
cent; the Burlington, between 8 and
per cent. But all this is arrived at b,
allowing no extra cost Of service. Blu
to d the extra cost for freight ant
passenger, there are no earnings ovel
expenses. This Is c~on1scation under
3 the constitution.
E "It being a legislative act, and no
q judicial one, this court cannot fl,
rates. II 1t could 214-cent passenge
rates would be fixed sor the stronge
roads, INC 3 cents for the others. Blu
!, that is for the legislature acting itsel
: with experts. such as the state EN-
: ployed in these cases, or through.
committee with like assistance"
|. Judge Mcpherson also says in the de
cision: when the statutes in question
: We're created. 1t was believed by man.
: that by reducing the fare there woul,
be much more travel. For a month o
Q SO this proved to be true But with tn
novelty gone. the testimony shows h
the increase has been less thar 8 pc
: cent and more nearly l per cent"
9 He says further as to the abolition
: Of passes that the evidence shows tn
passenger revenue is increased by rea
{ son thereof less than 1 per cent.
9 GOV. sTuees RIDlcuLEs THE
II DECISION OF M'PHERSOi
Topeka, Kan, March 10.-The senat
: committee on railroads today submitte
an adverse report on the 2-cent fare bi