Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-09-27

IN those days was considerably higher
than at present. which was accounted
Tor IN some measure By the fact that
ele business OF the country was then
being done on the greenbsck basis
specie payments not being resumed nv
the government until iS1e and bv the
Iact mat business was much loss In
quantity
RATES WERE INCREASED
Tho witness acknowledged tina, rates
on the railroads were Increased the
hrst Of the present year, the Increase
being something like 70 per cent Hc
said that he figured that what loss OF
traffic had been sustained bv the rail-
roads following the increase of the
rate was not so much due 10 the adj
vance made az TO the fact that the
steamship companies had shortened
their time Of sailings The witness said
that he considered n renumcrativc
freight rate for railroad was some
thing that will produce a profit over
and above fixed charges
Some little controversy developed.
between the examining attorney ana
the witness as 60 the percentage OF
tfaHlc taken through the Ogden gate
way 10 the Pacific coast terminal
points, counsel maintaining that 90
per cent went through and witness
claiming that only about so per cent
or the business goes through 10 the
terminal POINTS.
HYPOTHETICAL DISCUSSION.
a great deal OF time was consumed
by the Nevada counsel In asking nv
pothetical questions and discussing -
same with the witness. hing
ing upon rate which would
enable the traffic to move
freely. During the discussion Judge
Bartine asked II the witness would
conclude that that would be a fair
rate which would stop all traffic in
the country.
How could rate which would
move traffic freely operate so as 10
stop All trahic?' interjected Commits
sion Clark. at this point.
one point was brought out during
the Ions drawn out examination. and
that was that In Mr. Luces opinion the
water tonnage had increased consider
ably during the last 10 Years. The
railroad rates are prOpOrtionately %
per cent higher than the steamship
rates.
The advantage possessed by the rail-
roads then. is an income 70 per cent
more than the steamship companies?"
asked Judge Bartine.
wv hoN FNtfliNt answered Mr..
Luce "the steamship rate is % per
cent lower than the railroad rate. and
they still get the business"
Mr. Luce, in response To a question
by Judge Bartine said IN his opinion
the railroad lines. without consulting
the water carriers. made the transcon-
unental rate. The first class rate 81
now SO per 100 pounds This, the Wit
ness said, was not fully remunerative
rate to the railroads.
1t is a forced rate" said Mr. Luce.
The witness admitted that rates hal
been raised In 1904. and that the water
carriers had raised their rates at the
same time
Judge Bartine attempted 10 bring
out the fact that most of the traffic
west Of Ogden. according 10 the claim
OF the railroads. Ia on an unremuner-
alive basis. The witness said that
something less than 96 per cent OF the
westbound traffic and so per cent Of
the estatbOund traffic was Improbable.
Sumner FOR RAILROADS.
'WiH you tell me then" asked Judge
BaItine, where the railroad gets is
income with which TO pay s per cent
upon its common stock. per cent upon
It's preferred stock and to accumulate
a surplus OF $50. 000, c00?"
1.-THE roads have sources OF income
other than the Improbable Nevada
haul" answered Mr.. Luce.