The Montgomery advertiser., 1909-03-09
MISSOURI RATE LAW
(Cesti.ued fren Page O.e.)


 State business. There is no evidence that any of the existing bonds were improperly issued either as to amount or rates of interest Tn fixing the value. the court has considered the ev- idence of witnesses as to the stocts and bonds outstanding. end tho sta&e board for taxing purposes has ,valued these properties. Of course those nno- ings are not binding, nor conclusive. but they are pefsuasive. But inde- pendently of stocks and bonds. and tn- dependently of what the State board has valued these properties for taxing purposes. the evidence shows the vat nations to be as recited in the dndings of fact herewith filed. and to which reference will be made In the decrees.
 Interstate and Intrastste.
 srt Is absolutely necessary that many trains, both passenger and freight. dc both local and interstate business. Even the fast trains. stopping at but passengers between such stadons. And the same is true as to freight trains carrying freight both In carload and less than car load lots.
 'The valuation of the roads has been fixed by the court as shown by the findings of fact The entire State and interstate earnings of the roads within the State is known and fixed to . cer- tainty. The expenses are known and fixed To apportion these expenses, 1t must be done according to one os the two theories and the correct theo- " Is that according to revenue. One theory or the other must be ap- piled 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 helpful to the one side. and the other theory helpful to. the other side. the one theory to the one side in freight. and the other theory to the other side in passenger. But an arbitrary splitting of theories is illogical and unfair and cannot be rec Q ognized. The court has adopted the revenue theory because a great num- Der of the best railroad experts of the country, against very limited number to the contrary, have so testified. Every court that has ever had this question before 1t. insofar as am advised by the briefs of &ounsel and nay own in- dependent invebtigation, has so held In the cases of the Supreme Court of the United States; in the two cases. by two Circuit Judges of this Circuit; ny three District Judges of this Circuit. and by the Supreme Court Of Florida. State vs Atlantic Coast Line. And Beale and wvman on Railroad Rates Regulation. announced such as being the correct rule. The value of the property within the State has been fixed by the court. The entire earnings within the State, interstate and State. freight. passenger and miscellaneous or each. have been fixed. The entire ex- pense Is known. including the extra cost of each. To ascertain whether tho result is a profit. and if so. what per cent, or a loss. is but a problem of pri- mary arithmetic, as Is shown by Judge Van Devanter in Arkansas Rate Cases There are other methods equally sim pie, the resultant figures. of course. being the same. These computations the freight rate statute of 1907. that two roads. the Hannibal and St. Louis and the Burlington. allowing nothing for extra cost. there is a defcit, and with all other companies less than two per cent. But with the extra cost add ed, the deficit for the two companies is much greater. and the other companies show . deficit.
 No Returns to Company.
 "rhe passenger earnings under the two cent fare law of 1907. allowing nothing for extra cost over interstate business, give no return whatever to the Rock Island. St. Louis and Hanni- bal: Kansas City. Clinton and Spring. feid. ana-ths Great Western. The other companies will have the follow ing: The St. Louis and San Francisco between three and four per cent: the Santa Fe.. between four and i've per cent: the Kansas City Southern. a small fraction over two per cent: the M K. and T.. between two and three per cent: the Burlington. between three and four per cent. But all this Is ar- rived at bv allowing no extra cost of aaryico rut to add the extra cost