The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-03-09

York VS.. Consolidated Gas company of
New York decided that per cent was
fair and right to be given to the own
ers upon the true valuation. My opin-
ion is that while 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 per
cent per annum. And considering all
the evidence. the evidence fairly shows
that all of these roads were properly
and economically built and are being
properly and economically managed,
and that after paying the expenses for
maintenance and operation that there
is less than s 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 ref
erence to bonds, because in no case do
the bonds bear per cent interest. But
taking the bonds into consideration,
there is still not to exceed 3 per cent re-
turns and in many cases a deficit after
considering all debts and credits, upon
the true valuation for the state bust
ness. There is no evidence that any of
the existing bonds were improperly is
sued, either as to amounts or rates of
interest. In fixing the value the court
has considered the evidence of witnesses
as to the stocks 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 Both
independently-Of stocks and bonds, and
independently of what the state board
has valued these properties for taxing
purposes. the evidence shows the valua-
tons to be as recited in the findings of
fact herewith filed. and TO which refer
ence viii be made in the. DEGREES.
1T is absolutely necessary that many
trains, both passenger and freight, do
both local and interstate business.
Even the fast trains stopping at but
few stations in the state carry passen-
gers between such stations. And the
same is true as to freight trains carry
ing freight both in carload and less
than carload lots
Earnings of the Roads Fixed.
The valuation of the roads has been
fixed by the court as Shown by the find
ings of fact. The entire state and inter
state earnings Of each of the roads with
in the state is known and fixed to a
certainty The expenses are known and
fixed To aDDOTiiOn these expenses must
be done according to one of the two the
cries, and the correct theory is that ac-
CorulnS to revenue. One theory or other
must be applied to both freight and pas
senger expenses. and the court should not
adopt the one theory as to part and the
other theory as TO another. The one the
DRY is helpful to the one side and the
other theory is 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 can
not be recognized The court has adopted
the revenue theory because q great num-
Der of the best railroad experts of the
country, against a very, limited number
to the contrary, have SO testified. Every
court that has ever had this question
before it. in so far as I am advised by
the briefs of counsel and my own indie
pendent investigation. has so held In
the cases before the supreme court of
the United States; in the two 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 rate regulation, announce such
as being the correct 1ule. The values of
the property within the state have been
fixed by the court The entire earnings
within the state, interstate and state,
freight. passenger and miscellaneous of
each. have been fixed. The entire ex-
pense3s known, including the extra cost
of each To ascertain whether the re-
suit is a profit and If so what per cent,
or a loss. is but a problem of primary
Devanter in the Arkansas rate cases.
There are other methods equally simple
the resultant figures of course being the
same These computations show as to
the commodities covered by the freight
rate statute of 1907 that on two roads, the