The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-03-08
KNOCKS OUT TWO Al n
CENT RATE LAW


IN carload and less than carload Io.s.
The valuation Of tho r0dAs has
been fixed by The couri as shown by
t1c Epdinks Of fact. The enllra sia.1
and Interstate ealninss of each Of
"a" ratds within the state 's Known
hhe i't "a y certainty. Tho ex,hns
es ure klown and 1xed. 70 anpo' il.n
{ .esa e'ienses, must hal ono acecr.l.
lus lu one OF the twn iheir.rS, n,
lsc CO.. ect theory is tliqf sccof l!ag ta
revenue. One theory or other mus,
be applied 10 both freight and passeng
er expenses, and the court should
not adopt the one theory as TO part,
and the other theory as to anolhes
The one theory is helpful TO the one
Side. and the ether theory helpful to-
the other side, and the enc theory
to the one side In freight. and the
other theory TO the other side In pas
senger But an arbitrary splitting
Of theories 70 Illogical and unfair. ana
cannot be recognized. The court has
adopted toe revenue theory because
a great number OF the best railroad
experts Of the country, against very
limited number TO the contrary have
50 testified Every court that has
ever had this question before Al n SO
Car as ! am advised BY the briefs 81
counsel and my own Independent ius
vestlgaton has SO held In thc case
Of the supreme court OF the United
States; IN the two cases. by two Cir
cult judges Of this Circuit: hy three
district judges OF this Circuit, ana
by the Supreme Court OF Florlda
State " Atlantic Coast Line And
Beale & Wyman on Railroad Rates
Regulation, announces such rs being
the correct rule. The values of lhe
property within the state have been
Fixed by the court, The entire earnings
within th sllic, Interstate and state
freight passenger and miscellaneous
OF each, nave been fixed. The entire
expense Is known. including the extra
cost ~ each TO ascertain whether
the result Is profit. and II so what
per cent, or loss. Is but problem
ot primary arithmetic as rs shown by
judge Van DeNanter IN Arkansas
Rate cases. There ara other methods
equally simple, the resultant figures
ai course being the same. These com
putallons snow ae to the commodities
covered BY The freight rate statute
ol 1907. that two roads. tae Hannibal
a. ST. Louis and the Burlington. IA
lowing nothing for extrs cost; Where
lS q deficit and with an other com
panles less than tNO per cent Au'
with the evira cost added, Tho detcii
for the Two companies Is muck great
cF ana iaa sthec companies SNOW
deficit
"ille @asscnEcR earnings Inder the
two cent fare law Of 1907. allowing
aolhine for extra cost over Interstate
business give no return Whatever
to the Rock Island, sl Louis & Han.
nibal. Kansas Clty. Clinton & Spring
field and the Great Western. The
other companies WIN have the follow.
Ing The st Louis 3 San Francisco
between three and four per cent: the
Santa Fe between four and FIVE per
cents the Kansas City Southern. q
small fraction over Two per cent the
M III e 3. between two and three
ncr oert the Burlington between
three and four per cent Aut all this
Is arrived s. 1y allowing eo ealra
cost OF service Ani 10 add the eelra
oosi lor Freight and pnsseneei there
sro 30 earnings over expenses This
rs connsaaIlon unior The consAu
ior
~ eelnE legislative act aua
not iudicla, one this coufi eannoi
0x rates II Il conld two an, one.
half cent passenger rates would be
ilxed sor she Stronger roads, and
three for TIE others But that il
for The Legislature acting Itself with
experts, suna as the state employed
10 these cesee, or through a commits.
sion with Ike assistance"
Judge Mcpherson also seya 10 tie
declsion "Wher the statutes n cues
don were enacted. q Was believed
by many thai by reducing the fare
there would be much more travel.
For a month or so this proved 70 be
true But with the novelty gars. ihe
testimony shows that the increase
has been less than three per coat and
more nearly one per cent,
lie says further as to The abolition
cf passes that the evidence shows
the passenger revenue is Increased hy
reason thereof less than one per cent.