The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-03-08


STOCKS and bonds. and independently
OF what the State Board has valued
these properties for taxing purposes,
the evidence shows the valuations to
De as recited In the findings OF fact
herewith filed. and to which refer
ence VIII be made In the DEGREES.
II Is absolutely necessary that many
trains. both passenger and freight. do
both a local and interstate business.
Even the fast trains, stopping at but
lew stations in the state, carry state
passengers between such stations.
And the same is true as to freight
trains carrying freight both in carload
and less than carload lots.
The valuation Of the roads has
been fixed by the court as shown by
the findings III fact The entire state
and interstate earnings OF each of
the roads within the state is known
and f1xed 10 certainty. The eX-
penses are known and fixed. TO appor-
tion these expenses, must be done ac-
cordins to 6Le of the two theories,
and the correct theory is that accord
Ing to revenue. One theory OF 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 an
other. The one theory is helpful to the
one side, and the other theory help
full 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
recognized. The court has adopted
the revenue theory because a great
number of the best railroad experts
of the country. against very limit
ed number to the contrary have so
testified. Every court that has ever
had this question before it, insofar
as j am advised by the briefs OF coun-
sci and my own Independent investi-
CATION has 50 held In the cases OF 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 su-
preme court OF Florida, State vs.. At
lantic Coast line. And Beale q Wy
man on railroad rates regulation. an
pounces such as being the correct rule.
The values or the property within the
state have been fixed by the court The
entire earnings within the state. inter-
state and state, freight. passenger, and
miscellaneous Of each, have been fix
cd, The entire expense is known.
including the extra cost of each. To
ascertain whether the result is a prof
it, and II so what per cent, OF a loss,
is but problem of primary arith-
metic. as is shown by Judge Van De-
yanter In 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 two
roads, the Hannibal & st. Louis, and
the Burlington, allowing nothing for
all other companies less than two
per cent But with the extra cost ad-
ded, the deficit for the two companies
is much greater, and the other COM
panies show Il deficit
The 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 & Hanni-
bal Kansas City, Clinton e Spring
field. and the Great Western. The
other companies Will have the follow
ing: The St. Louis G. San Francisco
between three and four per cent, the
Santa Fe between four and five per
cent: the Kansas City Southern
small fraction over two per cent: the
II
per cent: the Burlington between
three and four per cent. But all this
is arrived at by allowing no extra cost
OF service. But to add the extra cost
for freight and passenger, there are
no earnings over expenses. This is
conflscation under the constitution.
1T being a legislative act. and not
q judicial one, this court cannot fix
rates. If IT could, two and one-half
cent passenger rates would be fixed
for the stronger roads; and three for
the others But that Is for the leg
islature acting itself with experts.
such as the state employed in these
cases, or through a commission with
like assistance"
Judge Mcpherson also says In the
ton were enacted. 1t was believed by
many that b. reducing the fare there
would be much more travel. For a
month or SO this proved TO be true.
But with the novelty gone. the testi-
mony shows that the increase has
been less than three per cent and
more nearly one per cent
He says further as to the abolition oil
masses that the evidence shows the
passenger revenue is increased by
reason thereof less than one per cent,
The maximum freight law as pass
ed by the legislature involved reduc-
tions ranging from two per cent to
forty per cent on heavy freight in
. carload lots The railways secured a
court order temporarily restraining
the state officials from putting this
act into effect and on June IL. 1907,
Frank Hagerman. representing the
various railroads. petitioned the court
to make this order permanent. by
mutual agreement and at the sugges'