The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-12-02
STATE GRATIFIED WITH
INFORMATION DERIVED
Commission Experts Believe
They Have Made Out a
Clear Case

Owing to the injunction cases Of
the Katy Santa Fe and Midland
Valley roads against the state Of Ok
lahoma IN which they attack the two
cent passenger rate as unconstitu-
tonal and the ten freight orders is
sued by the commission as coniisca-
tory coming up foc hearing before
Federal Judge w. C.. Hook at 81.
Louis on next Tuesday. December Z
the corporation commission took
recess in the hearing on the freight
orders complained OF last night until
Tuesday, December ID, when testl-
mony will be resumed.
The hearing. So far as il has gone.
has turned out satisfactorily to the
state and much valuable Information
was obtained. an analysis or which
will be used BY the commissions ex-
perts at the ST. Louis hearing 70
show that the complaint made by
these roads relative to the commits
sion's rate orders and constitutional
provision for two cent fare is abso-
.Gtely unwarranted, especially as TO
ihe Katy road. Auditor Seelig's
testimony showing that the "Katy's'
surplus earnings for the fiscal year
ending June 80, 1909. amounting TO
100000, were earned In Oklahoma,
as the road had shown loss to-
Judge Mcpherson In Missouri for that
year, attempted TO show a loss to
the legislature of Kansas. and did
show a loss of approximately half a
I,ll lut 14af hn "a IL
'oad commission in that state, Okla
homa being the only other state OPP
Grated in.
Although only the railroad officials
have given testimony al the hearing,
the state has becn able to show so
far that the KATY Santa Fe and
Rock Island systems. on both pass
enger and freight traffic, made sub
stantia surplus earnings during the
fiscal year OF 1909 and paid divl
dends. but have been unable to deter
mine definitely Just what portion
was earned In Oklahoma, The "katy
Rock Island and Frisco showed losses
in Arkansas and Missouri during the
year and the Katy heavy deficit
in Texas. The commission has also
been able TO show that all The big
trunk line roads have greatly IN.
creased their passenger revenues
during The year The roads claim q
greater expense which Is denied by
the state. and 4 WAS shown BY the
Katy auditor that the ratio of OPP
Grating expenses to operating reve'
nues was 20 Is per cent in 1908. as
compared with 50 2s per cent in 1909
on the entire system, and that the
ratio In Oklahoma is oven less than
on the entire system, being 63.2S per
cent for the year 1903 The state
believes It will be able 10 show on
final hearing IN the rate cases In the
Federal court. as II Is anticipated the
temporary Injunction will be granted
he railroads, that the same condi-
fions. are true as 60 the other roads.
u was also shown by intorma-
lion secured from Rock island rail
road officials that that road realized
more per train mile on passenger
traffic IN Oklahoma last year than In
any other state In which 1t operated
The density Of traffic in oklahoma
and the cost of operation per train
mile was shown to be greater In
oklahoma than in any other state.
n was learned here this morning
in railroad circles that the head Of
iicials Of the Rock Island, Santa Re
and Frisco roads are sore over admls.
sions made by the katy witnesses
/ fa The state In Yesterdays hearing
and that they are scared over the
final outcome OF theh cases IN the
Federal court
Auditor Seelig testified late last
evening that his road had for years
/ been using the surplus earnings ioI
additions and betterments TO Us
property aud that during the fisca
year ending June 20, 1909 the com
pany appropriated sS.D00,00O surplus
/ for improvements and charged Oh
s433. All 80 for additions and better
ments in Texas He also admitted
that the report TO the Texas commits
sion for operation In Texas. which
covers Il per cent Of the railroad
entire mileage. showed a loss o
4 s423. .425 s3 He testified thai he die
not know whether the company bad
/ deficit in the states Of Kansas ant
Missouri last year IN response Il
questions BY Chairman Love and AS
sisfant Attorney General Henshaw h
stated t1at he gruss operating rev
enues for the fiscal year Of 1903 werl
81. .a00.9f5 for the entire line ans
thai after paving all operating es
penses and taxes the road had ne
income az s6G52.505s after dedHctlnl
ronfs and hire Of equipment. cite