East Oregonian : E.O. (Pendleton, OR) 1888-current, 1909-09-15

Spokane, Wash, Sept. 15.-Ship-
pers in Spokane and throughout the
inland empire, where enormous tom
mage in grains fruits, timber and
minerals is offered to railroads. be-
lieve that the action of the state rail-
road commission of Washington in
ordering the Northern Pacific Rail-
way company forthwith to reduce its
freight rates on grain to 81 1-2 per
cent of the tariff published on June
80, 1909, will have a salutary effect
all over the northwest. Though the
cut of IL 1-2 per cent applies only
on the Northern Pacific main line in
from one to one and half cents a
bushel or between $4,000 and $780,
900 year.
The reduction, based on the find
ing that the company's profits are
more than $1,0OO,OOO a. year exclu-
sively on state business over a per
cent annual revenue on the invest
ment, Is taken to mean that inquiry
may be made into other tonnage, the
carrier charges on which are declar-
ed to be unreasonable, excessive and
exorbitant. The significant portion
of the commissions finding is best
told In its own words, in part as fol-
lows:
1--WE have found the value Of the
Northern Pacific Railway company's
property in the state used for the
public to be $111,374,950. divided
$45, 5,7O3,73O for state use and $685.
671.219 for interstate use.
1--WE have found as facts that the
net earnings of the company from
state business were s4.976,273 for
1906. s5,174,047 for 1905, s5,60O,37S
for 1907, and ss.22S.s4S for 1908.
"The earnings of the Washington
& Columbia river branch are not in
cluded in the earnings for 1905-6-7,
so the value of the property used
would be correspondingly reduced.
The value of its property used for
state business during 1905-6-7 would
not exceed $42,5O0,O0O.
1.-THE estimated net earnings Of the
company from state business for 1908
exceeds $S,450,000, thus showing e
net return from state business for the
five years under consideration Of III
per cent, 1917 per cent, 1917 per
cent, 1852 per cent, and 1851 per
cent, respectively That this return
with the percentage increasing year.
ly, is excessive is clearly evident"
The finding shows that grain
amounted to 1897 per cent Of the to-
tai state tonnage carried by the COM
pany over its lines in Washington |
and to 45.07 per cent of the total ten
miles, and furnished 1898 per cent
of the total state revenue received by
the company in 1908. Sixteen million
bushels of grain was carried by the
The cost of movement, ex-
elusive of taxes, interest Of dividends,
was approximately s.966S a ton, while
the average receipt per ton was ap-
$3.02, the moving cost
being approximately 32.01 per cent
of the gross earnings, the operating
expenses of the road on all its busi-
ness being SAIL per cent Of the gross
receipts.
Carload merchandise constituted
1854 per cent of the state tonnage
and 14.S4 per cent of the ton miles,
while it contributed 1915 per cent OF
the total state earnings, and the cost
of moving was only 1853 per cent
of the gross earnings. Less than car
load merchandise constituted 1888 per
cent of the tonnage, 3.5 per cent OF
the ton miles, and contributed 1925
per cent of the total state earnings
the cost of moving being 51.9S per
cent of the gross earnings therefrom.