Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1909-03-08

But. taking the bonds into consdera.
ton, there is still not to exceed
three per cent returns, and many
cases a deficit after considering all
debts and credits, upon the true valu-
alton for the state business. There is
no evidence that any of the existing
I bonds We're improperly issued either
as to amounts or rates of interest. In
liking the value the court has con-
siderd the evidence OF witnesses as
to the stocks and bonds outstanding,
and the state board for taxing pur-
poses has valued these properties,
or course those findings are not bind.
ing nor conclusive, but they are per.
suasive. But independently of stocks
and bonds. and independently of what
the state board has valued these prop
critics for taxing purposes, the evil
dence shows the valuations to be as
recited in the findings of fact here
VIII uitt, ara w Nliei ltlCi'H'p VII
BE made in the DEGREES.
ut is absolutely necessary that
many trains, both passenger and
freight do both local and interstate
business. Even the fast trains stop
ping at but few 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 of fact The entire state
and interstate earnings of each of the
roads within the state is known and
fixed to a certainty. The expenses
are known and fixed. To apportion
these expenses, must be done accord
ing to one of the two theories, and
the correct theory is that according
to revenue. One theory or other must
be applied to both freight and pas
| ser$er expenses, and the court should
not adopt the one theory as to part,
and the other theory as to another.
| The one theory is helpful to the one
side, and the other theory 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 cannot be
recognized. The court has adopted
the revenue theory because great
number of the best railroad experts
of the country, against very linn.
tied numbey to the contrary have so
testified. Every court that has ever
had this question before it insofar
as am advised by the briefs of coun.
sci and my own independent investi-
cation has so held in cases of the
| Supreme Court of the United States;
in the two cases, by two circuit
judges of this circuit; by three dis
trict judges of this circuit, and by the
Supreme Court of Florida, State VS..
| Atlantic Coast Line. And Beale &
Wyman on railroad rates regulation,
announces such as being the correct
rule. 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
expense is known, including the ex-
ira cost of each. 70 ascertain
whether the result is a profit, and II
SO. what per cent, or loss is but a
problem Of primary arithmetic, as is
shown by Judge Van Devanter in Ar
kansas rate cases. There are other
methods equally simple, the resultant
figures of course being the same
These computations show as 10 the
ccmodities covered by the freight rale
statute Of 1907, that two roads, the
Hannibal & st. Louis, and the Bur
lington, allowing nothing for extra
cost, there is deficit, and with all
o'Eer companies less than ,wo per
cent. But with the extra cost added,
the deficit for the two companies is
much greater, and the other compan-
les show deficit.
"The passenger earnings under the
two-cent fare law Of 1897, allowing
nothing for extra cosr over interstate
business, give no return whatever TO
the Rock Island, st. Louis and Han.
nibal, Kansas City, Clinton and
Springfield, and the Great Western.
The other companies Will have the
| following: The st. Louis and San
Francisco between three anl four per
cent; the Santa Fe between four and
five per cent; the Kansas City South.
ern small fraction oycr two per
cent; the M X. & T. between two
and three per cent; the Burlington
between three and four per cent. BGt
all this is arrived at by allnwiry no
extra cost of service. B. 70 add the
extra cost for freight and passenger,
there are no earnings over expenses.