Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-09-24

nual dividend or 3 per cent, ana asked
MIR. Love n II was true that =. Z. NJ.
|. paid an annual dividend OF II per
cent.
THAT IL true Of the last two or three
years answered the witness For q
number OF year, during and following
the panic no dividend az all was paid.
and then s per cent. per cent, anu
finally the old rate Of u per cent was
reached again
Asked II he believed the railroads
we're entitled TO ~ per cent on the
money Invested, Mr. Love said ne
thought a private institution, subject
TO many more risks and much more
competition than a railroad. was en-
titled TO something more than RAFT
road, which IL a quasi-public instltu-
ton.
''Then you think" said Mr. billiard.
that the private institution should ne
allowed 20 pluck the people on the one
hand and the railroad on the other
Il did not say that az all replied
Mr.. Love
Mr. Pierce. attorney for the Rock Is
land, asked MI Love N he would be
satisfied with the consequences to'-
lowing probable readjustment OF
rates. in case that readjustment should
result In the shutting out ~ salt Lake
jobbcrs from the territory which they
NOW NONtfs MI iNNNE l'RAA'A AA'N 49,
iobbers were willing 10 take theig
chances on lower rates, whatever the
consequences might he.
Mr Clark I win read this. Com
missioner prouty-That shows that the
transcontinental business Is a profitable
business" Mr.. Babcock-We want all
the business we can get. but II our
earnings were all measured by our pro-
portion Of the through rates. | think
the property would land in the hands
81 n receiver speedily. The earnings
OF the branch lines are about a. per
cent That is what makes the line
particularly valuable; Il Il the local
tra nc. 7 viii ask YOU n thar Is not
quite inconsistent with the position
YOU take o. the relative values OF these
two classes OF trainer
TRANsCuNTINBNTAL TRAFFIC..
Mr.. -Ttunscentinentai traf-
fc We were always glad 60 get. a.
though our share Of the rate was very
small Take the rate from san Fran
cisco to the Missouri river after maxi
ing the reduction for the Missouri itv-
err bridge or san Francisco bay, the
Rio Grande Western had 1862 per cent
Of the rate We hauled much OF THAI
traffic from Ogden to Grand junction
at rates that paid ~ from Sl5 70 SIS
carload. There was time during the
citrus fruit traffic in California when
we were hauling. cars one way loaded
and one way empty our net revenue
being reduced on account OF the extra
mileage on . car was about ti4 car
for 32S miles service Utah LOCAL bust
ness We nursed as well rs We could
at high scale OF tariff rates which
! esta blished myself They were high
because the Rio Grande Western
was p small company and 81 was OF the
cessity that we gather up every dollar
that We could. But the conditions OF
that property arc not today as they
were then. 10 is now part OF one
OF the greatest systems in the country
calling IL generally the Gould system.
MI. Clark-Then, in your Judgment
the question OF long distance haul be-
ing more or less valuable TO a railroad
property than shorter hauls depends
unon whether or not IL is part and par
col or tho transcontinental system?
Mr.. Babcock No the rates as they
exist now. as ] understand. where the
carrier receives his full proportion OF
the regular iarin rate. / could imagine
that there IS no portion OF that trafic
which would not yield fair returns to
tho Rio Crsndc Western for the same
haul
Mr. Clark DO your mileage basis
rates take into cousidcrati ton physical
difficulties in the operation Of a road2
Mr.. Babcock-ln such case il can
stand its own disabilities.
Mr.. Clark--in your judgment. unless
IL can meet the rate that the lowest
operated road can probably put into
effect il should b. forced out OF bus
mess, regardless OF the communities
which may have grown up along the
weaker line ard the business Interests
that have developed?
arranged between the lines, as / said
a while ago The Denver e. Rio Grande
IL not helpless Ia the matter n the
Union Pacific should put i'm an unjust
rate they would have a right 10 fight
back. As far az / know. all the through
rates Of TODAY are maintained upon
a basic which forms a reasonably
remunerative revenue TO the Denver 6
Rio Grande.
Nj Clark-But the question Is. what
should the commission DO In a case in
Volving lines Of these two characters?
Mr.. Babcock-So far as this com.
piaint Is concerned and the rates
asked for. I believe that any OF these
rates or the division Of these rates
would a ford remunerative revenue TO
the Denver & Rio Grande for IT'S haul
from salt Lake or Ogden TO Denver.
Mr Clark-What do you consider a
fair per ton mile rate?
Mr.. Babcock--Dcpends upon the dis
tance. what the volume OF traffic is 1
could not say arbitrarily what the rate
per ton should be 10 be remunerative
10 the Denver & Rio Grande upon any
particular thing without reference to
the rest
COMMODITY RATES
Commissioners PTouty then PROFOUND
ed few questions TO Mr. Babcock.
with the purpose OF determining. in
case the commission decide to make a
reduction In rates what t.ottTa a.. 90.