The Topeka state journal., 1909-03-09
THE TWO CENT FARE.

Judge Smith Mcpherson of the
| United States district court to the
| effect that such a passenger rate for
local business in the state of Mis-
souri, is confiscatory. He makes the
same sort of a decision in regard to
the freight rates which were estab-
| lfshed by that state at the same time
the two cent passenger rate was put
| in force. But Kansans are not so
| much interested in that phase of the
subject as they are in the passenger
rate case although the freight rate de-
cision may prove to be most i'm
portant to their interests as a pre-
cedent in the event that such reduc-
tions as may be made by law or by
the railroad commission in the freight
rates in this state are taken to the fed
eral courts.
As to the passenger rate end of the
decision, though, there is more interest
here because the Kansas authorities
made an agreement with the railroads
year ago that they would not press
fiat two cent fare legislation on the
understanding that such a fare was to
be put in force by the railroads in this
state until the equity of the proposition
had been fought out in the courts of
road brought in that state to knock out
the two cent passenger fare law
adopted there. The point is that pas
senger traffic conditions are pretty
much the same in Nebraska and Kan
sas as they are in Missouri. The rail-
roads will have the same evidence to
present in their Nebraska case, affect
ing Kansas, that they did in the
Missouri case, and this evidence was
convincingly in favor of Judge Nc
Pherson's decision. 1t is likely that
this decision will be appealed to
the higher United States courts
by the state of Missouri, but his
conclusions appear to be most
sound on the evidence that was pre-
sented to him in the case at issue. If
his decision is finally affirmed, there
will be many people, who, while hav-
ing the respect for it that it is entitled
to, will be far from being convinced
that a two cent passenger fare is con-
f1scatory in Missouri or Kansas. And
they may well be pardoned for hold
ing to such opinions, as the grounds
for them have been furnished by the
officials of the railroad companies.
In the testimony in the case on
which Judge Mcpherson gave his
momentous decision it was stated by
the railroad officials, who presented a
great array of figures that local pas
senger traffic in that state-and it is
presumed that the conditions in this
regard are the same in Nebraska
and Kansas-could not be carried
on remuneratively for less than
2.99 cents per mile. For obvious
reasons this most important
technical testimony could not
be combatted by the state of Missouri
Everyone remembers, though, that
when two cent fare legislation was
being considered in Missouri and in
Kansas two years ago, the railroad
officials appeared before the legisIa-
tive committees and argued that such
legislation was unnecessary because,
as matter of fact. counting in spec
ial and excursion rates, the average
passenger fare in the two states was
about two cents a mile. These officials
presented figures to substantiate this
statement. These figures meant that
the railroads of their own voIition
were only receiving an average fare of
two cents mile and if it was an un-
remun erative rate the chances are
that they would not put it in
operation.
Anyhow these figures do not jibe
with the ones presented to Judge Nc
Pherson which placed a minimum
remunerative rate at 2.99 cents per
mile. AS will be readily seen, the
railroads had one class of figures on
this subject to. prove to legislators
that two cent fare legislation was un-
necessary because it was practically
in force and they had another set of
figures to present to the court which
were sufficient to show that a two
cent fare law is confiscatory. AS
Governor Hadley of Missouri once
said: ''The railroads are efficient
Witnesses
1t must also be remembered that
the railroads have lately gone into the
special and excursion rate business
quite extensively and have recently
had passenger rates in force at a fig
ure considerably less than two cents
mile. In view of their most recent
contentious in this Missouri case as to
what are remunerative passenger
rates, it will strike the average per-
son as being quite peculiar that they
are often willing to engage in pas
senger business at considerable of a
loss.
Then it must be remembered too,
that the court must have accepted the
face capitalization of the roads as pre-
sented to it by the statistics, regard
less of any watered-stock or over-cap-
italization.