The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1909-03-11

and properly should, over
and above expenses, make a return OF
s per cent per mum. And considSr-
ing all the evidence, the evidence fair
ly shows that all of these roads were
properly and economically built and
are being properly n economically
managed, and that after paying the
expenses for maintenance and opera
tion, that there is less than 8 per cent
Of returns, n not more than 3 per
cent, upon any OF them and as to some
Of them a deficit, taking the property
as above stated within the state OF
Missouri at it's fair valuation. And
this is so without reference to bonds,
because I'M no case do the bonds bea
6 per cent interest. But taking the
bonds into consideration, there Is still
not to exceed 3 per cent returns, and
many cases a deficit after considering
all debts mt credits, upon the true
valuation for the state business. There
is no evidence that any of the existing
bonds were improperly issued, either
as to amounts or rates of interest. In
fixing the value, the court has consid-
cred the evidence Of witnesses as to the
stocks n bonds outstanding, and the
state board for taxing purposes has
valued these properties. or course,
those findings are not binding nor con-
elusive, but they are persuasive. But
independently OF toe and bonds, and
independently of What the state board
has valued these properties for taxing
purposes. the evidence shows the VAL
uations to be as recited in the findings
Of fact herewith fled, and to which
reference will be made in the DEGREES.
As to Valuation.
Y 1T is absolutely necessary that many
trains, both passenger and freight, do
both a local n interstate business
Even the fast trains stopping 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 shown
and fixed. To apportion these ex-
penses, must be done according to one
OF the two theories, n the correct
theory is hat according to reyenue
one theory or other must be applied to
both freight and passenger expenses.
and the court should not adopt the one
theory as to part, and the other theory
as to another. The n theory is help
full to the II side, and the other the
DRY helpful to the other side, the one
theory to the one side in freight, and
the other theory to the other side in
PuooCAiSNi' buI all dTDllTdTy SDlILLIIR
OF theories is illogical and unfair, and
cannot be recognized. The court has
doIted the revenue theory because a
great number of the best railroad ex-
perts OF the country, against a very
limited number to the contrary have
so testified. Every court hat has ever
had this question before 1t I'm so far as
l am advised by the briefs Of counsel
and my own Independent investigation
has so held in the cases OF the supreme
court Of the United States In the two
cases, by two circuit judges OF this
circuit by three district judges OF this
circuit, n by the supreme court OF
Florida. State vs.. Atlantic Coast Line.
And Beale & Wyman, on Railroad
Rates Regulation, such as
being the correct rule. The values OF
the property within the state have been
fixed by the court. The entire earn
ings within the state, interstate and
state, freight, passenger and miscella-
neOus of each, have been fixed. The
entire expense IS known, including the
extra cost Of each. To ascertain
whether the result Is a profit, and IL
so what per cent, or a loss, Is but q
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 to the commod-
tiles covered by the freight rate stat
ute of 1907, that two roads, the Hanni-
bal & ST. Louis, and the Burlington,
allowing nothing for extra cost, there
! Is a deficit, and with all other compa-
MES less than 2 per cen But with the
extra cost added, the deficit for the two
companies Is much greater, and the
other companies show a deficit. ~
THE passenger earnings under the
2-cent fare law OF 1907, allowing nothing
l Gov Ufr mat nKya- nHArENnEa ann H
give no return whatever to the Rock
Island, st. Louis & Hannibal; Kansas
City, Clinton & Springfield, and Great
Western. The other companies will
have the following: The st. Louis q
Kansas City, between 3 and 4 per cent;
the Santa Fe, between 4 and 5 per cent;
the Kansas City Southern, a small
fraction over 2 per cent; the Missouri,
Kansas & Texas, between 2 and 8 per
cent; the Burlington, between 3 and 4
per cent. But all this Is arrived at by
allowing no extra cost of service. But
to add the extra cost for freight and
passenger, there are no earnings owe
expenses. This Us confiscation under
the constitution. ~.
1T being a legislative act, and not
q judicial one, this court cannot fix
rates. If it could 2h-cent passenger
rates would be IKE for the stronger
roads, and 3 cents for the others. But
that is for the legislature acting itself
with experts. such as the state m
ployed in these cases, or through a
committee with like assistance"
Judge Mcpherson also says in the de-
cision: when the statutes in question
were created. it was believed by many
that by reducing the fare there would
be much more travel. For q month or
so this proved to be true. But with the
novelty gone, the testimony shows that
the Increase has been less than 3 per
cent and more nearly l per cent" Z
He says further as to the abolition
OF passes that the evidence shows the
passenger revenue is increased by rea-
son thereof less than l per cent. N
GOV. STUBS RiDICULES THE
DECISION OF MCPHERSON