The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-11-30
EVIDENCE OF EXPERTS
APPEARS CONTRADICTORY,
Auditor Peabody, Of Santa Fe
Uses Arbitrary Formula TO
Show Operating Expense

Before the corporation commission
today Santa Fe Expert Peabody sub
mitted under oath as true and correct
a formula statement showing results
of a test made for the month of jan
uary, 1863 in an effort to determine
the actual cost OF state business as
compared with interstate business in
Oklahoma, which shows the cost of
operating way freight trains on the
main line of the Santa Fe, where the
traffic is much greater than ON the
hranch roads. to bv 81 .05 per train
mile as compafed with 81 50 and
81 rs per train mile on the branch
lines, where a, and 27 per cent re-
spectiveiy of the freight traffic Is
state business, as compared with 3
per cent state business on the main
line.
Where Experts Differ.
According 10 Auditor Nay of the
Rock Island, and Vice President GRAY
and Auditor Alexander Douglas OF the
Frisco, the expense - handling state
business In Oklahoma IL 30 per cont
more than the expense Of interstate
business, ON the theory that It costs
much more 10 operate local or state
freight trains on branch lines on ac
count Of the light traffic and poor
foadhed, which Is directly opposite to
the testimony Of Expert Peabody
peabodv's test, with an arbitrary
formula he uses IN connection with
the terminal expenses. shows that on
the branch line running into Tulsa
where only local way lreights are
operated, that the terminal cost on
state freight Is three mills per Ton
mile and that tae total operating
exp nse Il one cent and quartei.
per ton mile.
Ton Miles Compared
The state ton miles on this division
was u pc cent. as compared with
73 per cent Interstate ton miles On
the other hand his formula, when ap-
piled to the Oklahoma division main
line from Arkansas City to Gaines
vile. where only 3 per cent Of the
ton miles Is state lraiiic, and where
the density OF traffic Is greatest in
the Southwest he shows the termin-
Al cost on state freight trains to be
IA cents per ton mile and all OPP
Grating expenses on state freight
trains to be 2 2-3 per ton mile. That
Is TO say, his formula charges 81 per
cent Of the total terminal expenses
To state freight, In view OF the fact
that only per cent OF the tonnage
was state freight Upon this same
basis, If the same operating cost were
applied 10 interstate business as to
state Freight the cost of operation OF
the main line division during the
month Of January would have been
s25e.697. as more than the total
charge. which was less than $4S,0bo.
This formula. in other words, charges
to expense Of handling the : per cent
state business on the main line.
which should be at more reduced
rate than on the branch lines over
ten times that apportioned 70 the
interstate business.
Peabody's Formula Worked Out.
peahody's formula worked ont II
this way shows that the Santa Fe did
carry during the montA OF January
state freight on these Identical trains
al terminal cost Of 3 mills as com
parcd with cent and half on INC
main line. where density of traffic i
greatest. and with total operating
cosf of ! IA cents. as compared VIII
a3-4 cents per ton mile on the mait
line
peabody's formula worked out Y
its ultimate result shows that whef
state trains move on main lines of
the through translate trains u ne
ccmes more costly 10 handle and th'
formula. II correct is absolutely op
posed to the contentious made by Vie'
President Gray and Auditor Nav
Peabody Unable 10 Explain.
Mt. Peabody was unable to explain
upon luss.txamlnatiou why his tes
showed that II costs f9l to earn $lu'
revenue in Oklahoma during th'
month uI January last. While the rec
ords submitted 70 the commission
show a coHi Ter the same class Q
business Of only t74 q 70 earn $40
revenue In Oklahoma for the tisca
wear ending June 30, 1909. and fha
1t cost for the same year only s5sl
10 earn 800 revenue on The road
entire line He was also unable Z
explain 10 the commission why \
charged the expenses Of the lusltll
trial and immigration bureaus. fol
eign agencies, and other traffic e
uenses, law expenses. salaries
general officers and expenses incidef
thereto. as terminal expense. Will
". criffeF the eharee ~ wages
trainmen. road engineers and damag
10 property az terminal expense.