The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-11-23
FREIGHT TARIFF ORDERS
ARE MATTERS IN ISSUE
Defendants Claim New Rates
Ordered By State are
Ccaa!!!lsssa!sFYy Cca!!ssa!sIY

The corporation commission con.
vened this morning In special session
with Chairman Love presiding and
commissioners Watson and Meal
ester sitting to take additional evi'
dence in the ten freight orders issued
by the commission which have been
in effect the past year and which the
railroads now claim are contiscatory.
An imposing array OF legal talent
including the general attorneys and
their assistants and the Oklahoma
attorneys Of The majority OF the roads
are in attendance at the hearing, as
well as the auditors and experts OF
the various roads. After converting
court and reading the mandate OF
the supreme court referring the cases
back for further evidence and find
ings of fact, Chairman Love stated
that the Oklahoma rate hearing must
be based upon the actual Oklahoma
conditions and that no technical
testimony by experts would be per
mitted to fill up the record.
coal Tariff Order First.
He directed that the coal tariff
order. which was the first order put
into effect, should be considered first,
and as the Rock Island road is more
affected by this unier than other
roads, rs representatives were call.
al upon to proceed. u. H. Lindley,
general attorney for the Rock Island,
conducted the examination Of VIII
nesses for the ROCK Island and AS
sistant Attorney General G A Hen
shaw represented the state
Frank Nay general auditor Of the
Rock Island was The only witness
examined during the morning scs.
sion He introduced vast amount
Of technical testimony as TO the
earnings and expense of operation OF
the roads business. both Interstate
and intrastate, basel upon arbitrary
formulas. These figures, ~ develop
ed, were only estimates and were not
based upon the actual conditions,
and were made up by pro rating the
cost Of operations based upon the
formula prepared which he nfterward
admitted upon cross.eyamination were
the forms used BY the railroads in
the Missouri and Arkansas rate cases
Formula Suggested by Judge.
Mr. Nav also admitted he did not
know why he used this formula, ex
eept thai Federal Judge Vandayontci
had suggested uaat the form be used
and that other experts and account
ants had advised It's use to get same
results as by definitely checking ~
the actual cost Of operation as he
tween Interstate and intrastate bus
mess. According 10 the formula the
witness introduced an array OF iig
nres showing that during the sis
months al This year ending June 30
1908. the total freight business II
the state only brought a return Ol
| .63 per cent and the passenger bus
lness 81 per cent According 10 fili
figures the interstate freigh
business showed detcit Of $7S.032ft
during that time. while the inter
state passenger business showed 9
net profit Of over $4,000 Accordlni
10 his formula the railroad charged
81 per cent more for operation y
local or state business than for the
Interstate business. Just why. th'
Witness could not explain, except tha
It was done III the Missouri and At
kansas rate cases He stated tn
railroad also charged 25 per cen
more to expense for state passenger
service than for Interstate business
/ for the same reason as in freigh
business.
aenshaw Cross Examines.
Assistant Attorney General Hen
shaw showed on cross-examlnatiol
that Auditor Nay had prepared hi
statements al the suggestion Of th'
legal department ef the road for THU
rate hearing anf had been directed {
follow out the form used ia the olhe
rate cases. Mr.. Henshaw also Sc
cured an admission from the witness
thst he could have made his repo'
cover at least eight months Of w.
current year upon such formula. Mr.
Hcnshaw declared the reason tha
the failf6ad company did not carr
IT'S report Up 70 date was becaiis'
+ that rver undar It's. own formula
would not BE able ins make i sli0winl
IN court and that the railroad there
fore took the first six months. 0
+ that portion OF the year when the "a
pense Is greatest and traffic lightesi
+ or the capital stock and Blondes
indebtedness Of the road S3y.O75
6f3 SO Is cet9rged 10 Oklahoma. q
which s9,a95.919 l2 Is capital stock
Commission Experts Derlde Formulas