The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1909-11-26

4tn A~bi iNoNhAdtAfNN N1AN NaitSN uPNh
to proceed. Il. L. Lindley general
attorney for the Rock Island, con.
Quoted the examination Of witnesses
for the Rock Island and Assistant At
torney General G. A. Heushaw repre-
sented the state.
Frank Nay, general auditor OF the
Rock Island was the only witness
examined during the morning session
He introduced vast amoVnt of tech
nicaI testimony as to the earnings and
expense OF operation of the roads
business, both interstate and intra.
state. based upon arbitrary formulas
These figures, II developed were only
estimates and were not based upon
the actual conditions, and we're made
up by pro-rating the cost of operations
based upon the formula prepared
which he afterwards admitted upon
cross-examination were the forms used
by the railroads in the Missouri and
Arkansas rate cases,
Formula Suggested by Judge.
MFR. Hay also admitted he did not
know why he used this formula, ex-
eept that Federal Judge Vandayenter
had suggested that the form he used
and that other experts and accounts
had advised its use to get the same
results as by definitely checking up
the actual cost Of operation as be-
tween interstate and intras,ate busi-
mess According to the formula the
witness introduced an array of figures
showing that during the six months
of this year ending June 80 1909, the
total freight business in the state only
brought a return of 1.63 per cent and
the passenger business 81 per cent
according to his figures that the inter
state freight business showed de
felt of s73.O32.40 during that time,
while the interstate passenger busi-
ness showed a net profit Of over
s22, 900 According to his formula the
roailroad charged 90 per cent more
for operation Of local or state business
than for the interstate business. Just
why. the witness could not explain,
except that IL was done In the Mis-.
souri, and Arkassas rates cases. He
stated the railroad also charged % per
cent more to expense for state passen.
ger service than for interstate busi-
ness for the same reason as IN freight
business
Henshaw cross-ExamInes.
Assistant Attorney General Hen
shaw showed on eross.examination
that Auditor Nay had prepared his
statements at the suggestion OF the
legal department of the road for this
rate hearing and had been directed to
follow out the form used IN the other
rate eases Mr.. Henshaw also Sc,
cured an admission from the witness
that he could have made his report
cover al least eight months OF the
current year upon such formula. Mr.
Henshaw declared the reason that the
railroad company did not carry its re.
port up to date was because that even
under It's. own formula It would not
be able to make a showing in court
and that the railroad therefore took
the first six months, or that portion
Of the year when the expense Is great
est and traffic lightest
OF the capital stock and bonded In
debtedness Of the road s49.O75. .613ss
is charged TO Oklahoma. OF which
50, ,995.9l912 Is capital stock.
Commission Experts DerIde Formulas
| According to experts of the com
mission who testified this afternoon
the arbitrary formulas Of the roads
are a farce and that under their ap
portionments the interstate business
Is netting the railroad astounding pro
fits, which the experts found after
traversing every road IN the state dur
ing the past two weeks. declaring that
eighty-fiye per cent OF the total freight
business over the lines was delivered
within the state and the same porpor