The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-10-29

tuating his words with blows On the
bench beside him. said:
The railroads ought to he allowed
to make VIZ pef cent on their ac-
tual investment and also lay aside II
nice surplus for emergency nse. but
they ought not NJ invest the cmer
gency surplus from time tn time la
permanent improvements and then add
1t 10 the capitalization. Every bnai-
mess man ought to have Il surplus fpr
A rainy day and The railroads should.
too"
Continuing On this line, he said: TX
don't think that s2i,ooo0oo ~ toe great
m amount for the Santa re- az an
emergency fund for bad year or Il
washout Bnt keep that fund sapar-
ate and don't capitalize is"
Stop Stock Juggling.
Now, let me tell yoli," he added
emphatically, the people viii be-
pleased to pay the railroads liberal
returns on their actual Investment III
yon will only stop your stock Jug
CLING
question about the automobiles in
Kansas caused tho governor to throw
back his head and almost shout: .1'li
tell you why there are a lot OF auto
mobiles In Kansas. 1t Is because we'v.
got prosperous. industrious people.
! fertile lands. and have the stuff to
buy them, In spite of the high rail-
road rates"
/ In u luil In the cross examination.
| Governor Stubs leaned forward and
said to the railroad attorney examin-
| Ing him. You've asked me lot Of
/ questions Now let me ask you one.
What was the basis of the Santa Fe
issue Of sl02.0oo.ooO of stock In 1896
when the railroads were eonsollaat-
ed: was that actual valuation of tho
/ road?e
Auditor Bailey of the Santa Fe sys-
tenn answered that the stock was is-
sued and exchanged for the old stock
and bonds held by the stockholders
Of the road.
What | want to find out" said
Governor Stnbbs. IL what was the
road actually worth them.
Mr. Bailey replied that the actual
cost Of the road WAS "A matter impos-
sbie to determine. AZ the books nf
the constituent roads of the Santa Fn
system did not go back Of 1857, and
the original cost of many Of the prop
critics could not be aseertained.
Some Figures.
Comparing the estimate of $4,000 4
mile given by Governor Stubbs with
what the Santa Fe had expended III
building what Is known as the Belen
cutoff In New Mexico. from Teslco 10
the vicinity Of Albuquerque, Attorney
Norton gave The figures OF the cutoff
at Sal ,0s4 per mile. Governor suhha
insisted that the grading obstacles en-
countered IN the New Mexican linz
, WAS placed at sii25o. while Governor
Stnbbs estimate allowed $1,000 milo
, for grading.
, Referring to sl1,2s0 per mile New
Mexico grading figures, Governor
I Stubbs exclaimed 4 defy you 10
bring In your grading contracts.
/ shall buy you four suits of clothes Il
5 you don't show figures far below tim,
estimate. and they'll be 800 suits, eaei
4 of them. too,
| The commissioners directed the san.
A Ia Fe attorney To file a detailed state
= ment Of the expense of building tn!
/ New Mexico line and also to fnrnisl
similar figures on the construction o
/ the Phoenix & Eastern branch Of tht
I road in Arizona,
!. Not on Your Life.
You have stated continued Atton
a ney Norton, "that YOU thought tha
= the pay Of some of the railroad met
II should be raised, II II II found neeeS'
@ sary to increase the freight rates 4
Il give this increase In wages and ais
o to pay a fair return Oh the railroad
= Investment, are you opposed 10 al III
crease in the rates."
: +~--
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