The Birmingham age-herald., 1910-10-29
Kansas Executive Holds That Railroads Are Vastly
 0ver-Capita|ized
ESTIMATES FOR ROADS
 ENTIRELY TOO HIGH
Governor Stubbs Is Witness Before In- terstate Commerce Commission Hut Puts Rapid-Fire of Ques-
 tions to Attorneys

Chicago, October 28.-Presentation of evidence by shippers who are opposing the advance in freight rates was conclud- cd today before the interstate commerce commission with the testimony of Gov. w. R. Stubbs of Kansas, who, in char acteristic manner, declared opposition to an indgease in rates and his belief as practical builder of railroads that val nations have been placed at too high a point.
 'Il put up a s1,O0O,OOO bond" said tho governor, "that can construct a main line railroad in Kansas and an up-to-date line for s25,00o a mile and make 10 per cent profit
 The lowest estimate of railroad build ing offered by the railways more than doubled the governors estimate.
 Governor Stubbs was the principal wit ness introduced by the shippers who oc- cnpied only three days with their wit nesses, while the railroads in the previ- ous hearing presented many witnesses and consumed more weeks than the shippers have days.
 
 Testimony to justify some of the evil dence and statistics already presented in the case and 1t is expected that the hearing will be completed with tomor- rows session.
 In his testimony Governor Stubbs time after time jumped from the role of wit ness to that of cross-questioner and re- peatedly turned on the railroad attor- ney:
 Now. I want to ask you question" At one point in the cross-examinaton by Attorney TA J. Norton of the Santa Fe railroad, Governor stubbs said:
 Not Much Risk for Railroads
 'There is not much risk in building a railroad in good territory as in starting a bank. I don't think the roads need preferential rights" Don't you think, governor" was one of the questions asked, that the Santa Fe railroad is entitled to the increased value Of It's properties in Kansas? You do not deny to the Kansas farmer the in- crease in the value of his land"
 ''Yes,' said Governor Stubbs, but that land Is worth more because of the hon est labor of the men and women on it while the railway stock values have been juggled and inflated'
 Governor Stubbs referred to the posi- ton taken by President Ripley of the santa F @ TdllTOdQ tudl tilt iildlhcl HtiStd- tions of railroad stock was fair crite- rion of the property values.
 T think President Ripley is a mighty fine fellow said the governor, ''but I do not agree with him on that point. I want the railroads to give to the com mittee the actual cost of their roads, Later in the cross-examination Cover nor Stubbs stepped up, and, punctuat- ing his words with blows. said
 Railroad SurDIus
 '~The railroads ought to be allowed to make or per cent on their actual in- vestment and also lay asidesa nice sur plus for emergency. But they ought not to invest the emergency surplus from time to time in permanent improvements and then add it to the capitalization. Every man should have surplus for a rainly day, and the railroads should, tco."
 Continuing on this line, he said:
 q do not think that s25.0OO,00O Is too great an amount for the Santa Fe as an emergency fund for bad year or a washout, but keep that fund separate and don't capitalize it"
 Now, let me tell you,' he added em- phatcally, "the people will be pleased to pay the railroads liberal returns on their actual investment if you will only stop your stock Juggling"
 A question about the automobiles in Kansas caused the governor to throw back his head and almost shout
 'T'll tell you why there are lot of automobiles in Kansas. It is because we've got prosperous people, fertile fields and have the stuff to buy in spite or the high railroad rates'
 Tn lull Governor Stubbs said to the railroad attorney: You've asked me a whole lot of questions; now let me ask one. What was the basis of the Santa Fe issue of $l02, 900 stock in 1896. when the roads were consolidated?" "
 Basis of Stock Issue
 Auditor Bailey of the Santa Fe an swered that the stock was issued and ex- changed for the stock and bonds held by the stockholders of the road.
 What I want to find out" said Gov ernor Stubbs, continuing the role of ques- tioner, lis what was the road actually worth then?"
 MT. Bailey replied that the actual cost of the road was a matter impossible to sdetermine as the books of the constituent roads of the Santa Fe system did not go back of 1887, and the original cost of many of the properties could not be ascer- tained.
 Comparing the estimate of $25,00o a mile given by Governor Stubbs, with what the Santa Fe had expended in the build ing of what is known as the Balloon in New Mexico from Texico to the vicinity of Alhuqurque. Attorney T. J. Norton gave tne figures oI lhe cut ol d' $al,Vo4 mile.
 Governor Stubbs insisted that the grad Ing obstacles encountered in the New Mexico line were far greater than could be found in Kansas.
 The grading in the New Mexico line was placed at $11,250 while Governor Stubbs estimate allowed $5000 mile for grading Referring to the $1125O per mile in the New Mexico grading figures, Governor Stubbs exclaimed, II defy you to bring in your grading contracts. I'll buy foui suits of clothes if they don't show figures far below that estimate. And they'll be S100 suits, each of them, too'
 The commissioner directed the Santa Fe attorney to file detailed statement of the expense of his New Mexico line, and also to furnish similar figures on the con struction of the Phoenix and Eastern branch of the road in Arizona.
 Prominent Lawyer Dead
 Spartanburg. s. C., October 2s.- Etobo J. Simpson, one of the best