Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1910-11-18
ATFHFAMNC
ATTORNEYS FOR THE RAIL ROADS
FIGHTING TWO-CENT RATE
BEFORE MASTER
VALUATION IN THE STATE
Present Arguments on Valuation an,
Claim Railroads Cannot Afford
to Carry Passengers at
Two-Cent Rate

Sioux Falls-The South Dakota ran.
road passenger rate hearing before
Master in Chancery Howard Gates il,
now on in the United States cour,
Dom in this city.
This phase of the hearing is for the
purpose of allowing the attorneys for
the railroads and the attorneys repre-
senting the state. an opportunity to
present arguments touching upoa the
facts adduced at the previous session
in Chicago. at which testimony was
introduced showing the valuation of
the railroad property in South Dakota,
it having been ContenGed by the roads
that the establishment of a two-cent
per mile passenger rate in South Da-
kota would be ron%fiscatoIy of the
property Of roads, because they can
not afford to carry passengers for two
cents per mile in this state.
Samuel w. Lynde, counsel for and
vice president OF the Chicago and
Northwestern railway, began the ar
guments for the railroad which he is
interested in, at 2! o'clock and had not
finished a very exhaustive and thor
ough presentation of his side of the
question, at $40 o'clock, when the
hearing adjourned until this forenoon.
MI. Lynde laid the basis for his argu-
ment by stating three points of view
or propositions. as the premises upon
which his road oppUses the iutfoduc'
ton of the two-cent rate.
Those propositions are:
What would be the cost of repro
ducing the Northwestern railroad
lines in this state. or what is their
tangible value at the present time?
What is the value of it's intangible
assets, or it's value as a going railI
road, something which is in actual OPP
Grafton at the present timer
What is its value based on its
stocks and bonds?
Mr.. Lynde admitted that the physi-
cal valuation of the road as made by
State Engineer c. c.. Witt was a fair
valuation and that the road accepted
it as all right when it was
made but he said that the road was
entitled to a fair estimate of its val
uation at the present time and in its
present condition..
That it should be valued as a 60
ing railroad and not at the figures
which represent its original cost.
That the road must be regarded as a
whole and not in its various parts.
He maintained that the expense OF
keeping the road up to its present
standard which is required by the dis
patch of public business and safety to
the public, more than offsets the de-
probation OF the road physically by
which he meant the wear and tear on
the road bed and track and on the ma
chinery and the buildings and other
property which is necessary to the
onorofiou IF tho roa6 49,
He stated that in his opinion the
value of a railroad increases as 1t
grows older for the reason that there
is constant outlay for Detterments
and higher standards of equipment
and service all of which have to be
paid for out of the earrings OF tho
road.
be Mr.. Lyndes argument may be sum
med up in the statement that Il
Northwestern believes that its re-
turns from this state should be at
least z per cent per annum, upon a
sum which it would actually cost to
reproduce new, it's lines in South Da-
kota. He contends that the present
volume of business in this state does
not return to the road Z per cent,
which statement he seeks to prove
by a series of tables taken from the
books of the company.
The attorneys for the state will pre-
sent their arguments when the rail-
soad attorneys have finished.