The Miller press. [volume] (Miller, S.D.) 190?-current, 1910-11-10
THE ATEHEAR|NC'
ATTORNEYS FOR THE RAILROADS
FIGHTING TWO-CENT RATE
BEFORE MASTER
VALUATION IN THE STATE
Present Arguments on Valuation and
Claim Railroads Cannot Afford
to Garry Passengers at
Two-Cent Rate

Sioux Falls-The South Dakota rail-
Master in Chancery Howard Gates is
now on in the United States court
room in this city.
This phase of the hearing is for the
purpose of allowing the attorneys for
the railroads and the attorneys re re
senting the state. an opportunity to
present arguments touching upon the
facts adduced at the previous SIS ion
in Chicago, at which testimony was
introduced showing the va uation Of
the railroad property in So tn Dakota,
it having been ContenGed by the roads
that the establishment Of a twO-ce1t
per mile passenger rate in South Da-
kota would be confisCatory CT the
property Of roads, because they can
not afford to carry passengers for two
cents per mile in this state.
Samuel w. Lynde, counsel fer and
vice president of the Chicago and
Northwestern railway, tegan the ar
guments for the railroad which he Is
interested in, at 2 o'clo k and had not
finished a very exhaustive and thor
ough presentation of his side of the
question. at $3.50 o'clock, when the
hearing adjourned until this forenoon.
Mr.. Lynde laid the basis for his argu
ment by stating three points OF view
or propositions. as the premises upon
which his road opposes the introduce
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 its intangible
assets. or its value as a gong rail-
road, something which is in actual OPP
Grafton at the present time?
What is it's value based on its
stocks and bonds?
Mr.. Lynde admitted that the physi-
cal valuation of the read as maze by
State Engineer c. c. Witt was a fair
valuation and that the road ac-eHted
il as all right when IT wa
made but he said that the read was
entitled to a fair estimate Of its va
uation at the present time and in its
present condition.
That il should be valued as a 60
ing railroad and not at tie fgules
which represent its original cost.
That the road must he regarded as a
whole and not in its various parts.
He maintained that the exre"se of
keeping the road up to its preTe7t
standard which is required by tn" d s.
match of public business and safety to
- x.l1i. x,n,n thnn ngC re tNp re
probation of the road phy7ica ly bv
which he meant TIE wea" II tear en-
the road bed and track and on the ma
chinery and the BUILDINGS and cthe'
property with is necessary TO tie
operation of the road
He stated that in his opinion the
value of a railroad increases as II
| grows older for the reason that there
is constant OUTLAY TO bet e ment'
and higher standards of equ pment
and service all of which have to be
paid for out of the earnings OF the
road.
Mr.. Lvndes argument may Re sum
med I'D in the statement that the
Northwestern believes that its re-
turns from this state should be al
least z per cent per annum, upon a
sum which it would actually cost to
r~eproduce new, it's lines in South Da-
kota. He contends that TIE rresen'
volume OF business in this state doe
not return to the road Z per &c I
which statement he seeks to prove
by a series of tables taken from the
books OF the company.
The attorneys for the state VIII pre-
sent their arguments when the rail-
road attorneys have finished.