The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-28
Kansas Governor Testifies Be
fore Commerce Commission.
Can Rebuild Kansas Lines fol
$4,000 a Mile.
BRANCHES FOR LESS.
He Declares the Roads Should
Be Made to Show
Just What They Own by Pr0duc.
ing Their Books.

OCI. zo.-6OV0rnOr w. II.
Stubbs of Kansas. on the witness
stand before the interstate commerce
commission today in the freight rate
! increase hearing declared he could re-
produce at a profit to himself as
railroad contractor all the main lines
of railroads in the state at $4,000 a
mile and for $4,000 mile less re-
produce the branch lines in the state.
In addition to presenting these es-
Inmates as a railroad contractor, the
railroad reproduction figures being
many times as large as his figures,
Governor Stubbs declared that he
viewed the railroad situation literally
but he protested vigorously against
stock manipulation and excessive val
uation of properties.
Il don't believe the carrier should
be trodden down." said Governor
show to the interstate commerce COM
mission what he has invested. He
should have a liberal return on his
actual investment but he ought to
bring in his books and show just what
he owns.
People Much to Blame.
1.-THE people are a good deal to
! blame for the present conditions.
They have allowed the conditions to
grow up and many persons have
bought stocks and bonds of railroads
on the abnormal returns And all the
while the carriers have taken millions
and millions out of the returns to
build expensive structures and then
the next year have capitalized the
structures and expect to pay dividends
on the increased capitalization. But
there I do not want to make a
speech
II think it is a fraud continued the
witness, "for a railroad to take out
/ millions from its earnings and build
permanent structures and improve cars
and at the end of the year take out
100000 as the Santa Fe did. and ap-
propriate it to be used for betterments
/ and improvements and then say only
/ $365,000 of net revenue was on hand.
when as a matter of fact, they had
$90o0,0 600 and had taken out all kinds
of money for improvements"
Governor Stubbs declared that at hts
figures of $4,000 a mile of main line
road he would make $4,000 900 on
contract to reproduce the Kansas raiI-
ways.
'I had a proposition up about four
years ago" said Governor Stubbs. "to
put a line $50 miles through the best
part of Kansas. from Belleville to
furnish the right of way, lay hard
wood ties and furnish everything for
$4,000 mile and I would have made
money on the Job. Put the railroads
did not want it. I think they had an
/ agreement and did not want a north
and south line in Kansas. The
right of way would have been granted
Talk about right of way. Why gen.
tlemen. one-siXth of the land in Kansas
has been given to the railroads"
In his testimony, Governor Stubbs
declared:
"The curse of the railway business in
this country is stock Juggling and high
finance. Stop this hieh finance. Make
! everv dollar of Capitalization represent
dollar invested in the road and peo-
pie will fall over themselves to buy
railway stocks and bonds"
| It's Kanass Day.
| Chicago, Oct. Ex-Governor W. r.
Stubs of Kansas was a witness today
in the interstate commerce commits
sion rate hearing. He was preceded on
the witness stand by Frank Ryan of
the state board of railway commits
sioners; William Muirhead of Topeka,
special assistant to the attorney gen.
eral of Kansas, and J. R. White, traffic
manager of a big Kansas City dry
i goods house.
Mr.. Ryan and Mr.. Muirhead told of a
lamentable condition of the properties
of the Missouri Pacific in 1907. when,
Ryan said people were afraid to ride
on it, and of subsequent improvements,
while Mr.. White related that prior 20
1906 and the passage of the Hepburn
act rebating was generally practiced.
Between 1900 and 19O5,' said Mr..
White, 1--WE paid from 80 to 40 cents
less than the $1.47 rate from the At
lantic seaboard. This condition was
no. exceptional with US; it was a mat
ter of common knowledge that others
were allowed the low rates"
On crosS-eXamination by Attorney G.
NJ. Dawes of the Chicago, Burlington &
Quincy, witness said the rebates ap-
piled to all inbound freight, and COW
cred 90 per cent of the goods received
by his company. Rebates, he saie.
were received on practically all goods
received from the Atlantic seaboard.
southeastern points and Chicago.
Profits had fallen off since full freight
was charged
DO you think that the proposed adj
vance would materially damage your
business?' inquired Attorney Dawes.
mo, I do not, but it would affect it,
"Is there anything sold by you on
which the advance would not be added
to the price of the goods?'
1--WE would not add the advance on
print goods" replied Mr. White.
Opposed to the Advance.
Answering Commissioner Lane, Mr.
White said he was opposed to the ad.
vance. Referring to a recent case II
which the Kansas City dry goods house
secured a reduction in the rates or
certain articles witness declared thai
proposed advances would more thar
wipe out these reductions.
Mr.. Ryan, speaking of the physica
J | condition of the Missouri Pacific il
} 1907, said the trackage of the com.
pany in Kansas was in a dangerou.
condition.
1.-The people of Kansas he said
would not travel over the road il
, there were any other means of trans
portation possible
2 Two weeks ago he said that he haC
: made an inspection of the road and it
| branches and found that roadbed ant
| equipment had been greatly improvet