The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-29
HEARING ENDS.
Governor Stubs the Last Wit
ness to Testify at Chicago
In the Contest Over Proposed
Advance on Freight.
CIR OSS-EXAMINATION.
Was Conducted by Eight Well
Known r. r.. Attorneys.
Answers We're Given in 3 and 10
Minute Speeches.
CROSS-EXAMINATION

1
state commerce commission with the
| testimony Of Governor w. r. Stubs
| OF Kansas, who, in characteristic man
ner, declared his opposition to an in
| crease in rates and his belief as prac-
| teal builder of a railroads that valua-
lions have been placed at too high a
| point.
His testimony was a sensation after
| the days of dragging along.
| In the afternoon he was subjected
| to cross examination by eight of the
| best corporation lawyers of the west
for four hours. Judge Horton of the
Burlington, T. J. Norton of the Santa
Fe, William Ellis of the Milwaukee,
| Judge j. B. Payne of the Chicago &
Alton. J. c. Jeffrey of the Missouri Pa
cif1c and E. NJ. Heyzer of the North
| western were among the attorneys who
spent the afternoon trying to confuse
or intimidate or discredit the Kansas
| executive. They only succeeded in
| bringing the governor up to his best
form. There were dozen features to
the afternoon session, each equally i'm
| portant and startling.
He Laughed All the Time.
Word had been passed around at the
noon hour that the governor would be
| grilled after dinner. The grilling is
yet to come off. Rather he griIled the
| attorneys and the crowded court room
| cheered the governor on. Stubs
| laughed good humoredly all the after
| smiled.
Replying to the charge that the
Kansas farmers were able to pay the
increase asked in freight rates, the
governor said: eff the Kansas farms
were as badly managed as some of the
railroads, if they were as heavily
mortgaged and the Juggling tricks
played with them that the railroad
| properties suffer they would be in the
hands of the receiver or the sheriff.
| The governor quoted facts about the
! bond issues and dividends and sur
pluses of most of the roads and under
cross examination called the PROPOSE
ton that the roads needed the in
| crease in order to borrow money
ridiculous. And he told why it was
so. eff the roads ran their business
| honestly and decently and sanely, they
would have no trouble in Borrowing
money" the governor declared. "They
| would be offered by the people more
| money than they could use If they
| would quit playing with high finance
| where a few high officials make hun
dreds of millions while their road goes
| into the hands of the receiver and the
stockholders hold the sack until the
earnings of the road put it back on its
feet again.
AS to Ripley.
The governor paid his respects to
President Ripley of the Santa Fe as
great railroad president. I'VE don't
agree, that's all. Mr.. Ripley works for
|
Of my state. He has no more right to
complain of me than have of him. If
we fail to work for our employers we
ought to be fred
And so 1t went all afternoon. Cover
nor Stubs rose to his feet under barbed
questions and, leaning forward, always
came back full and strong. When ac-
cused by Norton Of the Santa Fe of
taking the west into his confidence be-
fore he came to the hearing, he said:
"I talked to two people about it, asked
them about it, and they urged me not
to go. They were my wife and daugh-
ter" The crowd rose to the governor
and Norton sawed off the questions.
Frank Ryan, Kansas railroad COM
missioner, testified at the morning ses-
sion. The governor followed him. Gov
ernor Stubs created the sensation of
the hearing when he declared under
oath that he would be willing to put
up a million dollar bond that he would
take the contract to reproduce all main
lines of the railroads in Kansas at
$25, 900 and branch lines at $4,000 a mile
and make 10 to 20 million dollars on
the deal.
Going into details, the governor said
that he could reproduce all the main
line single track railroads in his state,
buildings, right of way and everything
| excepting rolling stock and terminals
for $25 900 a mile, and would reproduce
the branch lines better than the pres
q
mile.
COST of Railroads.
The governor gave the cost OF rails.
ties, grading, ballast, depots. switches,
everything but shops and terminals and
general offices, required to care for the
business of interstate and transconti
mental systems. He had a world of
data, which covered everything from the
cost Of a tie to the particulars Of a
bond issue. Speaking Of his claim that
he nP fr@a,, 70
millions in such a contract as he had
referred to, the governor went on to tell
why his estimates were conservative.
why, in ballasting alone 1 would be
able to make 8 millions on the con-
tracts. I estimated $4,000 a mile for
ballast when the average cost of ballast
is 81 a yard, according to the sworn
testimony of the late General Manager
Hurley of the Santa Fe, when he was
| on the stand in the interstate hearing
at Topeka in 1907. Now. the average
amount of ballast required is less than
$500 yards to the mile which would
give a profit Of more than $1,000 a mile
on the ballast alone.
There would be at least $1,000 a
mile profit in bridges, buildings, right
of way, etc, which estimated at $6,-
900 in my table. There should be a.
profit of $500 to $1,000 mile in grad
ling, which will indicate that my esti-
mates on actual cost of construction
were liberal in every detail of the
work.
The governor referred again to tes-
timony of the late general manager of
the Santa FTe, who had said that 20
and 80 cents a yard was the price paid
for grading. The governor estimated
the grading at IA cents.
Life of Tie.
The governor estimated the life of a
tie at ten years and figured that the
ties of the Kansas roads were half
worn on an average. He had figured
from data furnished by the roads
themselves that the average weight of
rails used by the roads in Kansas was
SIS pounds He had the facts relating
ito bond issues dividends, tax assess