The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-10-29
THE STAR
WITNESS ON RATES

WITHHOLD UW nHILO
Continued from Page One.)
nection with your comparison of the
/ risk OF railroads and banks" said Mr..
Norton.
Laugh All Around.
Wen, let me give you some infor-
nation right along that line about
/ banks, interJected Governor Stubs.
Il can tell you a story that Will make
your hair stand up"
Mr.. Norton diselaimed any desire to
have his hair stand up" and Com
missioner Lane, the top OF whose head
/ Is smooth, said:
suppose you tell me that story. gov
ernOF"
which followed
Don't you think, governor" was an
other question. that the Santa Fe road
| is entitled TO the increased value Of its
properties IN Kansas You do not deny
/ 20 the Kansas farmer the advance in
/ the price Of his land"
Yes" quickly rejoined Governor
Stubs. rising from his chair, and EN-
phasizing his words by pounding on
/ the judges bench, but that land is
worth more because of the honest Ia
/ Dor of the men, women and children on
1 every quarter section of Kansas land,
ana the stock values Of the railroad
/ holdings have been juggled and in
| ter there IS in it,"
Governor Stubhs repeatedly referred
/ to the position taken by President Rip
ley OF the Santa Fe that market QUO
/ Iations OF railroad stocks was a fair
I criterion Of the property values.
! i think President Ripley is a mighty
tine fellow" said the governor, but I
I don't agree with him on that point. /
/ want the railroads 10 give TO the COM
/ mission the actual cost of the roads
ana want them 10 get fair return
I on their investment"
Governor Was Emphatic.
Later in the cross examination, Gov
ernor Stubs again stood up and. pune
I tuating his words with blows on the
/ bench beside him, said.
/ The railroads bught TO be allowed
l TO make or per cent on their ac-
/ tual Investment and also lay aside a
nice surplus FOR emergency use. But
they ought not 10 invest this emer-
gency surplus from time 70 time i'm
] permanent improvements and then add
| it to the capitalization. Every bust
ness man ought TO have a surplus for
! a rainy day. and the railroads should,
| too"
Continuing on this line. he said:
Il don't think that $4,000. 0O0 is too
| an emergency fund for a bad year OF
/ a WashOut. But keep that fund sep
arate and don't capitalize ii.
Now, let me tell you" he added en-
phatically, the people Will be pleased
TO pay the railroads liberal returns on
their actual investment il you viii only
stop your stock juggling"
A question about the automobiles in
Kansas caused the governor to throw
back his head and almost shout:
! III tell you why there are a lot OF
automobiles in Kansas. 1t is because
| We've got a prosperous, industrious
people, fertile fields and have the stuff
to buy them IN spite OF the high rail-
road rates"
In a lun in the cross examination
Governor Stubs leaned forward and
said TO the railroad attorney eXamin-
ing him:
You've asked me a lot OF questions
Now let me ask you one. What was
the basis Of the Santa Fe issue of Sl02.-
100000 of stock in 1896. when the rail-
roads were consolidated; was that ac-
tual valuation OF the rOad?'
Auditor Didn't Know.
Auditor Bailey OF the Santa Fe sys-
them answered that the stock was is
sued and exchanged for the old stock
OF the road.
What l want to find out" said Gov
ernOr Stubs. lis what was the road
actually worth them"
Mr.. Bailey replied that the actual
cost Of the road was matter impos-
sible TO determine, as the books OF the
| constituent roads or the Santa Fe
\ system did not go back of 1887 and
\
| critics could not be ascertained.
Comparing the estimate OF $4,000
per mile, given by Governor Stubs.
/ with what the Santa Fe had expended
in building what is known as the Be
| len cutoff, in New Mexico, from Texas
TO the vicinity OF Albuquerque, Attor-
ney Norton gave the figures OF the
cutoff at SAL per mile.
Governor Stubs insisted that the
/ grading obstacles encountered in the
/ New Mexican line were placed at S11,-
I $50, while Governor Stubs estimate
il Referri faOOT to the i si IT, per mile
New Mexico grading figures. Governor
Stubs exclaimed: 81 defy you 10
bring in your grading contracts.
shall buy you four suits of clothes II
YOU don't show figures far below that
estimate, and they'll be 500 suits, each
Of them, TOO
Ordered 10 File Statement.
The commissioners directed the San
ia Fe attorney to file detailed state
ment Of the expense OF building the
similar figures on the construction of
| the Phoenix A Eastern branch OF the
road in Arizona.
YOU have stated" continued Attor-
the pay OF some of the railroad men
should be raised. II it is found neces-
sary TO increase the freight rates 10
give this increase in wages and also
10 pay a fair return on the railroad
investment. are YOU opposed 10 an in
crease in the rates."
"Not on your life, was the instant
reply OF the witness.
Questioned on his being summoned
as a witness. Governor Stubs said ne
was glad 10 the opportunity TO aid
| the investigation Of the freight rates.
A telegram TO Governor Stubs from
the shippers attorney, John II. At
wood, telling him that the people OF
Kansas wanted him 20 testify, was
read, and a laugh followed when the
! governor said.
The only two people I talked TO
about coming 10 testify did not want
me TO come-they were my wife and
aauOhfara