The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1910-02-17

Guthrie, OKLA, Feb. 17.-To the mar
engaged in private business and com
PEELED to be satisfied with return OF
from two OF three 10 ten or twelve PEI
cent on his investment, and who con
siders himself exceptionally fortunate
4 II his profits can be figured at the
/ latter rate, court ruling thai rates
under which a railroad makes from
81 to 95 per cent profit on its volume
OF business are confscatory appears
not little peculiar.
The ruling OF United States Circuit
Judge Hook as announced at st. Louis
on February 5th, in the Oklahoma rate
case makes this declaration.
The proposed injunction against Ok
lahoma's rates applies in the interest
Iof the Gulf, Colorado & Santa Fc COM
Ipany as well as of the other companies
interested in tho case. The figures
showing the profits in the business of
the Gulf, Colorado & Santa Fe Co..
contained in its sworn statements
made to the state corporation commits
sion and presented TO Judge Hook ON
page A of the defendants record in
the case, copies of which are in the
hands of many attorneys and news
papers of the state, show that instead
OF being confseatory, the rates have
netted that company profits, or the
revenue basis, that would look SO
good to the average business man as
TO be beyond hope of attainment. And
the so-called revenue basis" upon
which these profits are computed, has
always been contended for and upheld
by the shrewdest railroad legal lights
as the proper one for arriving at CON
clusions in such matters.
The statement of earnings of the
Gulf, Colorado & Santa Fe company
for the fiscal year 1909, shows the pro-
fits on the Oklahoma intrastate bust
ness, or business originating and COM
pleted within the state, to have been
$91, 1,731.23. The profits on Oklaho-
mas proportion of the company's in
terstate business, meaning business
in Oklahoma and carried
to the state line or the reverse there
of, were $464.37S.S9. Thus, the whole
profits, intrastate and interstate, on
the company's business done in this
state amounted to $556, 1852.
Instead of being confscatory, or
less an ordinary and reasonable pro-
lit upon the investment involved these
profits were equivalent to a return
Of 1874 per cent on the capitalization
Of the company as shown by The bal-
ance sheet of the average capitaliza-
lion per mile of line, and a return Of
1881 per cent on the actual cost of
The railroad as shown by its state
nent of the average cost per mile.
Had the Gulf, Colorado & Santa Fe
company, done no business at all ex.
sept what it did within the state Of
Oklahoma, and had its volume Of busi-l
aess and rates charged been what ihe
prove to have been the ac-
ual volume and rates involved, 81 per
,ent of the receipts from what was
'eolly intrastate business, and 1854
)er cent Of the receipts for what was |
eally interstate business, would be
'ecorded as clear profit. IN other
words. in every dollar collected by
his company in Oklahoma on bnsi-
less originating and completed in this
tate there was 81 cents of profit, and
n every dollar collected for business
in this state with destina-
ion outside Oklahoma or conducted 1
n Oklahoma having originated out
;de of Oklahoma or conducted in Ok
ahoma having originated outside the
rate there was 1884 cents of profit.
In the face of these indisputabie
cures, and in the light of the fact
hat the United States supreme court
ever has upheld an injunction
gainst the enforcement of aay rates
here it could be shown that the rail-
Dad company was making a profit
cual to four per cent Of the salue of
he property. it is difficult for disin-