The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-07-28

II Is further alleged that the immed-
late direct and necessary effect of the
two cent fare law will be to create UNI
fair and unjust discrimination in favor
of the passenger business Of the South
shore local 90 the state of Michigan
and against all it's passenger business
between Michigan and another state,
or between Michigan ana Canada. In
summing up this argument, the COM
plant reads:
The unavoidable effect of the reduce
ton of the intrastate passenger charges
will be substantially TO burden, and di-
against the isterstate passenger COM
merce of your orator, and to create un-
due and unjust discrimination between
localities in Michigan and those of 9TH
er states, i'm violation OF the commerce
clause of the constitution of the Unit
ed States, and In violation Of the act
of congress to regulate commerce
among the states and with foreign ma
tions, and the amendments thereto,
commonly known as the Interstate
Commerce act"
Earnings Of Passenger Department.
! 1t is related that during the fiscal
year 1910 the total operating revenue
of the passenger business was not 20
exceed S956,2144G, of which $539,502.50
was assignablc 10 intrastate business.
THE operating expenses OF the passen
ger department were $701,413.71, OF
which $426,956.42 were chargcable TO
lintrastate business. The net earnings
of the passenger business were $256.-
i92O.1O, of which $113,74O.14 was charge
able To intrastate business.
In 1910 the average amount Of rev.
onue per passenger mile was $0.025432.
II is stated that there is no reason
to believe that the passenger earnings
will increase substantially I'm the near
future, as the territory served is spa; Sc
ly settled, the population in upper
Michigan being only sixteen per square
mile, as compared with forty-two per
square mile, the lower pCnin-
/ sua. II is stated that the average
revenue per passenger mile in case the
two-cent law is permitted to go into
5 effect, will be about Is cents per pas
senger mile. on this basis. considering
b the volume of business i'm 1910. the
diminution of revenue would amount
o to $243, S6S.13 per year i'm Michigan. II
: the revenue were reduced by that sum
= THE rate of return upon the proper
4 Tomato value of the property used In
, the conduct of intrastatc business, and
properly chargeable thereto, would be
less than 500 per cent. and the return
on the entire value of the company's
: operating property would not exceed
% 4.59 per cent.
1t is also pointed out that the cos
of operation has increased steadily II
recent years, on account of higher wa
, ges paid and increases in cost of ma
! terial, and that it is probable that the
, Operating cost will continue to advance
The company. at it's present earnings
has never paid any dividends upon any
G of its outstanding capital stock ant
has only paid a comparatively SINAI
! part of the interest accruing on it'
bonds outstanding.
No Reasonable Return.
9 Therefore, for all these reasons, it Il
a commended that the tWo-ccnt law VII
result i'm depicting the revenue of thu
> road so that it will not derive any fan
, and reasonable return upon the value
u, OF its property. particularly that par
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