The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-03-25
SAYS s. SHORE
JUCCLES BOOKS
CHARGE MADE BY ATTORNEY
GENERAL KUHN'S ASSISTANT
IN TWo.cENT FARE CASE
HEARING.

Charges of MISREPRESENTATION and
figure juggling in connection with
it's earnings and expenses for 1911,
were made against the Duluth. South
shore & Atlantic railroad Friday at
Detroit during arguments in the ac
ton brought by the railroad To re-
strain Attorney General Franz G. Kuhn
from enforcing the 2-cent fare rate
on its lines. The arguments were
heard before Circuit Judges Arthur
c. Denison and Loyal L. Knappen
and District Judge Alexis G. Angel.
AS special counsel representing
the attorney general, Roger |. Wycks.
Of Grand Rapids. made lengthy plea
against the granting Of restraining
order. Statements of the railroads
earnings and expenses had been pur-
posely misrepresented, he said, TO as
sist its case and to suit the exigencics
of the occasion, He called attention to
the last annual report fled by the rail-
read with the state railroad commits
sion ana compared the earnings and
expenses shown therein with those
submitted in ahidavits for the courts
consideration They showed discrep-
ancies of $4,000 in earnings and $22,
600 in expenses. the smaller amounts
being designated in the affidavits.
1T is very funny" said Mr.. Wycks,
that the expenses have gone up and
the earnings hase'gone down since the
films of the annual report
1t developed during the arguments
that the railroad property is worth
$4,000, 900 at the lowest estimate. This
Vas the statement of the railroad at
torneys, although for q number OF
years the railroad has fought Tor q
lower valuation by the state board oI
assessors. which has placed the value
of It's property in Michigan at $1,000
600.
Attorney-GeneralK Kuhn holds that
the federal court has no power to
cnjoin the enforcement Of the 2-cent
rate law which was enacted by the
state legislature. He cited as parallel
the Sanborn case which was decided
in Minnesota, and which decision was
protested by the congress of governors
as being an abrogation of states rights,
or exceeding federal authority within
the states. .ehm @
The plea OF the railroad is that
it's earnings will not permit a reduction
of fares from the present S-cents rate.
It's attorneys asserted that the cor
poration is now unable to pay fair
rate OF interest on ftsg stocks and spa,
! 600, 900 bonds and that the enforce.
ment Of the state 2-cent fare law would
amount virtually TO i6ohnseation of its
property. The attorneys held also that
their interstate commerce would be
affected by reduction of fares within
| the state. "lst
| Since the passa ge 9. of the 2-cent
fare law patrons Of the road have
! been receiving receipts from all fares
paid and If the state Is successful IN
| having the law enforced the excess fare
will be returned to them.
The action is merely for a tenn
porary Injunction against the attor-
ney- general and the state railroad
commission. The case will be tried
later OH its merits. Attorneys appear
| ing for the railroad were a. Il. Ed
rodge. Marquette. general counsel;
Jared How st. Paul, MINI. Attorney
General Kuhn. Roger l. Wycks and
George Law made the arguments in
behalf of the commonwealth.