The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-02
Koontz Proposes New
Basic Rate Plan
For Relief Of Kansas Shlpperss
Troubles.
casio ASKS MILEAGE BASIS
But Railroad Mon Condemn II
as Conflscatory.
Would Put Weaker Railroads
Out Of Business.

AT the Kansas freight rate hearing
before the public utilities commission
TINS morning, J. r. Koontx, general
freight agent of the Santa Fe offered
the suggestion that Kansas be divided
into an east and a west division for the
purpose of establishing new basic
rates on freight hauling with the OBJ
1ect OF relieving interior jobbing points
which now claim to be at q dieadvan-
tase In competition with Missouri riv-
Martin Casio, representine the
Wichita business association. before
the utilities commission objected ON
the grounds that Kansas has no COM
mon dividing point. Mr.. Koontx pro-
establish a division point along the
sixth principal meridian with lower
rates east OF line and higher rates to
the westward where the volume OF
business IL smaller. Casio proposed.
instead. to put all rates on q mileage
basis.
Casio Asks Mileage Basis.
In cross examining Mr.. Casio this
morning. ]. r. Koontz, REPRESENTING
the Santa Fe railroad asked:
Would you have the commission
consider a mileage scale Of rates?"
wered Mr.. Casio.
In the question which arose az to
whether or not the commission could
fix mileage rates and do away with
commodity rates. Mr.. Casio gave It -
his opinion that commodity rates
could not be entirely abolished.
However,, added Caste, II believe
1t Is desirable to shippers that COM
modify rates be abolished"
Made to Create Traffic.
In the past rates in the state have
been made to create traffic, which
fact accounts for the topsy-turvy sys-
tenn of rate making"
believe that those who make
Ireient rates should be governed BY
THE rates. II made under this sv.-
tenn. should be modified by the rafas
OF surrounding states. The rates 81
otner states have an effect upon the
interests Of Kansas people.
what conditions and rules would
you say should be considered in estab-
fishing the rates-the points to be
considered?" asked judi. Helm.
Consider. Cost OF Service.
THE first consideration" said Mr..
Casio. should be cost Of service. The
carriers are entitled to profit on their
service. Another thing, 1 do not be-
lieve that rates should be made To
build up one section Of the country at
the expense of another"
DASeduCe, VaIue OF goods and vol
ume OF traffic were other conditions
suggested to govern making Of rates
by the Wichita man.
Classify Railroads.
The classification Of railroads into
three classes namely, first, second and
third, based upon the volume Of busi-
ness. was another suggestion made By
Mr.. Casio.
Railroads doing the largest volume
Of business might be classed az A.
Roads doing smaller volumes of busi-
ness could be classed B and c. Rates
n1 roads of class and c should be
made slightly higher than rates ON
roads of the standard type" Mr..
Casio pointed out that roads with Z
large volume of business could give
service for lower rates than those
handling smaller amount Of tranlc,
Judge Helm: rs 1t your opinion that
roads with large volume of traffic
could do business with slightly lower
rates than roads with less traffic ?"
Casio: Yes
This would not be applied to branch
lines Of the larger roads," explained
the Wichita man.