The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1915-04-30


with the same engines and crews, but
in different cars; different lines are do
ing a decidedly different amount Of
passenger and freight traffic respective
ly. Take the Michigan Central; its
main traffic is passenger while the
Pere Marquette is principally freight,
you can see that what may be the per
centage of cost of passenger traffic as
compared with the freight traffic on
one road, may and must differ material
ly from the traffic on another road.
Now in determining the relative cost
of these two classes of transportation
the railroad officials figures differ ma
terially from those advanced by the ex-
pert Prof H. G.. Adams of the Univer-
sity of Michigan as well as those ad
vanced by our Michigan Railroad Com
m ssion; the railroads claimed that out
Of every dollar of operating expense to
their lines in Michigan, thirty seven
cents should be charged to passenger
traffic and sixty three cents to freight
traffic. Prof. Adams says that but 26
cents should be charged to passenger
traffic, while our Railroad Commission
says that 80 cents is their estimate.
Now here is the whole case in nut
shell; no doubt if you take the rail
roads figures on operating expense of
passenger traffic, every road in the
state can show loss when the cost
is compared with the income; but if
you take either the Commission figures
or those of Prof. Adams, the income
will exceed the expense and show a
profit, the Professors figures, of course
case of the Pere Marquette on passen-
ger traffic alone; the Commission fig
ures will show just a reasonable profit.
Now whose figures should legislat-
or accept? The railroad Commission
admits that their computations have
been made from the figures furnished
by the railroads in their annual reports
to the Commission as required by law.
Prof. Adams figures are obtained by a
scientific investigation aided by his
knowledge of railroad matters in parti-
cular and his knowledge of railroad
rates obtained in his connection with
litigation as an expert witness and his
capacity of instructor in our great Uni
versity upon these subjects.
Another argument advanced by the
opponents of the railroad rate raise
was the different valuations placed up
on the various lines by the railroads
themselves, depending upon the pur-
pose they wished to accomplish for
instances, Dean Cooley in his appraise-
ment of the Pere Marquette held that
The entire road and equipment WAS
worth $4,000, 100000, and that its repro
duction value was 100000 100000; the
officials took issue with him and claim
ed that the roads present value was
more than 6,OOO,OOO.OO. OF course
they must take that position in order
to satisfy bond holders to the extent
the inconsistency of their contentious
come in: When their representatives
and attorneys appear before the Michi-
gan State Tax Commission they claim
and endeavor to prove that their road
and equipment is worth but $24, 900, 900.
and the Commission kindly favored
them by making their assessed valua-
ton a little over $4,000, 100000. Surely
they should not complain about their
taxes even though they have to issue
receivers certificates to pay them.
Finally however, the joint committee
of Senate and House reported out Bill
granting railroads a graded increase of
passenger fares based upon earnings
per mile; those earning over $4,000 per
mile would not benefit by the Bill at
all; those earning between $500 and
s., 900 would be entitled to 2k cents
per mile. Those earning less than $500
per mile could charge and collect &c.
This Bill passed the Senate after an
amendment was attached allowing the
upper peninsula roads earning under
$4,000 per mile to charge straight &c
per mile. This was the form in which
the Bill reached the House. Yesterday
was an eventful day in which the
House considered this bill. An amend
ment was there attached by bare 81
votes providing that this increase
should expire at the end of two years
and that commission should be APP
pointed to investigate the necessity for
the increase Or non-increase and to re-
port March 1st, 1917 In this form and
after hours of debate the bill reached
vote and was defeated by the vote of
81 to 45-the proponents Of the Bill
needing but six votes to insure the rate
unless perchance the good gray Cover
nor would veto the measure. What the
Governor would do in that case is prob