Bisbee daily review., 1916-03-04
RATE HEARING SHOWS
 LOSSES SUSTAINED BY ARIZONA EASTERN
Railroads of State Submit Facts in Support of Claim that they Cannot Grant 3 Cent Fares.

PHOENIX, March 3.-That the Arizona Eastern has been consistently losing money on its passenger traffic for the past three years, and that the loss is mainly due to competition put up by auto stage lines, was the out standing feature of the hearing of the three-cent rate case before the cor poration commission.
 The railroads of the state were rep resented at the hearing by a battery of legal talent of imposing numbers and standing. The Southern Pacific was represented by w. C. Derbrow, the Arizona Eastern by George PuTdy Bullard. Hawkins and Franklin were acting for the Fl Paso and South western, Morenci and Southern ard the Arizona and New Mexico. The Santa Fe was represented by Camp and Dunlap. Assistant Attorney Gen eral Leslie Hardy represented the corporation commission. Of that boGy only Commissioners Jones and Cole were present. Commissioner Geary is in the northern part of the state.
 A. A. Betts. rate expert for the commission, was the first witness on the stand. Betts testimony was mainly as to rates on both interstate and intra-state hauls. He had pre- pared an exhaustive report, giving the rate per mile per passenger on prac- tically all the railroads running be- tween Chicago and the coast. Betts was subjected to a grilling eXamila- tion by the representatives of the Gif- ferent Arizona roads. In spite Of the fact that his report was assailed from every possible standpoint. he stuck by it through thick and thin.
 In the states portion Of the evidence relative to the earnings of the Arizona Eastern it was shown that this road ha dlost $70,00O in 1915, in the pas senger department. William Sangster, secretary of the commission, testified that the Arizona Eastern rates were not high enough to pay what it cost to carry each passenger It was also shown that the road lost S1,000 in 1914 and in 1913 the earnings were s54,OOO, which is $11,OOO less than six per cent return on the investment.
 Bullard, attorney for the Arizona Eastern, also maintained that the losses of this road this year would go well over s3O0,000. due to the damage sustained during the floods.
 After this was made clear to the commission Bullard stated that he was ready to let the case Of his road rest.
 It was also brought out by Hardy, with the assistance of Betts. that the various roads carrying passengers across the state, were charging more for the intra-state traffic and for the interstate, that is a passenger travel ing from one point to another in Ari- zona was paying considerably more than passengers travelling across the state. In some cases, it was shown that interstate passengers paid less than one cent a mile. w. C. Cues brow. attorney for the Southern Paci- fic, was little inclined to take lightly the figures prepared by Mir. Betts. Betts repeatedly stated that his fig ures should be taken for what they were worth. and that was TOT the commission to determine.
 Those who testified in addition to Betts were: William Sangster. secre- tary to the corporation commission; c. NJ. Scott, superintendent Of the Ari zona Eastern, and Superintendent Will Hams of the Southern Pacific, of Tue son.