The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-03-07
LOPS OFF A THIRD
L. j. Stricken, Engineer of the
Utilities Commission
Slashes % Millions From e. p.
Physical Valuation.
CUTS IT DOWN TO IA MILLION
Declares the Road Can Be Re-
produced for That.
PAIRING Knife Is Applied All
Along the Line.
CUTS IT DOWN TO "a MILLION

]
the public utilities commission today
wiped % million dollars or thirty-five
per cent from the physical valuation of
the Union Pacific's property as shown
| by the railroads experts in the pas
! senger rate hearing. Testifying today
! in defense of his valuation figures,
| Stricken explained ho.y he had arbi-
/ trarily reduced the Union Pacific
valuation from 81 millions to A mil
/ lion dollars.
That Joseph L. Bristow and the
public utilities commission does not
intend to rely on figures by railroad
! engineers and accountants was indi-
Gated in today's hearing. The Strick-
Ter testimony, which has occupied the
! attention of the commission for an
/ entire day, went to the expense of re-
/ producing a new Union Pacific rail-
road. Stricken declared that the rail-
| road officials were Wild-eyed, dreamy
financial fanatics when they placed a
| 81 million dollar valuation on their
1906 miles of track and declares that
the property could be reproduced for
about 65 per cent of the amount
claimed.
Sheets of Figures.
Three typewriter sheets of figures
were reproduced by Engineer Strick-
Ter in his testimony before the state
| commission. From his figures he de-
| clared that the valuations claimed by
! greatly exaggerated. In the matter of
general expenditures, Stricken made
| a reduction of nearly rs per cent. He
| trimmed the expenditures from more
1 than II million dollars to a little less
/ than three and three-fourths millions
and took equal liberties with the rail-
| roads estimates of roadbed and equip
| ment.
Testifying before the commission
last week experts for the Union Pa
n ole -
would be necessary to reproduce the
present system. Strickler took all
manner of liberties with these figures.
From his report he claimed that the
road could be rebuilt-brand new
| for $44, 4S9,294, or $22,993,9S667 less
than the amount claimed
Estimating the value of the present
Union Pacific system, Stricken testi-
fled that the entire plant was worth
$32, 9l5 ,816-or less than fifty per
cent of the reproduction price claimed
by the road. With equal freedom he
took S7,500.336.11 from the valuation
of the roadbed, including tracks, ties,
surveys, grading and other necessary
expense. he made no changes in the
valuations claimed for equipment
Expense Items Too High.
Expense items as reported by the
railroad are entirely too high, Strick-
Ter testified. He reduced the neces-
sary expense of the legal department
91 the amount from
$3.50, 994.80 to s173.462. For station
cry and printing he made a reduction
of $6,46S.06. His figures reduced the
amount from $1S,342 to $11,S74 In
surance expense was reduced by the
Stricken testimony from $22,500,
claimed as necessary by the Union
Pacific officials, to $11,S74, which
the witness said would thoroughly
cover this item.
Taxes were placed at $S1,O57 by
the Stricken testimony, based on his
findings as an engineer for Bristow
and the state commission. The
amount was $748,844.9S less than
claimed by the Union Pacific and the
: shake-up brought a howl of protest
from the attorneys representing the
railroads in the passenger rate case.
Interest and commissions were re-
ported by the Union Pacific at $10,-
= 556, 529.79. StIickler cut about ninety
per cent from the item. He reported
a necessary interest and commission
+ expense of $1,215,S58. Other ex-
! penses he reduced from 1885,, 1853
as reported by the railroads, to ST.
229.O74
Testifying in detail as to the physi-
cal valuation of the Union Pacific
. property, Stricken claimed rail val
ue for the system of 1851, $50. For
severence and damages he returned a
/ valuation of $4,576,4 0S and for clear
; ing, grubbirg and grading q valuation
of $5,15S,641. Ties used in building
the railroad, he said, were worth 3d.
679,096.