The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-07-11
RAILROAD NEWS
P U. C.'S MOVE
Kansas Commission To Act In
Passenger Rate Case.
Decision Probably VIII Come
After August l.

The Kansas utilities commission
must make the next move in the
passenger rate case. 1t is probable
that a decision will come from the
commission not later than August l.
altho no definite announcement mas
been made as to elimination OF the
long drawn out rate controversy Ihe
railroads today complied with the last
demand of the state commission
when Robert Blair, general attorney
for the Union Pacific railway, pre-
sented an exhibit showing the net IN
come derived by that company from
its state freight and passenger traf-
fic during the test period OF June,
July and August, 1916.
Altho the passenger rate case has
been before the state commission
nearly three years, no decision has
been given. The last formal hearing
in the case was concluded more than
a year ago. Since that time the com
MISSIONS alibi for failing to decide the
case was Inc fact that the railroads
had not answered all of the special
questions. The commission directed
the roads to spend thousands OF dol
lars in gathering special Information
which Chairman Bristow declared was
desired as supplemental evidence.
Whenever one bunch of questions
were answered, the commission imme-
diately directed that the roads con-
duct further surveys, Investigations
and compile new records.
On OkIanODnl OfInuld
In the hearing before the Kansas
commission, the showing of the rail-
roads was based on the so-called
Oklahoma formula, a system used in
esta bIishing and distributing expense
and revenue items. Hundreds of eX-
hibits were contained in the formula
which showed a technical distribu-
ton of all funds received and eXpend-
ed by ten railroads. Since the first
h 0r~ir in TNr1 no
court of the United States upheld the
Oklahoma formula in an opinion writ
ten by Judge Trieber. The decision
was given in the Arkansas rate case.
One of the most recent questions by
the utilities commission concerned the
filing of supplemental reports by all
railroads showing freight and pasSen-
ger traffic in Kansas during the three
months period of June, July and Au-
gust, 1916. The Union Pacific was the
last road to file the report. The rec
ord went to the commission today. In
the application of the Oklahoma for
mula, the Union Pacific figures bear
out the claims of other roads to the
effect that much of the business hav-
ing both origin and destination in
Kansas is handled at a loss.
The exhibit filed by Mr.. Blair shows
that of the S4S,556,973 assessed valua-
ton of the Union Pacific properties in
Kansas, the proportions assignable to
state traffic are: State freight traffic,
81, 1913 800; state passenger traffic, So
315, 267; total $17,113,632
State Revenues.
The state freight traffic shows for
the year ending June 80, 1916, accord
ing to Mr.. Blair's exhibit, a net in
come above expenses of S336135,
which is a return on the valuation
assignable to this traffic of ABB per
cent The state passenger traffic, it
is pointed out, shows an actual deficit
of $364,937, the expenses exceeding
the income by this amount. This de-
felt is 1872 per cent of the proportion
of the valuation assignable to the state
passenger traffic. State freight and
passenger traffic combined shows a
deficit of $2S,S01, which is OF per
cent of the valuation as assignable to
both classes of traffic
While the net result on passenger
traffic for the year is a large deficit
the exhibit shows that during the
three months of the test period, the
passenger revenue was slightly in ex-
cess of the passenger expenses for the
state as a whole; but that even during
this period the passenger expenses on
several of the branch lines were large
ly in excess of the passenger revenues