The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-09-17
Kansas Railroads Don't Need
the Interstate Increase.
Can Earn 6 Per Cent ON Raise
of About is Per Cent.
MORE CARS, MORE REVENUE
Testimony to Show That SerV-
ice Is Inadequate.
Railway Case Still Before In
duStrial Court.

Railroads in Kansas can earn
per cent net return with an intrastate
rate below the interstate rate fixed by
the federal commission, according to
testimony today before the court Of
industrial relations. Accountant NJ. A.
Chambers. formerly in the employ of
the public utilities commission, was
under cross examination most of the
morning relative to valuations, reve-
nues and earnings of the roads and
testimony produced before the inter
state commerce commission.
Chambers said an increased intra-
state rate was necessary to produce
the required S per cent. He estimated
an increase of 1904 per cent was
needed. The Chambers testimony was
presented for the Kansas shippers and
bore out earlier indications in the
hearing to the effect that a compro-
mise intrastate rate would be urged.
Chambers discussed features of testi-
mony presented to the interstate com
merce commission following the orig
inal rate action.
In support of claims that the rail-
roads are unable to care for business
now presented to them. Miss Hedwfg
Wulke an industrial court clerk, was
called to verify car movement records.
Miss Wilkes testimony concerned re-
ports Of railroads relative to cars fur
nished for movement of grain and
coal. 1t was contended by attorneys
for shippers that revenues of the road ds
would be greatly increased if demands
for cars were met.
Kansas Wants Figures.
Freight and passenger rate increases
but below the standards fixed by
the interstate commerce commission
were suggested in testimony before the
1 industrial court by Judge Helm and
other court representatives. The inti-
nation of an effort toward a compro-
mise rate was given thru attorneys for
the court following presentation of
testimony by railroads relative to
gregation Of state and interstate ex-
penses and earnings.
The railroads rate application is
based on petition for permission to
earn per cent on the investment in
this state. The interstate commerce
commission granted an increase in both
passenger and freight rates based on
estimates of earnings to be produced.
In the taking of testimony by the in
dustrial court, it was clearly evident
that efforts would be made to show
that an increase smaller than allowed
by the federal commission would pro-
duce the desired revenue.
Testifying before the court G. H.
Engh, accountant, said that in his
opinion an increase of 1884 per cent
in freight rates alone would produce
the desired earnings. NJ. A. Chambers,
former chief accountant for the public
utilities commission, estimated an in
crease of 1904 per cent in freight
and passenger rates would be neces-
sary If the roads earned 6 per cent.
Accountants for the railroads were
called to the stand to give figures as
to expense of interstate and intrastate
freight and passenger operations in
Kansas and also to quote figures as to
revenues produced BY each branch of
the railroad business.
Taking of testimony may be con-
cluded today.