The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-03-18
LOCAL RAILWAY HEARING
CONTINUED from Page onel

TUT lh0 WV haaA a. - -
reka-Nevada, Eureka to Palisade as
as compared with the longer haul on
the Nevada Central, Austin to Bat
tie Mountain, the first named road
maintains rates on the following
commodities in excess of those main
tanned by the last-named road in the
following amounts, expressed in per-
centage: Grain104 per cent, hay 156
per cent, junk $50 per cent, wood so
per cent, wool 33 per cent, live stock
from So to 81 per cent, pre- from 43
to 9S7 per cent.
Exhibit Number l is subject to the
following notifications. | under
stand that effective December 81.
1921. reduced rates Of 70h per cwt.
were established on mill products
and grain, carloads, 63h cents on
grain, carloads and AZ cents on hay
carloads, Palisade to Eureka. APP
parently these reductions were put
into effect in compliance with the
order of the ice in it's Docket Num-
Der 1920.
EXHIBIT NO. 2
Exhibit Number 2 contains IA
& and sets forth in detail various
items of income, operating expense
and other statistical information Gov
ering the operations of the Eureka
Nevada Railway and Nevada Central
Railroad for various year periods
commencing with July 1, 1914, and
ending December 81, 1920.
All of the figures contained in this
exhibit were taken from the annual
reports lawfully sworn to and on file
with the Public Service Commission
OF Nevada, at it's offices in Carson
City, Nevada, such reports have been
filed by the two carriers.
Page one of this exhibit overs the
income account, page Ia the operat-
ing revenues, pages 2, 3, and 4 the
operating expenses, pages 5, s, and z
operating statistics, page s the rev.
enue tonnage carried, page 9 the
equipment operated and pages 10 to
IA inclusive the hours or days worked
by employees, each year. together
with the annual compensation.
I believe that this exhibit is self
explanatory. However, with the per-
mission Of the commission, l will di-
rect attention to several items con-
tanned in tn same.
Firse l wish to state that the mi
tial EN- in the second column shown
on each page of this exhibit refers
to the Nevada Transportation Com
pany which, w to the close Of 1920
operated the Eureka-Nevada Rail-
way. The initial NC refers of course
to the Nevada Central Railroad.
Referring to the sixth line COM
parison on page 1, Railway Operating
Income, or total operating income.
This figure represents the net from
operation after deducting from gross
earnings all operating expenses, taxes
and uncollectable Averag-
ing the figures of the Eureka-Nevada
Railway for the seven yea period
covered by the exhibit 1t will be
found that the average annual rail-
way operating income amounted to
~$28,95S.49. Capitalizing this figure
the average annual return amounts
to eight per cent on $361,9S1, seven
per cen on $413,693, six per cent on
$4S2,642, and five per cent on $579,-
ITO.
Capitalizing the railway operating
income for the year ended December
81, 1920, 1t will be found that the
$41,423 represents an s per cent re-
turn on $517,7SS, z per cent on $751;
757, 9 per cent on $690,383, and 5
per cen ON $S28,460.
According to information which
1 believe is in the hands of the COM
mission the agreement or contract
entered into between the Eureka-Ne-
vada Railawy and the Nevada Trans
portation Company provided for the
annaul payment of $4,000 per an
nun to the former company by the
latter for the lease of the property.
This figure l believe was based on 5
per CEN ON 100000 the outstanding
capital stock of the Eureka-Nevada
Railway Company.
The amounts paid annually for the
lease of this property is shown on
page one of the exhibit, line 10. The
average net income of the Nevada
Transportation Company amounted
to ~$5,473.43 for the seven year per-
iod. This figure is based on the net
income shown for each year in the
third from the last line on page one.
This figure represents the average net
after paying for lease of road, etc.
The annual reports of the Nevada
Transportation Company show that
the outstanding capital stock of that
concern was $4,000. Therefore, dur
ing the past seven years the Eureka
Nevada Railway Company has receiv-
ed an annual rental of $4,000 rep.
resenting 5 per cent on its outstand-
ing capital. with the exception Of two
years when the rental averaged about
$4,000. namely in the years 1915
and 1919, and the Nevada Transpor.
tation Company averaged a net oil
~$5,473.43 on its outstanding capita
of $4,000.
According to the annual report Of
the Nevada Transportation Com.
pany, that carrier has from year te
year invested certain amounts il
equipment amounting to a total bool
value of $~52,658.35 on December 81
1920. and an average book value fol-
the eve year period of $25,465
Using this figure as the average fail
value OF the property owned by the
Nevada Transportation Company the
auara no rafurn onntxntaA to o II NJ,