Show FARE FARE DECISION i Judge McPhersons decision in the case caso of the state of Missouri against he the railroads of the state is 15 most im important Important Important Jn in its ite bearing on n legislation fixing f maximum m i freight and n f passenger p enger r rates on state business Tile The decision Is the more Significant because it is based on an experimental o test of the workings of ot a passenger rate within the state of Missouri covering the period from June 11 1907 up to the th present The fads facia secured by thi means covered cover alt all tile the data datu for an nn exhaustive examination exl of th the cast case cn oa on Its merits The iid prop were er valued the t e earnings eA and nd expenses pen es of ot state stat u traffic mc the th distribution distribution tion of earnings as between bf state and am Interstate business were All presented resented I U rJ by experts exports for tor both sides and the facts are made part of ot the courts findings Simply stated Judge McPherson finds that the th rate Is re In some cases no net income at atall all ail and in no ease case more morl than 3 per percent percent percent cent on the value of the property with within i in the state The court holds the law invalid and suggests that if t were a acourt acourt acourt court act he would fix passenger rates at 2 II cents per mile for the strong roads and 3 cents for the weak ones The state authorities do not accept the decision without protest and arid say they th j will appeal to the supreme court of or the United States Their contention is that the court errs in Its method of distributing the cost of operation as between state and dud nd interstate traffic The chief point of the decision aa as 3 af affecting affectinG affecting legislation in other states is the proof that In a thickly settled state like Missouri with a very ery heavy proportion of or state passenger t er traffic with cheap fuel tuel and proportionately cheap inu ing In costs in every evor department 2 cents POT p mile does lOss not pay a fair return on the investment honestly valued The Tho proof supports the common sense of the Wisconsin railroad commission and of Governor Hughes of New York In ro re refusing fusing to approve a compulsory fare and It shows further the Injustice as well us ts s the folly of enacting such laws without first knowing the facts on which alone atone just laws taws should be founded Aside from the main points some de tIe deductions deductions of great interest were brought out One of the claims of the tho I advocates has been that a low fare would stimulate traffic fio so as to make it profitable at the low tow rate test covering nearly two years ears showed that the Increase of t traffic from low fares tares amounted to less tess than 1 per cent it showed too that a law taw applying the same rate to all roads is unfair be because because because cause in some cases the result showed an actual deficit for tor roads unfavorably situated for local and state traffic while in no case did it exceed 3 per percent percent percent cent Judge McPherson thinks 6 per cent would be e a fair return on the capital Invested but the dispatches do not say whether this 6 per cent Is net after pro provision provision provIsion vision for depreciation and other inci mci incidental Incidental dental costs apart from regular operating operatIng operating ing expenses and fixed charges Six per cent year In and year out Is not a large return on ordinary ventures and 6 per cent as a maximum in any year might easily average a ridiculously return over a period of years In any event this experiment and the decision based upon its facts ought to settle definitely the absurdity of the de do demand demand mand for a rate no matter what the traffic conditions the cost of ope operating operating operating rating or the risk involved in a large Investment When Missouri cannot give legitimate returns on a basis there is no hope of maintaining such a rate profitably in the states further west with their small population population population tion and light state traffic |