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Show IffllTSCilll GIVES INTERESTING FIGURES Says Union Pacific Earnings for Ten Years Average Only 4.62 Per Cent. NEW YORK, Feb. 21 Frnnlc B. Ka-Iog Ka-Iog took up today the crosH examination of Julius ICruttschiiitt, vice-president of tho Union Pacific-Southern Paclllc tsys-tem, tsys-tem, In the government suit to dissolve the merper of the roarls. Mr. Krutt-achnltt Krutt-achnltt defended the decreased speed of certain freight trains on his Hyutem. "A very small per cent, of tho public Is dissatisfied," he said. "The Union Pacific ut this time Is operated under handicaps compnred with which those of tho Pennsylvania, for Instance, are nothing." noth-ing." Watered stock dividends and property valuation were other things regarding which Mr. Kruttschnltt was questioned. Asking If the Increase pf approximately SO per. cent In taxation on the merged systems property in ton years which he had testified to represented the Increased value of the property. Mr. Kruttschnltt .replied: "I wouldn't want to say as to that off-hand. I would havo to think it over before answering." ' When Mr. Kruttschnltt quoted the Interstate In-terstate commerce commission report on dividend averages and showed that although al-though his roads were paying a ten per cent dividend now the average of the l"n Ion Paclllc for a ten-year period was i.G2 and on the Southern Pacific 1.0 per cent. Mr. Kellogg asked r "Would you undertake to say what portion of the stock upon which railroads pay dividends is watered stock and what paid actual capital Investment?" Mr. Kruttschnltt answered that he rather believed the Interstate commerce commission had disregarded watered stock In preparing Its tabulation of dividend divi-dend averages. He said he understood four of tho ton per cent dividends were-paid were-paid on Investment stock. "Don't you know," asked Mr. Kollogg. "that the property was mortgaged for $100 000. 0C0 for .the purpose of purchasing other railroad properties and that Interest Inter-est on this $100,000,000 was paid out of operating op-erating expenses and charged before dividends''" divi-dends''" "I believe our reports will show the facts, whatever they may be," said Mr. Krnttsphnltt. "Thero has been no secrecy se-crecy about anything that was done." A J,. Mohler, vice-president and general gen-eral manager of the Union Paclllc, fol- 1 lowed as a witness and described the ' development of the Union Pacific during the last ten . yean. |