Charles Evans Hughes

“ When the state's expert, who testified that he had undertaken to separate the cost of the express business, was asked on cross-examination whether, with these items omitted, the actual cost of carrying intrastate passengers was not in excess of 2 cents a mile, he said that it would be difficult to answer without a separate analysis of the mail item, but added that 'in rough computation' that cost was very close to 2 cents.
It is apparent, from every point of view that this record permits, that the statutory rate at most affords a very narrow margin over the cost of the traffic. ”

“ The passenger traffic is one of the main departments of the company's business; it has its separate equipment, its separate organization and management, and, of necessity, its own rates. In making a reasonable adjustment of the carrier's charges, the state is under no obligation to secure the same rate of return from each of the two principal departments of business, passenger and freight ”

“ With respect to the operating expenses, it was said that for many years accounts had been kept for the purpose of separating the expenses incident to the freight and passenger traffic, respectively; that about 65 per cent of these expenses could be directly assigned, and that the remaining 35 per cent, consisting of items common to both sorts of transportation, were divided between the passenger and freight traffic on the basis of engine miles,-this being deemed to be more equitable than the train-mile basis originally used, inasmuch as most of the freight was hauled by two engines. ”