The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1897-10-28
THE STEEN ERSON CASE.
The Supreme Court Reverses the
Lower Court.
Tho Present Cost to Reproduce Railroads
is to BIO Considered and Reasonable
Rates May be Determined Up =.
+ -.SE- ON Such Basis.

of the. Supreme Court of Minnesota in the
Stevenson rate case: ~.
nj In 9!,, re appeal z, Of The Great Northern
NN drfSsr1 ct al appellants; vs. Great
,s EE1'r. i: der, s. charter !. General Law.
1881. the state railroad and W. %ar aen
commission when reducing rates on the
complaint Of any one that rates between
iPE BY o%n acts reduce
me c rate. on the whole line or system:
road and warehouse Commission. are
termined BY the tact that the income &c me- 1 ne-
amount Of the fixed charges Of the rail-
the railroad sold years ago on mortgage
1oreclosure sale be taken as the basis on
tes b TO tSs3 What are
ascertalning what. under ali the circumS-
stances. Is a reasonable income on the
cost Of reproducing the road at the pres
1 1s Is 95e AMENDED p1s By ehaRteT iSs laws Of
pany to show that the rates fixed by the
commission are unreasonable.
ca tna saa Of a fats; not
p SnSsr s a 70 f the
'tion what are reasonable rates. and on
appeal under said statutes the court can
Sc fsr snf act OF the ePy
tory and to what extent, in much the
~hetheT or not the seedct Of
appea Eng fr6 to T fhs sSte%
those general matters Of Which, tie O. Con- M
mission should have knowledge and on
maize fc enla i Ssa Hsnoot
.Sixth-Evidence examined in the light of
the courts findings. for the purpose Of
pduee shs 81 the G sess e %orts
ern 1 sYstems. at Mnneapolis and st. Paul.
1nd % " fbe weud fGs te fhs
Seventh=where tho market price Of
rapidly growns city Is higher ths ear Is
ssn Sc ebtsned from aan any se% to xhieh
'd Market ysae is Sc CAUSED Rus a by
the anticipation of still higher prices in
Held, reasonable annual income on the
cost Of reproducing railroad terminals
out out Of such ;uc,Ip property is less than reas-
other portions Of the road. - WITCH hiV When
reproduced are not likely to increase in
Held. the public and not the courts must
property. viii increase in value in the fu.
What Is the 60 lowest aSM Pafe of annual in
teE%jnaIs in MnnespoiIs and St R saG
being confiscatory. is not decided: b but mt It
Is ner ne1 fha net sc Of ~ PER
Mghth~The great fan in o the Ia last tie Few
years in rates of interest and in what are
reee9 , OF So on capital in
cent in 1894 on the cost Of reproducing ali
not, under the circumstances, unreasona-
be or confiscatory.
Ninth-The railroad lines in question ex-
pose Of f' mil the earnaagsp Of
different methods proposed BY counsel for
s9s staes g tas ssesi earnings
Held. the gross earnings on the through
traffic extending across this state and into
1nea the nc as at Mo%
give Minnesota the benefit, of the higher
rates which the carrier is entitled to
further west where the traffic is lighter.
Held further, such gross earnings can
not 69 tho on the %3sa that the
this state are not entitled to the benefit
which should naturally come to them from
this state there IS large area OF fertile
Of railroad 1ra1tlc, which co-operates with
reasonable, rates lower than they other
WISE would DC, and railroad which ex-
b fo The ST. x.!t linz
there terminated without connections OF
feeders beyond, would not be an enter
prise planned or conducted on business
Ter;h-When any feeder or extension
portion Of railroad line or system is an
f s fs e s the line
income il such portion aid not exist, that
trafic passing over such portion and on
the whole length of the haul on such
traffic, VIII H., not Fay the operating e1.
OF such haul and pay for the wear and
additional traffic, and also pay a reasona-
portion Of the line, and these conditions
are not of Temporary character. burt are
the result Of building the feeder or extern
ness to Justify. its existence, then such
portion Of the lines is not self-supporting
feeder Of the rest Of the line or system.
and in determining what are reasonable
rates for the rest, of the line or system
Held, under the statute the burden was
on the railway company to show that
the western portion of its line was self
Eeventh-Held, under the statute. the
burden was on the railway company to
%h 5ness s Sd hs e Beosf
Minnesota; that 1t failed to maintain this
burden, and on. the evidence. therefore,
are n1e0 0S the
Twelfth..The evidence examined for the
purpose Of ascertaining as near as possible
line cam and q ternas aS af e
come on the same IN 1894 with the rates as
reduced by the commission. would produce
~ per cent net income on the cost Of re-
producing the terminals and per cent net
Income on the cost Of reproducing the res,
f6e ana fsry '9 nbeTa
Thirteenth-There are a number of feed
are separately incorporated but which in
5et fern pSFs Of the RssSy systsm
lakes and a very valuable coal mine in
al n or nearly early al q the stock
COMPANY: and it or its onieers manage and
pPd a Of Of each aess
IN w %hios in It and the GREAT S 20
Bookkeeping: some OF. these other cor
poTations appear by the reports of the
Great Northern company 10 have made
very large net profits during the year in
question.
Held. the burden was on the Great
Northern Railway company in this case to
show that she division of profits between
It and these other corporations was fair
and reasonable, and it failed to maintain
that burden.
Order reversed and a. new trial granted.
In re appeal of the Great Northern Rail
way Co., Elias Stevenson. State Of Min
nesota ct al, appellants. VS.. Great North
Smith-"Did many of the passengers &C
to hear DR.. Fourthly preach in the main
cabin this morning" BROWNIES, but
,,noe+ &c %l,o,, Loft 11bor ha onuounood h;e