The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1897-09-16

from the continuous operation of that
road is partly attributed to the portion of
the road in Indiana and partly to that in
Ohio, and each state has an equal right
TO reach after a just proportion of that
vaue, and subject it to it's taxing pro-
cesses. The question is, how can equity
be secured between the states, and to that
a DIVISION of the value of the entire prop
erty upon the mileage basis is the legiti-
mate answer Taxing a mileage share of
that in Indiana is not taxing property
outside the state. ........... I'm the ma
ture OF things it is practically impossi-
ole-at least in respect to railroad prop
erty-to divide its value, and determine
how much is caused by one use to which
1T Is pat and how much by another. Take
the case before us: it is impossible to
dIsinteregrate that portion of the road
IN Indiana and determine how much of
that value springs from it's use in doing
interstate business, and how much from
doing cuisines entirely within the state.
An attempt to do so would be entering
upon a mere field of uncertainty and
speculation. " Decided May 20, 1894, in
Cleveland, c. c. and st. p. r.. Co., VS..
Backus, l54 u. S. 1915.
The attorney general then called atten.
ton to the fact that the companies had
alleged their operating expenses in a
lump sum-, they had not itemized so that
the court could pass on whether they are
reasonable and economical, and quoted
from Justice Brewer in the case of Chi.
cago and Grand Trunk railway vs. Well
man: 1T is agreed that the defendants
operating expenses in 1888 were 50, 404,-
5l6.54. OF what do these operating ex.
penses consist? Are they made up partial
ly OF cXtravagant sa'arier-ffty to one
one hundred thousand dollars to the pres
ident and in like proportion to subordi.
nate officers? Surely, before the courts
are called upon to adjudge an act of the
legislature fixing the maximum passenger
rates for railroad companies to be uncon-
stitutional, on the ground that it's enforce
ment would prevent tn, stockholders
from receiving any dividends on their in.
vestments, or the bondholders any inter
est on their loans, they should be fully
advised as to what is done with the re-
ceipts and earnings of the company, for
if so advised it might clearly appear that
a prudent and honest management would,
within the rates prescribed, secure to the
bondholders their interest, and to the
stockholders reasonable dividends. While
the protection of vested rights of prop
erty is a supreme duty of the courts, it
has not come to this, that the legislative
power rests subservient to the discreet on
of any railroad corporation which may,
by cNorbi;ant and unreasonable salaries
or in some other improper way, transfer
its earnings into what it is pleased to
call operating expenses"
In conclusion he said, that he had on'y
examined the complaints of the Chicago,
Milwaukee and st. Paul and the Chicago
and Northwestern companies. That of
either of th,se companies would give to
South Dakota lines a fair proportion of
the gross earnings from interstate traffic,
and deduct a fair proportion of the oper-
ating expenses, there would be left to
that company a handsome net profit, 4 to
6 per cent over and above operating eX-
penses.
That these facts were fairly deduced
from the complaints and that therefore
neither of those companies were entitled
TO any relief from this court.