Omaha daily bee., 1898-03-08

by the carrier. or to the profits derived from
that business. The state cannot JUSTIFY un-
reasonably low rates for domestic transpor,,
tation. considered alone upon the ground
that the carrier Is earning large profits on
It's Interstate business, over which, so far
as rates are concerned the state has no
control. Nor can the carrier justify un-
reasonably high rates on domestic business
upon the ground that only In that way can
II meet losses on Its interstate business.
SO far az rates of transportation are con-
cerned. domestic business should not be
made to bear the losses on interstate bus
mess. nor the latter the losses on domestic
business. 1t is only rates for the transpor-
tatlon of persons and property between
points within the state which the state can
prescribe and when II undertakes to pre-
scribe rates not to be exceeded by the car
rer, 1t must do so with reference exclu-
sivey to what is just and reasonable as
between the carrier and the public in re-
spect of domestic business.
DEFINES REASONABLE CHARGES.
Referring to the arguments on the two
sides OF the case as to what are reason
able charges etc, the opinion laid down the
following:
we hold that the basis Of all calculations
as to reasonableness of rates to be charged
by a corporation maintaining highway
under legislative sanction, must be the fair
value of the property being used by 1t for
the conven;ence OF the public. And in order
to ascertain that value the original cost OF
construction the amount expended In per,
n.anent improvements. tae amount and
market value of its bonds and stock, the
present as compared with the original cost
of construction. the probable earning
prescribed by statute and the sum required
| to meet operating expenses, are all matters
for consideration and to be given
such weight as may, be just and
rigat in the particular case. What
the company is entitled to ask for
| fair return on is the value of that whicl
| 1t employs for the public convenience. On
| the other hand. what the public is entitled
| to demand is that no more be exacted from
| 1t for the use of a public highway than the
services rendered by 1t are reasonably
| worth. But even upon tails basis We per-
| ceive no ground on the record for reversing
\ the decree of the circuit court On the con-
| trary we are of the opinion that as to most
| of the companies in question, there would
| have been under the rates established by
| the act of 1893 an actual loss in each of the
years ending June 30, 1891, 1892 and 1893, and
| substantially no compensation earned for
| the services rendered, and that, in the eX-
| ceptional cases above stated. the receipts or
| gains, above operating expenses, of some
| of the companies, would have been too
| small to affect the general conclusion that
| each of the railroad companies involved in
| those suits of the jast compensation Sc
cured to them by the constitution. Under
| the evidence there is no ground for saying
| that the operating expenses of any of them
| We're greater than necessary.
In conclusion Justice Harlan said that Il
| business improved the state could apply tt
the courts, his language being as follows
But 1t may be added that the conditions
of business, so far as railroad corporations
are concerned, have probably changed TO
| the better and that thd rates prescribed b.
the statute of 1893 may now afford all th
| compensation to which the railroad com
panles In Nebraska are entitled as betweel
| them and the public. In anticipation, per
| haps, of such a change of circumstance
the circuit court wisely provided in its iina
decree that the defendants. members of tn
Board Of Transportation. might, when tn
| circumstances have changed so that tn
rates fixed in the said act Of 1898 shall yielt
to the said companies reasonable compensa
ton for the services aforesaid" apply t
the count by bill or otherwise, as they nigh
be advised. for a further order in that be
half OF this provision Of the final deere
the State Board Ct TRANSFORMATION If so ad
vised can avail themselves.
In that event If the circuit court find
that the present condition of business /
such as to admit of the application OF tn
statute to the railroad companies in ques
tlon without depriving them of just com
pensation. it will be its duty to discharg
the injunction heretofore granted and 1T
make whatever order is necessary to rernov
any obstruction placed by the DEGREES II
these cases in the way of the enforcement
of the statute.
Chief Justice Fuller and Justice McKenni
did not participate in the hearing or IN tht
| do; ,;,si