The record-union., 1898-08-03

particular action in which the complain
ant has elected to pray for his relief.
1t was argued so strongly upon the
hearing that the complain Of Robinson
falls within the legislative jurisdiction of
the commission, that have given such
contention most earnest consideration.
without deciding the question, as to what
matters may be properly investigated, or
considered, in reaching decision as to
what rates shall be established.
No matter what the hesitancy has been
in the past, no matter how blind the
way by the decision in what is known as
Gled by the United States Supreme
Court March 7th of this year, a broad
and clear road has been blazed for our
guidance, and, tested by that case, am
satisfied the Robinson complaint must
fall. That case clearly defines the mat
ters properly to be considered by the
What are these matters? To this the
court in that case says I'VE hold, how
ever, that the basis of all calculations as
to the 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 convenience of the pub
lie. And in order to ascertain that value,
the original cost of construction, the
amount expended in permanent improve
ments the amount and market value of
the bonds and stock, the present as COM
pared with the original cost of construc-
tion, the probable earning capacity Of the
property under particular rates prescribed
! by statute, and the sum required to meet
! operating expenses, are all matters for
consideration and are TO be given such
weight as may be just and right in such
cases. We do not say that there may
not be other matters to be regarded in
| estimating the value of the property.
| What the company is entitled to ask. is a
| fair return upon the value of that which
| it employees for the public convenience
| Here, then, stated, in succinct form, are
the matters which may be properly inves-
ION r1cSs
| body, and all such matters are elements
to be considered in making up judgment
| or decision as to the value of the prop
| erty. Now it cannot be seriously con-
| tended that the original partnership be-
| tween Huntington, Hopkins, Crocker and
Stanford could have anything to do with
/ the value of the property: nor that the
validity Of the construction contracts.
made in the interest of and for the ben
| eft Of the Contract and Finance Com
| pany, could throw any light whatever
| upon the value of the property. Nor that
| the consolidation of the different corpor-
ations owning the roads in question could
have anything to do with or throw light
| upon such value. Nor that the amount
| of stocks and bonds issued by these COM
panies could determine as stock in any
way the value of the property in question
| What. the market value is of the stocks
| and bonds. and not the amount issued,
whether honestly or fraudulently, is the
question to be determined.
There are, in brief, six general heads
under which the commission may proper
| ly proceed in ascertaining the value of
| the property. (al The original cost Of con-
| struction. (b) The amount expended in
permanent improvements. (c) The amount
| and market value of bonds and stock. I'D
The present as compared with the original
| cost of construction. (e) The probable
earning capacity under the particular
| rates in question. And % The sum re-
quired to meet the operating expenses.
to be considered in making up rates, in
| the Robinson complaint. we find that not
one of bis allegations falls within the pur-
view of proper inquiry. What possible
| bearing, to again illustrate the point, in
| such an inquiry could the allegation have
| that the Southern Pacific Company has
| disseminated in favor of the Standard
/ Oil Company and numerous other parties
| and business firms to complainant un-
known. The court must construe the law
as it finds it to be according to the decis-
| ions of the highest courts of country.
/ Such decisions so clearly define the way
to proceed that 'he who runs may read"
| Nothing stands in the way of a dismissal
| of the Robinson complaint and the i'm
mediate commencement Of an investiga-
| tiOn Of all matters which may be law
! fully examined by the commission, and /
may add that as to such matters in the
| Robinson complaint as are beyond the
power of the commission to correct If
| true, our courts are ever open to investi-
gate. They will defend the right and con-
denim the wrong, and apply the penalty
which must follow the commission Of
| crime.
| Courts Will nOt-ceftalnly InlS court VIII
not-interfere with any exercise Of the
| legislative power of the commission.
| Freed, then, from the objections made
here and to this complaint, and with its
large powers. the commission can quickly
| compel obedience to a proper and lawful
| exercise of such powers.
From the views herein expressed. 1t fol-
lows that. upon the facts set forth in the
petition in this proceeding. respondents
| have exceeded their jurisdiction.
| It is therefore ordered that the obiec-
| tions and demurrer heretofore interposed
| and filed herein be overruled. AS there is.
| however an answer on file, the restrain
| ing order will be continued in force until
the further order of this court. and the
! matter will be continued for such further
proceedings as counsel shall be advised
| are proper.
GEORGE H. BAHRS, Judge.