The representative. [volume] (St. Paul, Minn.) 1893-1901, 1898-05-04

of the property. In Mum vs. People, 50
ILL.,, 80, and Chicago VS.. Dey, 35 Rep,
866, it was held that rates fixed by leg
islative authority that will give some
compensation, however small, to the
owners of railroad property, cannot be
held insufficient by the courts. "This
rule leaves a large power to the 1egis-
ture, and would sanction statutes which
cut down railroad dividends to a mere
pittance. But it is hard to see how any
other rule can be adopted which will
not in effect deny the right of the leg
islature to make regulation of such
rates, or else leave little more than a
shadow Of such power in the legisla-
ture while the real power is assumed
by the courts" The effect of the re-
duced rates on the entire line of road
is the correct test and not that they are
unremunerative on certain part OF the
line. st. Louis VS.. Gill, 1856 us ;, 649:
Missouri vs. Smith, 80 Ark, 221.
In Dow VS.. Beidelman, 125 U. S., it
was held that rates which would pay
one and one-half per cent on the orig
inal cost of the road were not illegal.
when the road is held by reorganized
company of it's trustees after fore
closure. In Missouri VS.. Smith. supra.
it was held that rates sufficient to de-
fray current expenses and repairs and
some profit on the reasonable cost Of
building the road could not be inter-
fered with, though they were not high
enough to pay interest on all it's debts,
since they may have been. incurred
through extravaganza or mismanage-
ment
In Chicago vs. Wellmaa, 143 U. S..
339, the act of the legislature of Wis
consin fixing railroad fares at two cents
per mile was sustained, the court say
ing that before the courts would de-
clare such an act unconstitutional be-
cause the rates prevented stockholders
receiving any dividend or bondholders
any interest, the court must be fully
advised as to what was done with the
earnings, otherwise by exhorbitant or
unreasonable salaries or in some other
improper way the ,csnapaHy might tax
the public with unrs ssspnable charges,
unless such things ais snegatived by
proof of reasonable salaries and ex-
penses, or If the record is silent, the
legislative rate will be sustained" This
is valuable and noteworthy decision,
and no judge dissented from so just
ruling. The same principle is reaffirmed
in Reagan VS.. Trust Co., 154 U. S, at
p. 412.
In the most recent case, Livingston
VS.. Sanford, 164 U. S., 578 decided De-
cember, 1866, the court, while main
tanning that ordinarily the rates must
not be such as to leave the owners no
profit at all, says: 1--WE could not say
that the act was unconstitutional be-
cause the company (as Is alleged and
admitted) could not earn more than
four per cent. on it's capital stock. It
cannot be said that corporation is en-
titled as of right and without reference
to the interest of the public to realize
any given per cent. on it's capital stock.
When the question arises whether the
legislature has exceeded it's constitu-
tional power in prescribing the rates to
bo charged by corporation controlling
a public highway, stockholders are not
the only persons whose rights and in
terests are not to he ignored" The
court further says that the inquiry as
to whether rates are reasonable and
just to the public, adds: "The pub
tic cannot properly be subjected to un-
stockholders may earn dividends.
If corporation cannot maintain
such highway and earn dividends for
stockholders, it is misfortune for it
and them which the Constitution does
not require to be remedied by imposing
unjust burdens upon the public"
The statutory regulation OF the rate
to be paid for the use Of money is an
other striking instance of legislative au-
thority to regulate rates. And who
would contend that the courts have
power to intervene and say the legisla-
tive rate Is too low?
The supreme court = Of the United
States has terse1y put the true status Of
railroads thus: '"TheJ are chartered
and built for public benefit. The Pc
cuniary profit of their owners is purely
incidental" Many railroad owners and
managers would reverse this if they
could, and, as far as they are permitted,
they act upon the maxim Railroads
are operated for the benefit of their
controllers and managers. The public
benefit is purely incidshtal.-
The great hindranoe to achieving
the public benefit, which is the legal OBJ
ject for which these corporations are
created, is the reluctance Of their man
ayers to concsde reasonable and just
rates Some Of them act as if they be-
lieved that common carriers were q
private business and that the right to
lay upon the public any rate they think
:IEYE AnD'EAR prlRnAa7