Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1900-02-02
ROAD GAINS ITS POINT.
Justice Brewers Decision in the
Maximum Rate Case.

- bM NAlS
Maximum Rate Case.
Justice Brewers decision in reversing
the maximum rate case and remaining
the same is in substance as follows:
I'VE are of the opinion that neither the
findings made by the court, nor such facts
rs are stated in its opinion are sufficient to
warrant any conclusion upon the question
whether the rates prescribed by the de-
PENDANTS were reasonable or not, and we
are also of opinion that the process by
which the II camc to its conclusion is
not one which can be relied upon. Now,
il is obvious that tho amount Of gross re-
-ecints from any business does not of itself
determine whether such business is profit
able or not. The question of expenses in
CURED in producing those receipts must
be always taken into account, and only by
striking the balance between the two can
it he determined that the business is profit
able. The gross receipts may be large,
but if the expenses are larger surely the
.. sgsiie sSh Is Hr bs gs ssffd{ hs the rates Which a
legislature prescribes arc reasonable il the
railroad company charging only these rates
finds the expenses of carrying on its bust
1ess greater than its receipts.
1.-The court found that the value of tho
s%oompany's property. employed in local
business was for the .:rst year $4,000, 900;
the second year, S2,600,OOO; the third year,
s.. 100. 1000, and the last year, 81, 400, 900, and
also that the gross receipts from local bust
.aess were for the first year, 1876 per cent.
of The civilizations; for the second year, 1917
per cent; for the third year, 1856 per cent,
and for the last year 1863 per cent.
q, 1.-The testimony discloses that the OPP
Grating expenses of the entire system DUR
ing each of the four years were over &c
per cent. of the gross receipts. If the cost
was the same as that of doing the total
business of the company, then the net
earnings of that local business would not
exceed 40 per cent. of the gross receipts.
Reduce the gross receipts Is per cent.-and
the reduction by the defendants rates was
10 per cent. on passenger and II per cent.
Oh freight business--it would leave only %
per cent. of the gross receipts as what
might Ia called net earnings to be applied
to the payment Of interest on bonds and
dividends on stock. But the testimony
shows that the cost of doing local business
is much greater than that OF doing through,
business.
1--WE think this is one of those cases in
whirl, it is especially important that there
should he Il full and clear finding of the
facts by the trial court. The questions are
difficult, the interests are vast, and tllere-
fore the aid of the trial court should he had.
1T is hardly necessary to observe that. in
view of the difficulties and importance of
such a case, it is imperative that the most
competent and reliable master, general or
special, should be selected, for it is not a
light matter to interfere with the Legislation
of a state in respect to the prescribing of
rates, nor a light matter to permit such
legislation to wreck large property inter-
.ests. For these reasons we not merely re-
verse the decree of the trial court, but also
jremand the case to that court with instruc-
lions to refer the case to some competent
master to report fully the facts and to pro-
coed upon such report as equity shall re-
.Quire.'