The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-17

amount to a regulation of foreign or in
terstate commerce"
In Chicago NJ. and St 2. Ry. Co. vs..
Minnesota. 1s4 United States 4lS, the court
said:
IF the company is deprived of the
power of charging reasonable rates for
the use of its property-it Is deprived of
the lawful use of its property and thus
in substance and effect of the property
itself, without due process Of law, and
in violation of the constitution of the
United States. and In so far as it Is thus
deprived. willie other persons are permit
ted to receive reasonable profits upon their
invested capital. til company is deprived
of the equal protect of the laws
In the case of Bue rs. New York, 145
United States al til aurt declared;
THAT the power wax one to destroy.
CT he power + eompe Going OF the
service Without reward. TO take priv
ate property for public use without Just
compensation, or without due process OF
law"
liz smyth vs.. Ames, 1863 United States
466, 1t is said:
"A state enactment or regulation made
under the authority of state enactment
establishing rates for the transportation
If persons or property by railroad that
will not admit o. the carrier earning such
compensation as under all the clrcum-
stances IS just to ii and to the public,
world deprive such carrier Of its prop
erty without due process of law, ana
ceny to it the equal protection OF the
laws and would therefore be repugnant
to the Fourteenth amendment of the
constitution of the United States.
TO the same effect l. Reagan VS. Farm
ers Loan and Trust company (No. y 154
United States 362.
The commissions authority therefore
must he exercised within the constitution
al and legislative limits above defined.
II is powerlesf to establish and en-
force a rate whieu does not yielu to the
carrier "a fair and just return ON the
value of the railroad, its appurtenances
and equipments"
We are confronted then at the outset
with the necessity of ascertaining what
Is the value of the railroad, its APP
purtenances and equipments" upon which
its earnings 81 all be computed and
what is the fair and inst return" con-
tempated by the Jaw.
In order to determination of these
questions. the commission must look TO
the character. nature, extent, and cost
of the business done within this state.
and ascertain the value of the several
railroads with their appurtenances and
equipments engaged in the handling of
domestic business in Alabama,
Law Relating to Domestic Business.
rhe supreme court of the United States
in the case of Smyth vs.. Ames, 1863 United
States page 465. exhaustvely considered
this whole subject. and in an elaborate
opinion rendered by Mr.. Justice Harlan
has declared tie basis upon which rea-
sonabe freight rates should be deter
mined in state, and announced the prin
oiples by which this body, ana all bodies
of like jurisdiction. must be guided in
the solution of this question This is
known as the Nebraska maximum rate
case, and in delivering the opinion, the
court said:
THAT the reasonableness or unreason-
ableness of rates prescribed by the state
for the transportation of persons and
property wholly within its limits must be
determined without reference to the In
terstate business done by the carrier,
or to the profits derived from 1t. The
state cannot justify unreasonably low
rates for domos transportation con-
sidered alone pom the ground that the
carrier Is earning large profits on Its
interstate business, over which so far as
rates are concerned. the state has no
control. Nor can the carrier justify UNI
reasonably high rates on domestic bust
ress upon the ground that it will he able
only in that way to meet losses on its
interstate business. So far as rates of
transportation are concerned. domestic
business should not be made to hear
the losses on interstate business, nor the
latter the losses on domestic business. 1t
IS only rates 70. the transportation of per-
sons and property between points within
the state that the state. can prescribe
and when 1t undertakes to prescribe rates
not to be exceeded by the carrier, II must
do so with reference exclusively 10 What
is Just and reasonable as between the
carrier and the public In respect OF domes-
tic business. The argument that railroad
is an entirety; that its income goes into.
and its expenses are provided for out OF
common fund; and that its captaiza-
tion is on its entire line within and with
out the state--ean have no application
where the state is without authority over
rates on its entire line, and can only deal
with local rates, and make such regula-
lions as are necessary TO give just COM
pensation on local business" See also
N r. r. r. Co VS.. i>eyes. 81 j. X. A.
1t is manifest therefore that this COM
mission is restricted to the considera-
ton of purely domestic or local business,
and that IL can for no purpose under
tie law consider the conditions, char
acter and extent of business beyond the
state of its own jurisdiction for the pur-
pose of determining reasonable freight
rates within this state unless 1t be made
first to appear that all conditions are
similar A departure from this rule would
be without warrant of law, and could
shed no satisfactory light upol the anes-
tons to be determined.
Important que tions of fact first to be
ascertained then are gross income from
operations in Alabama, operating eX-
penses attending the business. and the
nercentage of opera ting exnenses to gross
income Table / exhibits these data. This
table is compiled from verified reports
fled with the commission, in accerd-