The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1909-03-12
are too high, congress either act
ing alone or through a commission
must make the corrections.

me supreme court during the
present year in the case of city O
New York VS.. Consolidated Ga.
Company of New York, decided tina
six per cent. was fair and right tc
be given to the owners upon the
true valuation. My opinion is that
while gas plant is in some respects
( different from railroad, that a
railroad property, properly built
and, properly managed, should over
and above expenses make a return
of six per cent. per annum. And
considering all the evidence, the evil
dence fairly shows that all Of these
roads were properly and economi-
cally built and are being properly
and economically managed, and that
after paying the expenses for main
tenance and operation, that there
is less than six per cent. of returns,
and not more than three per cent,
upon any of them and as to some
of them deficit, taking the prop
erty as above stated within the state
of Missouri at its fair valuation.
And this is so without reference to
| bonds, because in no case do the
debts and credits, upon the true
bonds bear six per cent. interest.
But taking the bonds into consider
alton, there is still not to exceed
three per cent. returns, and many
cases a deficit after considering all
valuation for the state business.
There is no evidence that any of the
existing bonds were improperly is
sued either as to amount and rates
of interest. In fixing the value
the court has considered the evil
dence of witnesses as to the stocks
and bonds outstanding, and the
state board for taxing purposes has
valued these properties. OF course
those findings are not binding nor
conclusive, but they are persuasive.
Both independently of stocks and
bonds, and independently of what
The state board has valued these
properties for taxing purposes, the
evidence shows the valuations to be
as recited in the findings Of fact
herewith filed, and to which refer
ence will be made in the DEGREES.
cit is absolutely necessary that
many trains, both passenger and
freight, do both local and inter-
state business. Even the fast trains
stopping at but few stations in the
state carry state passengers be-
tween such stations. And the same
is true as to freight trains carry
ing freight both in carload and less
than carload lots.
"The valuation OF the roads has
been fixed by the court as shown
by the findings of fact. The entire
state and interstate earnings of
each of the roads within the state
is known and fixed to certainty.
The expenses are known and fixed
To apportion those expenses, must
be done according to one of the two
theories, and the correct theory is
that according to revenue. One
theory or other must be applied to
both freight and passenger expen-
ses, and the court should not adopt
the one theory as to part, and the
other theory as to another The
one theory is helpful to the one
side, and the other theory helpful
to the other side; the one theory
to the one side in freight, and the
other theory to the other side in
passenger. But an arbitrary split
ting of theories is illogical and I'M
fair, and cannot be recognized. The
court has adopted the revenue
theory because a great number ofthe
best railroad experts of the country,
against very limited number to
the contrary have so testified. Every
court that has ever had this question
before it in so far as I am advised
by the briefs of counsel and my own
independent investigation has so
held in the cases of the supreme
court of the United States; in the
two cases, by the circuit judges of
this circuit; by three district judges
Of this circuit, and by the supreme
court of Florida, State VS.. Atlantic
Coast Line. And Beale & Wyman
on Railroad Rates Regulation, an
nouncing such as being the correct
rule. The values Of the property
within the state have been fixed by
the court. The entire earnings
within the state, interstate and
s'te, freight, passenger, and miscel-
laneous of each, have been fixed
The entire expense is known, in
Guiding the extra cost of each. To
ascertain whether the result is a
profit, and If so what per cent, or a
loss, is but problem of primary
arithmetic, as is shown by Judge
Van Devanter in Arkansas rate
cases. There are other methods
equally simple, the resultant figures
of course being the same. These
Hrrnntotions show as to the COM
modities covered by the freigha
ate statute of 107, that two roads,
he Hannibal & St. Louis, and the
7'ineton. allowing nothing for ex-
| ira cost, there is deficit, and with
thor companies less than two
per cent. But with the extra cost
added, the deficit for the two com.
7nies is much greaer, and the
ter companies show a deficit.
"The passenger earnings under
the two-cent fare law of 1907, al
Lowing nothing for extra cost ovel
Interstate business, gives no return
whatever to the Rock Island. st
Z / nl1is e Hannibal Kansas Nifu