The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-03-08

hHHoab wy Ahcsf IhaiN I'll GA nOl-
able decision IN favor OF the railroads
was handed down today by Judge Nc
pherson, of the United States district
court, In the two-cent fare and maxi
mum freight rate cases, involving eigh-
teen Missouri lines, The railroads
rontended that the rates fixed by the
statutes of the state were not remun-
erative but confiscatory. and that the
enforcement of the statutes be enjoIn-
ed. The state brought proceedings
to have them enforced.
THE question: said Judge McPher-
son In his decision. lis whether the
traffic wholly within the state OF Mis-
souri, generally referred to In the eyi-
dence as local traffic, can be carried
under the freight rate statute of 1907
and the passenger fare statute of 1907
at such profit as Will give a reason.
able return after paying expenses up
on the investment, or whether such
traffic is carried at a loss or less than
such reasonable profit. The court has
reached the conclusion that upon this
question the statutory rates fixed by
either and both statutes are not re-
munerative.'
In giving the reasons for such con-
clusions. the decision says: The
unquestioned and undoubted rule is
that there is a presumption both OF
fact and of law in favor OF the valid
ity OF every legislative enactment.
The railway companies have the bur-
den OF removing this presumption, and
showing that the statute, clearly, or
as some courts say, palpably, and
others say. beyond reasonable doubt.
is invalid. In these cases the court
has recognized this rule The author
tiles upon, this question form a long
and unbrokan line, with the single
exception OF the majority opinion In
the Pennsylvania case decided year
ago. t6S All. Rep. 676) And that
one authority is not persuasive
"All testimony and argument bear
ing upon the question as TO what con-
sideratin the legislature of Missouri
gave TO these enactments, Is utterly
immaterial Much was said In argu-
ment as TO the message OF Governor
Hughes. of New York, two years ago
In declining 10 approve the two-cent
fare statute of that state. Governor
Hughes had the moral courage to veto
measure Of popular favor. because.
as he believed. the question had not
been fully considered But the rela-
tions of governor 10 proposed legis-
lation, and those of a court to legis-
lation consummated. are entirely diff
ferent
Most Of the laymen and many law
yers believe that the question is
whether the railway company, as a
system. is earning sufficient revenue
upon the value of the property OF the
system They believe that. II the
Burlington, Santa Fe. Wabash, or any
money as will pay all charges and ex-
penses including taxes and interest,
with reasonable dividends. TO the
stockholders, that state rates for state
business must stand or course no
one believes this who has given the
slightest attention TO the question.
That precise question was up before,
and was decided by .JusticeBrewer and
affirmed by the Supreme court In the
A'N''oShh tdot VI Ciis III Thb'Noa
The only question is as TO Missouri
rates. less expenses properly charged
against the same And IL this balance
does not leave sufficient TO pay reas-
enable return, the law Is Invalid. And
If the railroad system of any company
Is earning more than a reasonable re-
turn by reason of interstate rates, and
II such interstate rates are too high,
congress either acting alone, or
through a commission, must make the
correction.
The supreme court. during the pres
ent year in the case OF City of New
York VS.. Consolidated Gas company
OF New YORK. Needed that six per
cent was fair and right TO be given
TO the owners upon the true valuation.
My opinion is that while gas plant
Is In some respects different from a
railroad, thar railroad property.
properly built, and properly managed,
should over and above expenses mako
return Of Nix per cent per annum.
And considering all the evidence, the
evidence fairly shows that all OF these
roads were properly and economically
built and are being properly and eco
nomically managed. and that after
paying the expenses for maintenance
and operation. that there is less than
six per cent OF returns, and not moro
than three per cent, upon any OF them,
and as to some Of them. deficit, TAX
Ing the property as above stated with
IN the State Of Missouri at Its fair
valuation. And this is SO without ref
crence TO bonds, because I'm no case
do the bonds bear six per cent In
terest. But taking the bonds into
consideration, there is still not TO
exceed three per cent returns. and IN
many cases. a deficit. after consider
Ing all debts and credits, upon the
true valuation for the state business
There is no evidence that any oil the
existing bonds were improperly issued
either as TO amounts or rates OF in'
terest In fixing the value, the court
has considered the evidence oil wh-
nesses as TO the stocks and bonds out
standing, and the state board for tax
Ing purposes has valued these prop
critics. or course those findings are
pot binding nor conclusive, but they