The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-03-09

ance does not leave sufficient To pay
a reasonable return, the law Is in
valid. And il the railroad system
of any company is earning more than
reasonable return by reason OF in
terstate rates. which affect the peo-
pie many times more thai. cai
rates. and If such interstate rates
are too high. congress either acting
alone or through commission must
make the corrections.
The supreme court during the
present year in the ease of city of
New York V. Consolidated Gas Co
of New York, decided that pr cent
was fair and right TO ne given TO the
owners upon the true valuation. My
opinion is that while a gas plant is
in some respects different from a
railroad, that railroad property.
properly built, and properly managed
should over and above expenses make
a return of 6 per cent per annnm.
And considering all the evidence, the
evidence fairly shows that all of
these roads were properly and eco
nomically built and are being prop
erly and economically managed. and
that after paying the expenses for
maintenance and operation. that
there is less than 6 per cent of re-
turns, and not more than per cent
upon any of them and as to some of
them deficit. taking the property as
above stated within the state of Mis-
souri, at its fair valuation. And this
is so without reference to bonds,
because in no case do the bonds
bear per cent interest. But taking
the bonds into consideration. there is
still not to exceed per cent returns,
and in many cases a deficit after con-
sidering all debts and credits, upon
the true valuation for the state
business. There is no evidence that
any of the existing bonds were inn
properly issued either as to amounts
or rates OF interest. In fixing the
value the court has considered the
evidence 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 bind
ing nor conclusive. but they are per-
suasive. Both independently of
stocks and bonds. and independently
of what the state board has valued
these properties for taxing purposes,
=. the evidence shows the valuation to
I be as recited In the findings of fact
!, herewith filed. and TO which refer
enee will be made in the DEGREES.
1T is absolutely necessary that
many trains both passenger and
/ freight do both local and interstate
+, business Even the fast trains stop
ping at but few stations in the state
carry state passengers between such
stations. And the same is true as
to freight trains carrying 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 a certainty. The
expenses are known and fixed. To
apportion those expenses. must he
done according 10 one of the two
theories, and the correct theory Is
that according to revenue. One the
ory or other must he applied TO both
freight and passenger expenses. and
the court should not adopt the one
theory as 10 part. and the other the
DRY as to another. The one theory Is
{ helpful to the one side. and the
i. other theory helpful TO the other
side. the one theory TO the one side
in freight. and the other theory "a
the other side in passenger. But an
arbitrary splitting of theories is IL
logical and unfair. and cannot be rec
ognized. The court has adopted the
revenue theory because great num-
her of the best railroad experts OF
the country against a very limited
number to the contrary have SO testi-
fed. Every court that has ever had
this qeUstion before Ii in so far as
! am advised by the briefs OF eoun-
! sci and my own independent investi-
CATION has so held in cases of the SUI
! preme court of the United States
} In the two cases, by two circuit
J judges of this circuit: by three dis
trict judges of this circuit. and by
the supreme court of Florida. State
VS.. Atlantic Coast Line. And Beale
& Wyman on Railroad Rates Regu-
lation. announces such as being the
correct rule. The values of the prop
erty within the state have been fixed
nv the courf The entire earnings