The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1911-10-12

tCsSS Tslha1e. Nc Cessan .'ansid-
ers thar il The decision by Judge
Saahnra inyaiiastaag state safes aN-
I'd by the Minnesota commission is
allowed To stana the states Mill no
longer have any power 10 regulate
iatra-state rates. and, since there
is no provision FOR such regulation
by the interstate commerce. COM
mission, the only limit to the state
rates OF the railroad companies un-
der that decision would be their
greed and audacity. To quote
farther:
But entirely aside from tina,
point, if Sanborn's decision stands.
it is an end TO regulation of sta
rates by any agency. because all state
rates will be coniscatory. Notwith-
standing that a part OF tae ianc
forming the highway OF the trans
p%ortation companies was donated to
the railway companies IN question
and there were also donated the
highways in cities and ,own. and Il
part of the grounds eitner donates
or purchased at a low price for ter
minals, Judge Sanborn holds that
they are entitled to earn . per cent
upon a theoretical railroad, recon
structed new. at the present value
of farm lands and the present value
of the property used in the cities for
terminals, and that the value OF the
estate outside the cities should
be multiplied by three because there
some testimony by the railroad
men that it would cost three times
the present value OF real estate il
NAS
it were necessary TO condemn 1t for
railroad purposes. The multiple of
three is used so as to include what
is known as severance damages, en-
pense OF condemnation. etc.. and in
the cities 5 per cent is ito be added
for the purpose of covering the e.
er by thrifty methods and intensive
agriculture raises the Svalue.iof his
land $500 he must in turn pay for
his industry ~ laayyff Is =. gailwa,
company TRANSPORTATION charges or
the value of $780, IntAEestia
Iper cent on the Theory, OF rsconstrnc'
ftion new, would mean a progressive
rate
The theory OF the courts has bee,
that public service corporation
should not be Obliged to make con
fiscatory rates.; that is to say; rate
that would not pay a fair return VI
ION the investment, { According Il
Judge Sanborn, as1fRir. sintcrest rat
is 9, per cent, although in ,he Nc
York gas casesthe suplemes OUR Q
the United States declared that
rate of s per cent gwsoan! ! / suffice.
The constitution does not. by an
stretch of the imagination yet re-
ognized in final judicial decree
Warrant. to everybody a theoretic;
or speculative value for his prof.
, the people must pay returns upo
their gifts to the railroad companit
and in addition pay them on thre
!, times the unearned Increment in I'll
price of lands This hardly con
forts with the opinion of the 81
fpreme court that the gas compan
! OF New York City should not tax ii
! people for returns upon a franchi:
that did not ost it anything.
Judge Sanborn had figured an offs
4 between the increased price of Ian
!, and the donations. IT would hay
been more fair to the shipping ar
consuming puzzle. The econstitutio
under Sanborn's decision, not alol
: prohibits confsaation, but guara'
: tees an investment profit. The vie
!. of the advanced thinkers has bee
for some time that public servi
! corporations should be assured
!, fair interest return IN their inves
ment. Judge sanborn goes farth
. and says that If the value of su