The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-07-28
CONTENTION OF
THE SOUTH SHORE
RAILROAD CLAIMS NEW TWO
CENT LAW WILL NOT PERMIT
FAIR RETURN ON IN
vESTMENT.

The temporary injunction granted
by Judge Angel of the L. $. circuit
court at Detroit on request Of the
South Shore railroad. against the at
torney general OF Michigan and state
railroad commission, restraining tFCm
from putting into effect the new two
cent fare In the upper peninsula on
August /. is effective only until Sept
&c. when the case will be argued on its
merits before three federal Judges ct
Detroit. At that time the trial court
viii either make the temporary i1junc-
ton permanent or order the railroad
company to comply with the two-cent
law. The injunction is asked or by
the railroad company on the theory
that a two-cent rate will be "onisca-
tory and i'm violation of the fourteenth
Iarnendment to the constitution Of the
United States. which says nor shall
any state deprive any person OF life,
liberty or property, without due pro-
cess of law; nor deny to any person
within its jurisdiction the equal pro-
lection of the laws"
Minnesota Decision AprIies.
In the bill of complaint the attorney
for the railroad company contend that
the decision of Judge Sanborn, of the
United States circuit court at st. Paul
declaring the two-cent fare law in Min
nesota unconstitutional applies in IN,
present case of the South Shore IN
Michigan. Judge Sanborn held that
the two-cent law i'm Minnesota was In
violation of the fourteenth amendment
to the constitution, as its effect wa.
corilscatory, ana the complainant's at
torneys in this case claim that the ef.
feet of the application of the two-cenr
law I'm this state To- the South Shor,
Ioad will be confscatory In the san,
sense The most essential difference be
tween the Michigan and Minncsnt,
laws is that the Michigan law exempt.
railroads whose passenger earnings arc
les than 81 200 per mile.
Before presenting the application FOL
an Injunction to the United S safes
court, the auditing department GC tn,
railroad was called upon to DO On i'm
mense amount of figuring. 1t deter
mined the value of the railroad com
pany's entire property; its value il
Michigan; the proportionate value use,
and To be used for the transportation
of passengers, interstate and intrastatc
in Michigan; the amount Of such earn
ings allowable 10 the freight business
and To the passenger business in Mich
igan; the amount OF earn .gs derive,
ftcm transportation of passengers. in
terstate and intrastate. in Michigan
the apportionment of misccHaneou
items of earnings to the interstate am,
intrastato passenger business in Mich
igan; the total amount Of expenses 70
the operation of the line; the division
of such operating expenses between tn
states in which the lines are located
the division of such operating expense
between the freight and passenger bus
mess; the division of the passengc
operating expenses i'm Michigan be
tween tho interstate and intrastat,
passenger business; the apportionmeu
of taxes between the freight and pas
senger business; the apportionment O
taxes against the passenger business
between interstate and intrastdtc bust
ness, and numerous other facts that ar
difficult and intricate of determine