New-York tribune., 1911-04-09
Faets Considered and Held.
The facts considered and held

sno n ects anu oruerS OF the officers Of
Faets Considered and Held.
The facts considered and held
Ihe unavoidable effect OF the general and
sweeping reductions OF intrastate fares and
orders considered was and 10 subsIantiaiiy
to burden. directly to regulate and to dis
criminate against the interstate commerce
or the different companies and to create
undue and unjust determinations between
localities in Minnesota and those In other
states. in violation Of the commercial clause
OF the Constitution.
g. The just compensation secured by the
fourteenth Amendment entities the defend
ant railroad companies to fair return
upon the reasonable value OF their prop
erty In Minnesota devoted to the public
transportation. Such q return is Just TO the
public as we'll as to the carriers.
10. Under the evidence in these cases the
cost OF reproduction now of the Mime
sofa properties of the defendant compa-
nies devoted to the public use of trans
portation is more persuasive evidence OF
their values than the market value OF their
stocks and bonds or the original cost Of
their acquisition and construction.
II. Rate making looks TO the future and
Ia a legislative function.
Rate judging. determining whether or not
rates made are confscatory, is judicial
function.
There is presumption in the first in
stance that legislatures and commissions
make reasonable and just rates, and clear
proof is reQuisite to overcome IT,
But when, after fares and rates have
been tried by actual use for months. after
plenary proof Of their effect and other
facts determinative OF the issue. confisca-
ton vel non has been made before mas
ter learned in the law who finds the facts,
the legal or judicial presumption that his
findings are Just and right, while not con-
elusive, is superior 10 the original presump-
tion that the rates were just and reason
able.
IL. Interest on the cost of reproduction Of
railroad property at per cent per annum
during half of the time requisite to ac-
quire and construct it is necessary. eX-
pense OF reproduction and may be lawfully
allowed as such.
H. Apportonment on the basis Of revenue
is the most reasonable and equitable meth
Cd Of assigning the value Of railroad prop
erty In a state used for transportation to
the various classes of its business in order
to determine the reasonabeness of fares
and rates.
a. A net income of : per cent per annum
upon the value OF railroad property in Min
nesota devoted TO the public use of trans
TO which railroad company is entitled
under the Fourteenth Amendment TO the
Constitution.
z. T. Young. former Attorney General OF
Minnesota, who started the rate suits
against the railroads on behalf of the state.
saws the decision leaves the ratemaking
power entirely in the hands of the rail-
roads. and affects the state Railroad and
Warehouse Commission so that It cannot
move without consulting the federal courts
He says that the state will file a notice OF
an appeal at once.
Mr.. Young's Views.
I'm general terms the decision may be
called a sweeping one. because il involves
all the important questions in relation to
the control of railroads by public author
ity." said Mr.. Young. TT will he remem.
bered that the masters findings upheld the
railroads upon every point urged by them.
Briefly stated the specific findings Of
the decision affecting state control of the
railroads are;
"First-The state cannot control rates on
the business done within its own borders
"Second-The valuation OF property
claimed by the railroads. largely in ex-
cess of the investment and in excess even
of stocks and bonds, is upheld
"Third-The court. as a matter of law.
rules that the railroads are entitled to Z
per cent income on the valuation so ascer-
tanned.
"Fourth-It then finds that rates in Min
nesota do not afford per cent on the VAL
uation. II might be said that in order to
afford per cent on the valuation claimed
by the railroads in this state all existing
rates would have TO be greatly increased,
for although existing rates would pay more
than 10 per cent net on the actual Invest
ment they would fall short Of paying that
per cent on the valuation claimed by the
railroad companies.
"Fifth-Under this decision the two-cent
passenger rate would be abolished. and in
ite stead such rates may be fxed as the
railroads see ft to adopt. and the same in
principle is true as TO freight rates In
controversy.
"Sixth-The Railroad and Warehouse
Commission members are reduced to the
status of mere statisticians. and will not
be able TO act without first securing an or
der from the federal court"