The Birmingham age-herald., 1912-05-28


 settles that contention adversely to re- spondents.
 BY AGREEMENT. MASTER ADOPTED TAX VALUE, WHICH WAS LESS THAN MARKET VALUE.
 The master accepted that basis of as- certaining the value of complainant $ property assignable to it's business in Ala bama, although of opinion that it would result in a valuation considerably less than the value as shown by the proof, because the parties assented to that basis, and it would eliminate from the case all those disputed questions of fact which so often embarrass a correct aScertainment of the amount of the investment; and also be- cause it was very conservative esti- mate of the value. In this way the value of the property of the Central system, assigrable to its business in Alabama. was reduced nearly s5.000,000 from its value measured by the reproduction cost and other elements which must, generally, be taken into consideration In arriving at the value of railroad property.-Smyth vs. Ames. supra.
 The Master adopted the tax valuation with the franchise included, as stated above, and found that the value of the property employed in all the Centrars business in Alabama for years 190S 1909 and 1910 was as follows
 1908 ...........,............ .Slo, ,ob0,loyW W 1909 ........................... 15,5f5,3S3.10 1910 ........................... l5,Sl4,9l7.00 with total net revenue from its entire business in Alabama in these same years as follows:
 1908 ..................s .s454, 7so s1
 1909 .,............-........... 453,l3f- 4o 1910 .........................4 434,76020 which was a return upon the value of its entire property in this state for the respective years of 2.09, 1.Ss and 1.9S per cent
 He further found that the value of the system in Alabama devoted to intrastate business for the years 1908, 1909 and 1910, vas, respectively:
 ss, TBS, ,594 5e; SC, 6,eo4o12. .27 and ss.o34,- 972. .32; and that the net earnings for those years, the taxes deducted was
 respectively s76,70o,92, sos.7ls.7S and S4O.302. 70, or net return upon the
 value of the property in those years
 of .319. 056 per cent and deficit in
 the last year of $7,s22 .93.
 AMOUNT OF LOSSES FROM THE
 OPERATION OF RATES.
 The master found from the testimony
 that the actual losses the Central of
 Georgia would have sustained had the
 commodity rate act and the eight group
 act been in effect from April 1, 1907. to
 June 1, 1e09 would have been sS6,299 97, which was SIP per cent of the whole reve-
 nue from all Alabama intrastate freight
 traffic He also found that the Central
 of Georgia actually lost from June i,
 1909 to November 30, 1909, the latest date practicable before the closing of the tes-
 timony, s25. .203 .2s. which was 12.24 per cent
 of the whole revenue from all Alabama
 intrastate freight traffic affected by the
 rates for that period, as result of put ting the freight rates into effect. The
 master further found that the losses the Central of Georgia would have sustained
 had the 21h cent passenger rate been in
 effect from April 1. 1907. to May 3l, 1909, would have been s126.712 0S or about F 30 per cent of the passenger business af- fected The master further found that
 the Central of Georgia actually lost on
 it's intrastate passenger business from Tune 1. 1909. to November 30, 1909 by req
 son of putting the PIE cent passenger rate into effect was S3s, ,036. 0S, which was IS i6 per cent of the intrastate passenger bus
 mess for that period. The master also found that from December 1, 190a to June 30, 1910, the latest practical date before closing the testimony, the Central or Georgia actually lost by reason of putting into effect the 21a cent passenger rate on it's intrastate passenger business, S35.63l .S0
 which was l4 99 per cent of the traffic af-
 fected.
 RATES ARE coNFIscAToRY It is needless to say the constitution does not guarantee any profit to carrier
 under any and all circumstances, but IL
 
 ference, which prevents the earning if It can be done, of a fair remuneration upon the value of the property devoted to the
 service, so long as it's charges are just and reasonable, and it serves the pub1c without unjust discrimination. under
 the conditions existing at the tune the charge Is made. The rates in force, when the legislation here was enacted. had been in effect for many years, and a large portion of them voluntarily adopt ed In view of competition and the exist ing conditions. they were reasonable. The country had prospered under them, and the free interchange of domestic com merce was not hindered thereby: "What the company may choose voluntarily to do furnishes no criterion for the measurement of the power of the legislature. Persons may vol untarily contract to do what no leg islature would have the right to com pei them to do. Nor does 1t furnish a standard by which to measure the reasonableness of the matter exacted by the legislature. e."-Lake Shore and Michigan Southern Railway vs. Smith, 173 U. s. 6S4. 697.
 Two years prior to the enactment of the present statutes the railroad commis- sion of Alabama. whose duty 1t is to en- ouire into such matters. found at that time under the then existing rates the complainant in this case was receiving return of only 1.10 per cent upon the value of it's property devoted 10 US in- trastate business in Alabama. An effort to increase the old rates if conditions jus tified the increase, could not be defeated because the carrier had voluntarily adopc- ed or acquiesced in the old rates The eight group acts and the passenger rate act, however. prevented the carrier from earning what 1t could and would have otherwise done even under the old rates. No argument is needed to show that the amount of the losses occasioned by the legislation forbidding the use of the old rates and compelling the carrier to charge the lesser rates prescribed by later statutes. Is that much taken from what coryspIainant could have earned and Lad d right to earn under the constitution and laws. and is confiscatory of com