The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-10

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that which has been committed to It's
care. and for this purpose ana TO this
extent, in response to conviction OF
the national need. to displace local
laws by substituting laws OF it's own
Among the laws which the States
may pass indirectly affecting inter-
tates commerce was mentioned State
inspection laws. State employers liza
bility laws and quarantine regulations
He said that state rate-making WAS TO
be classified with these
Power Not Doubted.
II has never been doubted" said he
that the State could. II il saw fit, build
Its own highways. canals and railroads
Such provision for local tram might
indeed alter relative advantages in
competition. and by virtue of economic
forces those engaged in interstate trade
ana transportation might find II neces-
sary, TO make readjustments extending
from market TO market through wide
sphere OF influence; but such action of
the State would not for that reason be
regarded AS creating "A direct restraint
upon interstate commerce and az thus
transcendinR the State power. SINH
larry. the authority OF the State TO pre-
scribe what shall be reasonable charges
OF common carriers for intrastate
transportation, unless IL be limited by
the e1ertion Of tho constitutional
power OF Congress is State wide.
1T is manifest that an attempt to
estimate what would be the actual cost
OF acquiring the right of way II the
railroad were not there is to indulge
In mere speculation.
The cost 81 reproduction method is
or service in ascertaining the present
value OF the plant. when IT Is reason
ably applied. and when the cost OF re-
producing the property may be ascer-
tained With n proper degree of certain
ty./ But IL does not justify tho accept
anfe of results which depend upon
mere conjecture"
Justice Hughes said that the railroad
would have no ground TO complain II
II were allowed value for its lands
equal 10 the fair average market value
OF similar lands In the vicinity. with
out additions by the use Of rnultiplicrs
or otherwise to cover Hypothetical cut
lays
How Division should he Made.
In criticiZing the apportionment OF
values between interstate and intra
state business upon the gross revenue
basis Justice Hughes said that the
division should be made according TO
the use that is made OF the property.
He declared that this use could not be
measured by the return. when the re
turn itself was In question. Should
the return he taken as the basis.
said lie, then the validity OF the
Statc EcuuCtlOH OF ~Oulu nave
10 be tested by the very rates which
the State denounced as exorbitant" He
added that IT would be possible to as
certain some kind OF use units" by
which the property could be divided
both between interstate and intrastate
on the one hand. and between freight
and passenger business on the other
He did not point out what this unit
would be
80 TO say that power exists
but that II may be exercised only in
prescribing rates that are on an equal
or higher basis than those that are
fixed b. the carrier for interstate
transportation. is to maintain the power
in name. while denying il in fact |,
~ TO assert that the exercise Of the
legislative Judgment in determining
what shall he the carriers charge for
the intrastate service IS itself subject
80 the carriers viii. But this State
vide authority controls the carrier and
- not controlled by II. and the idea
that the power OF TIE State TO nx rea-
sonable rates for its internal traffic
Il. limited by the mere action OF the
carrier in laying an interstate rate &c
places across the States border is for
ciRn 10 our Jurisprudence. If this au-
thority OF the State be restricted II
must be by virture Of the paramount,
power of Congress over interstate
commerce and its Instruments and In
view OF the nature OF the subject a
Limitation may not he implied because
of dormant Federal power-that is
one which has not been exerted, bu,
can only be found In the actual eXer-
else OF Federal control IN such measure
as 10 exclude action 10y the state. which