The Prescott daily news., 1913-06-11

The authority of the state to pre- scribe what shall be reasonable charges for intrastate transportation is statewide, unless 1t be limited by the exertion of the constitutional power of congress with respect to in terstate commerce and its instru- ments."
 This decision was unanimous. up setting all rumors that the court was split" on the big point In the case. Its prime effect is that all such state rates. stand, unless they are found contiscatory by the federal courts, un- til congress intervenes.
 Federal officials yesterday thought 1t improbable/t that congress would lay down a standard uniform rate law for years, leaving the states unhampered except to give reasonable returns '" ailroads-in their intrastate rate baking.
 Next Most Io portant Point.
 Almost equal in importance to the states rights" D inciple enunciated by the court was it's decree affecting physical valuation of railroad prop erty. Declaring the valuations made by the circuit court of the Northern Pacific and Great Northern roads ex- cessive, the court asserted that the standard of physical valuation was not the cost of replacing the railroad property anew. It asserted that de- preciation of property should and must be considered.
 This dictum is expected to guide the interstate commerce commission and the state in physical valuation work in the future, as we'll as fix a gauge for determining if state rates are confiscatory.
 clared, whether, in determining the present face value of the property as basis of it's charges to the public, 1t is (the railroad) entitled to valua- tion of its right-of-way, not only in excess of the amount invested in it, but also in excess of the market value of contiguous property.
 "It is clear that in ascertaining the present value we are not limited to the actual amount of investment. If that has been reckless or improvi- dent losses may be sustained which the community does not underwrite There is attached to it's use the condi- ton that charges to the public shall be reasonable.
 Increase Sought Is an Increment.
 "The increase sought for railway value (cost of replacing the property anew) is an increment over all out lays Of the carrier, and over the values of similar property in the vi cinity. The increases cannot extend beyond the fair average of the normal market value of the land of similar character. Otherwise we enter the realm of mere conjecture.
 Tt was error to base the estimates of the value of right ofway, yards and terminals upon the so-called railway value of the property. The allowance made for conjectural cost of acQuisi- tion must be disapproved.
 Value Based on Public Service.
 The court held that the appraise- ment should be "of an instrument of public service of property and not O. the skill of the users.
 When physical items are esti- mated the court asserted, 'as worth so much new, if, in fact, they be de preciated, this amount should be al lowed for. If this is not done the physical valuation is manifestly in complete"
 In calculating value of property for state and interstate traffic, in fixing rates, the court declared:
 "There should be assigned to each business that proportion of the total value of the property which will cor respond to the extent of it's employ -ment in that business"
 The court disapproved the finding that the cost of intrastate commerce. upon the basis of property employed therein is two and one half times that of through haul"-busi- ness, but did not establish any hard and fast rule for such computations.