Western Ry. of Alabama v. Railroad Commission of Alabama

Citations

• 197 F. 954
• 1912 U.S. Dist. LEXIS 1515

Syllabus

<p>1. Carriers (§ 12*) — State Regulation of Rates — Reasonableness of Rates — Return on Investment.</p> <p>Under the conditions attending the business of railroads in Alabama, a railroad company is entitled to earn a net profit of 8 per cent, on the value of the property devoted to the service, where its charges are just and reasonable in themselves, and a schedule of rates fixed by law cn intrastate business which will not permit a company to earn such return from that business is confiscatory and unconstitutional.</p> <p>[Ed. Note. — Eor other cases, see Carriers, Cent. Dig. §§' 7-11, 15-20; Dec. Dig. § 12.*)</p> <p>2. Carriers (§ 12*) — State Regulation of Rates — Reasonableness of Rates — Valuation of Property.</p> <p>In the valuation of the property of a railroad company for the pur- ' pose of determining the reasonableness of a state statute regulating rates, as affecting such property, a fundamental and generally controlling inquiry is the cost of reproducing the property in its existing condition at the time of the inquiry.</p> <p>[Ed. Note. — For other cases, see Carriers, Cent. Dig. §§ 7-11, 15-20; Dec. Dig. § 12.*]</p> <p>3. Carriers (§ 12*) — State Regulation of Rates — Reasonableness—Value of Froi>erty Devoted to Intrastate Business.</p> <p>In apportioning the total value of the property of a railroad company between its interstate - and intrastate business for tbe purpose of determining the reasonableness and validity of a state statute regulating rates, the only feasible method is by comparison of the volumes of its revenues from each kind of traffic, making allowance for the greater relative cost of doing local business, varying in amount with varying conditions, and as to which the testimony of experts skilled in railroad transportation may be accepted.</p> <p>' [Ed. Note. — Ifor other cases, see Carriers, Cent. Dig. §§ 7-11, 15-20; Dec. Dig. § 12.*]</p> <p>4. Carriers (§ 12*) — State Regulation of Rates — Validity of Statute.</p> <p>A carrier lias