Horace Harmon Lurton

“ If, in the past, reconstruction and replacement charges have been met out of current expenses, the fact must be taken into consideration, both when we come to estimating future net income and in determining what sum shall be annually set aside to guard against future depreciation. This doubtless influenced the court below in settling upon the amount of $8,000 as a sufficient annual appropriation of income as insurance against future depreciation. ”

“ The sufficiency of the price prescribed to produce a fair profit upon the value of the property employed in the business is to be strongly presumed. The burden of showing its confiscatory character rests, therefore, upon the complaining company.
The court below, upon a final hearing, held that the appellant had not made out its case, and dismissed the bill, with leave to renew the litigation if, upon actual operation under the ordinance, the returns upon its business should not prove reasonably remunerative. The ordinance was never put in force. ”

“ But it is urged that even upon the valuation fixed by the court, the estimated future net income will be little over 5 per cent, and, in consideration of the character of the property and the high average interest rate prevailing in Nebraska, this is not a reasonable or fair return, and demonstrates the confiscatory character of the ordinance. But if the $8,000 first deducted from the receipts, and laid aside as a permanent fund to meet future depreciation, be taken into account, the estimated future net income with the rate in force will exceed 6 per cent. ”