Joseph McKenna

“ If the employment of any earnings of the road in making improvements lessens the amount of net earnings, the government loses nothing thereby. The only result is, that a less amount is presently paid on its debt, whilst the general security for the whole debt is largely increased.' The interest of the government in the improvement of the road was even greater than that of a stockholder. ”

“ Upon the supposition that certain improvements have been made necessary by 'an abnormal increase of traffic,' they should be taken into account in determining the reasonableness of an increase of rates upon a commodity, whether, as a matter of bookkeeping, the expenditures should be charged to capital account or to the operating expenses; and without regard to the fact whether such expenditures have been paid out of the carrier's earnings or have been provided for by the issuance of bonds. (11) A rate on a commodity is profitable if it exceeds the cost of its movement ”

“ Rates being so adjusted upon a commodity as to enable it to move with profit to the shipper, whatever the conditions of the market, reducing the rates as the market declines, only increasing them as the market improves, a particular increase is reasonable if it be shown that the percentage of increase has been greater in the price of the commodity than in the rates on it. ”

“ A rate charged by a carrier which has the 'strongest possible motive' to develop and increase a traffic in a particular commodity, and has maintained such rate for a 'long series of years,' so as to have induced a large and continuous increase of business in that commodity and of the capital invested, is reasonably low. ”

“ The first proposition submitted by appellants may also be said to be so far absolute and independent of evidence as to be considered as a presumption of law simply. This is contended on the authority of Van Patten v. Chicago, M. & St. P. R. Co. 81 Fed. 545. It is difficult to analyze the case briefly. It was an action of damages against the railroad for charging unjust and unreasonable rates under the assumption that §§ 8 and 9 of the interstate commerce act gave such an action, though the railroad had charged according to the schedule of rates filed with the Interstate Commerce Commission. ”

“ Rates reduced to meet a market depression, and kept in effect during the depression, and increased when the depression ceases, which does not cause the increased rates to exceed the rates that were maintained by the carrier prior to the depression, are reasonable. ”

“ The question marks the condition that appellants encounter in the findings of the Commission. The findings of the Commission in effect negative the facts upon which the propositions depend. In still greater degree there is illustration in the first proposition. That proposition is an inference from an inference, as we shall presently point out. The reasonableness of the rate is inferred from competition, and competition is inferred from the publication of the rate. ”

“ The elements of that value may be many and complex, not always determinable, as we have seen, with mathematical accuracy, but, we think it is clear that instrumentalities which are to be used for years should not be paid by the revenues of a day or year ”