Letter to the Railroad Securities Commission in Reply to Their Request for Infor
Letter to the Railroad Securities Commission in Reply to Their Request for Infor
W H William Henry Williams
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In view, however, of what has already been said herein, it is unnecessary fur- ther to present reasons for his opinions that such an undertaking could benefit no one, and would 38 entail an unnecessary and large expense which the tax-paying public ought not to be compelled to bear. The only reasonable suggestion sus- taining the utility of such a valuation in connection with rate-control is based upon the possibility that the Courts may find it necessary, in order to support proper standards by... which the reasonableness of rates may be tested, to revert to the early legal doctrine that such rates are separable into parts representing (a) tolls for the use of the property or highway and (6) com- pensation for the performance of a service on such highway. This suggestion seems to merit thoughtful consideration. The United States Supreme Court has decided that where Congress has granted lands to aid in the construction of a railroad, with the provision that "said railroad shall be and remain a public highway for the use of the Government of the United States, free from all toll or other charge, for the transportation of any property or troops of the United States, such provision secured to the Government merely the free use of the rail- road, and did not entitle the Government to have troops or property transported over the railroad by the Railroad Company itself free of charge for such transportation.
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