The Federal Reporter (Annotated), Volume 172: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. October-November, 1909. Page: 22
xv, 1023 p. ; 23 cm.View a full description of this legislative document.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
172 FEDERAL REPORTER.
the request of counsel, a preliminary or tentative report giving his
then impressions as to the general principles upon which accounting
should be had as it then stood. A few months later, in reply to re-
quests of counsel for explanation regarding parts of the preliminary
report, a fuller report was prepared. Both reports were submitted
to counsel for each party.
The railroad company presented to the master its statement of ac-
count of the net earnings of the 76 miles in question, according to the
basis which the railroad company claimed should be adopted. This
statement showed a credit of net earnings to the 76 miles in Ohio from
March 23, 1889, to June 30, 1903, of $2,569,754.72, being the result
of deducting from gross earnings, apportioned at $7,571,997.18, oper-
ating expenses apportioned at $5,009,242.46; the latter embracing the
general classifications of maintenance of way and structures, mainte-
nance of equipment, conducting transportation, and general expenses.
In making up the gross earnings applicable to the 76 miles in question,
the railroad company, after treating as local all earnings from one
station to another in the Ohio division, apportioned freight and passen-
ger earnings between points east of the Mississippi river and points in
the Ohio division on an actual mileage basis. Mail earnings on each
route extending over the Ohio division and express earnings east of
the river were treated in the same way; but, as to freight earnings
between points west of the river and points on the Ohio division, the
same were first divided by giving to the part west of the river an ar-
bitrary share larger, and usually from two to four times, than the ac-
tual mileage prorate, and then dividing the part so apportioned to the
line east of the river (after deducting a substantial bridge charge) up-
on the basis of actual mileage. The testimony indicates that the pas-
senger business to or from points west of the river was apportioned
upon an actual mileage basis, after deducting a bridge charge. The
freight earnings during the entire period covered by the accounting
were greater than the combined mail, express, and passenger earnings,
and much of the time at least three-fifths of the aggregate earnings
of all kinds.
The master was of the opinion that the apportionment of earnings
so made to the 76 miles of road in Ohio, upon an actual mileage basis,
was unjust to that division for these reasons: First, that the rail-
road company, in violation of its duties as trustee, had taken steps in
its own interest to divert traffic from the Ohio division over other
routes secured by the Wabash Company, so that, according to its re-
ports as made up while the traffic on the line generally had greatly in-
creased, that on the 76 miles in question had not increased; the mas-
ter stating in his report that it is "too plain for argument that since
the rights of Compton accrued (and the railway company must be
chargeable with knowledge of these rights from the time they accrued)
by the use of the Eel River Detroit line, the Grand Trunk alliance, and
more recently the Montpelier line and in various other ways, the nat-
ural traffic belonging to this line has been diverted." Second, that the
arbitrary apportionment of constructive mileage to the portion of the
road west of the river was wholly unjustified, at least to the extent
to which it was practiced. Third, that in arriving at net earnings of
Upcoming Pages
Here’s what’s next.
Search Inside
This document can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Legislative Document.
The Federal Reporter (Annotated), Volume 172: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. October-November, 1909., legislative document, 1909; Saint Paul, Minnesota. (https://digital.library.unt.edu/ark:/67531/metadc38218/m1/33/: accessed April 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.