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: 27
xv, 1023 p. ; 23 cm.View a full description of this legislative document.
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WABASH RY. CO. V. COMPTON. 27
The controversy here upon this subject is confined to the allowance
made by the master on account of the rental of freight cars used up-
on the Ohio division. The railroad company claimed that the rate
should be 71/2 mills per car per mile from May 15, 1889, to Novem-
ber 1, 1894, and 6 mills from the latter date until June 30, 1903.
These rates were claimed to be justified as being the exchange rates
between railroads during the periods mentioned. There is no contro-
versy over the number of cars or the mileage; the railroad company's
figures therefor being taken by the master. The latter allowed 6
mills per mile from May 15, 1889, to November 1, 1894, and 5/2 mills
per mile after that date, with a pro rata allowance for the excess paid
by the railroad company on account of foreign cars above that receiv-
ed. The master found from the testimony that the 6-mill interchange
rate provided a modicum of profit to the owner, and that no railroad
company which was in position to own its cars could afford to pay
the interchange rates mentioned. It was the view of the master, ap-
parently concurred in by the judge of the Circuit Court, that the rail-
road company under its trust relation was not entitled to a profit, and
that the rates allowed provided ample compensation for the use of the
cars. Upon a careful consideration of the arguments presented upon
both sides, in connection with the conclusion of the master and of the
judge below, we are unable to say that a mistake prejudicial to the
railroad company has been made in the allowance criticised.
6. The Circuit Court determined the amount of the compensation
for the use by the Ohio division of real estate not covered by the
Compton lien, but which contributed to income, at the sum of $113,-
382. This allowance is criticised as too small, although we find no
assignment of error directed to this subject. The specific criticism
is that the court found the value of the real estate not covered by the
Compton lien as $194,000, and that the interest upon this sum at 6
per cent. for 18 years 11/2 months would be $210.975, instead of $113,-
382 allowed by the decree. The master found the value of the prop-
erty contributing to income, aside from parcels "C", and "Cl," to be
$104,261. The latter parcels were by the Circuit Court rejected from
consideration. It is our understanding that the Circuit Court adopted
the value found by the master, viz., $104,261, as the value of the prop-
erty contributing to the earnings of the Ohio division, after eliminating
parcels "C" and "Cl." Interest on this last-named sum at 6 per cent.
for 18 years 11/2 months amounts to $113,382.60, as fixed in the de-
cree.
7. By assignment No. 1 criticism is made upon the master's com-
putation of net earnings, in that he did not state the account for each
year nor compute interest thereon for each year, but computed inter-
est upon the entire earnings for one-half the period. Obviously, the
railroad company is not prejudiced by failure to state the net earnings
yearly, unless the interest charge was increased by failure so to do.
This assignment was not discussed in the main brief of appellant's
counsel. In his reply brief, in answer to a discussion of appellee's
counsel relating to a different exception, the master's addition of aver-
age interest is criticised as grossly unjust, from the alleged fact that
the net earnings for the first half of the period average much less
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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/m1/38/: accessed March 29, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.