and the cost is but an element or factor in the estimate of value.

Various methods have been adopted to determine value. There may be difficulties in the way of such determination, but they are exactly the same for this purpose as for all others, and are of a sort that have to be determined for other purposes, as say for taxation, for sale or purchase, or for a proper report, etc. Practically, an estimate is put upon the property in every respect in the general exhibit. To rectify this and make it as accurate as possible, is really one of the chief duties and functions of the higher officers who profess in their reports to give information to the stockholders and the public. Without entering more into the exact means of estimating the value, it may be remarked that the proper and frequent use of the Profit and Loss account is indispensable to reconcile the fluctuations of actual value, for information and for action, for sale and taxation. Reports, etc., are intended that the condition of the corporation should be intelligibly stated. Huge errors of the most practical character and disastrous to all interests, arise from the failure to do this thing. The huge lumping standing item with which most exhibits begin, "The Road and its outfit," is really subject to these very changes, most important of all to be known and understood. As well have a thermometer of solid contents instead of quicksilver, and complain that it is too troublesome to use one with liquid. This is the final result-the resultant of all the book-keeping, and needs to move up and down according to the facts-the value meter. Upon this value (as actual and important, though an annual estimate will perhaps suffice, etc.,) a reasonable profit is to be made.

This profit is the excess of the earnings over the operating expenses. The measure of its reasonableness is another thing to be determined, and this depends upon the general profits of other investments of

capital. It should generally be such a profit as to embrace legal interest and a certain increase for the risks of stocks as compared with bonds. Probably in Georgia about 8 per cent.-7 per cent. interest and 1 per cent. insurance. This profit should be the excess of earnings over expenses, with average economy of management. If the road is managed with superior skill, it is entitled to the gain thereby effected. If without proper conomy, the profits must be reduced, the loss and waste to fall where it belongs, on the poor management.

It has been our aim constantly to reduce the domain of mere conjecture, and to enlarge that of calculation. With a proper system of book keeping and tabulation, not less important, the question of reasonable rates can be made about as soluble as many other practical questions, and much more certain than the conjecture and fluctuating and guessing work actually resorted to. The fact that it is difficult argues more diligence in solution, instead of more guess-work. The system under preparation by the Commission, it is believed will go some ways toward furnishing data for a well advised estimate of value of rates.

The Commission would gladly have waited, before any approximate tariff of rates, for the proper information in full form. But there were grounds of necessary promptitude of action on its part, which are only partly set forth in the report. Chiefly-the first approximation was much closer in the opinion of the Commissioners than existing rates, and so pending the needful additional action, they came as near as they could to a just schedule, on which to act till a clearer approximation was possible. The rates in operation were more unjust to the public than the new rates to the railroads. It was not intended to make the new rates unjust in any degree to the railroads, yet, in the first approximation to err rather in favor of low rates than high rates, coming as near exact justice as pos

sible. On the Savannah, Florida & Western Railroad, existing rates were largely excessive, in our judgment. Our report and circulars all show for themselves that the system of thought is provisional, and to be modified as may be necessary. The basis of induction, however, already in use is far wider than the individual action of any one road. It is founded on the broader, and not narrow views by comparison of road with road, and roads in Georgia with roads in other States.

The first principles have been carefully considered and studied, and incorporated.

If questions of doubt as to constitutionality exist, these are questions for the Court. We are bound to pursue the law. It is claimed that the Savannah, Florida & Western Railroad had the legal right by charter to fix its own rates, and (by virtue of contract), was protected from change. Were this true in fact, it was none the less the duty of the Commission to report as to the justice and reasonableness of the rates, and justice or injustice of the discriminations made, in order that the Legislature might know the extent to which the contract right was abused. The Legislature might think it even proper to exercise its rights under Section of the Constitution, quoted in Complainant's bill, and protect the public by buying the road by the act of 1863, and the construction of the law in 8. Otto, the Commission considered this road to stand on the same footing with all the roads chartered since 1863, viz: not on contract, but on the same broad ground as all other individual or corporate citizens entitled to protection and subject to proper legal restraint against doing wrong, and of special restraint for special reasons of monopoly or otherwise.

But

It is also to be remembered that the whole subject is not yet so definitely settled that we could always venture upon first principles, as definitely fixed and established. We were necessarily compelled to modi

fy, to a considerable extent, by the experience and practice of the railroads.

The court, appreciating the difficulties of the case, and the great labor used in trying to overcome them, will see that there has been no abuse of discretion.

Taking up the railroads, seriatim, the special case of the Savannah, Florida & Western Railroad came up in its order. It is hardly necessary to say that it was considered without prejudice of any sort whatever, or any reason therefor. Any allegation of prejudice is wholly gratuitous, and the actual facts afford a full explanation of the action of the Commission, reasonable and proper, without any need of aspersion of motives.

Comparing the various tariffs, the Savannah, Florida & Western Railroad was strikingly exceptional, unless the other roads in the State were wrong in their tariffs, and many of them doing themselves injustice. The Savannah, Florida & Western Railroad was wrong, in both the respects which the General Assembly desired to regulate and correct, viz: excessive rates and wide discrimination, which, to the Commission, seemed unjust discrimination, though with no imputation, on our part, of improper motives.

Indeed, if any call for constitutional and legislative interference existed in this State, it was developed in the tariffs of this road, beyond all others. If the rates of the Savannah, Florida & Western Railroad were really reasonable and just, as to amount and discrimination, then the other roads, certainly, with few exceptions, were badly managed, and worked without reasonable reference to their own interest. This conclusion seems to us inevitable.

COMMENTS ON THE TABLES.

The tables show the freight tariffs of the Savannah, Florida & Western Railroad to be the highest charged by any road in the State, and, we may add, of any road without the State, within our knowledge. The

rates of other weak roads-for example, the Air-Line, the Macon & Brunswick, and, weakest of all, the Brunswick & Albany-run far below those of the Savannah, Florida & Western Railroad. The rates of these roads were such as were fixed by themselves, all untrammelled by any rules or regulations, governed only by a sense of their own interests and obligations. High above them all towered the tariff of the Savannah, Florida & Western Railroad-above any other submitted to us for consideration, in or out of Georgia, long or short, weak or strong. They were also very discriminating in their relations to distances, as will appear more clearly by reference to the accompanying diagrams.

These were the considerations which influenced the action of the Commission, and no feelings whatever of prejudice against any interest, corporation or locality. To compare next the relation of earnings to expenses.

After proper allowance for relative tonnage, it seemed to the Commission that this ratio was also very high. The ratio of net profit to gross receipts on the Central Railroad being over 42 per cent., that on the Savannah, Florida & Western Railroad seemed out of line. So the comparison with the Air-Line Railroad was not favorable-it also having a small tonnage and a more expensive road to maintain. The Georgia Railroad, worked at very low rates, showed a larger ratio. The exceptionally high rates of the Savannah, Florida & Western Railroad counterbalanced the relative lack of tonnage. That road, too, is level, straight, sandy and easily drained and kept in order. Fuel and crossties are cheap. Long trains, relatively, can be drawn by its engines. Take it altogether, while the data at command were not adequate to a solution, they clearly indicated a want of proportion in this regard. And the Commission takes occasion here to express its conviction that in this very particular of ratio of net to