hown that the
carriers are not only disposed to give such rates, but
propose to make up for the consequent losses to themselves
by the imposition of greater charges in the aggregate for
the carriage of the like grain when offered for carriage by
growers in the States nearer the seaboard. Nominal rates
impartially made as between shippers of like articles in the
same direction and under like circumstances and conditions
are as admissible now as they ever were."

The same report contains a rather pointed reply to Judge Brewer's ruling
in the Iowa rate cases, viz., that, "where the rates prescribed will not
pay some compensation to the owners, then it is the duty of the courts
to interfere and protect the companies from such rates," and that
compensation implies three things: "Payment of cost of service, interest
on bonds and then some dividends." The commission reviews this stupid
rule as follows:

"The effort has sometimes been made to indicate a rule which
must constitute the minimum of reduction in all cases, and
it has been said that rates must not be made so low that the
carriers would be left unable to pay interest on their
obligations and something by way of dividend to
stockholders, after maintaining the road in proper condition
and paying all running expenses. This comes nearer to a
suggestion of a rule of law for these cases than any other
that has come to the knowledge of the commission. But it is
so far from being a rule of law, that it is not even a rule
of policy, or a practical rule to which any name can be
given, and to which the carriers themselves or the public
authorities can conform their action. In the first place,
when we take into consideration the question of the
condition of roads and of equipment, the proper improvements
to be made, the new conveniences and appliances to be
considered and made use of, if deemed desirable, and the
innumerable questions that are involved in the matter of
running expenses, it is very obvious that there can be no
standard of expenses which the court can act upon and apply,
but that the whole field is one of judgment in the exercise
of a reasonable discretion by the managing powers or by the
public authorities in reviewing their action. It is to be
borne in mind that there ar