Copyright, 1906, by AMERICAN ECONOMIC ASSOCIATION

THE PRINCETON PRESS
PRINCETON, N. J.

5 3 4 0%

Reclass 3-5-25 9.AR

INTRODUCTION

TABLE OF CONTENTS

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CHAPTER I. PUBLIC REGULATION OF RAtes.

Origin and purpose of public control of rates. Evils to

be remedied, especially discrimination, extortion and insta-
bility. Measures adopted. Attitude of the railroads, in
general. Resistance to rate-making by legislatures or com-
missions. Arguments. Decisions of the United States
Supreme Court (1) as to the power of legislatures to fix
rates, (2) as to power of states over interstate rates, (3) as
to charter exemptions from legislative control, and (4) as
to judicial review of legislative rates..

CHAPTER II. THE DOCTRINE OF JUDICIAL REVIEW.-I.

The doctrine of the Granger Cases. Acceptance of that

doctrine for a brief period. Its first modification,-Mr. Chief
Justice Waite's dictum. Resulting uncertainty of view, evi-
denced in several cases. The doctrine loses ground, and
is finally renounced. The Minnesota Case, its history and
treatment in the United States Supreme Court. The opinion
of Mr. Justice Blatchford, creating a doctrine of judicial
review based on the Fourteenth Amendment. The doctrine
stated. Its incomplete form. The dissenting and concur-
ring opinions

CHAPTER III. THE DOCTRINE OF JUDICIAL REVIEW.-II.

Cases subsequent to the Minnesota Case. Is the reason-
ableness of rates inherently a judicial question? The mean-
ing of due process of law,"-in the Minnesota Case,-in
later cases. Just compensation an element in “due process.”
No compensation ever provided by the states. Hence only
important judicial question is, do rates deprive of property?

Property" includes income from property. Rate regula-

tion deprives of property only when it reduces income below

point of reasonableness. Effect of rates on income must be

determined in advance. Methods in determining effect. As-

sumption that rates will not effect volume of traffic. And

that earnings will be reduced in proportion to reduction in

rates. Length of time covered by calculation. Methods

illustrated by Smyth v. Ames. How local costs are estab-

lished. What earnings should be considered? Present

status of law on this point.....

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