US SUPREME COURT DECISIONS

Giving weight to the opinion of the district judge who tried the case, this Court, upon reviewing the evidence, agrees with his conclusion that, as applied to the appellee railroad company, the two-cent passenger rate fixed by the Arkansas Legislature, and freight rates fixed by the Arkansas Railroad Commission, are confiscatory.

An objection to evidence as hearsay is too late if not taken when the evidence was introduced.

While this cause was pending in the trial court, the appellee railroad company, for the purpose of allocating its expenses to intrastate and interstate freight and passenger traffic in Arkansas, caused minute and specific reports to be made by its employees of all facts that would throw light upon the problem in accordance with prescribed formula, and introduced the results in evidence, exhibiting the worksheets and other data to the appellant Railroad Commissioners, who had opportunity to question them and call for further investigation. Held that the returns were made by the employees in the course of their business, and that an objection that the evidence was hearsay could not in justice be entertained. Held further, that the two months of investigation afforded a basis for argument as to constant conditions.

The possible inaccuracy of apportioning general road maintenance expenses between freight and passenger service by engine-ton-miles considered and held not to affect the result of this case.

Whether adoption of the low rates fixed by the state would be followed by increased intrastate traffic and revenue held too remote and conjectural a matter to disturb the conclusion.

222 F.5d 9 affirmed. chanrobles.com-red

Page 244 U. S. 107

The case is stated in the opinion.