Board of Public Utility Com'rs v. New York Telephone Company

A public utility company, which by excessive depreciation charges in the past has created a reserve depreciation account greater than required to adequately maintain its property, cannot be compelled to apply a part of the property or money represented by such reserve to overcome deficits in present or future earnings, and to sustain rates which otherwise could nt be sustained.

The just compensation, safeguarded to a utility by Const. U.S. Amend. 14, is a reasonable return on the value of the property used at the time it is used for public service.

Constitutional protection against confiscation does not depend on source of money used to purchase property, it being enough that it is used to render service.

Mr. Thomas Brown, of Perth Amboy, N. J., for appellants.

[Argument of Counsel from pages 23-25 intentionally omitted]

Messrs. C. M. Bracelen, of New York City, Thomas G. Haight, of Jersey City, N. J., and Charles T. Russell and Frankland Briggs, both of New York City, for appellee.

Mr. Justice BUTLER delivered the opinion of the Court.