The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-04-29


Of the equal protection OF the laws" CSee
18Th Amendment. Cons. L. s.
Now, there are four points or things
definitely set al rest as settled law in this
mOmentous decision (Which has never
been and never will be reversed whilst
liberty lasts in this country which chal-
lcnge your attention as definitions directly
applicable 20 the issue here on trial. Four
things. / repeat, each OF which may be
considered as a distinct dictum IN itself
as well as an integral part Of the legal
intent and effect OF the whole declaration.
These four things, within the last 30
years, have practically become embodied
as corner stones in the temple Of the Su-
preme Court has built for safeguarding
our corporate lives. liberties. and proper
ties. as will hereafter more fully appear.
The first point which I want you 10
lta!iclze in your minds in this decision, 70
prevent its being overlooked. is the fiat
declaration by the Court that Reason
ableneSs" Is eminently a question for
judicial inv estigation. thereby negativing
the idea so prevalent-if / may be allowed
TO say scat the Capital that il Is a pO-
litical problem that may be and ought TO
be solved by Congressional inquiry.
The second is the statement that the
fundamental power OF every public
service company, without which corporate
life itself is impossible, is Che power Of
charging reasonable rates. for the use
OF what the Court concisely but compre-
hensively defines as its property Not
for the use OF its stocks or bonds OF
other securities-not for the use OF it's
nominal capitalization real or fictitious.
but broadly for the use Of its property
that is 20 say-for the use OF everything
it has. or owns or employs in its business
that is of value and contributes directly
/ or indirectly 10 the production Of the
product or service the Company devotes
to the public use Is not this analysis
almost too plain for argument? Would
IL not be imputng fOOlishness 20 the Su-
preme Court OF the United States 10
| imagine for a moment that It meant TO
imply when 81 said property. the Com
pany's securities. which are liabilities
not assets-that have long since gone out
OF its power and wholly beyond its use
/ or control? The use Of its property as
here defined means (dOes IL not2J the use
Of all the Company's assets. tangible and
intangible employed az the time in its
business. employed not FIVE or ten OF
twenty years ago but at the time the
inquiry IS made-that IS the invsriable
rule in all the cases. Franchises are as
sets. not liabilities and, therefore. prop
erty. and the Supreme Court has over and
over again IN rs every decision. from the
case We are now analyzing down 10 the
last case on the subject-the Consolidated
Gas Case-has defined them 10 be not only
property. but property that ar a fail
valuation is Just as sacred as IL IS essen.
tial 20 the conduct OF the business. and
therefore, just as much entitled 70 wages
for its use in every instance as the Com
pany's physical plant.
Unfortunately fOT US almost every new
member OF pith and enterprise VII,
comes upon the Committee is staightwa,
inoculsted with culture-an anti-gas mi
crobe-warranted 70 convert the sharp
est-sighted man that ever sharpened
pencil into the blindest kind Of parti
san that ever sharpened a knife n,
I
first thing the unconscious victim Of IN
virus does is 20 stuff his mind Wit
utterly untrue and misleading state
ments about inOrdinate profits-prOht
not computed upon the value OF the in
vestmeut. but calculated upon fake pre-
! misses NJ only 10 ensnare the unwar
J into the belief that moderate incom
J upon the real capitalization OF the com
pany represents an extortionate Charg
upon the consumer because forsooth. 81
= per cent upon the actual investmen
amounts 10 twenty per cent % per cent
upon the nominal investment. or fac
value OF the stock. I submit that thi
b perennial performance, no matter ho-
sincerely inaUgurated IS IN effect mere
" manipulating figures TO make theT
falsify facts 10 the utter disCredit Of a
ancient adage more pat than polite
But this is not the only perslster
: bubble punctu-ed by this great decision
, While we are upon the point ! war
right here 10 make further note OF III
significant fact that there are no quail
:. hCations made by the Court as to IN
character or the derivation OF the proI
erty which the Company has used {
may be using in the conduct OF its bus
mess. There are no legal or mors
strings annexed 10 the Courts dihnitio
: OF property such as We are perennial
j.. confronted with, as We are al this II
. slant, without rhyme or reason-as
: shall show lster-the unconditional dit
: tum Of the Court being that just con
\ pensation shall be paid 70 the Compan
= / using the property without respect
:. the origin thereof or title thereto whethe
: II may or may not have been the fru
:. Of commendable thrift or damnab
= greed.
II is enough that II is the property {
. the Company-property rightfully, thu
Z is to say legally. acquired. There IS NJ
= in this case or any other case. I ventul
. 10 say. that has ever been reviewed
, the Supreme Court Of the United State
q one single instance in which a rate III
.~ ever been successfully challenged, b.
. cause Of any real or imaginary faint
a derivation Of the property upon whiC
a that rate has been predicated; it beir
> sufficient in the light and in the lal
a guase OF this great decision-as Of a
: others proceeding from the same sour,
10 on the same subject from that day
,e this-that the property used is for II
# time being either by absolute title or
qualified title the Companys propert
10 devoted by it to the purpose Of servir
n the public In proof of this I beg 70
se permitted TO quote you ten lines fro
l.. one OF the most eminent and honOred
It all the authorities on this subject, Il
# celebrated Justice Cooley, delivering 4
,e unanimous decision OF the Court in CT
OF Detroit VS.. 43 Mich, 40: 1T cam
q be necessary at this day" saws Judd