The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-04-29

corporate lives. liberties. end properties.
as VII hereafter more fully apear.
Corrects Prevalent Idea
The first point which want you 20
itaIicize in your minds in this decision,
10 prevent its being overlooked. Is the
fat declaration by the court that ''rea-
sonabIeness'' is emlnently q question for
judicial Investigation. thereby negativ-
ing the idea 50 prevaleut-if may be
allowed TO say scat the Capital that
it is a political problem that may be
and ought 10 be solved by COMPRESSION
al inquiry.
The second is the statement that the
fundamental power OF every public
service, company, without which cor
porate life itself Is impossible, IS the
power OF charging reasonable rates for
the use OF what the court cOncisely
but cCmpre henszve defines as its prop
erty. Not for the use Of its stocks or
bonds or other securities-nct for the
use Of its nominal capita lizatfon. real or
hctluous. but broadly for the use OF It's
property that is 70 say-for the use Of
everything II has or owns or employs
n its business that is OF value and
contributes directly or Indirectly 20 the
product on OF the product or service
the company deVOtes 10 the public use
is not this analysis almost too plain
Tor argument Would IL not be impCt-
ing fOOtlShnesS to the Supreme Court
OF the United States to imagine for
moment that Il meant 70 Imply, when
II said property. the Company's secuTi-
ties which are uabiities-nOt assets
mat have long since gone out Of It's
power and wholly beyond its use or
contrOl2 The use OF its property as
here defined means docs il nOt2) the
use OF All Ine cOmpany's assets, tanEl-
ole and intangible employed at the time
IN It's business. employed not FIVE or ten
or twenty years ago, but ar the time
the inquiry is made-that IA the inVari-
able rule IN al the cases Franchises
are assets not liabilities. and therefore
property and the Supreme Court has
over and over again in its every deci-
sion, from the case We are now anaIyZ-
ing down 10 the last case on the sub
JecL-tne tonSOliue ted Gas case-haE de-
fined them 10 be Ilot only property. but
properly that. II fair valuation. Is
just as sacred as Il IS essential TO the
conduct OF the business. and therefore
JUST as much entitled TO wages for It's
use IN every instance as the cOupauy's
physical plant
Antigas Microbe incubation.
Unfortunately for US almost every
new member Of pith and enterprise who
comes upon the committee 3 straight
way inOcUlated with cuItbre-an antiEas
D1icrobe-warranted to convert the
sharpest-sighted man that ever sharp
ened pencil Into the bliudest kind OF
a partisan that ever sharpeued a knife,
a soon as Il permeares his system. The
uTEt tnlnE the unconscious victim OF the
virus does is TO STUFF his mind with
utterly untrue and misleading state
ments about iDCrdiuat nrofits-profits
not computed upon the value Of the in
NeStfnenLr puL calculated upon fake
premises 1T only 10 euSnare the uuwarv
into the belief that moderate income
upon the real capitalizati0 Of the com
pany represents an eEtOrtiOnate charge
upon the consumer because, forso0th,
per cent upon the actual investment
amounts 20 twenty CO. Der cent upon
the nominal Investment, or face value
Of the stock I submit that this pereu-
MAI performance no matter how sin
Cerely inaugUrated. IS in effect merely
manipulating figures to make them fall
7 SHY facts TO the utter discredff OF an
ancient adaEe more pat than polite
But this is not the only persistent
bubble punctured by this great decision.
N nile we are upon the point / want
right here 70 make further note Of the
significant fact that there are no quail
ficatiOns made by the court as 10 the
character or the derivation Of the urGu-
eTty which the company has used or
may De using II the conduct Of its Dusi-
ness. There are no legal or moral
strings annexed 20 the courts defIuf-
ton OF property such as We are peren-
MANY CONFRONTED win as we are at this
instant without rhyme or reason-as
shall show la1er-rhe unconditional die
tum Of the court being that Just com
+ peusation shall be paid 20 the company
. the origin thereof or title thereto,
whether Il may or may not have been
the fruit Of COmmendable thrift or
& damnable greed
No Taint on the Property.
I Il IS enough that it IS the property OF
f the compauy-pr0pert rightfuIly. that
{ is 20 say, legally acquired. There IS not
. IN this case or any other case, I venture
+ 20 say, that has ever been reviewed BY
I the Supreme Court Of the United States
/ enc single instance IN which a rate has
ever been successfully challenged, be
I cause Of any real or imaginary faint In
! derivation Of the property upon which
that rate has been p-edicateJ. IL being
sum ,ienI IN the light and IL the Ian
E EuaEe OF this great oecis4oA-aS OF al
others proceeding from the same source
on the same subject fTQnl that day 20
this-that the proper-y used IS for the
/ time being either by sosolflte title or hy
qualified title the CCmpany's property.
devoted by Il TO the purpose OF serving
the public in proof o. this I beg 10 be
permitted TO quote yCI ten lines from
T one OF the most eminent and houOred OF
all the authorities on this subject. the
celebrated Justice Cooley. delivering the
unanimous decision Of the court in City
. of Detroit vs. - Mich L4y- 1t cannot
be necessary at this day says Judge
I Cooley, TO enter upon a discussion ~
Z denial OF the right Of the Government
: TO take from either individuals or cor
J porariOus any property they may right
: fully CeEaiIy) have acquired In tho
I most arbitrary times such an act waS
/ recognized as pure tyranny and IL has
: been forbidden IN England ever sinCs
I Magma Charta, and in this country al
/ ways II is immaterial in what way
I the property was lawfully acquired
/ whether bv labor in the ordinary av0-
/ cations OF life BY gift, or descent. OF by
/ making a profitable use OF q franchise
] granted by the state; II : -IOugh thai
I If has become private ls-F- ely and ii
I IS thus protected by the law OF tbs
] land Obviously, Mr.. Chairman, any
! otae- INTERPRETATIONS than this would b
/ absolutely destructive Of that confidence
I in our public securities which the courts
/ have more than once said Il would be q
I national calamity to destroy For whC
would buy a share OF stock Of any KIND
I IL II was liable 10 be denuded- demon
/ etized-so to speak. Of value-at any Ole
I time thereafter IN the hands Of the pUr
/ chaser or his heirs successors, or as
tho ground that II Vas e.