Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-09-13
Doubts Construction of Law.

while Congress has great powers
given it under the Constitution, never
theless do not believe, nor can imag-
iLe that it was ever intended under the
terms of the Constitution or that the
power was ever actually vested in Con-
gress under the Constitution to make
laws authorizing specific things to De
done, and then. many years after these
things specifically authorized by Con-
gress to be done were in fact done ana
had been reported to Congress as nav
ing been done, with every detail IN ac-
cordance with the act of Congress au-
thorizing such action, that Congress
should undertake by another act to au-
thorize a commission or body OF men TO
undo that which had been done,
whether or not this commission at TINS
time thought that an excessive price
had been maid or that too much stock
had been issued in payment for spe-
cific property.
"If any such authority was ever vest
ed in Congress by the Constitution 81
the United States ! have been uhapie
to find a single case in which the courts
have so said.
..The stock of the Washington Rail-
way and Electric Company has Deen
listed on the exchange in Washing
ton and in other cities and has been
bargained in. sold and purchased on
the exchange from the date OF the
consolidation until this act was
passed-until the present day, indeed
and persons seeking investment Tor
their moneys invested in the stock or
these parent companies, believing, as
they had right to believe, that fu!i
value was given for all stock issued,
and relying, as they had right to
rely, upon legal protection for legally
issued stock; and no commission or
court had the right or should have
the right at this late date to destroy
the stockholdings of these innocent
investors, since the record shows that
most, if not all, of this stock has long
since, long before the passage of the
public utility act. passed out of the
hands of those who originally acquir-
ed it and into the hands of small in
vestors."
Discusses Histories of Companies.
In the first part of his opinion Mr.
Gardiner discusses the history of the
several companies comprising the
Washington Railway and Electric
| Company prior to their being CONSOLE
dated under the act of Congress re-
! ferred to.
In this connection he states that~he
agrees with his colleagues that all un-
| earned returns prior to the enabling
act should be disallowed.
| The company had urged that an al
| lowance be made for such unearned
| returns.
Congress-, by its action creating the
commission" states Mr.. Gardiner, "ano
| this commission, acting under the au-
, thority vested in it by the act OF
Congress- is now finally to determine
| in this proceeding a value for this
property upon which future rate
| shall be based.
| The value of the property to be
found by the commission is not what
| the value of the property was when
| the roads were first built. The value
of the property under the public
| utility act. as 1 read it, must be de-
| termined upon the basis Of the fail
value of these properties as of today
| and, therefore, I concur in the find
ings of my associates in disallowine
this claim of the company's for un
] earned returns"