, 1923-07-15

lures of the situation. There
coming out. The great impro'
railroads; the corrective attitude on
the part of labor. and the late de
velopments In the foreign situation
are all optimistic factors. One
optimistic feature that we dc not
hear much about. however. is the
present attitude of the United States
Supreme court. 1t is difficult for
the statistIcian TO measure court de
cisions.' says Mr.. Roger w. Babson,
and II they did It too often. contempt
OF court proceedings might follow.
Nevertheless, these court decisions
are n great factor in business, and
could probably be reduced TO a statis-
teal analysis. I have special refer
nee to three recent decisions of the
United States Supreme court.
THE decision I'm connection with
the Southwestern Telephone company
was exceedingly cheering to in.
vestors. This decision clearly ruled
that neither legislatures nor commits.
sions can make rates that are con:
fscatory in any way. The court in
dicated lat the cost of reproduction
must be considered, as well as orig.
inal cost, and that investors must be
treated fairly so as TO
them rather than discourage them.
This decision has been welcomed by
all interests. especially the public
utility group. It should make more
safe telephone securities, electric
light and power securities. and street
railway securities. This does not
NEAR that the supreme court up
holds dishonesty or stock watering.
but II does mean that 1t Will protect
rapital when politicians, for selfish
motives, attempt to jeopardize II.
Furthermore. this decision will en-
corporations to appeal to the
courts more n bother with congress
and legislatures less during the mex
- years than they have heretofore.
THE second decision which inter.
ests business men was when the
United States Supreme court held
that the Kansas Industrial court can
fix or regulate wages only in a great
emergency. Briefly. this decision was
hat in the case of n railroad or coal
strike, where the public is threatened
with starvation or disaster. an indus.
trial court can come in and fix wages,
but only in such instances The spe-
cal case was one involving the
Charles Wolf Packing company. The
United States Supreme court held
that IT was not necessary for this
packing company to do business.
There were other companies from
which goods could be purchased. and
as a last resort people could tempo
rarily go without their products for
n while II necessary. As most OF the
The states of the country were eager
ly awaiting this decision. the ambi-
tons of many political leaders will
naturally be greatly curbed thereby.
There will be fewer attempts during
The next few years to interfere with
business by legislation than there
would have been If the United States
Supreme court had upheld the Kan
sas Industrial court.
The third epoch.making decision
a. the United States Supreme court
was to the effect that the Federal
Trade Commission can not interfere
in the rights OF private business or
in the matter OF fixing prices. For
some time. certain great national ad-
vertisers have been in conflict with
the Federal Trade Commission SON
cerning prices on nationally adver-
tised goods. Some chain store re-
tailers have been selling certain ma
tlonally advertised goods at or below
cost in order to get people into the
store and then sell them something
else. The national advertisers have
CLAIMED that his is not only unfair
10 the manufacturers but also to the
public. and have insisted that their
prices be upheld by all retailers. The
Federal Trade Commission has taken
IN part of the chain stores and
those who want to cut prices, The
supreme court has upheld the ma
tonal advertisers. The case in ques-
ton was brought by the Mennen
company. large distributors of toilet
articles. Some may think that this
decision is against public Interest
but 1 seriously doubt It. Public in
tcrest demands good business which
win keep people employed and goods
moving. Prices never long remain
too high because high prices always
either competition or else
check buying. Statistics show that
business has been harmed more by