Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-05
HIGH COURT STUDIES
RATE-MAK|NG CASE
Gives No Indication Whether
1t Will Pass on Validity
of |. C. C. Order.

Prior to taking under consideration
the case of the ST. Louis & OFallon
Railroad against the Government, the
Supreme Court yesterday gave no in
dication whether it would pass on the
Interstate Commerce Commissions order
valuing the road for purposes Of rate
making and recapture of excess earnings.
The case was accepted for considera-
ton after counsel for the carrier in q
closing argument commended that the
commission, in valuing its property. had
failed to follow the transportation act
and had undertaken to set up a plan
of its own.
The closing day of the hearing was
largely taken up by Government coun-
sci. George w. Wickersham. Attorney
General during the Taft administration,
attacked the railroads argument that
valuation should be passed on repro
were done. it would plunge the country
into financial chaos. Noting that this
theory was being advanced by the
O'FallOn road and supported by others,
he declared it was unsatisfactory to
every conservative carrier in the coun-
try.
Walter L. Fisher, Secretary of the In
terror in the Taft cabinet and special
counsel for he commission, said in his
opinion the case raised the question
whether the transportation act Is to be
made practically effective as the great
est constructive piece of legislation Con-
commerce act or whether railroad stocks
are to become the most speculative
dealt with on the stock exchange"
He declared the commission was do
ing the best any human agency could
do" in determining fair valuations for
railroads by considering all factors, in
GLIDING reproduction, original cost and
many Others" he said, the commission
was carrying out the contemplation of
the act, "the only way the act can 60
into effect"
remaining to close the case for the rail-
but Chief Justice Taft granted him 10
minutes additional to answer the argu-
ments by Wickersham, Fisher and
Donald Richberg, general counsel for
the National Conference on Valuation
of American Railroads, who concluded
his statement shortly after the court
went into session.
Attacks Valuation.
Wood launched a swift furry of ar
guments against the commissions valu-
alton of the roads on the basis of the
year 1914, and aSsailed its refusal to
adopt reproduction costs, minus depre-
citation, for the purpose.
Congress didn't direct the commits
sion to take a pre-war valuation pc
ROD" he said. 1T contemplated tax
ing the value for the period for which
it was to be used" He declared 1t
might be easier for the commission to
take the 1914 value. but argued that by
this means valuation would become
nothing more than the function of an
office clerk, no longer requiring judicial
determination.
Another crowd, including many proni-
nent attorneys and business leaders,
damned the courtroom for the second
and closing day Of hearings on the case
brought by the 9-mile railroad.
Both Wickersham and Fisher con-
tended that the commission in its valua-
tons had proceeded In exact conformity
with the wishes of Congress, in a way
that the National Legislature intended
the work to be done, giving full weight
to investment values.