Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-09

Supreme Court turned down the Bryan
theory. which the railroads now wish
to resuscitate."
"One of the shortest Of American
railroads" remarks the Indianapolis
News, may become a yardstick for
legal measurement of the value of all
steam carriers in the United States. If
SO, the method specified IS bound to
nave some influence on appraiSals of
| other kinds Of public utilities for rate
making and security issuance pur-
poses" The Importance of the appeal
is emphasized by the Rochester Times
Union. with the statement that "the
Federal Court at Kansas City held that
the earnings were subject to recapture.
but did not pass definitely on the valua-
ton question" The st. Paul Daily
News observes: "a decision adverse to
the Government would permit railroads
OF the country to increase their total
valuations from the % billions fixed
by the commission to IS billions. This
would make possible freight rate in
creaseS of several hundred millions and
would virtually nullify the powers of
the commission, since legal rates would
be higher than the traffic would bear"
If the higher figure were approved,
becoming the valuation guide for the
commission. the immediate and domi-
mating public interest would lie In the
fact that rates would have to be in
creased approximately 60 per cent to
meet the constitutional right to earn a
fair return upon the value fixed" saws
the Newark Evening News, which points
out that "the Supreme Court is brought
face to face with the necessity of de-
Gliding this issue definitely in a case
considered as fundamental in the rail-
road field as was the bred Scott case
in reference to State rights and slavery"
And the Little Rock Arkansas Demo-
crat asks, If the railroads win the
suit. what is to prevent all other public
utilities raising their valuations, hence
raising their rates?"
'The Supreme Court in public sery-
ice decisions" recalls the New York
Evening Post, has inclined toward
recognizing replacement cost as a fac
tor. Some of the ablest coun-
sci in the country represent the Gov
eminent and the railroads in this con-
troversy. the decision CT which will af-
feet not only the carriers but every
shipper and every passenger in the
land" The Lincoln State Journal sug-
gestS that lawyers reach opposite con-
illusions as to what the Supreme Court
actually determined" when it passed
on the question on several occasions"
The Cleveland Plain Dealer contends
that "the valuation question involved is
much more of a nice economic theory
than of law" emphasizing the impor-
lance Of "the rates and earnings to
which the roads will be entitled in the
future" The Waterloo Tribune. consid-
ering the possibility that In the present
case the Supreme Court may "sidestep
the valuation matter, merely approvinr
the lower courts finding that the as.
sessment was not confscatory" con-
cludes, This matter has been in dis
pute ever since the railroad laws were
enacted and will continue to be in dis
pute until finally settled"
1.-THE Interstate Commerce Commits
sion." records the Chicago Daily News
claims that 1t has given due weight
to all proper factors in its valuations,
while the carriers assert that the cost
of reproduction practically has been To-
nored. Since values 70 the amount Of
billions Of dollars are at stake. the oues-
ton before the Supreme Court is of
great moment from a financial point of
view as we'll as extremely interesting
and significant In theory"