Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-20
BY JOHN F. SINCLAIR.

BY JOHN r. SlNCLAlh.
Special Dispatch to The Star.
NEW YORK. January 20.-Just what
did the Supreme Court say in the now
famous case of the Baltimore Electric
Railway VS.. the Maryland Public Service
Commission?
This arose after the commission had
ordered the railway to charge a rate
to yield 6.26 per cent on the value OF
its properties.
The Supreme Court, in majority
opinion. made this statement:
Sound business management re-
quires that after paying all expenses
of operation, setting aside the necessary
sums for depreciation, payment of in
terest and reasonable dividends, there
should still remain something to be
passed to the surplus account: and a
rate of return which does not admit
of that being done is not sufficient to
assure confidence in the financial
soundness of the utility to maintain its
credit and enable it to raise money
necessary for the proper discharge of
its public duties"
rate yielding 6 per cent in 1915 may be
inadequate now.
But more important than anything
else discussed was the matter of de-
probation. The court held that this
should be based on the present value
OF property and not. as the commission
figured, on the original cdst. Justices
Holmes, Brandeis and Stone dissented
from the majority opinion.
1t is probably the most far-reaching
decision involving the values of public
utility stocks that the Supreme Court
mas ever given--and decidedly in favor
of the utility companies.
Some of the biggest business men in
the Middle West are interested in the
development of processes to convert
cornstalks into cash.
1t Is said that the annual production
OF cornstalks today is about $50. 600. OOO
tons. Now, If the farmer is able to get
IS tons his yearly income will be
augmented by more than $3.50. 900 900
Besides, he will be able to distribute
the cost of labor better, in that the
baling and gathering of stalks can be
done in the slack season.
so a new company, the National
CornStalkS Processes, Inca 81 900 OOC
closed orporation-has been formed by
such men as Joseph E. Otis, chairman
OF the board of the Central Trust Co.,
former Gov Lowden. Eugene v. Thayel
and Herbert F. Perkins, all of Chicago
Such a development should give great
heart to the farmer. 1t is expected
that considerable market for the
product will be in the potential con.
sumption of insulating or wallboard
placed at 100000 square feet a yeal
as a start. Chemistry research will
open many new lines of by-product
activity for farmers in the next few
years.
This spells more sunshine financially
for the hard-pressed farmers of the
corn belt.
In these days, when every one is talk
ing prosperity. Stuart Chase analyses
and dissectS the word by dividing IL
into four classes.
There is % commercial or business
prosperity: CD prosperity defined In
terms of distribution of material goods
and services to the ultimate consumer
90 prosperity defined as an economic
condition, in which the average either
enjoys security and a modicum of leis-
ure; (4l prosperity defined as the life
more abundant, compromising security
and leisure.
under l and 2: far slower under 8, anC
has shown little or no progress under 4
Even prosperity under / and 2 il
not equitably distributed.
Mr.. Chase says the total net return
OF the farmer class in 1927 was SLIT.
100000 less than the amount needed
to pay each farmer wage of $40 &
year
Prosperity in terms of tranquillit,
and genuine leisure has not arrived fol
most of u.s." he remarks. I'm this re-
spect the Indians. under the Incas, wer,
far more prosperous people,"
What we need, according to this dis.
corning observer, is little more anc
freer management and less salesman,
ship.
1t is evident the Interstate Commerce,
Commission is not going to permit the
acquisition of stocks of railroads BY
other railroads seeking to control then
unless this fits into the general scheme
for consolidation announced shor
time ago. That is shown in the order.
ing of the Baltimore g. Ohio to dives
itself of its holdings in Western Mary.
land, a coal carrier, which, under the
commission plan, goes to the Wabash
Seaboard system.
Commissioner Farrell, in dissenting
opinion, held that the antitrust Law
should be interpreted to permit railroad:
to acquire, If approved by the commits.
sion, the stocks of other roads as ar
investment in the hope that this would
aid future consolidation
IF such purchase can not be made
until after the intent to purchase has
been advertised by an application made
to u.s." he said, 'it seems to me that
it can not be made at all as practical
matter, because such advertisements
would result in such an increase in the
price demanded for the stock to be
purchased that the purchase would
not be in the public interest"
This is a practical difficulty in the
commissions plan. The report has II
that when the Baltimore e. Ohio, the
Chesapeake e. Ohio and the Wabash
announce their plans they will be
generally in line with the commission
idea.
II the commission permitted the
various railroads to come together on
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