Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-16

| MT. HUGHES at It's LledO, Will NC CdAcO
on before any great length of time to
grapple? They can be judged quite &C
curately by consideration of the ques-
tons which have confronted the court
in the past.
In the early days of the Republic the
new Government was fighting for its
life against the jealous governments of
the States. The result was to throw on
the Supreme Court the decision of
series of great cases involving the prob
lem of the rights Of the States and the
extent to which the power of the
Federal Government in general (and
the Federal judiciary especially
could exercise authority. Later the
slavery and anti-slavery agitation forced
as is indicated in the bred Scott de-
cision and the controversy which re-
suited from it.
Trust Busting Fra Recalled.
After the Civil War the reconstruc-
I ton era gave rise to serious questions
for the courts. The era of anti-trusts
the COS for the next quarter of CEN
fury, forced on the court issues of eX-
IRENE importance and difficulty. 1t is
not so long since the Sherman anti
trust law was looked on as the foremost
proposition before the Supreme Court
and it gave rise to long list of mo-
mentous cases and momentous decisions
Today, though the popular expression
that the Sherman law is dead letter
is not justified, it is true that in recent
years there has been vast change in
public opinion as to combinations
trusts and monopolies, and this change
has been reflected in the activities of
the Department of Justice since the
World War period and in the proceed
ivlrS knf1 TlnGl1 rke swaA1 led
ing the Supreme Court.
Holding Companies New Issue.
Today the changing fabric of the
Nations financial business and indus
trial structure is an outstanding fea-
ture of American life. It is certain to
force numerous new issues before the
Supreme Court. In Congress just now
there is uneasinesS about the develop
ment of great holding companies in the
railroad field, the banking field and the
whole industrial and financial field. It
is easy to see these are giving rise to
conditions which will invoke litigation
of the first order Of importance.
A recurrence of agitation against
combinations and monopolies is not at
all improbable. Already Senator James
CouzenS, chairman of the interstate
commerce committee of the Senate, is
taking steps to bring about q thorough
inquiry into the holding company as
it applies to railroads. This looks much
like a prelude to legislation and to con-
tention in the courts.
Power Trust Under Scrutiny.
closely linked the power interests, are
more and more engaging the attention
of the Federal courts. The power
trust" as it is called in Congress, is
under the scrutiny of the Federal Trade
Commission, and out of this investiga-
ton legislation of far-reaching char
acter may arise. At least, it will be
vigorously attempted.
1t is hardly necessary to say that this
spells difficulty for the Supreme Court |
The many issues which center about
the rates which may be charged by
public utilities are far from settled. |
They will be knocking at the portals of |
the Supreme Court for an indefinite |
period.
It is quite true that in the Indianap- !
oils Waterworks case and the decision i
In the United Railways & Electric Co. !,
of Baltimore case and some others the |
court has handed down far-reaching |
opinions and rulings as to rates and |
kindred matters.
"COnfiscatory Rates" Defined.
The recent decision handed down by
Justice Sutherland in the Baltimore
United Railways g. Electric Co. case
has commanded wide attention because
there 1t was said that on the record to |
enforce rates producing a less return
than 7.44 per cent would be confisca-
tory and in violation of the due process
clause Of the fourteenth amendment.
It deserves to be noticed, however,
that this decision, which allowed a 10
cent rate of street car fare in Balti-
more, was by a divided court. It has
stirred no little criticism in Congress,
and for this and other reasons it may
be fully expected that 1t will not be ac-
cepted by municipalities and others as
the last word on the subject.
Contentious with public utility con-
Germs holding public franchises are not
only bound to occur, but as cities de-
velop and franchises become more val
liable and the Importance of urban
transportation grows they become more
acute. Here is an unending source of
litigation.
May Renew Telephone Rate Case.
The Supreme Court not only will
have to meet important aspects of such
controversaries constantly but differing
conditions Of wages. costs Of material
and volume of traffic will have to be
taken into account in decisions.
Not to be overlooked in this relation
is the outcry from New York over the
fact that the telephone rate contro-
versy is to be thrown into the Federal
courts and practically taken out of the
hands of State authorities. Federal
legislation is being sought to curtail this
practice, which is a common enough
one on the part of public service con-
Germs all over the country.
The New York Legislature recently
memorialized Congress on the subject
and besought action. Senator Robert
F. Wagner lately addressed the Senate
upon it and introduced a bill. Beyond
reasonable doubt any such legislation
will be brought before the Supreme
Court. For that matter, there seems
no doubt that the New York telephone
controversy, regardless of legislation,
VIII wind up in the Supreme Court.
May Retry marlborough Case.
The marlborough rate controversy,
which already has been before the
highest court, will, of course, find its
way there again. This, however, is one
OF the controversies in which it is as
sumed Mr.. Hughes will take no part
when 1t does arise. since he was gen.
eral counsel for the marlborough when
the case was considered by the Supreme
Court some months ago.
Though the Supreme Court has been
passing on vexed questions relating to
the railroads and the interstate carriers
generally for years, it is obvious that
mere Is a huge field, much of which is
sun unplowed. Because of the sweep
ing power of Congress over interstate
and foreign commerce, the railroads are
more or less distinct from the ordinary
utilities.
Reproduction Cost Theory Raised.