Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-25
Washington Ticker
BY CLINTON COFFIN.
,soctated press Financial Writ.

BY CLINTON COFFIN.
Associated Press Financial Writer.
A demand for less Government in
business is always rated a good CAM
paign cry in the United States. and yet
getting more Government into business
seems an unacceptable result OF legisla-
ton and administration in the National
Capital. Late yesterday the House,
practically without dissent, adopted a
bill providing a complete system OF Fed
eral regulation for passenger trafnc on
highways and creating the machinery
necessary to make 1t function. Appar-
emily everybody interested in the prob
lem, whether as bus operators, road
constructors or State police authority,
accepts the conclusion that the business,
important and growing as it is, must be
taken under the Federal wing IN the
interests of the public.
Debate ca the bus bill didn't bring
in single amendment to which
couldn't agree" Chairman Parker of the
House interstate commerce committee,
who has worked Tor seeVral months m
preparing the legislation, commented on
its passage. THE measure went through
without any substantial alteration from
the form in which the committee re-
ported it,
If the Senate accepts the measure
which seems somewhat likely-no bus
can be run on schedule over highways
in interstate transport service unless its
owners possess a certificate that public
necessity and convenience require the
service The Interstate Commerce Com
mission will be finally responsible for
issuance of the certificates, but joint
boards OF two, three and more states
will have primary power to grant or re-
iect them.
Further, no person owning bus will
be lawfully able to take a party of peo-
pie on an interstate trip unless the
owner possesses a Federal permit al
lowing him to render the service. The
granting of the permits for unsched-
uled operations is intended to be per-
functory matter but there is clear in
tent in the law to let the Government
control this form of business. Rail-
roads are specifically enabled to enter
the field of bus service by the measure.
Senator Couzens of Michigan, who
heads the Senate committee on inter-
state commerce, is interested In the
highway transport act and may get it
out this session. If he does not, it will
only be because his greater interest in
getting created an entirely new Gov
eminent commission to control power
companies takes up all his time, and
that proposition likewise entails man
ifestly new extension of Government
into the business field.
Senator Howell of Nebraska has put
before Congress, in the form of a bill,
new kind of method to make work
able the scheme of recapturing for the
public portion of what is termed the
excess income of railroads. One of the
novel features about the Howell pro-
posal is that it entails the giving up of
the so far rather futile attempt the
Government has made to actually col
lect money under the scheme.
AS originally laid out in 1920, the re-
capture law declared that one-half the
amount any carrier earned in excess of
per cent return on a fair valua-
ton" of its property should be paid
over to the Government. In the decade
since that time only trivial sums have
been collected, because it has been
proven almost impossible to Ak a fair
valuation that would pass the court.
The last theory of the Interstate Com
merce Commission on valuation as APP
piled to the st. Louis & O'Fallon sys-
tenn, was nullif1ed by the Supreme Court
year ago and the recapture prospect
again postponed. Incidentally, If the
court had accepted the O'Fallon valu-
alton principles, the more prosperous
railroads of the country would have
faced a Government demand for $780,
100000 out Of their earnings of the last
decade.
The new Howell plan proposes that
the carriers should retain the excess
earnings, when their amounts are
finally determined, and pay nothing to
| the Government. They would be re-
| quired, however, to spend half of the
| excess on new extensions and facilities,
on which they would not be allowed to
earn return. The other half of the
excess they would be allowed to pay
over conditionally to their stockholders
or to use in reducing fixed debts.
In addition, the Howell bill proposes
TO Clarity the fair valuation situation,
but in so doing would indorse the meth
ods the Commerce Commission has fol-
lowed. Railroad scouts are inclined to
be critical of the terms suggested, and
II is clear that the prospect of recap
turing any real money from carrier
earnings isn't growing much better.
Latest studies of installment selling
as it applies to the automobile business
rather indicate that this form of sales
has fallen of less during late periods
OF depression than has cash selling. The
Commerce Department has rounded up
! practically complete reports from the
corporations financing auto installment
sales for January and finds that the
actual number of cars sold In that
fashi \ during the month was l62. O6O.
on which STOOL 900 was advanced to
purchasers.
In January year ago total INSTALL
ment sales of the same concerns
amounted to 1925 cars and the ad-
vance was $74,278,000. In December
auto installment sales we're III ,2O5 cars
and the advance was $78,4l0,000. The
cash sales Of autos during January ap-
parently was about one-half that Of the
same month last year, whereas INSTALL
ment sales were practically unchanged
from the previous period. This pre-
sents one Of the unexpected angles OF