Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-24
washington Ticker
BY CLINTON COFFIN,
Associated Press FINANCIAL writer.

legal arguments over the meaning OF
Supreme Court decisions that bear upon
the problem: The rather confident
bearing and tone of railroad spokesman
who presented the carriers position to
the commission set forth pretty clearly
the impression that railroad manage
rnents. consider that the courts rejec-
ton of the Governments attempt to fix
a valuation on the test railroad-the
st.. Louis a. OFalloh-has left them
little to fear from the outcome of the
celebrated proceeding,
Fred H. Wood, who represented the
OFallon company, insisted that the
Supreme Court had told the commission
to use estimated costs OF reproducing q
given rail system as the dominating
factor in fixing a legal valuation upon
it. In special cases, he conceded, there
might be superior elements to cost of
reproduction, but, in general, that was
the rule, and he insisted upon it in the
face of q barrage of questions from
individual commissioners. Walter L.
Fisher, former Secretary of the In
terror and special counsel for the Gov
eminent, will be heard later and will
doubtless argue for q modification Of
this rule, as have done legal repre-
sentativeS of State commissions and of
others interested in the valuation find-
ing, 1t will be up to the commission to
advance another attempt to AK final
railroad valuation and base action upon
1t, with the probable CONSEQUENCE of
still more appeal to the courts.
1t seems to be the opinion Of inter-
state commerce commissioners and most
railroad officials that the valuation con-
troversy, while it will continue long
into the future, has now reached stage
of clarity that has removed any ikeli-
hood that railroad rates will be seriously
altered, either up or down, in its even
tual settlement. What is to be deter
mined by its final settlement Is whether
the Government can ever collect any
large sum from more prosperous rail-
roads by a finding that their earnings
since 1890 have been in excess ,.of the
declared allowable return of per cent
on the, value of their property. The
O'Fallon case brought the matter to a
that little line to pay $3.50, 600 of excess
earnings to the Treasury. The Supreme
Court refused to sustain the order oil
the ground that the commissions valu-
alton had not given legal weight to the
roads reproduction value.
It was pretty plainly intimated that
II the commission had obtained an APP
proVal Of its theory of valuation in the
O'Fallon instance 1t would have asked
bAte ulOAC A1lpOEJAttt OdII1CTb Oh II1e
country to pay over something like
500, 600, 900 to the Government. This
would have followed out the Transport
tation act sections which prescribe that
the Government shall recapture half
the earnings which any carrier may at
tain in excess of what will constitute q
8 per cent return upon its valuation.
Quite apparently, the chance of the big
roads being mulcted for anything like
this sum is growing fainter, and the
pending arguments before the commits
sion on the general subject sharply IL
lustrate the fact.
Florida Fruit Fly.
Members of the House appropriat
committee are being faced now by the
highly startling fact that an important
number of Florida residents are fighting
Agriculture Department proposals to
spend SIS, 000, 900 In fighting the fruit
ny in their State. Chairman Wood of
the appropriations committee and his
associates find that there Is almost no
precedent for q protest by any locality
against expenditure of national funds
In their neighborhoods. but that Is the
aspect the ny controversy Is now tax.
ing. $40
It appears from the record Of the
dispute that the Governments scientific
workers consider it necessary 20 heat
all citrus shipments from Florida to
southeastern territory 70 prevent the
spread Of the fiy and have asked the
Government for $4,000, 900 to help de-
fray the cost and keep up the quar-
antine, but are opposed by many grow
ers. Rightly or wrongly, the producers
feel that the steps are unnecessary, and
hope to check the provision Of the
funds.
I'VE do not want to see all the app
preparations Cancelled" writes =. g.
Mason, executive head of one Of the
larger orchards Of Florida, to Chairman
Woods. I'VE would like to have the
department given $1,000,0o or so to
jump on any infestation that may oc-
cur, but the expenditure of SIS, 900
would be very disastrous to the industry,
and would in my opinion be q waste of
public money. Some of US are making
very desperate Tight to have the ac-
tivitieS Of the department curtailed. AS
you know, once the Government starts
. bureau machine, IL is . dificult thing
to stop. There seems to be more pleas
ure derived by the bureaus In spending
money than anything else"
There are Of course, two sides to this
The entomologists assert that the great
thing Is to prevent the spread Of the
tnfestation the present existence of
which the Florida citrus people now
seek to deny.
Business Outlook Good.
Government oficials, including Presi-
dent Hoover, who have been forming
the impression in recent weeks that the
chances are small Of the country ex-
periencing serious business depression
as sequel to the Autumn stock market
collapse, had their views markedly
strengthened by yesterdays conference
with group of the best known BUSH
ness leaders of the country. AS Lewis
E. Pierson, New York banker and tenn
porary chairman Of the gathering,
remarked, after four hours in executive
session with individuals who head some
OF the; greatest corporations Of the coun-
activity, and the current situation Is
favorable"
owen d. Young, chairman Of the
board Of the General Electric Co., COM
nnented that the chairman had said it
ALL" and there was no showing Of
disagreement with the conclusion by
Walter s. Clifford of the telephone
group, Pierre S. du Pont, or any other
Of the notable persons participating.
Cute the executive committee of the
Presidents National Business Survey
Conference.
What was probably Of the most sig
niacance was the committees conclu-
sion that "the situation has become so
lar normal that no unusual methods
need be considered for the stimulation
Of business beyond the policies Of prog-
ress which ordinarily mark American
business" It Is probable that the meet
ing held will be the last one called |
tsA a..