Evening star., 1932-11-01
j. s. LOSES IN LAND
SETTLEMENT SUIT
D. C. Supreme Court Backs
s Per Cent Interest on
C0ndemnations.

In decision Of far-reaching impor-
District Supreme Court yesterday over
turned ruling by Controller General
McCarl on the economy act and held
that property owners should receive 6
per cent instead OF per cent interest
in settlement Of condemnation cases
where the Federal Government is ac-
quiring property.
McCarl had allowed only per cent
under the economy act, but Justice
Let's, in granting the petitioners re-
quest for a mandamus, added another
2 per cent.
The case arose out of property along
Pennsylvania avenue in the area occu-
pied by the Bonus Expeditionary Force
and the decision by the court allows ad-
ditional sums to property owners not
only in the District but throughout tine
United States.
Not a Legislative Question.
In his decision Justice Let's virtually
charged that Congress had exceeded its
authority in placing such a provision in
the economy act.
1t seems clear" said the court, that
in condemnation proceedings the legls-
lative authority is limited to authoriZ-
ing the taking and that thereafter the
fixing of just compensation becomes a
pure judicial question. A party to liti-
cation cannot be the judge of its owr
case even when such party is the
United States Congress may not as
sume the right to determine the meas
ure Of compensation. This is Judicial
and not a legislative question
Any act by which Congress assumes
such judicial functions must be regard
ed as unconstitutional"
The petitioners in the case represent
ed the interests of Mary D. H. Ken
dali. whose % parcels of land were con-
demned by the Federal Government tc
be acquired by the United States. The
final judgment was awarded by the
court on July %. following enactment
of the economy bill on June 80. and
McCarl. therefore, held that the econ
omy act restriction on interest should
apply. This act provided that no in
terest should be allowed or paid in such
cases in excess of per cent. The con-
demnation law in effect prior to the
economy act allowed per cent JUS
tice Let's. in granting the petition
signed an order to compel McCarl tc
pay the per cent The court held
that the Constitution authorizes just
compensation for land and it was the
duty of the court to fix such just COM
pensation.
Appeal Considered.
The Government in taking the prop
erty in question had applied the con-
demnation law which allows property
to be taken upon payment OF certain
sum. the remainder to be determined
later and paid with interest. The first
payment was made in the sum OF S762.-
442, but after the final judgment OF
the court in July. an additional amount
of s514,l24 was paid with interest al
only per cent, according to the pro-
visions of the McCarl decision. This
interest at per cent on the sum OF
S514124, for the period from December
9. 1881. to August II. 1882. amounted
to sl3878.53. Whereupon the property
owners went to court and asked the
court for an order to compel payment
of an additional per cent.
1t was understood that the control
ler general is considering an appea
from Justice Let's decision. The de-
cision forces the payment of the two
per cent more in all condemnation
cases throughout the country. The
total amount of savings which the Sen.
ate Committee had estimated to be
possible by reduction of interest or
these judgments was about $4,000, 900
The decision of the court, it was said
by those who have followed the case
closely, would probably wipe out most
Of that estimated saving.