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Show SUPREME COURT DECISIONS Wellesley Hills, Mass. July 13. 1923. "So many people wall be bearish -while the second half of the area of business readjustment Is being be-ing completed, that it is well to stop once in a while and consider sora of the optimistic features of the situation. situa-tion. There is much good news constantly con-stantly coming out. The great improvement im-provement in the condition of the railroade; the corrective attitude on the part of labor; and the late developments devel-opments in the foreign situation are all optimistic factors. One optimistic optimis-tic feature that we do not hear much about, however, is the present attitude atti-tude of the United States Supreme Court.. It is difficult for the statistician statis-tician to measure court decisions," says Mr. Roger W. Babson, "and If he did it too often, contempt of court proceedings might follow. Nevertheless, Never-theless, these court decisions are a great factor in business, and could be reduced to a statistical analysis. I have special reference to three recent re-cent decisions of the United States Supreme Court. "The decision in connection with the Southwestern Telephone Company Com-pany was exceedingly cheering to investors. in-vestors. This decision clearly ruled that neither legislatures nor commissions com-missions can make rates mat are confiscatory con-fiscatory in any way. The court Indicated that the cost of reproduction reproduc-tion must be considered, as well as original cost, and that investors mii.it be treated fairly so as to encourage them. This decision has been welcomed wel-comed by all interests, especially the public utility group. It should make more safe telephone securities electric light ana power securities, and street railway securities. This does not mean that the Supreme Court upholds dishonesty or stock watering, but it does mean that i' will protect capital when politicians, for selfish motives, attempt to jeopar dize it. Furthermore, this decision will encourage corporations to appeal to the courts more and bother with Congress and legislatures less during the next few years than they have heretofore. "The second decision which Interests Inter-ests business men was when th? United States Supreme Court held that the Kansas Industrial Court can fix or rti;ulate wages only in a great emergency. Briefly, this decision wa3 that in the case of a railroad or coal strike, where the public is threatened with starvation or disaster, dis-aster, an Industrial Court can come in and fix wages, but only in such instances. in-stances. The special case was one involving the Charles Wolf Packing Company. The United States Supreme Su-preme Court held that it was not necessary for this packing companv to do business. There were other companies from which goods could be purchased, and as a last resort people could temporarily go without their products for a while if neceB-sary. neceB-sary. As most of the states of trie country were eagerly awaiting this decision, the ambitions of many political leaders will naturally be greatly curbed thereby. TheTe will be fewer attempts during the next few years to interfere with business by legislation than there would have been if the United States Supreme Court had upheld the Kansas Industrial Indus-trial Court. "The third epoch-making decision of the United States Supreme Court was to the effect that the Kedjral Trade Commission can not interfere ill the rights or private business or in the matter or rixlng prices. For some time, certain great national ad. ve-rtisers have been in conflict with the Federal Trade Commission concerning; con-cerning; prices on nationally advertised adver-tised goods. Some chain store retailers re-tailers have been selling certain nationally advertised igoods at or below be-low cost In order to get people Into the more and then sell them something some-thing else. The national advertisers adver-tisers have claimed that this Is not only unfair to the manufacturers but also to the public, and have Insisted that their prices bo upheld by all re-tullara. re-tullara. The Federal TraJilo Com-miHsloti Com-miHsloti has taken the part of the chain stores anil those who want to cut. prices. The Supremo Court lias u.pli-ld the national advertisers. The rim In iiie'illnn was brought by the Mennen Company, large dlxtrlbiit-ir or toilet, articles. Homo may think that this decision Is ttKiiltiHt public In twevt, lilt 1 Merlouftly diirbt It. I'ubllc Intermit demands good IiuhI-i.i IiuhI-i.i ,i whi'li will keep people employed employ-ed and kooiIh moving. Prices novel b.hv: r-Tiinln too hiKn riecanso high prices always either encourage coin- i petition or else check buying. Statistics Sta-tistics show that business has been harmed more by price cutting than by price fixing. If prices are loo high they correct themselves. Price cutting, however, kills the goose that lays the golden egg. "Business continues fair," concluded con-cluded Mr. Babson. "The Babson-chart Babson-chart stands at 1 percent above normal. nor-mal. The intermediate area of pro sperity which threatened to develop into a. period of inflation has been checked. We have now started in again to complete the period of readjustment. read-justment. This is not bad news but really good news looking at the long point of view. Before a man starts out expanding he should first pay up his bills. The same rule applies to a nation. This is the conclusion which the United States has at last reached. For one I am very glaiii cf it." |