The Supreme Court for the third* time in recent months upheld the Transportation Act, generally known as the Esch-Cummins Railroad Law.
The provision of the act in question was the so-called "recapture" clause. By this clause the Interstate Commerce Commission, after fixing freight rates and a fair rate of return on the assessed valuation of each road, may "recapture" one-half of the earnings of any road which exceed such a "fair return." The rate of a fair return has been fixed by the Commission at 5.75% per annum. The moneys received by the...
To continue reading:
or
Log-In
