Business & Finance: Pewee's Claim

When the Federal Government has taken over railroads or coal mines to avert strikes, it has often handed out pay raises which the seized companies had previously refused to give. Last week the U.S. Supreme Court whacked down on the Government's habit of handing out other people's money. In a precedent-setting decision, the court held that the Government, not the company, must pay the losses resulting from added wage costs, and thereby laid the Government open to suits for millions of dollars in claims.

The Government had been challenged by Tennessee's Pewee Coal Co., which was taken over in 1943, along with...

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