The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1907-08-24
The TAFT PLATFORM.
ooocFyFlTS RADICAL POLICIES
Fvn0gsED BY SECRETARY.
Advocates Income and inher'-
.,oce Taxes and Tariff Revis-
=, After Election----Would
Continue Trust Curling, But
u,,,Idn't Own Railroads.

80 ,Gl1no was outlined for the first
pl',, nv the secretary of war in a
tIn ecb at Memorial Hall last night
'Pnnosident Roosevelt's radical pol
.:aa are accepted by him in their en-
N w. Secretary Taft announced him.
' ~ IN favor of tariff revision, but not
''- Ill after election. He is willing,
S',arpr to have the national conven-
l non Med ged for the reduction of du-
NJ 70 curb SWOLLEN fortunes the secre-
o5rocated both an income and an
inheritance tax.
inter ,ftor an exhaustive review of the
,.nses OF the passage of the rate law
.n nd detailed explanation of its opera
.;or Mr.. Taft said of the railroads:
Distrust of Railroads
"After May, 1908. they are confined
N their business strictly, by provi-
ann forbidding them after that date
- transport for themselves anything
Inf what is intended for their use as
common carriers.
uExperience has shown that the
-oiroads cannot be trusted to deal
fairly in matters of transportation be-
tUaen themselves and their COMPETE
tors in an outside business.
"The revelations of infidelity to
trpst obligations in the insurance in
1astigations in New York; of the
fraudulent determinations Of the coal
carving railroads shown by the in
oDiries made by the interstate COM
merce commission and the disclosure
If secret rebates on an enormous scale
granted the Standard Oil Company by
the railroads in the report of Mr..
Garfield as commissioner of corpora
lions. overcame much specious argu-
nent. created strong public opinion
in favor of a radical remedy against
all dishonest corporations and helped
the hands of those supporting the
bill''
To the argument that the old Elkins
law was better than the new rate law,
Mr.. Taft made this answer:
Effects of Rate Bill
in the rate bill congress amended
the Elkins bill and restored imprison-
ment as part of the punishment for
secret relates.
IF the rate bill was likely to be a
failure and to accomplish nothing in
the regulation Of their business. the
query naturally arises, why did the
railroads spend so much money and so
great effort to defeat il? Why was it.
if it had no effect, that in the inter-
val between the time of its passage
and its going into effect there we're
filed with the interstate commerce
commission more notices of reduced
rates by the railroads than ever had
been filed in the previous twenty years
Of the life Of the Interstate commerce
law?
The rate law does not 60 far
enough. The practice under it has
already disclosed the necessity for
amendments and will doubtless sug-
gest more. Such is the true method
the empirical and tentative method
OF securing proper remedies for a
new evil.
Over-Capitalization Evil
Recent revelations have shown
TIE pernlcious effect of so-called over
capitalization of railroads which aids
Inscriptions manipulators in dispos-
lug OF securities at unreasonably high
prices to innocent buyers. This evil
would not of itself justify federal re.
Sualnt or control, because such stock
aud bonds are usually included under
state charters.
The practice, however, has ten
nslCy to divert the money paid by the
puoilc Tor the stock aud bonds which
Vusn1 TO be expended in improving
sns foadbed, track and equipment OF
1allroads into the pockets of the dis
nOlest manipulators and thus to pile
SUN an Improbable debt on a rail.
-Oau as to make bankruptcy and q
~oney stringency.
Il much used means of eliminating
sOupetltlon among Interstate lines
o orts!ng the same territory is the &C
iSaisitlon by one company of the stock
TO-. another and the election of direc
o.S 10 represent this stock. This pro
ts osS IS falrly facilitated by the uncon-
r ,vueo power to issue securities he
ia auu the needs of the company for tht
soT, carrying on of it's business.
/, me evil ought further to be direct
fl, 'esraned by making it unlawful
stoo au interstate railway to acquirs
sim uN IN competing line. This is I
tbaa pier remedy for meeting the evil
pnd L W recourse to the antitrust Law
aT the Northern Securities case
sbo- ~ addition to this competing line
e oUula be prohibited from having
'Onnon officers.
against Government Ownership
mil me contention in behalf of tn,
suna.a aus' already noticed. that sucl
sna eaVlsion as the rate bill and thes'
istie ees'ed amendments afford is social
ersh O ana tends to the government own
csn. ? Is utterly without basis. Ell
and ny regulation is the very antidot'
ernn p'eVentlve of socialism and gov
NtuIQenf ovro.l.