The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1907-08-22
their best source Of profit would have


competition among Interstate lines
serving the same territory Is the ac-
QUESTION by one company of the stock
in another and the election Of direc-
tors to represent that stock. This pro.
cess is facilitated by the uncontrolled
power to issue securities beyond the
needs Of the company for its legiti-
mate business and would be curbed
by the restriction proposed. The evil
ought further to be directly restrained
by making It unlawful forsan inter-
state railway to acquire stock In q
competing line This is a simpler
remedy Of meeting the evil than by
recourse to the antitrust law under
the Northern Securities case In ad-
dition to this, competing lines should
be prohibited from having common
directors or officers.
Proposed Amendments Constitutional.
These suggestions of additional leg.
islation in respect to the supervision
and control of Interstate railways have
been made by the interstate com
merce commission and heartily con-
cur in them. They are plainly within
the federal jurisdiction under the in
terstate commerce clause. do not
think that In order to accomplish o
| good which the federal government
with its greater resources and wider
| geo raphical reach can bring about
more quickly and efficiently, the con-
stitutional limits upon federal action
| chnttiI "a hltrreI ,r .I
federal power should be expanded by
doubtful construction into a field
which really belongs to the state. But
the right of congress to take any &C.
ton, not confscatory, In the most
rigid control of interstate commerce
can not be denied.
Objections to Government Ownership.
II an opposed to government owner.
ship
First, because existing government
railways are not managed with either
the efficiency or economy OF privately
managed roads and the rates charged
are not as low and therefore not as
beneficial to the public;
Second, because II would Involve an
expenditure of certainly twelve billion
of dollars to acquire the interstate
railways and the creation of an enor-
nous national debt.
Third, because Il would place in the
hands Of reckless executive power
Of control over business and politics
that the Imagination can hardly con
ceive. and would expose our popular
institutions to danger"
Secretary Taft declared that this
program Of railway regulation is not
inconsistent with individualism and he
also said that he would favor railway
rate agreements II submitted to and
approved by the interstate commerce
commission. AS t. the suggestion that
the commission should be empowered
to make valuation Of the physical
property Of all the railroads, Mr.. Taft
said that the commission already had
sufficient power to do that. 81 do not
object to valuation" he said, "if
thought relevant to any issue, but !
merely reprecate the assumption that
II is to be the chief means OF a great
reform In rates.
Continuing, Secretary Taft pointed
out that the frightful loss of life and
limb among railway employees called
for stringent regulations and he ex.
pressed his approval of the new EN-.
ployers' liability law.
The Trusts.
Taking up the question OF the trusts
| Secretary Taft explained the present
antitrust law, and gave his views re.
garding unlawful me nopoly. He de.
clared that the mere aggregation OF
all plants In given line OF industry
In one ownership does not necessarily
suppress competition, but he pointed
out the Illegal devices employed by
some great corporations, and said:
am inclined to the opinion that the
time is near at hand for an amendment
OF the antitrust law defining In more
detail the evils against which 1t ia
aimed, making clearer the distinction
between lawful agreements reasonably
restraining trade and those which are
pernicious In their effect, and particu.
larly denoulcing the various devices
for monopolizing trade which prosecu-
tions and Investigations have shown
to be used in actual practice. The de-
cisions Of the courts and the expert.
ence Of executive and prosecuting Of
ficers make the framing of such a
statute possible. II will have the good
effect of making much clearer to those
business men who would obey the laws
the methods to be avoided.
"Another and perhaps the most ef
fective method in the past for an un.
lawful trust to maintain itself has
been to secure secret rebates or other
unlawful advantage in transportation
by threat OF Withholding business from
the carrier This Is undoubtedly what
has enabled the Standard OIL company
and the sugar trust and other great
combinations, to reap an illegal har.
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