The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-07-28
Scores Policies Advocated blythe Democratic
Party and Declares the Conservative
Americans Favor Republican Rule.
States Clearly Position on InjunCtions, Corpo-
ration Laws, and Tariff, and Predicts
Success in November Election.

ali its amendments, the burden of the
supervising and regulating the opera
tion Of the railroads Of this country
has grown so heavy that It IS utterly
Impossible for that tribunal 10 hear
and dispose, in any reasonable time, Of
the many complaints. queries, and is
sues that are brought before il for de-
cis!on.
1t ought to be relieved Of Its juris-
dictIOn as an executive, directing body,
and its functions should be limited 10
the quasi-judicial investigation Of COM
plants by individuals and by a de-
partment of the overnment charged
with the executive business OF super
yising the operation Of railways.
There should be a classification Of
that very small percentage Of indus
trial corporations having power and
opportunity 10 effect illegal restraints
OF trade and monOpolies, and legisla-
ton either inducing or compelling
them 10 subject themselves 10 registry
ana to proper publicity regulations and
supervision Of the Department of Com
merce and Labor
Next Administration to Organize.
The field covered by me Industrial
combinations and by the railroads is
so very extensive that the interests Of
the public and the interests OF the bust
ness concerned cannot be properly sub
served except by reorganization Of bu-
reaus in the Department Of Commerce
and Labor, Of Agriculture, and the
Department Of Justice and a change in
the jurisdiction Of the Interstate Com
merce Commission.
II does not assist matters 20 pre-
scribe new duties for the Interstate
Commerce Commission which il is prac-
ticalIy impossible for It TO perform,
OF TO den ounce new offenses with dras-
tic punishment. unless subordinate and
anciIlary legislation shall be passed
making possible the quick enforcement
in the great variety Of cases which are
constantly arising, of the principles
laid down by AIr. Roosevelt, and with
respect to which only typical instances
of prosecution with the present machIn-
cry are possible.
Such legislation should and would
greatly promote legitimate business by
enabling those anxious TO obey the Fed
eraI statutes 10 know just what are the
! bounds Of their lawful action. The
practical, constructive, and difficult
work, therefore, Of those who follow
Mr. Roosevelt is to devise the ways o-nd
means by which the high level OF
law which he has established may be
maintained and departures from 1t re-
strained without undue interference
with legitimate business.
Railway Traffic Agreements.
1t is agreeable to note in this regard
ell,
and the Democratic platform implicitly
approve an amendment 10 the Interstate
Commerce law, by which interstate
railroads may make useful traffic
| agreements If approved by the commits
sion. This has been strongly recon-
mended by President Roosevelt and
will make for the benefit Of the bust
ness.
Physical Valuation of Railways
Some Of the suggestions Of the Demo-
/ cratic platform relate really 10 this sub
ordinate or ancillary machinery 20
| which 1 have referred. Take for in
! stance the so-called physical valuation
/ Of railways"
| 1t is clear that the sum Of rates or
| receipts Of a railway, less proper ex-
penses, should be limited 70 a fair
I profit upon the reasonable value of its
/ property. and that if thc sum exceeds
/ this measure, II ought 10 be reduced.
| The difficulty In enforcing the princi-
/ pie is in ascertaininG what is the rea-
| sonable value of the company's proper
/ ~. and in fixing what is fair profit
! II is clear that the physical value Of
a railroad and its plant is an element
| to be given weight in determining its
| full value; but as President Roosevelt
/ in his Indianapolis speech and the Su-
/ prene Court have in effect pointed out.
/ the value of the railroad as a going
! concern, including its good viii. due TO
| efficiency of service and many other
/ circumstances, may be much greater
| than the value Of its tangible property,
and it is the former that measures the
/ investment on which a fair profit must
| be allowed.
Then. too, the question what is a fair
profit is one involving not only the rate
1 Of interest usually cared on normally
| safe investments, but also a sufficient
| allowance to make up for the risk OF
] loss both Of capital and interest in the
1 original outlay.
! These considerations will have justi-
| fec the company in imposing charges
| high enough to secure a fair income on
| the enterprise as a whole. The securi-
/ ties at market prices will have passed
into the hands Of subsequent purchasers
from the original investors. Such cir
! cumstances should properly affect the
/ decision Of the tribunal engaged in de
termining whether the totality of rates
charged is reasonable or excessive.
t. ignore them might so seriously
and unjustly impair settled values as
to destroy all hope of restoring conf
dence and forever to end the induce
meut for investment in new railroad
construction which. in returning pros
porous times, is sure to be essential tC
our material progress. As Mr. Roose-
welt has said in speaking of this very
| subject:
The effect of such valuation and su
| pervision Of securities cannot be retro
active. Existing securities should b.
tested by laws in existence at the tim'
Of their issue This nation would M
! more iniuTe securities which have be
come an important part of the natiOna
wealth than Il would consider propO
sition 20 repudiate the national debt.
The question CT rates and the treaC
ment of railways is one that has two
sides. The shippers are certainly en-
titled TO reasonable rates; but less Is
an injustice to the carriers. Good bust