Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-07-29

dAotAAASS II SOAAkCAAy
charges high enough to secure fair
income on the enterprise as a whole.
The securities at market prices will
have passed into the hands Of subse-
quent purchasers from the original In
vestors. Such circumstances should
properly affect the decisioA Of the tri-
bunal engaged in determining whether
the totality of rates charged is reason
able or excessive. To ignore them
might 80 seriously and unjustly inn
pair settled values as to destroy all
hope Of restoring confidence and for
ever end the inducement for invest
ment IN new railroad construction
which, In returning prosperous times,
is sure to be essential to our material
progress.
From what has been said, the proper
conclusions would seem to be that in
attempting to determine whether the
entire schedule OF rates of a railway is
excessive. the physical valuation Of the
road is ia relevant and important but
not necessarily a controlling factor.
8 I am confident that the fixing Of
rates on the principles suggested above
would not materially impair the pres
ent market values Of railroad securi-
lies in most cases, for I believe that
the normal increase in the value Of
railroad properties, especially in their
terminals, will more than make up for
the possible overcapitalization in ear
lier years. In some cases, doubtless,
1t will be found that overcapitalization
is made an excuse for excessive rates,
and then they should be reduced; but
the consensus Of opinion seems to be
that the railroad rates generally in this
country are reasonably low.
Conclusion That There Should Be
Physical Valuation.
I have discussed this, with some de-
gree, of detail, merely to point out that
the valuation by the Interstate Com
Inerce Commission Of the tangible
property of railroad Is proper and
may from time to time be necessary in
settling certain issues which may come
before them, and that no evil or injus-
tice can come from valuation in such
cases, If it be understood that the re-
suit is to be used for just purpose,
and the right to fair profit under all
the circumstances Of the Investment Is
recognized.
National Control of Interstate Com
! rnerce Corporation.
Another suggestion in respect to sub.
ordinate and ancillary machinery nee.
essary to carry out Republican policies
is that Of the Incorporation under Ma,
tional law or the, licensing by National
license or enforced registry Of compa
MES engaged in interstate trade. The
| fact is that nearly all corporations do
ing a commercial business are engaged
in interstate commerce, and If they al
were required to take out a Fedora
license or a Federal charter, the bur
/ den upon the interstate business OF the
country would become tntolerable.
1 It is necessary, therefore, to devise
some means for classifying and insur
ing Federal supervision Of such cor
porations as have the power and temp
tation to effect restraints Of interstat,
trade and monopohes. Such corpora
tions constitute very small percent
age Of all engaged in Interstate bust
ness.
Construction Of Anti Trust Law.
The possible operation OF the anti
trust law under existing rulings Of the
Supreme Court has given rise to sug
gestions for It's necessary amendment
to prevent its application to cases
which 1t is believed were never In thu
contemplation Of the trainers Of thu
statute. Take two instances: A mer
i chant or manufactures engaged In /
legitimate business that covers certain
i States, wishes to sell his business and
his good will, and SO In the terms Of
the sale ob1igates himself to the pur
chaser not to go into the same bus1
ness in those States. Such restrain
of trade has always been enforced a
common law. Again, the employees o.
an interstate railway combine and en-
ter upon a peaceabie and lawful STRIKE
4 to secure better wages. At common
law this was not a restraint Of trad.
4 or commerce or a violation OF tht
4 rights Of the company or Of the pubic
i Neither case ought to be made q viola
ton Of the antitrust law. My owl
impression is that the Supreme Cour
i would hold that neither Of these IN
stances is within its inhibition, hui, 1
they are to be 30 regarded, general leg
!. islation amending the law IL necessary
The proposal to compel every cor
poration to sell its commodit tiles at tha
same price the country over, allowing
4 for transportati is utterly inaprac
i ticable. If it can be shown that In tor
4 der to drive out competition. a corpo
ration owning large part Of the plan
producing an article is selling In ont
part Of the country, where 1t has com
petitors, at low and unproftablt
Il price, and In another part Of the coun
4 try, where 1t has none, at an exorbd
tant price, this is evidence that It is at
tempting an unlawful monopoly, amt
justifies conviction under the anti-trus
law; but the proposal to supervise tn,
business Of corporal lions in such a wa.
:. as to fix the price Of commodities AMI
N