The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-07-28

Function of Next Administration.
The chief function of the next ad
ministration, in my judgment, is dis
tinct from, and a progressive develop
ment of that which has been perform
ed by President Roosevelt. The chief
function of the next administration is
to complete and perfect the machinery
by which these standards may be
maintained, by which the lawbreakers
may be promptly restrained and pnn-
ished, but which shall operate with
sufficient accuracy and dispatch to
intefere with legitimate business as lit
tie as possible. Such machinery is
not now adequate. Under the present
rate bill, and under all its amend
ments, the burden of the interstate
commerce commission in supervising
and regulating the operation of the
railroads of this country has grown so
heavy that it is utterly impossible for
that tribunal to hear and dispose, in
any reasonable time of the many COM
plants, queries and issues that are
brought before it for decision. 1t
ought to be relieved of it's jurisdiction
as an executive, directing body, and it's
functions should be limited to the qua
si-judicial investigation of complaints
by individuals and by department of
the government charged with the ex-
ecutive business of supervising the
operation of railways.
There should be a classification of
that very small percentage of indus
trial corporations having power and
opportunity to effect Illegal restraints
of trade and monopolies, and legisla-
ton either inducing or compelling
them to subject themselves to regis
try and to proper publicity regulations
and supervision of the department of
commerce and labor.
Work of Next Administration.
The field covered by the industrial
combinations and by the railroads is
so very extensive that the interests of
the public and the interests of the bus
inesses concerned can not be properly
subserved except by reorganization of
bureaus in the department of COM
merce and labor, of agriculture, and
the department of justice, and
change in the jurisdiction of the inter-
state commerce commission. 1t does
not assist matters to prescribe new du-
ties for the interstate commerce COM
mission which it is practically impos-
sible for it to perform, or to denounce
new Offenses with drastic punishment.
unless subordinate and ancillary leg
islation shall be passed making posi-
BILE the quick enforcement in the great
variety of cases which are constantly
arising, of the principles laid down by
Mr.. Roosevelt and with respect to
which only typical instances of pros
ecution with the present machinery
are possible. Such legislation should
and would greatly promote legitimate
business by enabling those anxious to
obey the federal statutes to 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
ways and means by which the high
level Of business integrity and obedi-
ence to law which he has established
may be maintained and departures
from it restrained without undue in
reference with legitimate business.
Railway Traffic Agreements.
1t is agreeable to note in this regard
that the republican platform expressly
and the democratic platform implicitly,
approve an amendment to the inter-
state commerce law, by which inter-
state railroads may make useful traf-
fic agreements if approved by the COM
mission. This has been strongly rec
commended by President Roosevelt and
will make for the benefit of the bus
mess
Valuation of Railways.
Some of the suggestions of the demo-
cratic platform relate really to this
subordinate and ancillary machinery
to which l have referred. Take for
instance the so-called physical valua-
ton of railways" 1t is clear that the
sum Of all rates or receipts of rail-
way, less proper expenses, should be
limited to a fair profit upon the rea-
sonable value of its property. and that
if the sum exceeds this measure. it
ought to be reduced. The difficulty in
enforcing the principle is in ascertain
ing what is the reasonable value of the
company's property, and in fixing what
is fair profit. 1t is clear that the
physical value of a railroad and it's
plant is an element to be given weight
in determining its full value; but as
President Roosevelt IN his Indianapolis
speech and the supreme court have in
effect pointed out, the value of the
railroad as going concern, including
its good will, due to efficiency of SER
vice and many other circumstances,
may be much greater than the value
of its tangible property, and it is the
former measures the investment on
which a fair profit must be allowed.
Then, too, the question what is fair
profit is one involving not only the
rate Of interest usually earned on nor,
mally safe investments. but also a suf-
ficient allowance to make up for the
risk of loss both of capital and inter
est in the original outlay. These con-
siderations viii have justified the CON-
pany in imposing charges high enough
to secure fair income on the enter