Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1908-08-01
TAFT SOUNDS SLOGAN
Continued from First Page.)

RTeSlQeQC Roosevelt IN Ills lnO1d0dpO-
lis speech and the Supreme Court have
In effect pointed out, the value of the
railroad as a going concern, including
its good will, due to efficiency of serv-
Ice and many other circumstances.
may be much greater than the value
of fits tangible property, and it is the
former that measures the investment
on which fair profit must be allowed.
Then, too, the question what is a fair
profit is one involving not only the
rate Of interest usually earned on nor
nally safe investments, but also a
sufficient allowance to make up for the
risk of loss both of capital and interest
in the original outlay. These consid-
erations will have justified the COM
pany in imposing charges high enough
to secure a fair income on the enter
prise as a whole. The securities 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. To
ignore them might so seriously and I'M
Justly impair settled values as to de-
stroyl all hope of restoring confidence
and forever to end the inducement for
investment in new railroad construc-
ton which, in returning prosperous
times, is sure to be essential to our
material progress. AS Mr.. Roosevelt
has said in speaking Of this very sub
ject:
1.-The effect of such valuation and SUI
pervision of securities can not be retro
active. Existing securities should be test
ed by laws in existence at the time Of
their issue. This Nation would no more
injure securities which have become an
important part Of the National wealth
than IT would consider a proposition to
repudiate the National debt"
The question of rates and the treat
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
business for the railroads is essential
TO general prosperity. Injustice to
them is not alone injustice to stock
holders and capitalists, whose further
investments may be necessary for the
good Of the whole country, but it di-
rectly affects and reduces the wages
Of railway employees, and indeed may
deprive them of their places entirely.
From what has been said, the proper
conclusion would seem to be that in
attempting to determine whether the
entire schedule of rates of railway
Is excessive, the physical valuation of
NHn &c oil
but not necessarily a controlling factor.
Physical Valuation Properly Used Will
Not Generally Impair Securities.
s ;aan confident that the fixing of
7 ratessOn the principles suggested above
would not materially impair the pres
Nent market values Of railroad securi-
tiles in most cases, for I believe that
THE normal Increase In the value Of
ra1lrVsd properties, especially in their
terminals, will ncIe than make up for |
the possible oVefcapltalE:ation in ear
Tier years. In some eases, doubtless, 1t |
viii be found that DISQUALIFICATION |
- made an excuse for excessive rates.
and then they should be reduced; but
sthe consensus of opinion seems to be
sthat the railroad rates generally in this
country are reasonably low. This Is
why. edOtDtleSs, the complaints fled
with the Interstate Commerce Com
omission against excessive rates are so
few as c0snnared with those against
unlawful discrimination in rates be-
tween shippers and between places
OF course. in the determination or the
question whether discrimination is un-
lawful or not, the physical valuation
of the whole road is of little weight.
Conclusion That There Should Be
Physical Valuation.
have discussed this. with some de-
cree of detail, merely to point out that |
the valuation by the Interstate Com !
ynerce Commission of the tangible |
property of railroad is proper ana
may from time to time be necessary |
in settling certain issues which may |
come before them, and that no evil OF
injustice can come from valuation In
such cases, if it be understood that the
result is to be used for just purpose,
and the right to fair profit under all
the circumstances Of the investment Is
recognized The Interstate Commerce
Commission has now the power to as
certain the value of the physical rail-
road property. If necessary, In deter
mining the reasonableness Of rates. Ii
the machinery for doing so is not ade-
ouate. as is probable, it should be
made so.
The Republican platform recon-
- 1or~i.lo+ioy, forbiddino the issue
in the future of Interstate railway
stocks and bonds without Federal au-
thority. 1t may occur in such cases
that the full value of the railway, and,
as an element thereof. the value of the
tangible property of the railway, would
no 4 relevant and important factor In