The Charles Mix new era. (Wagner, Charles Mix County, S.D.) 1???-1911, 1908-08-07
WILL|haa HOWARD TAFT'S
SPEECH OF ACCEPTANCE


| ..at It Ii utterly Impossible for that trE
-. ~ 10 dispose. IN any reasonable tno
CT tfe Inaay Complaints. queries and Is
sues {ksak are brought befsr. IL FOR de-
t+sf4i.- X otSGs 10 he relieved af It's turis-
/ GNE0a ~ an executive. directing body.
aua ite fancEnn should he limited to tho
+~as4-saaie%4A investigation Of complaints
ny Hd Viiaals and b$ q department of the
~ e~'Atff rhaFre~4 s.fh the executive
business Of supervising the operation u
There should be a Classification Of hat
ve-r small percentage OF Industrial cor
porat:ons having power and opportunity 10
/ eject illegal restraints OF trade and mo-
nosAises. and legislation either inducing
or compelling them to subject themselves
to registry and to proper publicity reg
~u.atisns and supervision OF the depart
ment cf commerce and labor.
The Geld covered by the Industrial COM
hinati0nS and by the railroads II SO very
extensive that the interests OF the public
and the interest OF the business concerns
cannot he properly suhserved except ny
reorganization OF bureaus in the depart
ment CT commerce ard labor, or agri--
| culture ard the department OF justice and
a change In the jurisdiction OF Interstate
Commerce commission. 1t does NOT as
s.st matters to aspire to prescribe new
duties for the Interstate Commerce COM
mission which II IL practically tmpos-
stole for IL to perform or to denouncs
1 NDN G4fTSsE Win HFASSiC pnaa6nAANAA ~
unless subordinate and ancillary legisla-
ton shall be passed making possible tho
quick enforcement In the great variety
Of cases which are constantly arisin9. OF
the principles laid down by Mr.. Roose-
Welt. and with respect to which only
typ,eal instances of prosecution with the
present machinery are possible. such leg
station should and would greatly promote
LEGITIMATE business by enabling those
anxious to obey the federal statutes to
knew just what are the bounds or their
awful action. The practical construct
i've and difficult work. therefore. OF those
who follow Mr.. Roosevelt H. TO devise
the WAYS and means by which the nigh
level Of business integrity and ooedisnco
to Jaw which he has established may be
maintained and departures from II re-
strained without undue interference with
legitimate business.
II Is agreeable to note In this regard
thet the republican. platform expressly
and the democratic platform implicitly APP
prove an amendment to the interstAte
roads may make useful traffic agreements
II approved by the commission. This has
been strongly recommended by President
Roosevelt and win make for the benefit
Of the business.
Physical Valuation.
Some OF the suggestions OF the demo-
cratic platform relate really to this
subordinate and ancillary machinery
to which 1 have referred. Take,
for instance. the so-calied physical
valuation OF railways. It Is clear
that the sum OF all rates or receipts or q
railway. less proper expenses should DO
limited 10 a fair profit upon the reason
able value of Its property. and hat II the
sum exceeds this measure. II ought to be
reduced. This difficulty In enforcing the
principle IL in ascertaining what is the
reasonable value Of the company's prop
cry. and in fixing what Is a fair pront.
II is clear that the physical value OF a
railroad and its plant, is an element 10
be given weight in determining its full
fD-asl~-t D~@nApAx t- hVa
INDIANAPOLIS speech and the supreme
court have pointed out. the value or the
railroad as a growing concern, including
its good will, due to efficiency OF service
and many other circumstances, may be
much greater than the value or fts
tangible property and II Is the former that
measures the investment on which q ralr
profit must he allowed.
Physical valuation properly used Will
not generally impair securities. l am con-
sdent that the fixing OF rates on the
teriaiiy impair the present market value
OF railroad securities in most cases for /
believe that the normal increase IN the
value OF railroad properties especially In
their terminals will more than make up
for the possible oter capitalization In
early years.
/ have discussed this with some degree
of detail merely To point out that the
valuation of the Interstate
commission Of the tangible property OF q
railroad Is proper and may from time to
time be necessary in certain of the issues
which may come before them and that no
evil or injustice can come from valuation
I'm such cases. IL be understood that the
result f. to be used for a Just purpose,
ard the right to a fair profit under all
the circumstances is recognized. The In
terState Commerce commission has not the
POWER 10 ascertain the value OF the phys
zeal railroad property II necessary In de-
termining the reasonableness OF rates. II
the machinery for doing SO Is not ade-
quate, as is probable. II shoGld be made
so.
The republican platform recommends
LEGISLATION forbiddfng tho issue In the fu-
ture OF interstate railway stocks and
bonds without federal authority. 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 be a relevant and import
ana factor in assisting the proper author
ity to determine whether the stocks and
bonds TO be issued were to have proper
security behind them. and In such case
therefore there should be the right and
machinery 10 make a valuation OF the
physical pronerty.
Control Of Trusts.
Another suggestion In respect to SUI
hord.nate and aneillary machinery neces-
sary To carry out republican policies -
that of the Incorporation under national
law or the licensing by national license or
enforced registry OF companies engaged In
Interstate trade, The fact Is that nearly
al corpora Ions doing n commercial
bus -. are engaged In interstate COM
meree, and IL they all were required to
take out a federal license or a federal
charter the burden upon the interstate
business OF the country would become In
/ toteT4ble.
II II necessary therefore 20 devise Some
means fer classifying and ensuring fed
erst} "a rvislon OF such corporations as
hs~@ the power and temptation to effect
restraints Of Interstate trade and monopo-
I.s- Saca corporations constitute a very
sc9ali percentage Of all engaged In In
terstate business.
The combination OF capital In large
piagts 70 manufacture goods with tho
greatest economy IL just as necessary as
tie assembling of the parts OF a machine
70 the economical and more rapid manu-
factare Of what I'm old times was made by
hand. The government should not inter-
fer WIKI one any more than the other,
ag3 when such a~sgregations OF capital are
legitimate and are properly controlled
flsy ere then the natural result OF mod
err enterprise and are beneficial to the
public. In the proper operation OF compe-
TT on The public Will soon share with the
Esa~afec turer the advantage In economi-
cal oaeratson and lower prices,
What 10 Unlawful Trustf
When. however. such combinations are
not based on any economic principle but
are made merely for the purpose OF ron
trolling the market to maintain or raise
pricsx, restrict output and drive out com