The state herald., 1908-07-31

dience to law which he has established
may be maintained and departures from
Ii restrained without undue interference
with legitimate business.
Railway Traffic Agreements.
1T Is agreeable to note In this regard
that the Republican platform expressly
and the Democratic platform implicdly
approve an amendment to the Interstate
commerce law. by which Interstate rail
roads may make useful traffic agree
nents, lG,e II approved by the commissions.
Pres ident Roosevelt. and will make for
the benefit OF the business
Some OF the suggestions of the Demo-
cratic platform relate really TO this
subordinate and ancillary machinery to
which i have referred. Take for In
stance, the so-called physical valuation
Of railways. II is clear that the sum OF
all rates or receipts OF n railway. less
proper expenses, should be limited to
fair profit upon the reasonable value of
It's property, and that II the sum exceeds
difficulty In enforcing the principle is in
ascertaining what is the reasonable value
OF the companys property, and In fNin@
what is fair profit II is clear that the
physical value OF n railroad and Its plant
IL an element to be given weight In de-
terminlng Its full value; but as Prcsi-
dent Roosevelt in his indianapolis
speech and the supreme court have point
ed out. the value of the railroad GO
ing concern, including its good will. due
to efficiency OF service. and many other
may Dt 1i1utn
than the value OF its tangible property
and II is the former that measures the
investment ON which n fair profit must
be allowed. Then, too. the ques-
involving not only the rate of interest
usually earned on normally safe invest
meEts, but also sufficient allowance TO
make up for the risk OF loss both OF cap
ithl and interest in the original outlay
These considerations will have Justified
the company In imposing charges high
enough to secure IA fair income on the
enterprise as n whole
What Roosevelt Said.
As Mr. Roosevelt has said In speak
ing OF this very subject:
The eject OF such valuation and SUI
pervision OF securities cannot be retro
active. Existing securities should be
tested by laws In existence at the time
of their issue. This nation would no
more inJure securities which have be-
come an important part of the national
wealth than IL would consider a propo-
sition to repudinte the national debt
The question OF rates and treat
ment OF railways Is one that has two
tied sppsrs rnt,, ars eefainIy bai is,s en
an injustice To the carriers. Good
business for the railroads Is essential
10 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 whol. country. but II di-
of railroad employees
For what has been said the proper
conclusion would seem to be that In
attempting Ia determine that whether
the entire schedule Of rates OF rail
way IL excessive, the physical valua-
tlon of the road iH relevant and Inn
ling factor. Physical valuation proper
ly used will not generally impair Sc
curltlcr.
Rates Are Low, He Says.
I'm some cases. doubtless. II will be
found that overcnpitnlizatlon In made
an excuse for excessive rates. and then
they should be reduced but the con-
scnsus Of opinion seems 10 be that the
railroad rates generally In this coun-
try are reasonably low. This In why
doubtless the complaints nled with the
Interstate commerce commission
against excessive rates are go few AZ
discrimination In rates between shippers
and between places, or course In the de
termination of the question whether dis
criminntion II unlawful OF not the phys
lcal valuation OF the whole road is of 1T
tie weight.
Il have discussed with some degree
Of detail merely TO point out that tn.
valuation by tho Interstate comm"rc"
commission Of the tangible property OF
a railroad II proper ana may from
time to time d" necessary In settling
certain Of the issues which may come
before them ana that no evil or In
Justice can come from valuation In
such cases. II II be understood that the
result H. 90 be used for = Just rur'
pose, aud the right to "a fair pront uns
der all circumstances uf the Invest
msnt h rvcoRnlEed, The Interstate com
merro commission has now the power
10 ascertain the vnln" Of the physical
railroad property N necessary In de-
t.rfnininT the rnhunahlsnufa nf rides.
National Control Of Corporations.
Another suggestion In respect to
subordinate and nncillnry machinery
necessary Co carry out Republican poli-
rirH N that Of the Incorporation under
national law or the licensing by ma
tionai license or enforced registry Of
companies engaged IN Interstate trade
duinE "a commercial business are rns
gagged In interstate commerce, hnd N
thpY all were required 20 take out q
federal lir'nrr or federal charter,
the burden uppn tho inigrn,htU bust
moss ~ tho country would become IN
toirrnhir.
Wise some means for rlaHHlfYtnH aud
inaurinE federal supervision uf such
corporations ~ have the power und
temptation tn nnDrt restraints ~ In
iorstata trade and monapolirz Such
corporations constitute q very small
percentage ~ all engaged m intrrs
state business,
Reosevoits Proposed Classification.
with such clnuinrntian In view. Mr.
Roosevelt trrnmmqndsh ~ nmrhdmrnt
N the antitrust law, known NJ the
Hepburn biii which provided Tor vol,
uniary Qualification hnd created q
strong motive therefore by granting
Immunity from prosecutions Tor rpas
sanahir restrictions of Interstate
trade 90 hii corporations which would
register and submit themselves to ihs
publicity regulation % th" depart
meat ~ commerce and labor,
saTha Democratic platform suggests
a requirement that corporations aud
interstate trade having rnntrul nf -
Dot cent ~ tho products ~ which they
deal shall take out u federal lirpnsr.
fhiH classification would probably In
0tuda q great many small corpora
iinuH engaged In the manufacture ~
special articles or commodities whose
total value iH 80 uncomfortable that
they ate not really Within tho nor
view nf real sNii ~ the antitrust law.
n Ia not nov hprrHHhfNl however g.
discuss tiu relative merit 1f such prop
nHttinnH but n lH enough merely 20 A.
nrn the necessity Tor some method by
which greater executive supervision
can ha Given ip the federal government
nVff Those businesses IN which thufn 10
temptation Va violations ~ tho anti
trust law.
CONSTRUCTION Of Antitrust Law,
'Ths possible operation Of the anti