Gilpin observer., 1908-07-30
Makes His Notification Speech al
Cincinnati, While City Is in Gala
Attire to Receive Him as a Con-
guering Hero---7ext of
His Speech.


dience to law which he has established
may be maintained. and departures from
II restrained without undue interference
with legitimate business.
Railway Traffic Agreements.
"It is agreeable to note in this regard
that the Republican platform expressly
and the Democratic platform impliedly
commerce law. by which interstate rail-
roads may make useful traffic agree
ments II approved by the commissions
President 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 have referred Take for in
of railways. 1t is clear that the sum of
all rates or receipts of "A railway, less
proper expenses, should be limited to
It's property. and that If the sum exceeds
this measure, it ought to be reduced The
dlihculty In enforcing the principle is in
ascertaining what is the reasonable value
OF the company's property, and in fixing
what is a fair profit. 1t is clear that the
physical value of a railroad and its plant
Is an element to be given weight in de-
termining its full value; but as Presi-
dent Roosevelt in his indianapolis
ed out. the value of the railroad as a GO
Ing concern. including its good will, due
to efficiency of service. and many other
circumstances. may be much greater
than the value OF its tangible property
and it is the former that measures the
Investment on which fair profit must
ton what is fair profit is
involving not only the rate of interest
ments, but also sufficient allowance to
make up for the risk of loss both of cap
lIai and interest in the original outlay.
These considerations will have justified
the company in imposing charges high
enough to secure fair income on the
enterprise as a whole.
What Roosevelt Said.
"As Mr.; Roosevelt has said in speak
Ing Of this very subject:
The effect of such valuation and su-
pervision of securities cannot be retro
active. Existing securities should be
more injure securities which have be-
come an important part of the national
sition to repudiate the national debt
The question of rates and 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
good Of the whole country. but 1t di-
rectly affects and reduces the wages
of railroad employed.
For what has been said. the proper
conclusion would seem to be that in
attempting to determine that whether
the entire schedule of rates of rail-
way is excessive. the physical valua-
tion of the road is relevant and i'm
portant but not necessarily control
ly used will not generally impair Sc
curities.
Rates Are Low. He Says.
in some cases doubtless. IL will be
found that overca pitalization is made
an excuse for excessive rates. and then
they should be reduced. but the con-
sensus of opinion seems to be that the
railroad rates generally in this coun-
doubtless the complaints filed with the
interstate commerce commission
against excessive rates are SO few
compared with those against unlawful
discrimination in rates between shippers
and between places. OF course in the de-
termination OF the question whether dis
elimination is unlawful or not. the phys
ical valuation of the whole road is OF lit
tie weight.
of detail merely to point out that the
valuation by the interstate commerce
commission OF the tangible property of
railroad Is proper and may from
time to time he necessary in settling
certain of the issues which may come
before them and that no evil or in
such cases. II II be understood that the
result is to be used for a just pur
der all circumstances OF the invest
ment is recognized. The interstate com
merce commission has now the power
to ascertain the value of the physical
railroad property II necessary in de-
termining the .reasonab bleness OF rates.
National Control Of Corporations.
Another suggestion in respect to
subordinate and ancillary machinery
necessary to carry out Republican poll
cies Is that of the incorporation under
national law or the licensing by ma
tional license or enforced registry of
companies engaged in Interstate trade.
The fact Is that nearly all corporations
doing n commercial business are EN-.
gagged in interstate commerce, and IL
they all We're required to take out
federal license or "A federal charter.
the burden upon the Interstate bust
ness of the country would become in
tolerable.
1T is necessary. therefore. to de-
insuring federal supervision of such
corporations as have the power and
temptation to effect restraints of in
terstatc trade and monopolies. Such
corporations constitute very small
percentage of all engaged in inter-
state business
Roosevelts Proposed Classification.
with such classification In view. Mr..
in the antitrust law, known as the
Hepburn bill which provided for vol
untary Classification. and created n
strong motive therefore by granting
immunity from prosecutions for ren-
sonable restrictions of Interstate
trade to all corporations which would
publicity regulation of the depart
ment of commerce and labor.
"rhc Democratic platform suggests
II requirement that corporations and
interstate trade having control OF 25
per cent. of the products In which they
deal shall take out II federal license.
This classification would probably in
cludo great many small corpora
tions engaged in the manufacture OF
special articles or commodities whose
total value is so inconslderable that
they are not really within the per-
view or real evil of the antitrust law.
It liz not now necessary, however. to
discuss the relative merit OF such prop
ositions, but II Is enough merely to af-
Arm the necessity for some method by
which greater executive supervision
can be given to the federal government
over these businesses In which there is
n temptation TO violations of the anti
trust law.
Construction Of Antitrust Law.
1.-THE possible opcration of the anti-