The Julesburg grit-advocate., 1908-07-31

| niSii ltNel or business Integrity and oh,--
| dience Ia law which he has established
may be maintained, and departures from
it 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 implicdly
approve an amendment TO the interstate
| commerce law. by which interstate rail
roads may make useful traffic agree
ments. if approved by the commissions
pnis prds, has has been strongly recon,rnrnded by
the benefit of the business.
Some of the suggestions Of the Demo
cratic platform relate really to ths
| which ! have referred. Take for in
stance the so-called physical valuation
or railways. 1t is clear tina, the sum Of
all rates or receipts of railway. less
proper expenses should be limited 10 a
fair profit upon the reasonable value of
its property and that If the sum exceeds
| TINS measure, ii ought to he reduced. The
| difficulty in enforcing the principle is in
asccrtainnS what is the reasonable value
what is fair profit. 1t is clear that the
| physical value of Il railroad and its plant
is an element to be given weight in de
termining its fun value: but Presi-
| dent Roosevelt in his indianapolis
speech and the supreme court have point
ed out the value of the railroad as. a go
| ing concern. including its good will, due
to efficiency of service, and many other
circunstanees. may be much greater
| tnan the value OF its tangible property
and it is the former that measures the
be be-, allowed: Then; too: Tie auas.
involving not only the the rate n,'', of in,crcs,
| usually earned on normally safe invest
m"hts. but also Il sufficient allowance to
| make up for the risk of loss both of cap
| lthl 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 whole.
What Roosevelt Said.
LAS Mr.. Roosevelt has said in speak
ing of this very subject:
The effect 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
| come an important part of the national
wealth than it would consider a propo-
sition to repudiate the national debt
| The question of rates and treat
mcnt of railways is one that has two
sides The shippers are certainly en-
an Injustice to the carriers. Good
business for the railroads is essential
to- to- general prosperity. Injustice to
holders and capitalists. whose further
investments may be necessary for the
good Of the whole country. but it di-
| of railroad employees.
For what has been said. the proper
e1nSimS'"n YOU'D We d seem to n be that in
| the entire schedule of rates of a rail-
way is excessive, the physical valua-
tion of the road is a relevant and i'm
portant but not necessarily a control
| ling factor Physical valuation proper
ly used will not generally impair
| curities.
Rates Are Low, He Says.
'In some cases. doubtless. it will be
found that overcapitaliZation is made
an excuse for excessive rates, and then
sensus of opinion seems to be that the
railroad rates generally in this coun-
try are reasonably low. This is why
doubtless the complaints filed with the
| interstate commerce commission
against excessive rates are so few as
compared with those against unlawful
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.
II have discussed with some degree
of detail merely to point out that the
| valuation by the interstate commerce
commission of the tangible property OF
a, railroad is proper and may from
| certain of the issues which may come
before them and that no evil or in
justice can come from valuation in
such cases. il it be understood that the
| result is to be used for just pur
pose. and the right to a fair profit un-
ment ne as is recoenzed. The Interstate ,"c com
mcrce commission has now the power
to ascertain the value of the physical
| railroad property If necessary in de-
termining the reasonableness of rates.
National Control Of Corporations.
| another suggestion In respect to
subordinate and ancillary machinery
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
| 10
doing a commercial business are en-
gagged in interstate commerce. and If
| federal license federal charter,
| the burden upon the interstate busi
ness of the country would become in
| tolcrable.
| 1T is necessary. therefore. to de-
wise some. means for classifying and
| insuring federal supervision of such
corporations as have the power and
| temptation to effect restraints of in
tcrstate trade and monopolies Such
percentage of all engaged in inter-
| state business.
| Roosevelt's Proposed Classification.
with such classification In view Mr.
Roosevelt recommended an amendment
in the antitrust law. known as the
Hepburn bill. which provided for vol
| untary classification. and created n
| strong motive therefore by granting
sonable restrictions of inter state
trade to all corporations which would
|
| publicity regulation of the depart
ment of commerce and labor.
1.-THE Democratic platform suggests
| f. requirement that corporations and I
| interstate trade having control OF %
per cent of the products in which they
| deal shall take out a federal license |
| This classification would probably In
clude a great many small corpora
tions engaged in the manufacture Of
special articles or commodities whose |
total value is so tnconsiderable that |
they are not really within the per
view or real evil of the antitrust lay |
1t. is not now necessary. however. to
discuss the relative merit of such prop-
ositions. but it is enough merely to az |
firm tho necessity for some method by |
which greater executive supervision |
can be given to the federal government |
over these businesses in which there is |
a temptation to violations of the anti
trust law.
Construction Of Antitrust Law.
1.-THE possible operation OF the anti