Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-01


ways. The Interstate Commerce Com
mission should be provided with the
means to make a physical valuation of
any road as to which it deems this
valuation necessary. In some form
the Federal Government should exer-
else supervision over the financial
operations of our interstate railroads.
In no other way can justice be done
between the private owners of those
properties and the public which pay
their charges. When once an inflated
capitalization has gone upon the
market and has become fixed in value,
its existence must be recognized. AS
practical matter it is then often
absolutely necessary to take account
Of the thousands of innocent stock
holders who have purchased their
stock in good faith. The usual result
of such imitation is therefore to impose
upon the public an unnecessary but
everlasting tax, while the innocent
purchasers of the stock are also
harmed and only a few spectators are
benefited. Such wrongs when once
accomplished can with difficulty be
u.idone; but they can be prevented
with safety and with justice. When
combinations Of interstate railways
must obtain Government sanction;
when It is no longer possible for an
Interstate railway to issue stock or
bonds, save IN the manner approved
by the Federal Government; when
that Government makes sure that the
proceeds of every stock and bond issue
&c Into the improvement of the prop
erty and not the enrichment of some
individual or syndicate; when, when
erer It becomes material for guidance
In the regulative action of the Govern
tnent. the physical value of one OF
these properties is determined and
made 'knowr-tnere will be eliminated
from railroad securities that element
OK uncertainty which lends to them
.tneir speculative quality and which
has contributed much to the financial
stress Of the recent past.
think that the Federal Government
fni's also assume 4 certain measure
ct control over the physical operation
of railways in the handling of inter-
state traffic. The Commission now has
Authority to establish through routes
and Joint rates. In order to make this
provision effective and in order to pro-
movement OF traffic, l think 1t must
also have authority to determine the
conditions upon which cars shall be
iaterchansed between different inter-
state railways. 1t is also probable
mat the Commission should have au-
thorily, in particular instances. to de-
. sermfne the schedule upon which per-
sslan BILE commodities shall be moved.
in this connection l desire to repeat
my recommendation that railways be
permitted to form traffic associations
TO. the purpose of comforting about
and agreeing upon rates. regulations
and practices affecting Interstate bus!-
hess in which the members of the as
soctation are mutually Interested
Tais does not mean that they should
N' given the right to pool their earn
jligs or their traffic. The law requires
that rates shall be adjusted as not
to discriminate between individuals,
localities. or different species of traffic.
Ordinarily, rates by all competing lines
must be the same. AS applied to prac-
teal conditions, the railway operations
of this country can not be conducted
according to law without what is
equivalent to conference and agree
ment. The articles under which such
associations operate should be APP
proved by the Commission; all their
operations should be open to public in
spection: and the rates. regula tons
and practices upon which they agree
should be subject to disapproval by
the Commission.
I urge this last provision with the
same earnestness that / do the others.
This country provides its railway
facilities by private capital. Those
facilities will not be adequate unless
the capital employed is assured of just
treatment and an adequate return.
In fixing the charges of our railroads,
l believe that. considering the inter-
ests of the public alone, it is better to
allow too liberal rather than too
sclnty earnings. for, otherwise. there
is grave danger that our railway de-
= Selop'nent may not Keep pace with
the demand for transportation. But
the Fundamental idea that these rail-
Ways are public highways must b,
recognized. and they must be open to
the whole public upon equal terms
and upon reasonable terms.
In reference to the Sherman anti
trust law, l repeat the recommended
tons made in my message at the
opening Of the present Congress. as
well as in my message to the previous
Congress. The attempt in this law 10
provide in sweeping terms against all
combinations of whatever character,
II technically in restraint of trade as
such restraint has been defined by The
courts. must necessarily be either
futile or mischicvous. and sometimes
both. The present law makes some
combinations Illegal. although they
may be useful to the country. On the
other hand. as to some huge combina-
tons which are both noXious and
illegal. even If the action undertaken
against them under the law by the
Government is successful. the result
may be to work but a minimum bene-
fit to the public. Even though the
=. combination be broken up and a small
measure of reform thereby produced,
the real good aimed at can not be
obtained, for such real good can come
only by a fhOrDOph and continuing