Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1908-07-31

wise the ways and means by which the
high level of business integrity and obe-
dience to law which he has established
may be maintained. and departures from
with legitimate business.
Railway Traffic Agreements.
TT Is agreeable to note In this regard
| that the Republican platform expressly
and the Democratic platform implicitly
approve an amendment to, the interstate
commerce law, by which interstate rail-
roads may make useful traffic agree
ments, If approved by the commissions.
phis has been strongly recommended by
the benefit Of the business.
Some OF the suggestions OF the Demo-
cratic platform relate really to this
s nh,or tee, and aneillary machinery to
stance, the so-called physical valuation
Of railways 1t is clear that the sum Of
al rates or receipts Of a railway, less
its property, and that If the sum exceeds
this measure, it ought to be reduced. The
difficulty in enforcing the principle is in
Of the company's property. and in fixing
what is fair profit. It is clear that the
physical value Of railroad and it's plant
nn element to be given weight II de-
dent Roosevelt in his indianapolis
speech and the supreme court have point
ed out the value of the railroad as 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
investment on which a fair profit must
ton What is men, fair '0G profit fhe is q9 one
involving not only the rate Of interest
merits. but also a sufficient allowance to
make up for the risk of loss both Of cap
ital and interest in the original outlay.
These considerations will have justified
the company in imposing charges high
enough to secure a fair income on the
enterprise as whole.
What Roosevelt Said.
GAS 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
more injure securities which have be-
wealth than It would consider a propo-
sition to repudiate the national debt
THE question Of rates and treat
ment of railways is one that has two
titled to reasonable rates; but less is
an injustice to the carriers. Good
business for the railroads is essential
to not aionps to
holders and capitalists whose further
investments may be necessary for the
good Of the whole country, but it d.
Of railroad employees.
For what has been said. the proper
conclusion would seem to be that in
attempting to determine that whether
way is excessive. the physical valua-
ton Of the road is relevant and i'm
portant but not necessarily. control
e. l,,1&
ly used will not generally impair Sc
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
against excessive rates are SO few as
compared with those against unlawful
discrimination in rates between shippers
and OF course IN the de-
elimination is unlawful or not, the phys
ical valuation Of the whole road is Of lit
tie weight.
Of detail merely 10 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: II 1t be understood s that the
pose, and the right to a fair profit I'M
der all circumstances Of the invest
ment is recognized. The interstate com
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
and ancillary machinery
cies is that Of the Incorporation under
national law or the licensing by ma
tional license or enforced registry of
engaged in interstate trade.
The fact is that nearly all corporations
doing a commercial business are en-
gagged in interstate commerce. and if
they all were required to take out
federal License or "a iederai charter
ness Of the country would become in
tolerable.
1T is necessary. therefore. to de-
insuring federal supervision of such
as have the power and
temptation to effect restraints Of in
terstate trade and monopolies. Such
constitute very small
of all engaged in inter-
state business.
r F,ooseveIt's Proposed Classification.
with such Classification in view, Mr. |
Roosevelt recommended an amendment
in the antitrust law, known as the
Hepburn pill which i PROVIDED as for vol,
strong motive therefore by granting
immunity from prosecutions for rea-
sonable restrictions, Of Interstate
trade to all corporations which would
register and submit themselves to the
publicity regulation of the depart
ment Of commerce and labor. |
1.-The Democratic platform gIRgests
I requirement that corporations and
interstate trade having control Of Is |
per cent. of the products in which they |
leal shall take out federal license. |
This classification would probably in
,lude a great many small corpora
lions engaged in the manufacture Of |
special articles or commodities whose |
.otal value is so inconsiderable that |
hey are not really within the per-
view or real evil OF the antitrust law.
K is not now necessary. however, to |
discuss the relative merit Of such prop |
,sitions. but 1t is enough merely to at
irm the necessity for some method by
which greater executive. supervision
IAN be given to the federal government
'ver these businesses in which there Is
temptation to violations of the anti
rust law.
Construction Of Antitrust Law.
1.-THE possible operation of the anti