Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1908-08-13

charges high enough to secure a fair
income on the enterprise as a whole.
The securities at market prices will
have passed into the hands of subse.
Quent purchasers from the original In.
vestors. Such circumstances should
properly affect the decision of the tri.
bunal engaged in determining whether
the totality of rates charged is reason.
able or excessive. To ignore them
might so seriously and unjustly i'm.
pair settled values as to destroy all
hope of restoring confidence and for
ever end the inducement for invest.
ment In new railroad construction
which. in returning prosperous times.
Is sure to be essential to our material
progress.
From what has been said, the proper
conclusions would Seem to be that II
attempting to determine whether ths
entire schedule Of rates Of railway b
excessive. the physical valuation Of the
road Il relevant and important but
not necessarily a controlling factor.
am confident that the fixing OF
rates on the principles suggested abovs
would not materially impair the pres
emit market values Of railroad securi.
ties In most cases, for believe that
the normal increase In the value OF
railroad properties, especially In their
terminals, viii more than make MP for
the possible overcapitalixation In ear.
lier years. In some cases, doubtless
II will be found that overcapitalization
is made an excuse for excessive rates
and then they should be reduced; but
the consensus of opinion seems TO be
that the railroad rates generally in this
country are reasonably low.
Conclusion That There Should Be
Physical Valuation.
/ have discussed this, with some de.
gree Of detail, merely to point out that
the valuation by the Interstate Com
merce Commission of the tangible
property Of q railroad is proper and
may from time to time be necessary IN
settling certain issues which may come
before them, and that no evil or injus
tice can come from valuation in such
cases, If 1t be understood that the re-
suit is to be used for a just purpose,
and the right to fair profit under all
the circumstances of the investment is
recognized
National Control of Interstate Com
merce Corporation.
Another suggestion in respect to sub
ordinate and ancillary machinery nee
essary to carry out Republican policies
is that Of the incorporation under Ma
tional law or the licensing by National
license or enforced registry Of compa-
MES engaged In interstate trade. The
fact is that nearly all corporations do
ing commercial business are engaged
In interstate commerce, and If they all
were required to take out Federal
license or Federal charter, the bur
den upon the interstate business OF the
country would become intolerabAe.
1t is necessary, therefore, TO devise
some means for classifying and insur-
ing Federal supervision Of such cor
porations as have the power and temp
tation to effect restraints of interstate
trade and monopolies. Such corpora
tions constitute a very small percent
age Of all engaged In interstate bust
ness.
Construction Of Antitrust Law.
The possible operation of the anti
trust law under existing rulings of the
Supreme Court has given rise to sug-
gestions for its necessary amendment
to prevent its application to cases
which 1t is believed were never In the
contemplation Of the trainers of the
statute. Take two instances: A mer-
chant or manufacturer engaged In a
legitimate business that covers certain
States, wishes to sell his business and
his good will, and 30 In the terms Of
the sale obligates himself 30 the pur-
chaser not to 90 into the same busi-
ness In those States. Such a restraint
Of trade has always been enforced at
common law. Again, the employees Of
an interstate railway combine and en-
ter upon a peaceablo and lawful strife
to secure better wages At common
law this was not q restraint Of trade
or commerce or q violation Of the
rights of the company or of the public.
Neither case ought TO be made a viola
tion Of the antitrust faw. My own
impression Is that the Supreme Court
would hold that neither Of these In
stances is within it's inhibition, but, II
they are to be 90 regarded, general leg
islation amending the law Is necessary.
The proposal to compel every cor
poratiOn to sell its commodities at the
same price the country over, allowing
for transportation, is utterly imprac-
ticable. II 1t can be shown that In or
der to drive out competition. a eorpo-
ration owning large part Of the plant
producing an article Is selling In one
part OF the country, where II has COM
petitors, at a low and Improbable
price, and In another part Of the coun-
try, where 1t has none, at an exorbi-
tant price. this is evidence that II Is at
tempting an unlawful monopoly, and
justtfes conviction under the antitrust
law; but the proposal to supervise the
business Of corporations In such a way
as to fix the price Of commodities and
compel the sale at such price is as alb
surd and socialistic a plank as was
ever inserted In Democratic political
platform.
Advantage Of Combination OF Capital
The combination Of capital In large
plants to manufacture goods with the