The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1908-07-30

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may be maintained, and departures from
it restrained without undue interference
with legitimate business.
Railway Traffic Agreements.
ut 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.
This has been strongly recommended by
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 l have referred. Take for in
stance, the so-called physical valuation
of railways. 1t is clear that the sum of
all rates or receipts of railway, less
proper expenses should be limited to a
| fair profit upon the Reasonable value of
its property and that if the sum exceeds
this measure, 1t ought to be reduced. The
difficulty in enforcing the principle is In
ascertaining what is the reasonable value
of the companys property, and in fixing
what Is 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
speech and the supreme court have point
ed out, the value of the railroad as GO
ing concern, including it's 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
/ be allowed. Then. too, the ques-
ton what Is a fair profit is one
involving not only the rate OF interest
usually earned on normally safe invest
/ 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 VIII have lusuncd
the company in imposing charges nigh
/ enough to secure fair income on the
/ enterprise as whole
What Roosevelt Said.
AS Nh Roosevelt has said In speak
4 ing Of this very subject:
" The effect Of such valuation and SUI
4 pervision Of securities cannot be retro
active. Existing securities should be
i tested by laws in existence at the time
/ of their issue. This nation would no
more injure securities which have be-
come an important part of the national
! wealth than it would consider propo-
sition to repudiate the national debt
"fho 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
\ -
business for the railroads is essential
to general prosperity. Injustice to
! them is not alone injustice to stock
holders and capitalists, whose further
| investments may be necessary for the
good of the whole country, but II di
rcetly affects and reduces the wages
of railroad employees.
"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-
ton Of the road is a relevant and i'm
portant but not necessarily control
! ling factor. Physical valuation proper
! 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
! they should be reduced. but the con-
scnsus 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
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 or
a railroad is proper ana may from
| time to time be necessary IN settling
| certain of the issues which may come
before them and that no evil or in
! iustice can come from valuation in
| such cases If it be understood that the
! result is to be used for just pur-
| pose, and the right to fair proft UNI
| 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 If necessary in de-
| terminng the reasonablcness OF rates.
National Control Of Corporations.
"Another suggestion in respect to
subordinate and ancillary machinery
necessary to carry out republican pom
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 commercial business are en-
gagged in interstate commerce, and If
| they all were 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-
wise some means for classifying and
| 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.
RcoseveIt'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
strong motive therefore by granting
immunity from prosecutions for rea-
| sonabe restrictions of inter state
trade to all corporations which would
register and submit themselves to the
publicity regulation or the depart
mcnt of commerce and labor.
'"The Democratic platform suggests
a requirement that corporations and
interstate trade having control Of %
per cent. Of the products In which they
deal shall take out federal license.
This classification would probably in
lions engaged in the manufacture OF
special articles or commodities whose
total value is so inconsiderable that
they are not really within the per-
view or real evil of the antitrust law.
1t is not now necessary, however to
discuss the relative merit Of such prop
ositions, but 1t Is enough merely to af-
firm the necessity for some method by
which greater executive supervision
can be given to the federal government
over these businesses IN when there IS
temptation to violations of the anti
trust law.
Construction of Antitrust Law.
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