The Yale expositor., 1908-07-31
TAFT ACCEPTS NOMINATION
DECLARES HIS POLICIES
Makes His Notification Speech at
Cincinnati, While City Is in Gala
Attire to Receive Him as a Con-
quering Hero--- Text of
His Speech.

wise the ways and means by which the
nigh level OF business integrity and ODE
dience to law which he has established
may be maintained, and departures from
II 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, IL 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 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, IL ought to be reduced The
difficulty In enforcing the principle is in
ascertaining what is the reasonable value
what is a 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, lncludlnR ltS GOOD Will, que
TO efficiency of service and many other
circumstances. may be much greater
than the value of its tangible property
and IL is the former that measures the
investment on which fair profit must
be allowed. Then. too. the ques-
ton what is fair profit is one
| involving not only the rate of interest
usually earned on normally safe invest
ments, 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 fair income on the
enterprise as whole.
What Roosevelt Said.
"As Mr. Roosevelt has said in speak
ing of this very subject:
1.-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-
come an important part of the national
wealth than II would consider propo-
sition TO repudiate the national debt
The 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
| an injustice to the carriers Good
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 IL di-
rectly 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 relevant and I'M
| portant but not necessarily control
| ling factor. Physical valuation proper
ly used will not generally impair Sc
Rates Are Low. He Says.
'In some cases. doubtless. 1t will be
found that overcaptalization is made
an excuse for excessive rates. and then
they should be reduced. but the con-
sensus Cf 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
IT 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
time to time be necessary in settling
certain of the issues which may come
before them and that no evil or in
Justice 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 profit un-
der all circumstances OF the invest
ment is recognized. The interstate com
to ascertain the value OF the physical
railroad property II necessary In de-
termining the reasonableness OF rates.
National Control of Corporations.
Another suggestion in respect to
subordinate and ancillary machinery
necessary TO carry out Republican poll
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 a commercial business are en-
gagged in interstate commerce. and IL
they all were required to take out a
federal license or federal charter
the burden upon the Interstate bust
ness of the country would become IN
tolerable.
wise some means for classifying and
| insuring federal supervision OF such
corporations as have the power and
temptation TO effect restraints OF in
terstate trade and monopolies. Such
corporations constitute very small
percentage OF all engaged in inter-
state business.
RooseveIt's Proposed Classification.
? with such Classification in view. Mr.
in the antitrust law, known as the
Hepburn bill which provided for vol
untarY cldSluCallOns n
! | strong motive therefore by granting
immunity from prosecutions for rea-
sonable restrictions OF inter-sta e
trade to all corporations which would
register and submit themselves to the
publicity regulation OF the depart
ment of commerce and labor.
The Democratic platform suggests
? a requirement that corporations and
, interstate trade having control OF q
per cent OF the products in which they
deal shall take out a federal license
, This classification would probably in
clude great many small corpora
tions 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
IL is not now necessary, however. &c
discuss the relative merit of such prop
ositions but 10 is enough merely 20 AT
, firm the necessity for some method by
| which greater executive supervision
can be given 20 the federal government
over these businesses In which there 4
a temptation to violations Of the anti
trust law.
: Construction Of Antitrust Law.
"The possible operation of the anti