Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1908-08-07

maintained by which the lawbreakers
may be promptly restrained and punished
curacy and dispatch TO interfere with
Legitimate business as little as possible.
! Such machinery is now adequate. Under
the present rate bill and under all its
amendments the burden of the Inter-
state Commerce commission in supervis-
ing and regulating the operation OF rail-
roads of this country has grown so heavy
that 1t is utterly impossible for that tri-
bunal TO dispose, in any reasonable time
! of the many complaints. queries and is
sues that are brought before IL for de-
cision. 1t ought to, be relieved Of its juris-
dietlon as an executive, directing body,
and Its function SHOULD be limited to the
quasi-judicial investigation OF complaints
by individuals and by q department of the
| government charged with the executive
business Of supervising the operation of
| railways.
There should be a classification of that
very small percentage of industrial cor
| porations having power and opportunity to
effect illegal restraints of trade and mo-
~nopoies, and legislation either inducing
or compelling them to subject themselves
to registry and to proper publicity reg
ulations and supervision of the depart
ment of and labor.
The field covered by the industrial COM
binations and by the railroads is SO very
extensive that the interests OF the public
and the interest of the business concerns
| cannot be properly subserved except by
reorganization OF bureaus in the depart
ment Oh commerce ana laDOT, VI dSTi-
culture and the department Of justice and
a change IN the jurisdiction of Interstate
Commerce commission. 1t does not as
sist matters to aspire to prescribe new
duties for the Interstate COM
mission which 1t is practically impos-
sible for 1t to perform or to denounce
now ~offenses with drastic punishment,
unless subordinate and ancillary iegislao
ton shall be passed making possible the
quick enforcement in the great variety
OF cases which are constantly arising. OF
the principles laid down by Mr.: Roose-
welt. and with respect to which only
typical instances of prosecution with the
present machinery are possible. Such leg
~islation should and would greatly promote
legitimate business by enabling those Sc
know just what are the bounds of their
lawful action. The practical construct
I've and difficult work, therefore, OF those
who follow Mr.. Roosevelt Is to devise
the ways and means by which the nigh
level of business integrity and obedience
to law which he has established may be
maintained and departures from 1t re-
strained without undue interference with
legitimate business.
1t Is agreeable to note in this regard
that the republican platform expressly
and the democratic platform implicitly APP
prove an amendment to the interstate
law, by which interstate rail-
roads may make useful traffic agreements
If approved by the commission. rms mas
been strongly recommended by President
Roosevelt and will make for the benefit
Of the business.
Physical Valuation.
Some of the suggestions of the demo-
cratic platform relate really to this
ss So 1bieS and na Secilla reyerre %ecn TaKs,
Valuation Of railways. It IS clear
that the sum of all rates or receipts OF a
limited to a fair profit upon the reason
| able value OF it's property, and that II 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 prop
erty. and in fixing what is a fair profit.
II is clear that the physical value OF a
railroad and its plant, Is an element to
be given weight in determining its full
value; but as President Roosevelt in his
indianapolis speech and the supreme
court have pointed out, the value OF the
railroad as a growing 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 il is the former that
measures the investment on which a fair
profit must be allowed.
Physical valuation properly used will
not generally impair securities. l am con-
fdent that the fixing of rates on the
| principle suggested above would not ma
terially impair the present market value
of railroad securities in most cases for /
believe that the normal increase III the
value of railroad properties especially in
their terminals will more than make up
for the possible over capitalization In
early years.
/ have discussed this with some degree
of detail merely TO point out that the
valuation of the Interstate Commerce
commission of the tangible property of a
railroad is proper and may from time to
time be necessary in certain of the issues
which may come before them and that no
evil or injustice can come from valuation
in such cases, it be understood that the
result Is to be used for a Just purpose,
and the right to a fair profit under all
the circumstances is recognized. The In
t~erstate Commerce commission has not the
power to ascertain the value of the phys
ical railroad property If necessary in de-
termining the reasonableness OF rates. II
the machinery for doing so Is not ade-
quate. as is probable, 1t should be made
so.
The republican platform recommends
legislation forbidding the issue in the fu-
ture of interstate railway stocks and
bonds without federal authority. 1t may
occur In such cases that the full value of
the railway. and as an element thereof,
the value of the tangible property OF the
railway, would be a relevant and import
ant factor in assisting the proper autnor-
ity to determine whether the stocks and
bonds to be issued were to have proper
security behind them, and in such case
therefore there should be the right and
machinery to make a valuation OF the
physical property.
Control Of Trusts.
Another suggestion in respect TO SUI
coordinate and ancillary machinery neces-
sary to carry out republican policies Is
that Of the Incorporation under national
law or the licensing by national license or
enforced registry of companies engaged in
interstate trade. The fact Is that nearly
all corporations doing q commercial
business, are engaged in interstate COM
merce, and IL they all were required TO
take out a federal license or a federal
charter the burden upon the Interstate
business of the country would become In
tolerable.
1t Is necessary therefore to devise some
means for classifying and ~ensuring fed
eral supervision of such corporations as
have the power and temptation to effect
restraints of interstate trade and monopo-
lies. Such corporations constitute a very
small percentage Of all engaged in in
terstate business.
The combination OF capital in large
! plants to manufacture goods with the
greatest economy Is just as necessary as
the assembling OF the parts of a machine
to the economical and more rapid manu-
facture of what In old times was made by
hand. The government should not inter-
fere with one any more than the other,
and when such a~ggregations OF capital are
legitimate and are properly controlled
they are then the natural result of mod
ern enterprise and are beneficial TO the
public. In the proper operation OF compe-
tition the public will soon share with the
manufacturer the advantage In economi-
cal operation and lower prices.
What is Unlawful Trust?