The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-28

that overcapitalization is made an ex-
cuse for excessive rates, and then they
should be reduced; but the consensus
or opinion seems to be that the railroad
rates generally in this country are rea-
sonably low. This is why, doubtless,
the complaints filed with the inter-
state commerce commission against
excessive rates are so few as COM
pared with those against unlawful dis
elimination in rates between shippers
and between places. OF course, In the
determination Of the question whether
discrimination is unlawful or not. the
physical valuation of the whole road is
of little weight.
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 prop
from time to time be necessary in set
ting certain issues which may come
before them, and that no evil or intus-
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. The interstate commerce
commission has now the power to
ascertain the value of the physical
termining the reasonableness of rates.
If the machinery for doing so is not
adequate, as is probable, 1t should be
made so.
The Republican platform recon-
mends legislation forbidding the issue
in the future of interstate railway
stocks and bonds without federal au
thority. 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 important factor in
assisting the proper authority to deter
mine whether the stocks and bonds to
be issued were to have proper security
behind them, and in such case, there
fore, there should be the right and
machinery to make a valuation Of the
physical property.
National Control Interstate Commerce
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 COM
panies engaged in interstate trade. The
fact Is that nearly all corporations do
ing a commercial business are engaged
in interstate commerce, and il they all
were required to take out a federal
license or a federal charter, the burden
upon the interstate business of the
Should Be Limited.
1t is necessary, therefore, to devise
some means for classifying and insur-
ing federal supervision of such corpora
tons as have the power and tempta-
ton to effect restraints of interstate
trade and monopolies. Such corpora
lions constitute a very small percent
age Of all engaged In interstate bust
ness.
Mr. Roosevelt's Proposed Classification
With such classification in view, Mr.
Roosevelt recommended an amendment
to the antitrust law, known as the
Hepburn BILL which provided for vol
untary classification, and created a
strong motive therefor by granting i'm
munity from prosecution for reasonable
restraints of interstate trade to all cor
porations which would register and
submit themselves to the publicity reg
ulations of the department of COM
merce and labor.
Democratic Proposed Classification.
The Democratic platform suggests a
requirement that corporations in inter
state trade having control of 25 per
cent of the products in which they
deal shall take out federal license.
This classification would probably in
clude a great many small corporations
engaged in the manufacture of spec
ial articles. or commodities whose to-
tai value is so inconsiderable that they
are not really within the purview or
real evil of the antitrust law.
1t Is not now necessary, however. to
discuss the relative merit of such pro-
positions, but 1t is enough merely to
affirm the necessity for some method
by which greater executive supervision
can be given to the federal government
over those businesses in which there is
a temptation to violations of the anti
trust law.
IT
The possible operation of the anti
trust law under existing rulings of the
supreme court has given rise to sug-
gestions for it's necessary amendment
to prevent its application to cases
which it is believed were never in the
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 so in the terms of
the sale obligates himself to the pur-
chaser not to go into the same business
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- |
to secure better wages. At common
law this was not a restraint Of trade |
or commerce or a violation of the |
rights of the company or of the pub |
lie. Neither case ought to be made a |
violation of the antitrust law. My own |
Is that the supreme court |
would hold that neither of these in |
stances are within its inhibition, but. |
IL they are to be so regarded. general |
legislation amending the law is neces- |
sary.
Democratic Plank Faulty.
The suggestion of the Democratic |
platform that trusts be ended by for |
bidding corporations to hold more |
than so per cent of the plant in any |
line of manufacture Is made with re-
gard to the possibility of enforcement |
or the real evil in trusts. corpora
ton controlling AZ or SO per cent of |
the products may by well known 1
methods frequently effect monopoly |