The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1908-08-06

1 AOduS III ltttlSA country mas ETOWu SO nGaXy
that It is utterly Impossible for that tri.
bunal to dispose, in any reasonable time
OF the many complaints, queries nj Is
sues that are brought before it for de-
~cision. It ought to be relieved ofits juris.
dictlon as N executive, directing body,
and It's function should be limited to the
Squasi,ludicial investigation of complaints
by individuals and by a 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-
nopolies, 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 n labor.
The field covered by the Industrial COM
binations n 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 of commerce and labor, or agrt-
a change In the jurisdiction Of Interstate
Commerce commission. It does not as
slst matters to aspire to prescribe new
mission which 1t is practically impos-
sible for it to perform or to denounce
now offenses with drastic punishment,
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
anxious to obey the federal statutes to
know just what are the bounds Of their
lawful action. The practical construct
who follow Mr.. Roosevelt Is to devise
the ways and means by which the high
level of business integrity and obedience
to law which he has established mat 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
roads may make useful traffic agreements
II approved by the commission. This has
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
~subordinate and anctllary machinery
for so T INSTANCE, th have so-c cefsrIed: phy Taeai
valuation of railways. It Is clear
that the sum Of all rates or receipts of q
limited to a fair profit upon the reason
able value of its property, and that If the
sum exceeds this measure, 1t ought to be
reduced. The difficulty in enforcing the
reasonable value Of the company's prop
erty. n in fixing what Is a fair profit.
It is clear that the physical value of a
railroad and it's plant, is an element to
be given weight in determining its full
value: but as President Roosevelt in his
ana hpoe ro Ipeesn ou ana fbe t ne,,s su p T me
railroad as a growing concern. including
its good will, due to efficiency Of service
much greater than the value of its
tangible property and it is the former that
measures the Investment on which a fair
profit must be allowed.
Physical valuation properly used will
not generally impair securities. I am con-
fident that the fixing of rates on the
terially impair the present market value
of railroad securities in most cases for I
believe that. the normal increase in the
value of railroad properties especially in
their terminals will more thar make up
for the possible over capitalization in
early years.
of detail merely to point out that the
valuation of the Interstate
commission of the tangible property of a
railroad is proper and may from time to
which may come before them and that no
evil or Injustice can come from valuation
result is to be used for a just purpose,
and the right to a fair profit under ali
the circumstances is recognized. The In
power to ascertain the value Of the phys
ical railroad property if necessary In de-
terrnining the r~easonableness of rates. II
the machinery for doing so Is not ade-
quate, as is probable. it should be made
SO.
The republican. platform recommends
legislation f~orbidding the issue in the fu-
ture of interstate railway stocks n
bonds without federal authority. It may
occur In such cases that the full value Of
the value Of the tangible property of the
railway, would be a relevant and import
ant factor in assisting the proper author
ity to determine whether the stocks
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 aluatio 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
business, are engaged In interstate COM
merce. and II they all were required to
tax out a federal license or q federal
charter the burden upon the interstate
business of the country would become In
toIerable.
It is necessary. therefore to devise some
AAS0iS " HE duO ellSuIlliS leu
eral supervision of such corporations as
have the power and temptation to effect
restraints of Interstate trade and monopo-
lies. Such corporations constitute q 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 q chin
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 han the other,
and when such aggregations 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?
When, however. such combinations are
not based on any economic principle but
are made merely for the purpose OF con-
trolling the market to maintain or raise
prices. restrict output and drive out COM
petitors, the public derives no benefit and
we have a monopoly. There must be some
uSe by the company of the comparatively
great size Of it's capital and plant and ex-
tent Of Its output, either to coerce persons
to buy of it rather thar Of some COM
petitor or to coerce those who would COM
pete with 1t to give up their business.