davidaulloa/AmericanStories huggingface dataset:
The San Francisco call., 1908-07-29

The field covered by the industrial
combinations and by railroads is so
very extensive that the interests of
the public and the interests of the
business concerned cannot be properly
subserved except by reorganization of
bureaus in the departments of COM
merce and labor, of agriculture and
of justice and a change in the
jurisdiction of the interstate COM
merce commission. 1t does not as
sist matters TO prescribe new duties for
the interstate commerce commission,
which it is practically impossible for
it to perform, or to denounce new Of
lenses with drastic punishment unless
subordinate and ancillary legislation
shall be passed makin8 possible the
quick enforcement in the great va
riety of cases which are constantly aris
ing of the principles laid down by Mr..
Roosevelt, and with respect to which
only typical instances of prosecution
with the present machinery are possi-
bic. Such legislation should and would
greatly promote the great businesses
by enabling those anxious to obey
the federal statutes to know just what
The practical constructive and difficult
work therefore, of those who follow
Mr.. Roosevelt is to devise ways and
means by which the high level OF busi
ness integrity and obedience to law
which he has established may be MAIN
tained, and departure from it restrained
without undue interference with legiti-
mate business.
The San Francisco call., 1908-07-29

ton Of the next administration is to
perfect the machinery by which these
standards may be maintained, by which
the law breaker may be promptly re-
strained and punished. but which shall
operate with sufficient accuracy and
dispatch TO interfere with the great
businesses as little as possible. Such
machinery is not now adequate. Under
the present rate bill and under all its
amendments the burdens of the inter
state commerce con mission in super
Vlsing and regulating the operation
of the railroads of this country have
grown so heavy that it is utterly i'm
possible for that tribunal to hear and
dispose In any reasonable time of the
many complaints, queries and issues
of its jurisdiction as an executive, di-
recting body and its functions should
be limited to the quasi-judicial inves-
ugation of complaints by individuals
and by a department of the govern
ment charged with the executive busi-
ness Of supervising the operation of
railways.
There should be a classification of
that very small percentage of indus
trial corporations having power and
opportunity to effect illegal restraints
Of trades and monopolies and legis-
lation, either inducing or compelling
them to subject themselves to regis
try and to proper publicity regulations
and supervision of the department of
commerce and labor.
The San Francisco call., 1908-07-29
NOTICE AND HEARING BE-
FORE ISSUANCE OF INJUNC-
TIONS

/ come now to the question OF notice
before issuing an injunction 1t is
fundamental rule of general jurispru-
dence that no man shall be affected by
judicial proceeding without notice and
hearing. This rule, however. has some
times had an expression in the issuing
of temporary restraining orders COM
manding a defendant in effect to main
tain the status quo until a hearing.
Such a process should issue only in
rare cases, where the threatened change
of the status quo would infiict ire
parable injury II time were taken TO
give notice and a summary hearing.
The unlawful injuries usual in in
dustrial disputes, such as have de-
scribed, do not become formidable
except after sufficient time to give the
defendants notice and hearing. do not
mean to say that there may not be
cases even in industrial disputes where
restraining order might properly be
issued without notice, but generally
think 1t is otherwise: In some state
practice Of Issuing a temporary re-
straining order without notice merely
to preserve the status quo, on the theory
that 1t won't hurt anybody, has been
the practice has been pursued in other
than industrial disputes. as for In
stance. in corporate and stock contrO7
versieS like those over the Erie rail-
road. in which a stay order without
notice was issued as a step of great
advantage to the one who secured it
and a corresponding disadvantage to
the one against whom 1T was secured
Indeed, the chances Of doing injustice
on an ex parte application are much in
creased over those when hearing is
granted, and there may be circum-
stances under which 1t may affect the
defendant to his detriment. In the case
of a lawful strike the sending of a
formidable document restraining a
number of defendants from doing a
great many different things, which the
plaintiffs aver they are threatening to
do, often so discourages men, always
reluctant to go into a strike, from con-
tinuing what is their lawful rights
This has made the laborfng man feel
The San Francisco call., 1908-07-29
WHAT ROOSEVELT HAS DONE

The man who formulated the ex-
preston of the popular conscience and
who led the movement for practical re-
form was Theodore Roosevelt. He laid
down the doctrine that the rich yiolator
OF the law should be as amenable TO
restraint and punishment as the Of
fender without wealth and without in
huence and he proceeded by recon-
mending legislation and directing eX-
ecutiTe action to make that principle
good IN actual performance He Sc
cured the passage of the so called rate
bill designed more effectively to re-
strain excessive and fix reasonable
rates and TO punish secret rebates and
Determinations which had been general
in the practice Of the railroads, and
which has done much TO enable unlaw-
ful trusts TO drive out Of business their
competitors. II secured much closer
supervision Of railway transactions and
brought within the operation of the
same statute express companies, sleep
ing car companies, fast freight and
refrigerator lines, terminal railroads
and pipe lines and forbade in future
the combination Of the transportation
and shipping business under one con-
troll in order TO avoid undue discrimi-
President Roosevelt directed suits to
be brought and prosecutions to be in
stituted under the antitrust law TO en-
force its provisions against the most
powerful Of the industrial corporations.
he pressed 10 passage the pure food
law and the meat inspection law in the
interest OF lle utdlln OF the PUBIC
clean business methods and great ulti-
mate benefit to the trades themselves.
He recommended the passage of a law
which the republican convention has
since specifically approved, restricting
the future issue of stocks and bonds by
interstate railways to such as may be
used by federal authority He demon
strated 10 the people by what he said
by what he recommended to congress
and by what he did, the sincerity of his
efforts to command respect for the law,
10 secure equity of all before the law
and to save the country from the dan
gers of a plutocratic government
toward which we were fast tending. In
this work Mr.. Roosevelt has had the
support and sympathy of the republican
party and his chief hope Of success in
the present controversy must rest upon
the confidence which the people of the
country have in the sincerity of the
party's declaration in its platforms that
II intends 10 continue these policies.
The San Francisco call., 1908-07-29
COMPULSORY SALE OF PRO-
DUCE At FIXED PRICES IM-
PRACTICABLE

The proposal to compel a corporation
to sell its commodities at the same
price the country over. allowing for
transportation, is utterly impracticable.
drive out competition a corporation
owning a large part of the plant pro-
ducing an article is selling in one
part of the country where it has COM
petitors at a low and Improbable
price, and in another part of the coun-
try, where it has none. at an eyorbi-
tant price, this is evidence that 1t is
attempting an unlawful monopoly and
justifies conviction under the anti
trust laws: but the proposal to super
wise the business of corporations in
such a way as to fix the price of the
commodities and compel the sale at
such price is as absurd and socialisuic
plank as was ever inserted in a
democratic platform.
The San Francisco call., 1908-07-29

Gentlemen, the strength of the re-
publican cause Of the campaign at hand
Is The. fact that we represent policies
essential TO the reform Of known abuses
10 the continuance Of liberty and true
prosperity, and that we are determined
as our platform uaequiVocally declares
20 maintain them and carry them on
For more than 10 years this country
has passed through an epoch of ma
terlal development far beyond any that
ever occurred in the world before. In
its course certain evils crept in. Some
prominent and influential members of
the community, spurred by financial
success and in their hurry for greater
wealth, became unmindful of the COM
mon rules Of business honesty and
fidelity and OF the limitations imposed
by law upon their action. This became
known The revelations of the breaches
OF trust, the disclosures as to rebates
and. Discrimination by railways, the
accommodating evidence of the violations
OF the antitrust law by number Of
corporations, the Overissue of stocks
and bonds on interstate railways for
the unlawful enriching Of directors and
Tor the purpose of concentrating con-
troll OF railways in one management. all
Quickened the conscience of the people
and brought on a moral awakening
among them that bOded well for the
future OF the country.
The San Francisco call., 1908-07-29
NECESSARY TO DEVISE SOME
MEANS OF PERMANENTLY Sc
CURING PROGRESS MADE

President Roosevelt has set high the
standard OF business morality The
railroad rate bin was more useful pos
sibly. in the immediate moral effect of
its passage than even in the legal effect
of its very useful provisions From its
enactment dates the voluntary aban-
donment of the practice Of rebates and
Determinations by the railroads and
the return of their managers to obedf-
ence TO the law in the fixing of tariffs
The pure food and meat inspection
laws and the prosecutions directed bv
the president under the antitrust law
have had a similar moral effect in the
general business community and it is
now common practice for the great
industrial corporations to consult with
the law department with, view to
keeping within its provisions 1t also
had had the effect OF protecting and
encouraging small and competitive
companies so that they have been en-
abled TO do a profitable business
But we should be blind TO the ordi-
nary working of human nature If we do
not recognize that the moral standards
set by President Roosevelt will not con-
tinue to be observed by those whom Gu
pidity and a desire for financial power
may tempt until the requisite machin-
cry is introduced into the law which
shall in its practical operation main
tain these standards and secure the
country against departure from them.
The San Francisco call., 1908-07-29
THE DEMOCRATIC PROPOSED
CLASSIEICA

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 a federal license. This
classification would probably include
a great many small corporations en-
gagged in the manufacture of special
articles or commodities whose total
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 rela-
tive merits of such proposition, but
it is enough merely to affirm the
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.
The San Francisco call., 1908-07-29
WILL DELAY RESTORATION
OF PROSPERITY

Gradually business is acquiring a
healthier tone. Gradually wealth,
which was boarded, is coming out to
business investments is plant of slow
growth, and is absolutely necessary in
order that our factories may all open
again, in order that our unemployed
may become employed, and in order
that we again may have the prosperity
which blessed us for ten years. The
identity of the interests of the cap
italist and the farmer. the business
man and the wage Garner in the secur-
ity and profit of investments can not
be too largely emphasized. I submit
to those most interested-to wage
earners, to farmers and to business
men, whether the Introduction into
power of the democratic party with
Bryan at its head. and with the busi-
ness destruction that 1T openly advo-
viii 49, as d remeoy LOT pIesent eglls- eg
for the restoration of prosperity.
The San Francisco call., 1908-07-29
THE FARMER AND THE RE-
PUBLICAN PARTY

As the republican platform says, the
welfare of the farmer is vital to that
of the whole country. One of the
strongest hopes of returning prosperity
is based on the business which his crops
are to afford. He is vitally interested
in the restraining of excessive and un
duly discriminating railroad rates, in
the enforcement of the pure food laws,
in the promotion of scientific agricul-
country life by the expansion of the
free rural delivery. The policies of the
present administration. which have
most industriously promoted all these
objects, cannot fail to commend them
selves to his approval, and it is diff
cult to see how, with his intelligent
appreciation of the threat to business
prosperity involved in democratic sue
cess at the polls, he can do otherwise
than give his full and hearty support
to the continuation of the present ad-
under republican auspices.
The San Francisco call., 1908-07-29
REPUBLICAN DOCTRINE OF
PROTECTION

The republican doctrine of protection
as definitely announced by the repub-
lican convention OF this year and by
shall be imposed on all imported
products, whether OF the factory, farm
or mine, sufficiently great to equal the
dinerence between the cost of produc-
ton abroad and at home. and that this
difference should, of course, include
the difference between the higher
wages paid in this country and the
wages paid abroad and embrace a
reasonable profit to the American pro-
ducer. A system of protection thus
adopted and put in force has led to the
establishment of a rate of wages here
that has greatly enhanced the standard
OF living of the laboring man. 1t is
the policy of the republican party per-
manently to continue that standard of
living. In 1897 the Dingley tariff bill
as already stated, period OF enor-
nous prosperity.
The San Francisco call., 1908-07-29
PHYSICAL VALUATION
RAILWAYS
OF

Some of the suggestions of the demo-
cratic platform relate really to this
subordinate and ancillary machinery to
which I 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 a railroad less
proper expenses, should be limited to a
fair profit upon the reasonable value of
its property, and that If the sum eX
ceeds this measure it ought to be re-
duced. The difficulty in enforcing the
principle is in ascertaining what is the
reasonable value of the companys
property and in fixing what is a fair
pront. 1t Is clear that the physical
value Of a railroad and it's plant is an
element TO be given weight in deter
mining its full value; but as President
Roosevelt, in his Indianapolis speech,
and the supreme court have pointed out
the value of a railroad as going con-
Germ, including it's good will, due to eff
cheney of service and many other circum-
stances, may be much greater than the
value of it's tangible property. and it is
the former that measures the invest
ment on which fair profit must be al
lowed. Then, too, the question, what
is fair profit. is one involving not only
the rate of interest usually earned on
normally safe investments, but also a
sufficient allowance to make up for the
risk of loss both of capital and interest
in the original outlay. These consider
ations viii have justified the company
in imposing charges high enough to
secure a fair income on the enterprise
as a whole. The securities at market
prices will have passed into the hands
OF subsequent purchasers from the
original investor Such circumstances
should properly affect the decision of
the tribunal engaged in determining
whether the total of rates charged is
reasonable or excessive. To ignore
them might so seriously and unjustIy
impair settled values as to destroy all
hope of restoring confidence and for
ever end inducement for investment in
new railroad construction, which in re-
turning prosperous times is sure to be
essential to our material progress. AS
Mr.. Roosevelt has said, in speaking of
this very subject:
The effect of such valuation and su-
pervision of securities can not be retro
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 a propo-
sition to repudiate the national debt"
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 invest
ments by the railways are essential to
general prosperity. Injustice to them
and capitalists, whose further invest
ments may be necessary for the good
OF the whole country, but it directly
affects and reduces the wages of rail-
way employees, and, indeed, may deprive
them of their places entirely.
From what has been said the proper
conclusion would seem to be that in
attempting to determine whether the
entire schedule of rates of a railway
is excessive, the physical valuation of
the road is relevant and important
but not necessarily controlling factor
The San Francisco call., 1908-07-29

ducer The excess over that difference
serves no useful purpose, but offers a
temptation to those who would monopo-
lize the production and sale of such
articles in this country to profit by the
excess rate. On the other hand. there
are other schedules in which the tariff
is not sufficiently high to give the
should receive upon republican princf-
pies, and as to those the tariff should
be increased. revision of the tariff
undertaken upon this principle, which
is at the base four present business
system, begun promptly upon the in
coming of the new administration and
considered at the special session, with
the preliminary Investigations already
begun by the appropriate committees
of the house and senate, will make the
disturbance to business incident TO such
a change as little as possible
The San Francisco call., 1908-07-29
DESTR POLICY
DEMOCRATIC PLATFORM

The democratic platform does not
propose to destroy the plants of the
trusts physically, but it proposes to do
the same thing in a different way.
The business of this country is largely
dependent upon a protective system of
tariffs. The business done by many
of the so called trusts is protected
with the other businesses of the coun-
try The democratic platform pro-
poses to take off the tariff on all ar
ticles coming into competition with
those produced by the so called
trusts" and put them on the free list.
If such course would be utterly de-
structive of their business, as is in
tended, it would not only destroy the
trusts but all other smaller competi-
tors.
The ruthless and impracticable char
acter of the proposition grows palmer
as its effects upon the whole community
are realized.
The San Francisco call., 1908-07-29

The principal difference between the
republican and democratic platforms is
the difference which heretofore has
been seen between the policies of Mr..
Roosevelt and those which have been
advocated by the democratic candidate,
Mr.. Bryan.
Mr.. Roosevelt's policies have been
progressive and regulative; Mr.. Bryan's,
destructive. Mr.. Roosevelt has favored
regulation of the business in which
evils have grown up so as TO stamp out
the evils and permit the business to
continue. The tendency of Mr.. Bryan S
I've of business with respect to which
he is demanding reform. Mr.. Roosevelt
would compel the trusts to conduct
their business in a lawful manner and
secure the benefits of their operation
and the maintenance of the prosperity
of the country. of which they are an
important part, while Mr.. Bryan would
extirpate and destroy their entire busi-
ness in order to stamp out the evils
which they have practiced.
The San Francisco call., 1908-07-29
PROPERTY USED WILL NOT
GENERALLY IMPAIR SECURI-
TIES

1 am confident that the fixing of
rates on the principles suggested above
would not materially impair the pres
ent market values of railway securf-
ties in most cases, for 1 believe that
the normal increase in value of rail-
way properties, especially in their term
inals. will more than make up for the
possible overcapitalization in earlier
years. In some cases doubtless it will
be found that overcapitalization is
made an excuse for excessive rates and
that they should be reduced; but the
consensus of opinion seems to be that
the railroad rates generally in this
country 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 ship
pers and between places. OF course, in
the determination of the question
OF whether this discrimination is un-
lawful or not the physical valuation
OF the whole road is of little weight
The San Francisco call., 1908-07-29
RIGHTS OF LABOR

In order to induce their employer
Ito comply with their request for
changed conditions of employment
workmen have the right to strike in a
body. They have a right to use such
persuasion as they may, provided 1t
does not reach the point of duress to
lead their reluctant colaborerS to join
them in their union against their en-
ployer, and they have right, if they
choose, to accumulate funds to support
those on strike. to delegate to officers
the power to direct the action of the
union and to withdraw themselves and
their associates from dealings with or
giving custom to those with whom
they are in controversy.
The San Francisco call., 1908-07-29
WHAT LABOR CANNOT LAW
FULLY DO

What they have not the right to do is
to injure their employers property, to
injure their employers business be-
duress against those who would work
for him or deal with him, or by carry
ing on what is sometimes known as a
secondary boycott against his customers
or those with whom he deals in busi-
ness. All those who sympathize with
them may unite to aid them In their
struggle. but they may not through
the instrumentality of a threatened or
actual boycott compel third persons
against their will and having no in
terest in their controversy to come to
their assistance These principles
have for a great many. years been
settled by the courts of this country.
Threatened unlawful injuries to busi-
The San Francisco call., 1908-07-29

all the circumstances of the invest
ment is recognized.
The interstate commerce commission
has now the power to ascertain the
value of the physical railroad property
if necessary in determining the reason
ableness of rates. If the machinery for
doing so is not adequate, as is prob
able, it should be made so.
The republican platform recommends
legislation forbidding the issue in the
future of interstate railway stocks ana
bonds without federal authority. II
may occur in such cases that the full
value of the railroad and, as an ele-
ment thereof. the value of the tangible
property of the railway would be rel
the proper authority to determine
whether the stocks and bonds TO be
issued were to have proper security
behind them, and in such case, there
fore, there should be right and ma
chinery to make a valuation of the
physical property.
The San Francisco call., 1908-07-29

The number OF instances In which
restraining orders without notice in
industrial disputes have issued by
federal courts is small, and IL Is urged
that they do not therefore constitute
an evil to be remedied by statutory
amendment. The small number OF
cases complained of above shows the
judges have exercised the jurisdiction.
but the belief that such cases are nu-
merous has been so widespread and
has aroused such feeling of injustice
that more definite specification in pro-
cedure to prevent recurrence of them
is justified If 1t can be effected without
injury TO the administration of the law