River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1908-07-30
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---7ext of
His Speech.

wise the ways and means by which the
high level of business integrity and ODE
dlence to law which he has established
may be maintained, and departures from
1t restrained without undue interference
with legitimate business.
Railway Traffic Agreements.
1T is agreeable to note in this regard
that the Republican platform expressly
and the Democratic platform implicitly
commerce law by which interstate rail-
roads, may make useful traffic agree
mI,ents If 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
subordinate and ancillary machinery to
which l have referred. Take for in
stance, the so-called physical valuation
Of railways. 1t is clear that the sum of
proper expenses, should be limited to a
falr profit upon the reasonable value of
its property, and that If the sum exceeds
this measure, it ought to be reduced. The
difficulty in enforcing the principle is in
ascertaining what is the reasonable value
OF the company's property, and in fixing
physical value of a railroad and it's plant
is an element to be given weight in de-
termining it's full value; but as Presi-
speech and the supreme court have point
ed out, the value of the railroad as a go
ing concern, including it's good will, due
circumstances, may, be much greater
than the value of it's tangible property
and it is the former that measures the
investment on which fair profit must
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 a whole.
What Roosevelt Said.
"As Mr.. Roosevelt has said in speak
ing of this very subject:
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 it would consider propo-
sition to repudiate the national debt
NThe 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
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 a rail-
way is excessive: the physical valua-
ton of the road is a relevant and i'm
portant but not necessarily a control
ling factor. Physical valuation proper
ly used will not generally impair Sc
curities.
Rates Are Low, He Says.
'Tn some cases, doubtless, it will be
found that overcapitalization is made
an excuse for excessive rates, and then
they should be reduced, but the con-
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
termination of the question whether dis
elimination is unlawful or not, the phys
ical valuation of the whole road is of lit
II 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 neces sary 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 a fair profit I'M
ment is recognized. The interstate COM
merce commission has now the power
to ascertain the value of the physical
railroad property if necessary in de-
termining the reasonableness of rates
National Control of Corporations.
Another suggestion in respect to
subordinate and anc1llary 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 if
they all were required to take out
federal License or the
ness of the country Woulo become IN
tolerable.
wise some means for classifying and
insuring federal supervision of such
corporations as have the power and
temptation to effect restraints or in
corporations constitute very small
percentage of all engaged in inter-
state business.
Roosevelt's Proposed Classification.
with such classification in view, Mr..
Roosevelt recommended an amendment
in the antitrust law, known as the
Hepburn bill, which provided for vol
untary clasificatio and created
strong motive therefore by granting
immunity from prosecutions for rea-
sonable restrictions of interstate
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 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 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.
1t is not now necessary, however, to
discuss the relative merit of such prop
ositions. but it is enough merely to af-
firm the necessity for some method by
which greater executive supervision
can be given to the federal government
over these businesses in which there is
a temptation to violations of the anti
trust law.
Construction of Antitrust Law.
1.-THE possible operation of the anti