Devils Lake inter-ocean and Devils Lake free press. (Devils Lake, Ramsey County, N.D.) 1905-1909, 1908-07-31


charges high enough 10 secure fair
income On the enterprise IS a whole.
The securities at market prices viii
have passed into the hands OF suLse-
qUent purchasers from the original In
vestn-s. Such clreumsFanSes should
properly affect the decision of the trs-
buaal engaged fn determining whether
the totally OF rates charged5is reason
able or excessive To ignore them
might SO seriously and u1jus,ly I'M
pair settled values as to destroy ali
hope Of restoring confidence and fer
ever end the inducenent fer Unrest
ment in new railroad construction
which in returning prosperous times.
Il sure to be essential to cur material
progress
From what has hee1 said. the proper
conclusions sozzld seem TO be that in
attempting to determine whether the
entire schedule Of rates Of s railway Is
excessive. the physical vasna don or the
road Is relevant and izassStant but
not necessarily. controlling fas tor.
l am confident thai the fixing OF
rates on the principles sue-S ed above
would not materially impair the pees-
ent market Taiues Of railroad securs-
Ties In most cases. for believe that
the normal increase IN the value Of
railroad properties. tally in their
terminals. VIII more than make I'd for
the possible overva pitai iatsoE in car
her years In some cases. doubtless.
VIII be found that oveTcapital ization
10 made an excuse for excessive rates
and then they should be reduced: but
the consensus of opinion seems to be
that the railroad rates generally In this
country are reasona bly, low.
ceneIusion That There Should Be
Physical Valuation.
I 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
property Of railroad is proper and
mag from time to time be necessary In
settling certain issues which may come
before them, and that NO evn or fntus-
dee can come from valuation In such
cases. If it be understood that the re-
cult is to be used for a Just purpose,
and the right to fair profit under all
the circumstances Of the investment Is
recognized
National Control Of interstate Com
neree Corporation.
Another suggestion In respect to sub
ordinate and ancillary machinery nee
essary to carry ont Republican policies
as that Of the incorporation under Ma
donai law or the licensing by National
license or enforced registry OF compe-
MES engaged In interstate trade. The
fact Is that nearly all corporations do
ing commercial business are engaged
IN interstate commerce, and If they all
were required to take out a Federal
License or a Federal charter, the bur
den upon the interstate business Of the
country would become fntoaerable.
1t u necessary, therefore, to devise
come means for classifying and tnsur-
Ing Federal supervision Of such cor
porattons~as have the power and temp
tadon to effect restraints of Interstate
trade and monopolies. Such corpora
lions constitute a very small percent
age OF all engaged in interstate bust
ness.
Construction Of Anti Trust Law
The possible operation Of the anti
trust law under existing rulings OF the
Supreme Court has given rise to sug-
gesdons for its necessary amendment
to prevent its application to cases
which 1t is believed were never In the
contemplation 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 obIigates himself to the pur-
chaser not to go into the same bust
ness 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-
ter upon peaceable and lawful strike
to secure better wages. at common
law this was not q restraint Of trade
Or commerce or a violation of the
rights of the company or OF the public.
Neither case ought to be made a viola
ton Of the antitrust law MY own
impression is that the Supreme Court
would hold that neither of these In
stances is within its inhibition, but, If
they are to be SO regarded, general leg
isIation amending the law is necessary.
The proposal to compel every cor
poratton to sell its commodities at the
same price the country over, allowing
for transportation. LIS utterly imprac-
dcabie. If 1t can be shown that in or
der to drive out competition. a corpo-
ration owning large part Of the plant
producing an article Is selling in one
part OF the country. where 1t has com
pedtors, at a low and improbable
price, and In another part Of the coun-
try, where It has none. at an exorbi-
tant price. this Is evidence that 1t Is at
tempting an unlawful monopoly. and
Jusdfes conviction under the antitrust
Law; but the proposal to supervise the
business Of corpora lions in such a way
as to fix the price of commodities and