Los Angeles herald., 1908-07-29

road is a relevant and important, but
not necessarily a controlling factor.
am confident that the fixing oi
rates on the principles suggested abov,
would not materially impair the pres
ent market values of railway securities
lin most cases, for [ believe that the
normal increase in value of railway
properties, especially in their terminals,
| will more than make up for the pos
sible oVercapitalization in earlier years.
In some cases doubtless it will be found
that decentralization is made an eX-
cuse 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 complaint filed with the interstate
commerce commission against excessive
rates are so few as compared with those
against unlawful discrimination in rates
between shippers and between places. or
course in the determination of the
question whether this discrimination Is
unlawful or not the physical valuation
of the whole road is of little weight.
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
erty of a railroad is proper and may
from time to time be necessary in set
Ting certain OF the issues which may
come before them, and that no evil or
injustice can come from valuation IN
such cases, if it be understood that the
result is to be used for just purpose
and the right to a fair profit under all
the circumstances of the investment is
recognized.
The interstate commerce commission
has now the power to ascertain th3
value the physical railroad property if
necessary in determining the reason
ableness Of rates. If the machinery
for doing so is not adequate, as is
probable, it should be made so.
Requires Federal Authority
The Republican platform recon-
mends legislation forbidding the issue
in the future of interstate railway
stocks and bonds without federal au-
thority. It may occur in such cases
that the full value of the railroad 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 right and ma
chinery to make valuation Oh lne
physical property
The Democratic platform suggests
a requirement that corporations in
Interstate trade having control of 20
per cent of the products in which they
deal shall take federal license. This
classification would probably include
great many small corporations engaged
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 anti-t trust law.
II is not necessary to discuss the
relative merits of such proposition,
hut il is enough merely to affirm the
necessity for some method by which
greater executive supervision can be
given to the federal government over
these businesses from which there is
a temptation to visit violations of the
antitrust law.
The possible operation of the anti
trust law under existing rulings of the
supreme court has given rise to sug-
gestion for it's necessary amendment
to prevent it's application to cases
which 1t is believed were never in the
contemplation of the trainers of the
statute.
Take two instances: A merchant 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 n the purchaser
not TO go in 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 enter upon a
peaceable and lawful strike to secure