The Washington herald., 1908-07-29

shippers and between places OF course.
IN the determination OF the question
whether discrimination is unlawful or
not. the physical valuation OF the whole
road is OF little weight
Concludes There should BE Physical
Valuation
I have discussed this. with some degree
Of detail, merely 70 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 necessary in settling certain
issues which may come before them. and
that no evn or injustice can come from
valuation in such cases. If It be under
stood that the result IS 10 be used for a
just purpose, and the right 10 a fair profit
under all circumstances Of the investment
IS recognized The Interstate Commerce
Commission has now the power 10 ascer-
tain the value Of the physical railroad
property, IL necessary, in determining the
reasonableness Of rates. If the machinery
for so doing IS not adequate, as is proba-
bic. II should be made so.
The Republican platform recommends
legislation forbidding the issue IN the fu-
rUre Of interstate railway stocks and
bonds without Federal authority. II may
occur in such cases that the fun value or
the railway. and. as an element thereof.
the value OF the tangible property OF the
railway. would be q relevant and impOr-
tant factor in assisting the proper author
itiy 10 determine whether the stocks and
bonds 10 be issued were 10 have proper
security behind them. and in such case.
therefore. there should be the right and
machinery 10 make a valuation Of the
physical property.
National Control Of Commerce.
Another suggestion in respect 10 subor-
dinate and ancillary machinery necessary
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
n interstate trade. The fact is that
nearly all corporations doing a CONNER
cial business are engaged IN Interstate
commerce, and Il they all were required
10 take out a Federal license or q Fed
eral charter. the burden upon the inter
state business OF the country would be-
come inIOlerabie-
Should Be Limited 10 small Percentage.
Il IS necessary. therefore. 10 devise
some means for Classifying and insuriEg
Federal supervision Of such corporations
as have the power and temptation 70 ef-
feet restraints Of interstate trade and
monopOlies- Such corporations constitute
a very small percentage Of all engaged in
interstate business
Mr. ROo-eveIt's Proposed Classification.
With such classification in view. Mr..
Roosevelt recommended an amendment 10
the antitrust law. known as the Hep
burn bill which provided for voluntary
classification. and created a strong mo-
1--WE therefor by granting immunity from
prosecution for reasonable rcstra lnts OF
interstate trade 10 all corporations which
would register and submit themselves TO
the publicity regulations OF the Depart
raent Of Commerce and Labor.
The Democratic Proposed Classification.
The Democratic platform suggests g re-
Quirement that corporations IN Interstate
trade having control OF 5 Per cent OF
the products IN which they deal shall
take out a Federal license. This classl-
dcation would probably include a great
many small corporations engaged IN the
manufacture OF special articles. OF com
modities whose total value is so 3nc0nsid-
cradle that they are not really within
the purvlew or real evil of the anti
trust law.
Il is not now necessary however 70
discuss The relative merit OF such prOp-
ositions- but Il IS enough merely 10 affirm
TIE necessity for some method BY which
greater. executive supervision can be
given 70 the Federal government over
those businesses IN which there IS
temptation 70 violators Of the antitrust
law
Construction of Antitrust Law.
The possible operation of the antitrust
law under existing rulings q the Su-
preme Court has given rise 70 suggestions
for its necessary amendment 10 prevent
its application 20 cases which Il IS be
neved 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 70 sell his
business and his good viii. and 50 In the
terms Of the sale ObliEates himself 10
the purchaser not 10 90 into the same
business in those States. Such a re-
srraint OF trade has always been en-
forced at common law. Again. the en-
ployes Of an interstate railway combine
and enter upon a peaceabIe and lawful
strike 10 secure better wages. At COM
mon law this was not . restraint of
trade CT commerce or q violation Of the
rights OF the company or OF the public.
Neither case ought 10 be made a vio-
lation Of the antitrust law. Ny own
impression Is that the Supreme Court
would hold that neither Of these in
stances are within It's inhibition. but Il
they are 10 be so regarded. general legis-
lation amending the law IS necessary
Democratic Plank TO Limit OysnershIp
Faulty.
The suggestion OF the Democratic plat
form that trusts be ended By forbidding
corporations TO hold more than 20 per
cent of the plant in any line OF manu-
facture is made without regard TO the
possibility Of enforcement or the real
evil In trusts. A corporation controlling
a or 30 Per cent Of the products may by
weIl-known methods frequently effect
monopoly and stamp out competition In a
part Of the country as completely as II
il controlled 60 or 20 per cent thereof
Compulsory Sale of Products at Fixed
Price ImPractieubIe.
TIE proposal 70 compel every corpora
ton 10 sell its commodities at the same
price the country over. allowing for
transportation. IS utterly impracticable.
II il can be shown that in order TO drive
or competition, a corporation owning a
large part OF the plant producing an
article IS selling in one part Of the coun-
Try. where il has competitors. at low
and Improbable price, aud in another
part Of the country. where Il has none,
AT an exorbitant price. This is evidence
that II IS attempting an unlawful