Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-07-30

pdIleS SO tnat t~hey.nave been enabled
to do a profitable business.
But we should be blind to the ordin-
airy workings of human nature, If we
did not recognize that the moral
standards set by President Roosevelt
will not continue to be. observed by
those whom cupidity and a desire for
financial power may tempt, unless the
requisite machinery is introduced into
the law which shall in It's practical
operation maintain these standards
and secure the country against a de-
parture from them.
Clinching What Has Been Done
The chief function OF the next ad-
ministration in my Judgment is dis
tinct from and a progressive develop
ment which has been performed by !
President Roosevelt.
The chief function of the next adj
mintstration is to complete and perfect
the machinery by which these stand
ards may be maintained by which the
law breakers may be PROMPTLY re-
strained and punished but which shall
operate with sufficient and
dispatch to interfere with legitimate
business IS little as possible. Such
machinery Is not how adequate. I'm
der the present rate bill, and under all
it's amendments, the burden of the in
t%erstate commerce commission in SUI
pervising and regulating the operation
of the railroads of this country has
grown so heavy that 1t is utterly i'm
possible for that tribunal to e and
dispose. in any reasonable time Of the
many complaints, queries and issues
that are brought before it for deci-
sion. It ought to be relieved of It's
jurisdiction as an executive, directing
body, and its functions should be linn
TIED to the quasi-judicial investigation
of complaints by individuals n by a
department of the government charg-
ed with the executive business of SUI
pervising 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 trade and ~monopolies, and legis-
lation either inducing or compelling |
them to subject themselves to registry
and to proper publicity regulations
and supervision of the department of
commerce and labor.
Constructive Work to be Done
The field covered by the Industrial
combinations md by the railroads is
so very extensive that the interests of
the public and the interests of the
businesses concerned cannot be prop
erly subserved except by ~reorganiza-
ton Of bureaus in the department of
commerce and labor, of agriculture,
and the department of justice, and
a change in the jurisdiction Of the
interstate m commission. 1t
does not assist matters to prescribe
new duties for the Interstate COM
merce commission which 1t Is prac-
tically impossible for 1t to perform,
or to denounce new offenses with
| drastic punishment, unless subordinate
and ancillary legislation shall be pass
ed making possible the quick enforce
ment in the great variety of cases
which are constantly arising, of the
principles laid down by Mr. Roosevelt,
and with respect to which only typical
instances of prosecution with the pres
ent machinery are possible. Such leg
~islation should and would greatly pro-
mote legitimate business by enabling
those anxious to obey the federal
statutes to know just what are the
bounds Of their lawful action. The
practical. constructive and. difficult
work, therefore, of those who follow
Mr. Roosevelt Is to devise the ways
and means by which the high level
of business integrity and obedience to
law which he has established may be
maintained and departures from it re-
strained without undue interference
with legitimate business.
Railway Traffic Agreements
1t is agreeable to note in this re-
gard that the Republican platform
expressly and the Democratic plat
form implicitly, approve al amend
ment to the interstate law,
by which interstate railroads may
make useful traffic agreements If ap-
proved by the commission. This has
been strongly recommended by Presi-
dent Roosevelt and will make for the
benefit of the business.
Physical Valuation of Railways
Some of the suggestions Of the
Democratic platform relate really to
this subordinate and ancillary ma
chinery to which I have referred.
Take for instance the so-called physi-
cal valuation of railways. 1t is clear
that the sum Of all rates or receipts
of a railway, less proper expenses
should be limited to a fair profit up
on the reasonable value of its prop
erty, and that if the sum exceeds this
measure 1t 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 what Is a fair profit.
1t is clear that the physical value
of a railroad and its plant, is an ele-
ment to be given weight in deter
mining its full value; but as Presi-
dent Roosevelt in his Indianapolis
speech n the supreme court have
pointed out, the value of the railroad
as a going concern. including its good
will, due to efficiency of service and
many other circumstances. may be
much greater than the value of its
tangible property, and 1t is the former
that measures the investment on
which a fair profit must be allowed.
Then, too. the question what is a
fair profit Is one involving not only the
rate of interest usually earned on nor
mally safe investments, but also a suf-
fioient allowance to make up for the