The Topeka state journal., 1908-01-31
SAYS TRY AGAIN.
CONTINUED from Page one.)

thousands of innocent stockholders
who have purchased their stock In
good faith. The usual result of sucf
4ndation is therefore to impose upor
me public an unnecessary but ever
lasting tax. while the innocent pur-
chasers Of the stock are also harmed
ana only a few spectators are bene-
nted. Such wrongs when once accom-
pished can with difficulty be undone;
gut they can be prevented with safety
and with justice. When combinations
OF interstate railways must obtain gov
eminent sanction; when it is no longer
possible for an interstate railway to
Issue stock or bonds, save in the man
ner approved by the federal govern
ment; when that government makes
sure that the proceeds of every stock
and bond issue go into the improve
ment OF the property and not the en-
f1chment of some individual or syndi-
cate; when, whenever it becomes ma
6erial for guidance in the regulative
action of the government, the physical
value of one of these properties is de-
SeFmined and made known-there Will
be eliminated from railroad securities
that element of uncertainty which
lends to them their speculative quality
and which has contributed much to the
financial stress of the recent past.
To Fix Schedules.
I think that the federal government
must assume a certain measure of con-
troll over the physical operation of rail-
ways in the handling of interstate traf-
nc The commission now has authority
TO establish through routes and joint
rates. In order to make this provision
effective and in order to promote in
times of necessity, the proper move
nent of traffic, I think it must also
have authority to determine the condi-
tions upon which cars shall be inter-
changed between different interstate
railways 1t is also probable that the
commission should have authority, in
particular instances, to determine the
schedule upon which perishable COM
modittes shall be moved.
In this connection I desire to repeat
my recommendation that railways be
permitted to form traffic associations
Tor the purpose of comforting about and
agreeing upon rates, regulations, and
practices affecting interstate business
in which the members of the associa-
Hion are mutually interested. This does
not mean that they should be given
the right to pool their earnings or
rates shall be so adjusted as not to
discriminate between individuals, 10
ca1itieS, or different species of traffic.
Ordinarily, rates by all competing lines
must be the same. AS applied to prac-
teal conditions, the railway operations
of this country can not be conducted
according to law without what is
equivalent to conference and agree
ment. The articles under which such
associations operate should be approv
ed by the commission. all their op-
erations should be open to public in
spection; and the rates, regulations,
and practices upon which they agree
should be subject to disapproval by the
commission.
I urge this last provision with the
same earnestnesS that l do the others.
This country provides it's railway ia
cilities by private capital Those ia
cilities will not be adequate unless the
capital employed is assured of just
treatment and an adequate return. In
fixing the charges of our railroads, 1
believe that, considering the interests
of the public alone, it is better to al
low too liberal rather than too scanty
earnings, for, otherwise. there is grave
danger that our railway development
may not keep pace with the demand
for transportation. But the fundamen- |
tai idea that these railways are public
highways must be recognized, and they
must be open to the whole public upon
equal terms and upon reasonable terms. |
In reference to the Sherman anti !
trust law, I repeat the recommended !
tions made in my message at the op- |
ening of the present congress, as we'll |
as in my message to the previous con- |
gress. The attempt in this law to pro- |
vide in sweeping terms against all COM |
binations of whatever character, If |
technically in restraint of trade as |
such restraint has been defined by the |
courts, must necessarily be either fu- |
tile or n1ischievous, and sometimes
combinations illegal, although they may |
be useful to the country. On the other |
hand as to some huge combinations |
which are both noxious and Illegal |
even If the action undertaken against
them under the law by the govern
ment is successful, the result may be |
to work but a minimum benefit to the
public. Even though the combination |
be broken up and a small measure of
reform thereby produced, the real good |
aimed at can not be obtained, for such
real good can come only by a thorough
and continuing supervision over the
acts of the combination in all it's parts, |
SO as to prevent stock watering, i'm
proper forms of competition, and, in
short, wrongdoing generally. The law
should correct that portion of the Sher-
man act which prohibits all combina-
4ions of the character above described,
whether they be reasonable or unrea-
soma BILE but this should be done only as
mart of a general scheme to provide
Tor this effective and thoroughgoing
supervision by the national govern
ment of all the operations OF the Dig
Interstate business concerns. Judge
HouRh. of New York, in his
recent decision in the Hartman
case, states that the congress possesses
the power to limit the interstate oper-
aticps of corporations not complying
with federal safeguards against the re-
currsnce of obnoxious practices, and to
license those which afford the public
ADEQUATE security against methods cal
culated to diminish solvency, and
therefore efficiency and economy in in
terstate transportation. The judge adds
that in these matters the power of
congress is ample, though as yet not
fruitful in results" 1t is very earn
estly to be desired that either along
the lines the judge indicates, or in
some other way equally efhcacious, the
congress may exercise the power which
he holds it possesses.
Campaign Against Privilege.
Superficially it may seem that the
laws, the passage of which 1 herein
again advocate-for have repeatedly
advocated them before-are not con-
nactad But in reality theY are con-