The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-07-29

10 r : rr7aTT
tive business OF supervising the opera
ton OF railways.
Y; There should be classification o
that very small percentage OF indus
4 trial corporations having power ant
!opportunity to effect illegal restraint:
\ OF trade and nonopolies. and leStsla
ton either inducing or compelling then
to subject themselves to registry ans
to proper publicity regulations and su
lpervision OF the Department OF Com
/ merce and Labor.
To Maintain Standards.
The field covered by. the industrial
combinations and by the railroads Il
so very extensive that the interests o.
the public. and the interests OF thu
business concerned cannot be properl,
bureaus In the Department OF Com
merce and Labor, Of Agriculture. ant
] the Department. OF Justice, and {
change in the Jurisdiction OF the In
! terstate Commerce Commission. 1t does
not assist matters to prescribe new
duties for the Interstate Commerce
Commission which 1t is practically I'M
| possible for It to perform, or to de.
nounce new offenses with drastic pun
ishment, unless subordinate and ancll-
ing possible the quick enforcement In
the great variety of cases which ore
constantly arising. OF the principles
laid down by Mr.. Roosevelt, and with
respect to which only typical instances
ehinery are possible. Such Legislation
should and would greatly promote
Legitimate business by enabling those
anxious to obey the Federal statutes
to know Just what are the bounds OF
structive and difficult work, there
fore, Of those who follow Mr.. Roose-
welt 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 1t restrained with
out undue interference with legitimate
business.
hallway Traffic Agreements.
1t is agreeable to note in this re-
gard that the Republican platform eX-
pressly and the Democratic platform
| impliedly approve an amendment to
the interstate commerce law, by which
| interstate railroads may make useful
| traffic agreements II approved by the
commission: This has bee been strongly strongly
and will make for the benefit OF the
business.
Physical valuati of Railways.
Some Of the suggestions Of the DEM
ocratic Platform relate really to this
to which l have referred. Take. for
instance. the so-called "physical tvalua-
| ton OF railways" 1t is clear that the
sum OF all rates or receipts Of a rail-
way. less proper expenses. should De
sQnable value OF It's property, and that
| iEa the sum exceeds this measure. 1t
ought to be reduced. The difficulty
in enforcing the principle Is in as
pertaining what is the reasonable value
| Of the company's property. and in fix
ing what Is fair profit. 1t is clear
that the physical value of railroad
and its plant is an element to be given
weight in determining its full value;
but as President Roosevelt in his In
Court have In effect pointed out. the
value of the railroad as a going con-
Germ, 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 faF profit is one involving
not only the rate OF interest usually
but also a sufficient allowance to make
up for the risk Of loss both OF cnpl-
tai and interest In the original out
Hay. These considerations will have
Justified the company In posting
charges high enough to secure fair
Income on the enterprise as whole.
Tie securities at market prices will
4 have passed into the hands OF suisse
lquent purchasers from the orig inal In
INVESTORS. Such circumstances should
4 properly affect the decision of the
Tribunal engaged in determining wheth-
/ er the totally. of rates charged is rea.
sonable or excessive. To ignore them
might SO seriously and unjust thy I'M
/ pair settled values as to destroy al
ever to end the inducement for in.
vestment in new railroad construction
which, IN returning prosperous times
is sure to be essential to our material
progress AS Mr.. Roosevelt has said In
speaking OF this very. subject:
J THE effect OF such valuation anG
: supervision of securities cannot be re:
} troactiye. Existing securities should
be tested by laws in existence at The
no more injure securities which have
become an important part Of the ma.
! tional wealth than 1t would consider
q proposition to repudiate the nationa
. The question OF rates and the treat,
ment OF railways Is one that has two
sides. The shippers are certainly en-
} titled to reasonable rates; but less Il
an Injustice to the carriers. Good bust
ness for the railroads Is essential tx
) is not alone Injustice to stockholderi
I and CAPITALISTS, whose further invest
, ments may be necessary for the goos
of the whole country, but 1t dlrectl.
affects and reduces the wages of rail
way employees, and indeed may depriv,
them of their places entirely,
From what has been said. the prop
, err conclusion would seem to be tina
: In attempting to determine whether
: the entire schedule OF rates Of a rail
: way Is excessive, the physical valuation
a Of the road is a relevant and important
. but not necessarily q controlling fac
: tor. 55ii, y
h Physical Valuation Properly Used 3NVil
: Not Generally Impair Securities.
: ] am confident that the fixing q
I rates on the principles suggested abov
9 would not materially impair the pres
g ent market values OF railroad securl
. Ties in most cases. tor believe that TIL
: normal increase in the value OF rail
2 road properties especially In Nheii
terminals Will more than make UP 70
y the possible overcapltalization Il
y earlier years. In some cases, doubt
y less, y VIII be found that overcapital
e l%atlon IL made an excuse for excessiy
u rates, and then they should bn re
u ducedi but tha consensus or opinIo]
seems 70 pc that tho railroad rate
y generally An this country ara reason
y ably low. This Is why, doubtless,s til
g complaints filed with the Interstat
+ 90 '.',p AraA G.apanai S4ion aqainSt axces