The Glenwood post., 1908-08-01

may be maintained, and departures from
II restrained without undue Interference
with legitimate business.
Railway Traffic Agreements.
ut is agreeable to note in this regard
that the Republican platform expressly
and the Democratic platform impliedly
approve an amendment to the interstate
commerce law, by which interstate rail
roads may make useful traffic agree
1,,: ments: If approved by the commissions
| President Roosevelt and will make for
the benefit of the business
Some of the suggestions of the Demo
subordinate and ancillary machinery to
which l have referred. Take for in
stance, the so-called physical valuation
OF, railways. 1t is clear that the sum of
| all rates or receipts of railway, less
proper expenses. should be limited to
Its property. 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
what is fair profit. 1t is clear that the
physical value of railroad and its plant
is an element to be given weight in de
dent Roosevelt in his indianapolis
speech and the supreme court have point
ed out. the value of the railroad n GO
| ing concern, including its good will. due
10 efficiency of service. and many other
than the value of its tangible property
and it is the former that measures the
Investment on which fair profit must
ton what is fair VI, profit is 4as1 one
involving not only the rate of interest
usually earned on normally safe invest
ments, but also a sufficient allowance to
make up for the risk of loss both Of cap
| tal and interest in the original outlay.
These considerations will have justified
enough to secure n fair income the
| enterprise as whole.
What Roosevelt Said.
LAS Mr., Roosevelt has said in speak
ing of this very subject:
The effect of such valuation and SUI
pervision of securities cannot be retro
active. Existing securities should be
tested by laws in existence at the time
of their issue. This nation would no
| more injure securities which have be-
come an important part of the national
wealth than it would consider a propo-
sition to repudiate the national debt
THE question of rates and treat
ment of railways is one that has two
an injustice to the carriers. Good
business for the railroads is essential
to general prosperity. Injustice to
| them is not alone injustice to stock
| holders and capitalists. whose further
investments may be necessary for the
good of the whole country. hut it di-
| rectly affects and reduces the wages
of railroad employee.
conclusion would seem to be that in
attempting to determ me that whether
| the entire schedule of rates of rail-
| tion of the road is relevant and i'm
portant but not necessarily a control
| ling factor. Physical valuation proper
| ly used will not generally impair
| cur!ties.
Rates Are Low, He Says.
I'm some cases. doubtless. it will be
found that overcapitalization is made
| an excuse for excessive rates. and then
they should be reduced. but the con-
sensus of opinion seems to be that the
railroad rates generally in this coun-
try are reasonably. low. This is why
| doubtless the complaints 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. OF course in the de-
elimination is unlawful or not. the phys
ical valuation of the whole road is of lit
tie weight.
of detail merely to point out that the
valuation by the interstate commerce
commission of the tangible property of
time to time be necessary in settling
| certain of the issues which may come
before them and that no evil or in
| such cases. IL it be understood that the
result is to be used for a Just pur
pose, and the right to fair profit un-
ment is recognized. The interstate com
merce commission has now the power
|
| railroad property II necessary in de-
| termining the reasonableness of rates
National Control of Corporations.
Another suggestion in respect to
| subordinate and ancillary machinery
necessary to carry out Republican poll
cies is that of the incorporation under
national law or the licensing by
| tonal license or enforced registry Of
| companies engaged in interstate trade
| The fact is that nearly all corporations
doing a commercial business are en-.
| In, iy,ta rtot rn ,Vr,a arCa nd
they all We're required to take out a
federal license or federal charter.
the burden upon the interstate bust
| tolerable.
''It is necessary. therefore. to de-
wise some means for classifying and
| insuring federal supervision of such
corporations as have the power and
temptation to effect restraints Of in
corporations constitute a very small
percentage of all engaged In inter-
state business
RooseveIt's Proposed Classification.
with such classification in view Mr.
in the antitrust law, known as the
Hepburn bill which provided for vol
otve by sranns
sonable restrictions of interstate
register and submit themselves to the
publicity regulation Of the depart
ment of commerce and labor.
1.-THE Democratic platform suggests
s. requirement that corporations and
per cent. of the products in which they
| deal shall take out a federal license.
| This classification would probably in
clude great many small corpora
| tions engaged in the manufacture of
| special articles or commodities whose
| total value Is so inconsiderable that
view or real evil OF the antitrust law.
1t is not now necessary. however. to
ositions. but II is enough merely to al
| Arm the necessity for some method by
which greater executive supervision
| can be given to the federal government
over these businesses in which there Is
| a temptation to violations of the anti
trust law. .t
Construction Of Antitrust Law.
] The possible operation Of the anti