Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1908-08-06
TAFT ACCEPTS NOMINATION;
DECLARES HIS POLICIES
Makes His Notification Speech at
Cincinnati, While City Is in Gala
Attire to Receive Him as a Con-
quering Hero--- Text of
His Speech.

wise the ways and means by which the
nign level OF business integrity and obe-
dience to law which he has established
may be maintained, and departures from
t restrained without undue interference
with legitimate business.
Railway Traffic Agreements.
IT Is agreeable to note in this regard
that the Republican platform expressly
and the Democratic platform implicitly
approve an amendment to the interstate
commerce law, by which interstate rail-
ROADS may make useful traffic agree
ments, If approved by the commissions.
This has been strongly recommended by
President Roosevelt, and will make for
the benefit of the business.
Some of the suggestions of the Demo-
cratic platform relate really to this
subordinate and ancilary machinery to
which 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 a railway, less
fair profit, upon. the reasonable value of
It's property, and that If the sum exceeds
this measure, 1t ought to be reduced. The
difficulty in enforcing, the principle is in
or the company's property, and in fixing
what is fair profit. 1t is clear that the
physical value of a railroad and it's plant
termining it's full value; but as Presi-
dent Roosevelt in his Indianapolis
speech and the supreme court have point
ing concern, including its good will, due
to efficiency of service, and many other
ccircumstances, may be much greater
and it is the former that measures the
be allowed. Then, too. the aues-
meaf not is onv f fair rd Profit is
usually earned on normally safe invest
ments, but also sufficient allowance to
make up for the risk of loss both of cap
NJ In In hn nj 1 nal ftnx
These considerations will have justified
the company in imposing charges high
enough to secure a fair income on the
enterprise as whole.
What Roosevelt Said.
GAS Mr.. Roosevelt has said In speak
3"The effect Of such valuation and SUI
pervision Of securities cannot be retro
active. Existing securities should be
of py ss at the time
more injure securities which have be-
come an important part OF the national
wealth than it would consider propo-
sition to repudiate the national debt
THE question of rates and treat
ment of railways is one that has two
sides: The shippers are certainly en-
an injustice to the carriers. Good
business for the railroads is essential
to general prosperity. Injustice to
holders and capitalists. whose further
investments may be necessary for the
good of the whole country, but 1T di-
rectly. affects and reduces the wages
Of railroad employees.
For what has been said, the proper
conclusion would seem to be that in
attempting to determine that whether
way is excessive, the physical valua
ton of the road Is a relevant and i'm
portant but not necessarily control
ling factor. Physical valuation proper
not e.
curities.
Rates Are Low, He Says.
"In some cases. doubtless, 1t win 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
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-
termination of the question whether dis
elimination Is unlawful or not the phys
ical valuation of the whole road is of lit
IT have discussed with some degree
of detail merely to point out that the
valuation by the interstate commerce
commission of the tangible property of
railroad is proper and may from
time to time be necessary in settling
certain of the issues which may come
before them and that no evil or in
justice can come from valuation in
such cases. If it be understood that the
result is to be used for a just pur
pose and the right to a fair profit I'M
der all circumstances of the invest
ment is recognized. The interstate com
merce commission has now the power
to ascertain the value of the physical
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 ma
tiona1 license or enforced registry of
companies engaged in interstate trade.
The fact is that nearly all corporations
doing a commercial business are en-
gagged in interstate commerce, and II
they all were required to take out
the burden upon the interstate bust
ness of the country would become in
tolerable.
wise some means for classifying and
insuring federal supervision of such
corporations as have TIE power and
terstate trade and msnopolies. Such
corporations constitute very small
percentage of all engaged in inter-
state business.
RooseveIt's Proposed Classification.
with such classification In view, Mr..
Roosevelt recommended an amendment
in the antitrust law, known as the
Hepburn bill, which provided for vol
untary classification. and created
strong motive therefore by granting
Immunity from prosecutions for rea-
sonable restrictions of interstate
trade to all corporations which would
register and submit themselves to the
publicity regulation of the depart
ment of commerce and labor.
1.-The Democratic platform suggests
a requirement that corporations and
interstate trade having control of 20
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
lions engaged in the manufacture of
special articles or commodities whose
total value is so inconsiderable that
they are not really within the per-
view or real evil of the antitrust law.
1t is not now necessary, however. to
discuss the relative merit of such prop
ositions, but ii is enough merely to at
firm the necessity for some method by
which greater executive supervision
can be given to the federal government
over these businesses in which there is
temptation to violations of the anti
trust law
Construction Of Antitrust Law.
"The possible operation Of the anti
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