The Birmingham age-herald., 1908-07-29
TAFT PLEDGES ALLEGIANCE
 TO ROOSEVELT'S POLICIES

l ties at market prices will have passed 1 into the hands of subsequent purchasers 1 from the original investors. Such oir- 1 cumstances should properly affect the de- eision of the tribunal engaged in deter mining whether the total of rates charged 1 is reasonable or excessive. To ignore ] them might so seriously and unjustly im- 1 pair settled values as to destroy all hope | of restoring confidence and forever an l inducement for investment in new rail- road construction which in returning i prosperous times is sure to be essential to our material progress As Mir. Roose- velt has said in speaking of this very sub ject:
 The effect of such valuation and 1 supervision of securities cannot be retro active. Existing securities should be test l ed by laws in existence at the time of their issue. This nation would no more injure securities which have become an 1 important part of the national wealth than 1t would consider a proposition to repudiate the national debt"
 l The question of rates and the treatment of railways is one that has two sides. 1 The shippers are certainly entitled to reasonable rates but less is an injustice 1 to the carriers Good business for the railroads is essential to general pros perity. Injustice to them is not alone injustice to stockholders and capitalists, whose further investments may be neces- sary for the good of the whole country but it directly affects and reduces the wages of railroad employees
 From what has been said the proper conclusion would seem to be that in attempting to determine that whether the entire schedule of rates of railway is excessive, the physical valuation of the road is a relevant and important but not necessarily a controlling factor. Physical valuation properly used will not generally impair securities I am confident that the fixing of rates on the principle suggested above would not ma | terially impair the present market values Of railroad securities in most cases, for I believe that the normal increase in the value of railroad properties, especially in their terminals, will more than make up for the possible over capitalization in early years. In some cases doubtless, it will be found that over capitalization is made an excuse for excessive rates, and then they should be reduced; but the concensus of opinion seems to be that the railroad rates generally in this country are reasonably low. This is why doubt less the complaints filed with the inter state commerce commission against ex- cessiye rates are so few as compared with those against those unlawful discrimina- tion in rates between shippers and be- tween places. Of course in the determi-
 
 ination is unlawful or not, the physical valuation of the whole road is of of little rate. Conclusion That There Should Be
 Physical Valuation.
 | have discussed this with some de- gree of detail merely to point out that the valuation of the interstate commerce commission of the tangible property of a railroad is proper and may from time to time be necessary in certain of the is- sues which may come before them, and that no evil or injustice can come from valuation in such cases, it be under stood that the result is to be used for just purpose, and the right to profit under all the circumstances is recognized The interstate commerce commission has not the power to ascertain the value of the physical railroad property if necessary in determining the reasonableness of rates If the machinery doing so is not ade- quate, as is probable, it should be made so.
 The republican platform recommends legislation forbidding the issue in the future of interstate railway stocks and bonds without federal authority It may occur in such cases that the full value of the railway, and as an element there of, the value of the tangible property of the railway would be a relevant and im- portant factor in assisting the proper au- thority to determine whether the stocks and bonds to be issued were to have proper security behind them, and in such case, therefore, there should be the right and machinery to make valuation of the physical property.
 National Control of Interstate Com
 merce Corporations.
 Another suggestion in respect to subor- dinate and aecilary machinery necessary to carry out republican policies is that of the incorporation under national law or the licensing by national license or en- forced registry of companies engaged in interstate trade. The fact is that nearly all corporations doing a commercial bus mess are engaged in interstate commerce, and if they all were required to take out a federal license or a federal charter the burden upon the interstate business of the country would become intolerable. Should Be Limited To Small Percent
 age By Classification.
 It is necessary, therefore, to devise some means for classifying and insuring federal supervision of such corporations as have the power and temptation to eff feet restraints of interstate trade and monopolies. Such corporations constitute very small percentage or all engaged in interstate business.
 | MT. RooseveIt's Proposed Classified
 tion.
 With such classification in view, MT. Roosevelt recommended an amendment to the antitrust law, known as the Hepburn i bill which provided for voluntary classi- fication, and created a strong motive therefor by granting immunity from pros- cautions for reasonable restraints of in- terstate trade to all corporations which would register and submit themselves to the publicity regulations of the depart ment of commerce and labor.
 The Democratic Proposed Classified ton.
 The democratic platform suggests re- qufrement that corporations in interstate trade having control of 25 per cent of the products in which they deal shall take out federal license. This classification would probably include a great many small corporations engaged in the manu- | facture of special articles Or commodities | whose total value is so inconsiderable that | they are not really within the purview l or real evil of the antitrust law. It is not now necessary, however, to | discuss the relative merit of such propo | sitions but it is enough merely to affirm | 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 temp | tation to violations of the antitrust law Construction of Antitrust LaW-Pos- sibIe Necessity for Amendment: