, 1908-07-28

r. "
mercc commission against excessive
rates are 50 few as compared with
those against unlawful discrimination
IN rates between shippers and between
places. or course, in the d%eteruina-
lion OF the question whether disorlm-
nation Is unlawful or not, the physi-
cal valuation OF the whole road is of
httle weight.
Should Be Physical Valuation.
l have discussed this, with some de
gree OF detail. merely to point out that
the valuation by the interstate com
merce commission of the tangible prop
erty of a railroad Is proper and may
from time to time be necessary in
settling certain issues which may come
before them, and that no evil or in
justice can one from the result Is to
be used for a Just purpose, the
right TO a fair profit under all the cir
cumstances of the investment is recog
nized.
Power Of Commission.
The Interstate commerce commits.
sion has now the power to ascertain
The value of the physical railroad
property, II necessary, in determining
the reasonableness of rates. If the
machinery for doing so Is not adequate,
as is probable, it should be made so.
Use Of Federal Authority.
The republican platform recon-
mends legislation f%orbiddihg the issue
in the future of interstate railway
stocks and bonds without federal
authority. 1t may occur in such cases
that the full value OF the railway, and,
as an element thereof, the value of the
tangible property of the railway,
would be a relevant and important fac
tor in assisting the proper authority TO
determine whether the stocks and
bonds to. be issued were to have pro
per security behind them, and in such
case. therefore, there should be the
right and machinery to make a valua
ton of the physical property.
National Control of Corporation.
Another suggestion in respect TO sub,
ordinate and ancillary machinery ne
cessary TO carry out republican poll
cies Is that of the Incorporation I'M
der national law or the licensing by
national license or enforced registry
Of companies engaged in Interstate
trade. The fact is that nearly all cor
porations doing a commercial business
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
intolcrable.
Small Percentage by CIassifica alton.
1t Is necessary, therefore, to devise
some means for classifying and insur-
ing federal supervision OF such cor
porations as have the power and temp
~tation to effect restraints Of inter
state trade and monopolies. Such cor
porations constitute a very small per
centage of all engaged in interstate
business.
Roosevelt's Proposed Classification
With such classification in view, Mr..
Roosevelt recommended ar amend
ment to the antitrust law, known
as the Hepburn bill, which pro
vided for voluntary classification
and created a strong motive
therefor by granting immunity from
prosecution for reasonable restraints
of interstate trade to all corporations
which would register and submit them
selves to the publicity regulations OF
the department of commerce and labor,
Democratic Proposed Classification.
The democratic platform suggests
a requirement that corporations IN
interstate trade having control l6fss55
per cent of the products in which yhSy
deal shall take ont a federal license.
This classification would probably In
clude a great many small corporations
engaged in the manufacture of special
articles. or commodities whose total
value Is SO inconsiderable that they
are not really within the purview or
real evil of the antitrust law.
Greater Executive Supervision.
1t Is not now necessary, however, TO
discuss the relative merit of such pro.
positions but 1t II enough merely to
affirm the necessity Tor some metifod
by which greater executive supervi-
son can be given to the federal gov
eminent over those businesses In
which there is a temptation to viola
lions of the antitrust Law.
Construction Of Antitrust Law.
The possible operation Of the anti
trust law under existing rulings of the
supreme court has given rise to sug-
g~estions for its necessary amendment
to prevent its application to cases
which il is believed We're never in the
contemplation of the trainers Of the
statute. Take two instances:
Enforced at Common Law.
A merchant or manufacturer engag'
ed in a legitimate business that covers
certain states, wishes to sell his bust
ness md his good will, and so in the
terms of the sale obligates himself to
the purchaser not to go into the same
business in those states. Such a re
s.raint of trade has always been en-
forced at common law. Again, the en-
ployes of an iterstate railway COM
bine and enter upon a ~peaceable and
lawful strike to secure better wages.
Neither Inhibited.
At common aw this was not a re-
strsint OF trade or commerce or a vio-
lation of the rights of the company or
of the public. Neither case ought to
be made a violation of the anti-trust
law. My own impression is that the
supreme court would hold that neither
Of these instances are within its in
hibition, but, il they are to be so
regarded, general legislation amend
ing the law is necessary.
A Democratic Plank.
The suggestion of the democratic
platform that trusts be ended by for
bidding corporations to hold more than
so per cent of the plant in any line of
manufacture is made without regard
to the possibility of enforcement or
the real evil in trusts. A corporation
- A.