The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-07-28

entire schedule Of rates of n railway
is excessive, the physical valuation or
the road Is a relevant and important
but not necessarily a controlling fac
tor.
Won't Impair Securities.
7 am confident that the fixing Of rates
on the principles suggested above would
not materially impair the present mar
ket values of railroad securities in most
cases. for 1 believe that the normal
increase In the value of railroad proper
ties. especially in their terminals, viii
more than make up for the possible
disqualification in earlier years. ia
some cases, doubtless, it will be found
that DISQUALIFICATION is made an ex-
cuse for excessive rates, and then they
should be reduced; but the consensus
Of opinion seems % be that the rail-
road rates generally in this country are
reasonably low.
This is why, doubtless, the complaints
filed with the Interstate Commerce
Commission against excessive rates are
so few Is compared with those agalnsL
unlawful Discrimination IL rates De
tween shippers and betW cen places. OF
course. in the determination OT the QueS-
ton whether discrimination s unlawful
or not. the physical valuation OF the
whole road is OF little weight.
/ 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 railroad is proper, and may
/ from time 20 time be necessary In set
ting certain issues which may come be-
fore them, and that no evil or injustice
can come from valuation In Sucn cases,
If il be understood that the result IS 70
/ be used for a just purpose, and the
right 70 a fair profit under all the cir
cumstanceS OF the investment is recog-
nized.
The Interstate Commerce Commission
| has now the power TO ascertain the
| value OF the physical railroad property,
/ if necessary, In determining the reason
| ableness of rates If the machinery for
doing so is not adequate, as is probable,
/ IL should be made so.
! The Republican platform recommends
| legislation fOTbidding the issue IN tho
/ future OF Interstate railway stocks ana
I bonds without Federal authority. II
may occur in such cases that the full
value Of the railway, and, as an element
thereof. the value Of the tangible prop
/ erty Of the railway, would be = relevant
and important factor IN asS-S Ing TN >
proper authority 10 determine whether
| the SOCKS and bonds TO be issued were
| 10 have proper security behind them.
and IL such case. therefore, there should
/ be the right and machinery 70 make a
/ valuation Of the physical property.
National Control
! Another suggestion in respect 20 sub
/ ordinate and anciIlary machinery neces-
! sary TO carry out Republican policies is
/ that Of the incorporation under national
/ law or the licensing by national license
! or enforced registry Of companies en-
! gagged =. interstate trade. The fact IS
! that nearly all corporations doing a
| commercial business are engaged II. in
terstate commerce. and IL they all were
: required TO take out a Federal hcens5
or q Federal charter, the burden upon
the interstate business Of the country
/ would become Intoierable.
II is necessary. therefore, 70 dew Sc
some means for classifying and insIr-
ling Federal supervision OF such cor
poratiOns as have the power and
! temptation 20 effect restraints OF inter
I state trade and mOnOpOIes. Such cor
poratiOns constitute a very small per
| ceutage o. all engaged in Interstate
business.
| With such classification in view. Mr.
/ Roosevelt recommended an amendment
L. the antitrust law, known as tns
/ Hepburn bill, which, provided for vol
/ untary classification, and created .
/ strong motive therefor BY granting i'm
munitv from prosecution for reasonable
restraints OF interstate trcde TO all cor
pOratioEs which would register and
! submit themselves 10 the publicity reg
ulatiOnS Of the Department OF Com
Terce and Labor
The Democratic platform suggests q
requirement that corporations in inter
state trade having control Of > pei
cent Of the products in which they dea
I shall take out a FEDERAL license. This
classification would probably include q
/ great many small corporations en-.
gagged in the manufacture Of Speclal ar
ticles. or commodities whose total valut
is so incOnsiderable that they are not
! really within the pUTview or real svi
[ of the antitrust law
It is not now necessary, however. tC
discuss the relative merit Of such prop
osltions, but It Is enough merely to az
firm the necessity for some method by
can be given to the Federal Govern
ment over those businesses IN which
there j. q temptation 70 violations o,
the antitrust law.
Antitrust Law.
The possible operation of the anti
trust law under existing rulings of tn,
! Supreme Court has given rise TO sug
gestions for its necessary amendmen
20 prevent its application to cases
which il is believed We're never in IN,
contemplation Of the trainers of III
ctatute Take two instances: a mer
chant or manufacturer engaged III
Legitimate business that covers certain
| states. WISHES 10 sell us DuSlIeSS slIlt
his good viii. and so in the terms o
The sale obligates himself TO the pur
chaser not to 20 into the same business
in those States. Such n restraint o
trade has always been enforced a
common law.
Again. the employees OF an interstat,
railway combine can enter upon
pCaCeable and lawful strike to secUr
better wages At common law thi
was not a restraint of trade or com
morce or a violation OF the rights o
the company or OF tne public. NeitEe
case ought TO be made a Violation o
the antitrust law.
Ny own impression IS that the Su
preme Court would hold that ueithe
Of these instances arc within its inhIbi
ton, but. if they arc 70 be so regard
cd. general legislation amending tn
law IS necessary.
The suggestion OF the Democratic
; platform that trusts be ended by forbid
/ ding corporations to hold more than )
per cent Of the plant in any line Of man
I ufacture is made without regard to tn
l possibility of enforcement or the rea
/ evil in trusts. A corporation controlling
- or 50 per cent of the products may b,
> / welI-knOwn methods frequently effec
| monopoly and stamp out competition In
part Of the country as completely as
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