The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-01

case Justify an advance in rates. and il
so the advance should be permitted and
approved. But there may be, and doubt
less are cases where this is not true;
and our law should be so framed that the
government, as the representative of the
whole people can protect the individual
against unlawful exaction for the use of
these public highways. The interstate
commerce commission should be provided
with the means to make physical valua-
ton of any road as to which 1t deems the
valuation necessary.
Should Exercise Supervision.
In some form the federal government
should exercise supervision over the fl
nancial operations of our interstate rail-
roads. In no other way can justice he
done between the private owners of those
properties and the public which pay their
charges. When once an inflated capitali-
cation has gone upon the market and has
become fixed I'm value. its existence In,!st
be recognized. As a practical matter II
is then often absolutely necessary TO take
account of the thousands of innocent
stockholders who have purchased their
stocks in good faith The usual result of
such initiation is therefore to impose up
on the public an unnecessary but ever
lasting tax, while the innocent purchasers
of the stock are also harmed and only
a few spectators are benefited such
wrongs, when once accomplished can with
difficulty be undone; but ,ney can be
prevented with safety and justice. When
combinations of interstate railways must
obtain government sanction, when II is
no longer possible for an interstate rail-
way to issue stock or bonds save in the
manner approved by the federal govern
ment: when that government makes sure
that the proceeds of every stock and bond
issue go into the Improvement OF the
property and not the enrichment of some
individual or syndicate; when, whenever
it becomes material for guidance in the
regulative action of the government. the
physical value of one of these properties
is determined and made knOwn--there Will
be eliminated from railroad securities
that element OF uncertainty whlch lends
to them their speculative quality and
which has contributed to the financial
stress of the recent past.
Control of Physical Operation.
1 think that the federal government
must also assume a certain measure of
control over the physical operation of
railways in the handling of interstate
traffic. The commission now has author
itv to establish through routes and Joint
rates. In order to make this provision
effective and in order to promote in
times of necessity the proper movement
of traffic, think 1t must also have
authority to determine the conditions up
on which cars shall be interchanged be-
tween different interstate railways. 1t
is also probable that the commission
should have authority, in particular in
stances, TO determine the schedule upon
which peTishable commodities shall be
moved.
recommendation that railways be permit
ted TO form traffic associations for the
purpose OF comforting ABOUT and agree
ing upon rates. regulations and practices
affecting interstate business in which the
members of the association are mutual
" interested. This does not mean that
they should be given the right to pool
their earnings or their traffic. The law
requires that rates shall be adjusted
as not to discriminate between individU-
{ ais. localities or different species of traf-
fic. Ordinarily rates by all competing
{ lines must be the same. As applied to
practical conditions. the railway opera
lions of this country cannot be conducted
| according to law without what is equiva-
/ lent to conference and agreement. The
/ articles under which such associations
! operate should be approved by the COM
/ mission: all their operations should be
| open to public inspection, and the rates.
| regulations and practices upon which they
] agree should be subject TO disapprOval
/ by the commission.
Railways Are Public Highways.
/ 1 urge this last provision with the same
| earnestness that / do the others This
J country provides its railway facilities by
/ private capital. Those facilities will not
! be adQuate unless the capital employ ed
! Is assured of just treatment and an ade-
quate return. In fixing the charges of
/ railroads. / believe that, considering the
interests of the public alone il is bet
| ter TO allow too liberal rather than too
scanty earnings for, otherwise. there is
/ grave danger that our railway develop
! ment may not keep pace with the demand
for transportation. But the fundamental
idea that these railways are public high
ways must be recognized, and they must
be open to the whole public upon equal
terms and upon reasonable terms.
! In reference to the Sherman antitrust
law / repeat the recommendations made
in my message at the opening of the
present congress, as well as in my mes
sage to the previous congress. The at
tempt in this law to provide in sweep
ing terms against all combinations OF
whatever character. if technically in re-
Straint of trade as such restraint has been
defined by the courts, must necessarily
either be futile or mischievOus, and
sometimes both. The present law makes
some combinations illegal, although they
may be useful to the country. On the
other hand, as to some huge eombina-
lions which are both obnoxious and IL
legal, if the action undertaken against
them under the law by the government
is successful the result may be to work
but a minimum benefit to the public
Even though the combination be broken
up and small measure of reform there
by produced, the real good aimed al can
not be obtained. for such real good car
come only by q thorough and continu-
ing supervision over the acts of the COM
bination in all its parts so as to pre-
vent stock watering. improper forms OF
competition and. in short, wrongdoins
/ generally. The law should correct thai
portion of the Sherman act which pro
; hibits ali combinations of the character
! lust described, whether they may be rea,
sonable or unreasonable: but this should
be done only as part of a general scheme
TO provide for this effective and thorough
going supervision by the national gov
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