Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1908-08-06

hdlIWay lrarfic Agreements.
1T 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
Ihis has been strongly recommended by
nhresdent ih Roosevelt, and will make for
Some of the suggestions OF the Demo-
| cratic platform relate really TO this
subordinate and ancillary 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 railway. less
| proper expenses, should be limited to
tair profit upon the reasonable valde of
It's property. and that If the sum exceeds
dlfhculty in enforcing the principle is in
ascertaining what is the reasonable value
OF the company's property, and in fixing
| what is fair profit. 1t is clear that the
| physical value of a railroad and its plant
| is an element 10 be given weight in de-
termining its full value; but Prcsi-
| dent Roosevelt in his Indianapolis
speech and the supreme court have point
| ed out, the value of the railroad as a go
| ing concern, including it's good will. due
| to efficiency of service, and many other
than the value of its tangible property
ana It is the former that measures the
| be allowed. Then, too. the ques-
| ton what is fair profit is one
involving not only the rate of interest
| usually earned on normally safe invest
ments, but also sufficient allowance to
make up for the risk of loss both of cap
ital and interest in the original outlay
| These considerations will have justified
| the company in imposing charges high
| enough to secure fair income on the
| enterprise as a whole.
What Roosevelt Said.
AS Mr., Roosevelt has said in speak
| ing of this very subject:
I off fAf lac, tfF,V,r 1
| perVision of securities cannot be retro
| active. Existing securities should be
| tested by laws in existence a the time
! of their issue. This nation would no
! 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-
titled to reasonable rates but less is
! an Injustice to the carriers. Good
| business for the railroads is essential
TO- to general prosperity Injustice to
! holders and capitalists whose further
! investments may be necessary for the
! good of the whole country, but it 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
! the entire schedule of rates Of rail
! way is excessive the physical valua-
]
! portant but not necessarily a control
! ling factor. Physical valuation proper
! ly used will not generally impair Sc
Rates Are Low, He Says.
"In some cases. doubtless. it will be
! found that OVercapitaiization is made
an excuse for excessive rates. and then
! they should be reduced, but the con-
| Scnsus Of opinion seems to be that the
| railroad rates generally in this coun-
! try are reasonably low. This is why
! doubtless the complaints filed with the
| interstate commerce commission
against excessive rates are so few
I 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
Il have discussed with some degree
of detail merely to point out that the
| valuation by the interstate commerce
! commission of the tangible property OF
a 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 just pur-
pose. and the right to fair profit un-
! der all circumstances of the invest
ment is recognized. The interstate com
to ascertain the value of the physical
railroad property If necessary in de-
| termining the reaSOna bleneSS 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
| tional 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 If
| they all We're required to take out a
federal license or federal charter
| the burden upon the interstate bust
| tolerablc.
1T is necessary. therefore. to de-
| inSuring federal supervision of such
| corporations as have the power and
temptation to effect restraints of in
| terstate trade and monopolies. Such
| corporations constitute Il very small
percentage of all engaged in inter
| state business.
Roosevelt'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 a
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.
| "The Democratic platform suggests
| a requirement that corporations and
| interstate trade having control of %
| per cent of the products in which they
| deal shall take out federal license.
| This classification would probably in
| clude great many small corpora
| tions 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 it is enough merely to af-
| 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
| a temptation to violations of the anti
| trust law.
Construction of Antitrust Law.
| THE possible operation of the anf-