The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-07-31

trafac agreements II approved by the
commission. This has been strongly
recommended by President Roosevelt
and will be for the benefit Of the bust.
uess.
Physical Valuation OF Railways.
Some of the suggestions Of the dem.
ocratic platform relate really to this
subordinate and ancilliary machinery
to which I have referred. Take for In
stance, the socalled physical valua-
ton Of railways. It is clear that the
sum Of all rates or receipts Of q rail.
road. less proper expenses. should be
limited to q fair profit, upon the reas.
enable value of It's property, and that
If the sum exceeds this measure 1t
ought to be reduced. The difficulty
in enforcing the principle is in ascer.
tanning what is the reasonable value
Of the company's property and in fix
ing what is a fair profit. It is clear
that the physical value OF a railroad
and its plant Is an element to be given
weight in determining its full value.
AS Mr.. Roosevelt has said in speaking
of this very subject:
"The effect of such valuation and
supervision Of securities cannot be re.
troactive. Existing securities should
be tested by laws in existence at the
time of their issue. This nation would
no o injure securities which have
become an important part OF the ma.
tional wealth than it would consider
a proposition to repudiate the nation.
al debt"
The question Of rates and the treat.
ment Of railways is M that has two
sides. The shippers are certainly en-
titled to reasonable rates; but less is
an injustice ITO the carriers. Good
business for the railroads is essential
to general prosperity. injustice tc
them is not alone injustice to stock
holders and individuals whose further
% ETFRZ
investments may be necessary for the
good Of the whole country, but it di
rectly affects and reduces the wages
of railway employees and indeed, may
deprive them Of their places entirely
From what has been said, the proper
conclusion would seem to be that II
attempting to determine whether the
entire schedule Of rates Of a railway
is excessive, the physical valuation o.
the road is a relevant and import
ant, but not necessarily controlling
factor.
Control of Interstate Corporations
Another suggestion in respect tt
subordinate and a%ncillary machinery
necessary to carry out republican
policies, is that of the incorporation
under national law OF 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 taxi
out a federal license or a federal chart
ser the burden upon the interstate bust
ness Of the country would be intoler
able.
1t is necessary, therefore, to devist
some means for classifying and in
surfing federal supervision Of such cor
porations as have the power ant
temptation to effect restraints Of in
terstate trade and monopolies. Sucl
corporations constitutes a very small
percentage Of all engaged in interstat'
business.
Mr.. Roosevelt's Proposed classif
cation.
With such classification in view, MI
Roosevelt recommended an amend
ment to the antitrust law known q
the Hepburn bill, which provided 70
voluntary classification and created
strong motive therefor by granting in
munity from prosecutions for reason
able restraints Of interstate trade =
all corporations which would registe
and submit themselves to the publicit
regulations of the department of con
merce and labor.
Construction Of Antitrust Law.
The possible operation Of the ant
trust law under the existing rulings 9
the supreme court has given rise t
suggestions for its necessary amend
ment to prevent It's applications I
cases which it is believed were neve
In the contemplation Of the trainers {
the statute. Take two instances:
A merchant or manufacturer 81
gagged in a legitimate business tbs
covers certain states, wishes to se
his business and his good will, and g
in the terms of the sale obligates hin
self to the purchaser not to go int
the same business in those state
Such a restraint of trade has Away
been enforced at common law Agai
the employees of an interstate railwa
combine and enter upon a. peacef,
and lawful strike to secur bettt
wages. At common law this was NJ
a restraint of trade or commerce {
a violation of the rights OF the cor
pany or Of the public. Neither cas-
ought to be made a violation Of Il