The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-28

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ed by President Roosevelt. The CHIEF
function of the next administration II
to complete and perfect the machinery
by which these standards may be
maintained. by which the lawbreakers
may be promptly restrained ana pun
fshed, but which shall operate with
sufficient accuracy and dispatch to
Interfere with legitimate business as
not now adequate. Under the present
rate bill, and under all its amend
ments. the burden of the Interstate
commerce commission in supervising
and regulating the operation of the
railroads of this country has grown so
heavy that 1t is utterly impossible for
that tribunal to hear and dispose, in
any reasonable time, of the many
complaints. queries and issues that are
brought before 1t for decision. 1t
ought to be relieved of its jurisdic-
ton as an executive. directing body.
and its functions should be limited to
the quasi-judicial investigation OF
complaints by individuals and by de-
with the executive business of super
vising the operation of railways.
There should be a classification OF
that very small percentage of industrial
corporations having power and oppor-
tunity to effect illegal restraints of
either inducing or compelling them to
subject themselves to registry and to
proper publicity regulations and super
Vision of the department of commerce
and labor.
Work OF Next Administration.
The field covered by the industrial
combinations and by the railroads is
SO very extensive that the interests of
the public and the interests of the
businesses concerned cannot be proper
~ observed except by reorganization of
bureaus In the department OF COM
merce and labor, or agriculture, and
the department of Justice. and a change
In the jurisdiction of the Interstate
commerce commission. 1t does not as
sist matters to prescribe new duties
sion which 1t Is practically impossible
for 1t to perform, or to denounce new
offenses with drastic punishment, I'M
less subordinate and auxiliary legisla-
ton shall be passed making possible
the quick enforcement in the great va
riety Of cases which are constantly
arising, Of the principles laid down by
Mr.. Roosevelt and with respect to
which only typical instances of prose-
cution with tho present machinery are
possible. Such legislation should and
would greatly promote legitimate busi-
ness by enabling those anxious to obey
the federal statutes to know Just what
are the bounds Of their lawful action.
The practical constructive and difficult
work, therefore. of those who follow
Mr.: Roosevelt Is to devise the ways
means by which the high level of bus
iness integrity and obedience to law
which he has established may be MAIN
tanned and departures from 1t restrain
ed without undue Interference with
legitimate business.
Railway Traffic Agreements.
II is agreeable to note in this re-
gard that the Republican platform ex-
pressly and the Democratic platform
implicitly, approve an amendment to
the Interstate commerce law, by which
Interstate railroads may make useful
trsffic agreements If approved by the
commission. This has been strongly
recommended by President Roosevelt
and will make for the benefit Of the
business.
Physical Valuation of Railways.
Some of the suggestions of the
Democratic platform relate really to
this subordinate and ancillary, ma
chinery to which I have referred.
Take for instancesthe so-called "physi- |
cal valuation of railways" 1t is clear
that the sum of all rates or receipts |
of a railway. less proper expenses,
the reasonable value of its property, |
and II the sum exceeds this measure. |
II 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
Is clear that the physical value |
of railroad and its plant is an ele-
ment to be given weight in determin- |
ing its full value; but as President |
Roosevelt in his Indianapolis speech |
and the supreme court have In effect |
pointed out. the value OF the railroad |
as a going concern. including its good |
will. due to efficiency of service and |
many other circumstances, may be |
much greater than the value of its |
tangible property. and 1t is |
on which fair
profit must be allowed. Then, too. |
the question that is a fair profit is one |
Involving not only the rate of interest |
usually earned on normally safe in |
vestments. but also a sufficient allow
ance to make up for the risk of loss |
both OF capital and interest in the |
original outlay. These considerations /
will have justified the company in /
imposing charges high enough to Sc
cure fair income on the enterprise |
as q whole. The securities at market |
prices will have passed into the hands |
of subsequent purchasers from the |
original investors. Such circum- |
stances should properly affect the de- |
cision of the tribunal engaged In de- |
termininS whether the totally of
rates charged is reasonable or excess
sive. To ignore them might so SER
fously and untustly impair settled |
values as to destroy all hope of re-
storing confidence and forever to end |
the inducement for investment in new |
construction which. in re-
turning prosperous times. Is sure to be |
essential to our material progress. Asl
Mr.. Roosevelt has said in speaking of |
this very subject:
THE effect of such valuation and
supervision OF securities can not be |
retroactive. Existing securities should |
be tested by laws in existence at the |
time of their issue. This nation l
would no more injure securities which |
have become an important part of the |
national wealth than 1t would con-
slider a proposition to repudiate the |
national debt" /