The Montgomery advertiser., 1908-07-29

is not now adeouate. Under the pres ent rate bill, and under all its amend TTsnts, T, the burden of the Interstate and regulating the operation of the railroads of this country has grown so heavy that t is utterly impossible for any reasonable time. of the many com plaints. 9eeries and Issues that are brought before 1t for decision. It as an executive. directing body. and It's functions sh ould be limited to the quasi judicial investigation of com plants by individuals and by a depart the executive business of supervising the operation of railways.
 There should be a classification Of that very small percentage of indus trial corporations having power and opportunity to effect illegal restraints of trade and nonopolies, and lsgisla- tion either inducing or compelling them to proper publicity regulations and supervision of the Department of Com merce and Labor.
 Constructive Work of Next Administrh-
 tion to Organize Subordinate and
 Anciliary Machinery to Main
 tain standnras on One Hand.
 and Not to Interfere
 The field covered by the industrial combinations and by the railroads is
  of the public and the interests of the business concerned cannot be properly subserved except by reorganlzation merce and Labor. of Agriculture. and the Department of Justice: ana change in the Jurisdiction of the In terstate Commerce Commission Wnicn ta perform, or to denounce new onenseS with drastic punishment. unless SUD. ordinate and aneillary ieE,slathion .h o,,Ien ShsH Enforcement in the great variety o1 cases which are constantly arising, or the principles laid down by MT; hoose- welt and with respect to which onIy typIcal instances of prosecution Wlth the present machinery are possloie; Such legislation should ana Moulu greatly promote legitimate business py enabling those anxious to obey the Federal statutes to know just what are the bounds of their lawful action. The practical constructive ana dimeGuas IGu MT. Roosevelt Is to devise the Ways and means by which the high level of business integrity and opealence So maintained and departures from 1t re- strained without undue interference with legitimate business.
 Railway TrnGac Agreements Approvee
 bx Connmissaon should be Valid.
 If is agreeable to note in this regard that the Republican platform express ly and the Democratic platform im- pliedIy approve an amendment to the interstate Commerce law, by which interstate railroads may make useful traffic agreements if approved by the Commission. This has been strongly recommended by President Roosevelt and wiM make for the benefit of the business.
 Physical vaIustion of RaiIways.
 Some of the suggestions Of the Dem ocratic platform relate really 70 this subordinate and anciiiary machinery to ' rsnRa Tn1ra for inc stance the so-called physical valua- ffon of railways." It Is clear that the sum of all rates or receipts of rail. way, less proper expenses, should pc onable value of it's property, and that if the sum exceeds this measure. 1t ought to be reduced The dimculty Tn enforcing the principle is inlascertain- conpany's property and in fixing what ia a fair profit. It Is clear that the physical value of railroad ana It's plant is an element to be given weight President Roosevelt in his 5n- dianapolis speech, and the Su- preme Court have in effect pointed out, the value of the railroad as a going concern, including It's good will. due to efficiency of service and many other circumstances, may be much greater than the value of It's tan- gibIe property, and 1t is the former that measures the investment on which a fair profit must be allowed. Then, too, the question what is fair profit Is one involving not only the rate of in terest usually earned on normally safe investments, but also sufficient ai- lowance 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 im- posing charges high enough to secure a fair income on the enterprise as a whole. The securities at market prices will have passed into the hands of sub, sequent purchasers from the original investors. Such circumstances should properly affect the decision of the trt- bunal engaged in determining whether the totality of rates charged is reason might so seriously and unjustly impair settled values as to destroy all hope of restoring confidence and forever to end the induOement for investment In new railroad construction which, Tn returning prosperous times, is sure to be essential to our material progress. As Mir Roosevelt has aid in speaking of this very subject:
 "The effect of such valuation and su- pervision of securities can not be retro- active. ExistinS securities should be tested by laws In existence at the time of their issue. This nation would no more injure securities which have be- come an important part of the national wealth tban it would consider a prop osition to repudiate the national debt.
 The question of rates and the 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 bus mess for the railroads is essential to general prosperity. Injustice to them is not alone injustice to stockholders and capitalists. whose further invest ments may be necessary for the good of the whole country. but it directly affects and reduces the wages of rail- way employees. and indeed may deprive them of their places entirely.
 From what has been said, the proper conclusion would seem to be that in attempting to determine whether the entire schedule of rates of a railway