The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1908-07-30

charges high enough to 'rc--rc fair
income on the enterprise g., va lie.
The securities at mG34et prices will
have pasfel iato the ha:lt Of ubse.
quent purcha ets fIy i The Original in
vestors such circum ;ai cs gh1-ld
properly affect the decision of the tri.
bunal enga ged il ytcr. i.ling whether
.he totali,y of rates ear is reason.
able or excessive. To ignore them
might SO seriously and ulirstly i'm
pair settled values IS TO destroy all
hope of rcstpri & conf .cnce and for
ever end tht induccment for invest
ment in me- ~, JIl construction
wh.ch. in "ntr" igg prosperous times.
Is cure ~ 80 cs on ill to our material
progress
From what hHs DceI said. the proper
con, lusions would seem TO be that in
attempting to determine whether the
entire schedule of in'cs of railway is
excessive. the physical valuation of the
road is a rel2yan, A Il important but
not necessarily ctIrollng factor.
am cOutde1. that the fixing of
rates On the prin iplcs suggested above
would not materially impair the pres.
ent market values of railroad securi
ties I'm most casce for | believe that
the normal increase in the value of
railroad propertios. especially In their
terminals. will more than make up for
the possible ovcrcapitalization in ear
licr years I'm some cases. doubtless,
it will be found that overcapitalization
Is made an excuse for excessive rates,
and then they should be reduced: but
the consensus of opinion seems to be
that the railroad rates generally in this
country are reasonably low.
Conclusion That There Should Be
Physical Valuation.
have dis used this. with some de-
gree OF detail. merely to point out that
the valuaaun 10y the Interstate Com
merte Commission of the tangible
property of a railroad is proper and
may from time 10 time be nec esSary I'm
settling certain issues which may come
before them, and that no evil or injus-
tice can come from valuation i'm such
cases If IL be understood that the re-
suit is to be used for a Just purpose,
ard the night to fair profit under all
the circumstances Of the investment is
recognized.
National Control Of Interstate Gem.
meree Corporation.
Another sur- estion in respect to sub
ordinate and ancillary machinery nee
essary to carry out Republican policies
Is that of the incorporation under Ma
tional law or the licensing by National
license or enforced registry of compa-
MES engaged in interstate trade. The
fact Is that nearly all corporations do
ing a CONNER ial business are engaged
in Interstate commerce, and If they all
were required to take out Federal
license or Il Federal charter. the bur-
den upon the Interstate business of the
country would become into4crable.
1t is necessary therefore, to devise
some means for classifying and insur-
ing Federal supervision OF such cor
porations as have the power and temp
tation to effect restraints of interstate
trade and munopolies. Such corpora
tions constitute very small percent
age of all engaged in interstate bust
ness.
cOnstruc.i.a Of ANTITRUST Law.
The possible operation of the anti
trust law under existing rulings of the
Supreme Court has given rise to sug-
gestlons for its necessary amendment
to preven. it, application to cases
which II Is believed were never IN the
contemplation of the trainers of the
statute. Take two instances: A mer-
chant or manufacturer engaged In a
legitimate business that covers certain
States, wishes 10 sell his business and
his good will, and so In the terms of
the sale obligates himself TO the pur-
chaser not to 20 into the same bust
ness IN those States. Such a restraint
OF trade has always Deen enforced at
common law. Again, the employees OF
an interstate railway combine and en-
ter upon peaceable and lawful strike
to secure better wages. At common
law this was not a restraint of trade
or commerce or violation of the
rights of the company or of the public.
Neither case ought to be made viola.
tion of the antitrust law. My own
impression Is that the Supreme Court
would hold that neither of these in
stances is within its inhibition, but, If
they are to be so regarded, general leg
islation amending the law is necessary.
The proposal 10 compel every cor
poration to sell its commodities at the
same price the country over, allowing
for transportation, Is utterly imprac-
ticable. If Il can be shown that in or
der to drive out competition, corpo-
ration owning large part of the plant
producing an article is selling in one
part of the country, where II has com
petitors, nt low and Improbable
price, and I'm another part Of the coun-
try, whore II has none. at an eXorbi-
tant price, this IL evidence that II is at
tempting an unlawful monopoly, and
justideg conviction under the antitrust
law: but the proposal 10 supervise the
business Of GO poT;ions in such a way
as TO fix the price Of commodities and