The Ordway new era., 1908-07-31
Railway Traffic Agreements.

al
may he maintained. and departures from
u restrained without undue lntcrfercnr"
Win legitimate business
Railway Traffic Agreements.
II II agreeable to note In this rcgnrd
that the Republican platform "xprGssly
and the Democratic platform ImplicdIy
approve an amendment to tho Interstate
commerce law. by which Interstate rail
Imcnts, II approved by the commissions
inis mas hc"n strongly recommended by
ih ihreshidsnt Roosevelt. and will make Tor
Some OF tho suggestions uf the Demo-
crhtc platform relate really to this
which l have referred. Take FOR i'm.
stance, the so-callod physical valuation
OF railways. II is clear that the sum OF
an rates or receipts Of railway, less
proper expenses, should be- limited to a
tnir proht upon the reasonable value OF
rs property. and that II the sum exceeds
this measure. II ought to be- reduced The
dlnlculty In enforcing the principle IL In
nsccrtaining what is the reasonable value
OF IN" comp4ny's property. and In h>ina
physical value OF a railroad and It's plant
ls mn element To bC given weight In de-
t.rmininS it's fuii value; but as Pr"si-
speech and the supreme court have point
ed out. the Vnlu" Of the railroad as a go.
Ing concern. including Its good Will. due
to efficiency OF service and many other
circumstances, may be much greater
than tn" value Of Its tangible property
anu u IN lfit FORMER tlitt measures the
Investment on which fair profit must
be allowed. Then. too the qucs-
tlon what is fair profit Is one
Involving not only the rate Of interest
usually earned on normally safe invest
m"rts. but also II sufficient allowance to
make up for the risk uf loss both of cap.
These considerations will hnyr Justified
the company In imposing charges high
enough To secure "A fair Income on the
enterprise ns whole.
What Roosevelt Said.
"As Mr.. Roosevelt has said in speak.
Ing OF this very subject;
The effect OF such valuation and su-
pervision OF securities cannot be retro
active Existing securities should be
OF their Issue. This nation would no
more inJurc securities which have be-
come an important part OF the national
sition to rcpudiatc the national debt
The question OF rates and treat
sides Tn" shippers are certainly en-
titled to reasonable rates: but less iE
an injustice to the carriers. Good
business for the railroads is essential
them Is not alone injustice to stock
holders and capitalists, whose further
Investments may be necessary for the
good Of the whole country. but II dt-
rectly affects and reduces the wages
OF railroad employees.
For what has been snid, the proper
conclusion would seem to be that in
attempting to dctcrm ne that whether
the entire schedule OF rates OF rail-
way liz excessive. the physical Nnlun-
tion OF the road IL Il relevant and i'm
portant but not necessarily a control
ling factor. Physical valuation proper
iy used will not generally impair Sc
Rates Are Low. He Says.
TN some cases doubtless. II will be
found that ovsrcnpItnlizntion Is made
an excuse for excessive rates. and then
tb.y shpull he reduced, but the con-
sensus OF opinion seems To be thht the
railroad rates generally ~ TINS coun-
doubtless the complaints filed with the
Interstate commerce commlssinh
against excessive rates are :" iew ~
compared with those against unlawful
discrimination in rates between Shippers
and between places OF course In the De
termination of the question whether dis
crlmInation IL unlawful or not, the phys
zeal valuation OF the whole rond Is OF ut
tie weight ,, - ,x,.
of detail merely to point out that ,ne
valuation by the interstate" conmerc.
commission of the tangible prop'rty OF
a railroad Is proper and may from
lime to time be necessary in settling
certain OF the issues when may coin'
before them and that no rNii or IN T.,
Justice can come from VALUATION IN
such cases II 1t be understood that the
result is to be used Tor JUST phl
pose. and the right TO- u tn't tnn prITt inysst- w
n.nt is recognized. The interstate com
mercc commission has now the power
to ascertain the value OF the physiSSh'
railroad property II necessary In De
trrmiuipE the reasonablcness OF rates
National Control Of Corporations.
"Another suggestion in respect 10
subordinate and aneiiInry ,ITcnn m'n, noii,
cies is that of the inGcorporation uhner ne
national law or the licensing ny ma
tinn,I license or enforced registry OF
comnanies engaged in interstate trade.
The fact is that nearly all corporn''oaS
doing u commercial business are 't
gagged in interstate commerce, hI,u , ~ a
they ali were required to take our u
federal license or a icutIHi '''I, h,,si
the burden upon the lntarSS.n,S mt, S,or,o In
ness OF the country would become IN
ut is necessary. therefore: TO nd u%
wise some means -SisiSm ior SiaSS OF such
rorporntions ns have the power h,u
temptation to effect res,rnalIii,S such
corporations constitute a very , sina.i
pcrcentage of all engaged IN inter-
state business. .,n.,,,
with such Classification In view. MT,
poosevalt recommended an Amendment
KooS,eNe Ko.,, ennii-trtist law, known as the
Hepburn bin. which provided LOT Soi,
untary elasiiieaih,or thoreroTs r"" by granting
i,nmnnity from prosecutions Tor rea
sonable restrictions OF ,,hinh ,mie wo,,id
trade to AL cSGp1Te',P"S sb@it ,ihemseives to the
publicity ammeree and labor
me ..,rI,a Domocratic platform. suggests
reaniremsnt that nsv,Sg PSun,rSi of @ 8
NV u, ~ tho products in which thcy
Deal Se ' Shall take out federal hv License. in.
This eiasslfcation 0ny Mould smai pfo'sSy sorpor%-
ttnns ttIune engaged in the manufacture cor OF
speeiai S artsles commGditieSs S,s whSsf tSsf
total value is so inconslderaptble I,hIn Pie t. per
they they ar are real nj evil OF the antitrust lazy,
nG, nST nls.tISs srii Of sSsh
discuss 'h I'M n ia enough merely to ar
f,rm the necessity for some .eshSisloy meenSa oy
which greater sr ,ss ssesSaiprsi feaersi sovernment
can can pE thssse businesses in which there -
S'S a Temptation 10 violations OF tne ah''-
'rI: Ic:enstruetIon Of Antitrust Law.
.srhs possibie operation Of the anu