The Montgomery advertiser., 1908-07-29
Speech of William H. Taft
 Accepting the Nomination

the road is a relevant and important but not necessarily controlling fac- tor.
 Physical vaIuatien Properly Used VIII
 Not Generally Impair Securities.
 am confident that the fixing of rates on inc principles suggested above would not materially impair the pres ent market values of railroad securi- ties in most cases, flor I believe that the normal increase in the value of railroad properties, especially in their terminals, will more than make up for the possible overcapitalizatiun in ear- Her years In some cases, doubtless, it will he found that overcapitaliZa- ton Is made an excuse for excessive rates, and then they should be reduced; but the consensus Of opinion seems to be that railroad rates generally in this country are reasonably low This is why. doubtless, the complaints filed with the Interstate Commerce Commits sion against excessive rates are so few as compared with those against un- lawful discrimination in rates between course. in the determination of the question whether determination is un- lawful or not. the physical valuation of the whole road is of little weight. Conclusion That There Should be Phys ical Valuation.
 have discussed this, with some de- gree of detail. merely to point out that the valuation by the Interstate Com merce Commission of the tangible prop erty of railroad is proper and may from time to time be necessary in set- ting certain issues which may come before them. and that no evil or in- justice can come from valuation in such cases. if 1t be understood that the re- suit is to be used for just purpose, and the right to a fair profit under ali the circumstances of the investment fq rRCORnfz0d The InfQFefata fnerce Commission has now the power to ascertain the value of the physical railroad property, if necessary, in de- termining the reasonableness of rates. If the machinery for doing so is not adequate. fls Is probable. 1t should be made so.
 The Republican platform recom- mends legislation forbidding the issue in the future of interstate railway stocks and bonds without Federal au- thority IL may occur in such cases that the f1ll value of the railway. and, the tangible property of the railway, would be relevant and important fac tor in assisting the proper authority to determine whether the stocks and security behind them and in such case, therefore. there should be the right and machinery to make 8 valuation of the physical property.
 National Control of Interstate Com
 merce Corporation.
 Another suggestion in respect to su- bordinate and ancillary machinery nec- essary to carry out Republican poli- cies is that of the incorporation under the national law or the licensing by national license or enforced registry of companies engaged in interstate trade; The fact Is that nearly all cor- porations doing commercial business are engaged In interstate commerce, and if they all were required to take out a Federal license or a Federal charter, the burden upon the interstate business of the country would become intolerable. s.>
 Should Be Limited to Small Percentage
 by Classification.
 It 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 ations constitute a very small per centage of all engaged in interstate business.
 Mir. RooseveIts Proposea Classification.
 With such classification ih view, Mir. Roosevelt recommended an amendment to the antitrust law known as the Hepburn bill, which provided for vol untary classification. and created a strong motive therefor by granting im- muntty from prosecution for reason- able restraints of interstate trade to all corporations which would register and submit themselves to the publicity
 
 merce and Labor.
 The Democratic Proposed Classification.
 The Democratic platform suggests a requirement. that tscorporations In inter- state trade having control of 25 per cent. of the products in which they deal shall take out Federal license. This classification would probably in- clude a great many small corporations engaged m the manufacture of special articles, or commodities whose total value is so inconsiderable that they are. not really within the purview or real evil of the antitrust law.
 It is not now necessary, however, to discuss the relative merit of such prop ositions, but 1t Is enough merely to af- firm the necessity for some method by which greater executive supervision can be given to the Federal Govern ment over those businesses fin which there Is temptation to violations of the antitrust law.
 The possible operation of the anti trust law under existing rulings of the Supreme Court has given rise to suggestions for its necessary amend ment to prevent its application to. cases which 1t is believed were never in the contemplation of the framers of the statute. Take two instances: A mer- chant or manufacturer engaged in a tain States, wishes to sell his business and his good will, and so in the terms of the sale obligates himself to the purchasers not to go. into the same puSinSSS III InOSe oldteS. 0uCn TS- straint of trade has always been en- forced at common law. Again. the em- ployes of an interstate railway com bine and enter upon a peeeeable and lawful strike to secure better wages At common law this was not a re- straint of trade or commerce or a vi- olation of the rights of the company or of the public. Neither case ought to be made violation of the anti trust law. My own impression is that the supreme court would hold that neither of these instances are within its inhibition. but, if they are to be SC regarded. general legislation amending the law is necessary.
 Democratic Plank to Limit Corpora
 tA0ns to Ownership of 50 Per
 Cent. of PInnt and Pro-
 duet Faulty.
 The. suggestion of the Democratic