The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1906-04-28
RADICALS PREPARE
A NEW RATE BILL
To Be Fashioned After
La Toilette Idea.
VALUATION OF PROPERTY
Tends to Take Water Out of Present
capitalization of the Railroad
Holdings.

bin for which the real friends of
'adical rate regulation will have
-hance TO vote is likely 10 be introduced
IN the Senate before vote is taken on
The rate measure. II IL comes II will
be the la Toilette bilI II will not be
adopted, but it will furnish rallying
ground for the Democrats and a few
Republicans who are anxious to 20 on
record as favoring the most progress
sive proposition that can reasonably be
put before them
Since Senator La Follette's address in
the Senate there has been a discussion
TN eloakroom and Hobbies, of the pro-
posal he made of having the railroad
properties OF the country appraised. and
having this appraised valuation used as
basis for making reasonable rates
This proposition is really the most rad
icsl and the same time the most logical
that has been made.
So ardent an opponent OF regulation as
Senator Foraker has demanded from the
beginning that Congress establish a
definite rule, mathematical basis or
standard, By which rates must be made
With this done. he admits that Con-
gress has power To delegate to a COM
mission the power to do the clerical
work Of computing rates in accordance
with the standard.
When La Toilette Spoke.
Nobody proposed such a standard till
La Toilette spoke. Before that the only
suggestion OF a basis of rate making
was that a ton-mile rate might be laid
down by Congress and applied by the
commission. La Toilette accepted the
challenge and proposed that a basis be
me- hr~ Ayrfr 2 L..
The properties. Then rates could be
made on basis that would enable the
railroads TO earn legal rate of income
on their values as thus determined
rms proposal is radical. because II
looks TO squeezing the water out of the
properties Senator La Toilette showed
that appraisals made in Michigan
Texas, and Wisconsin had all shown
that the real appraisal value of the
roads was much less than the capital
lied value: in one State the capitalized
value was more than twice the APP
praised value
Any suggestion that looks TO takine
the water out of railroad capitalization
gives more Worry than the mere pro-
posal of regulating anything. La Fol-
lette's idea would have just this effect
1t would determine that railroads are
worth something less than half the
capitalization on which they are earn
ing dividends and interest. The basine
OF rates on such a valuation would be
equivalent to cutting down the valua-
lloll - tue SdAllt HlppoA lAull
Democrats Became Active.
Immediately after the la Toilette
speech, Democrats began to busy them
selves. Report is that some OF tn,
prominent Democrats have gone so fal
as to approach the Wisconsin man witt
the request that he draft a bill en-
bodying the substance of his views
especially including his provision tina
a.
be made by the commission, and Intro
duce it as soon as possible. Some o
the Democrats il is stated. have as
sured La Toilette that they Will vOt
for such bill They do not expect /
to pass. but they do expect that il vii
be accepted by the country as layiih an
down the lines on which the future dis
cussion of this question Will be ON
Quoted
whether he will introduce such a bill
He has given some of his Senatorial
associates assurance that II he doe
not introduce a bill, he wiz pre- re.
House LII. embodying the substance
Of his series of proposals. The posi-
bility Of so striking proposal beint
brought forward at this stage OF the dis
cussion. and of its drawing TO itself TIT
support of almost or quite all the Dem
ocrats, has put the rate discussion int
new phase Politics of wears 10 com
is discried In the situation that woul'
thus be brought to pass.
The Democrats would be able TO in
sist before the country. in the COminJ
Congressional campaign. that they vote,
for the best bill, the only real regulat
ing bill. and at that a bill introduces
by Republican: and that Republican
votes beat II. The supporters of L;
Toilette would urge that he was tn
man who had laid down the lines 70
the only right solution OF the question
and they would make the issue on tina
proposition, in demanding his nOmina
tion for President In 1908 In short Their
is almost no limit 10 the possibilities o
such a situation.