Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-04-03
RAILROAD MATTERS
BUSINESS BEFORE THE RAILWAY
COMMISSIONERS TODAY.


Methods of railroad taxation was the sub
iect that principally occupied the Associa-
ton of l7atlreads Commissioners at their
session today. The question of how best to
arrive at a true basis for taxing purposes
was presented by Andxew f. Gates of Con-
necticut. He said that there were two
practical methods, one was to assess a tax
or the gross earnings of the roads The
other to fix the taxable value of the
read by the amount OF IT'S stocks and bonds.
There vas no reliance TO be placed. he said,
on taxation based on the net earnings of
the road as bookkeeping could do anything
TO the apparent earnings of a road and
make a full exchequer look like the verge
of bankruptcy.
The report was the subject of spirited
discussion and 1t was finally resolved TO
PUT the subject in the hands of the inter-
state commerce commission to the extent
of having the commission authorized TO as
certain the value of the railroad property
In the several states, to afford "A
stable founda ton for valuation. The reso-
luton met with considerable criticism and
was finally allowed to go over.
Only Report Adopted.
The report of the committee on the cost
of construction and operating expenses OF
electric railways was submitted by w. w
Morgaridge of Pennsylvania. 1t was the
only report adopted at the morning session
1t merely stated that the committee had
met in joint session with the committee Of
the Street and lnterurban Railway Ac-
c6untantS Associations and the Association
of American Railway Accountants. 1t was
then decided that the Joint COMMITTEES
should hold another meeting some time be-
fore June Is of this year, and PERMISSION
was asked Of the association today to ar
range such a meeting with the reprSsenta-
tives of the two other associations. This
was granted and the report was adopted
another report OF the morning submitted
was that OF the committee on uniform
classification. The report stated that II
was generally recognized by both shippers
and railroad men that uniform freight
Classification was highly desirable both III
the United States and Canada. Every con-
yention of shippers and every comnefciai
meeting that had ever considered the SUD-
jcct had favored it and the committee haa
been i'll communication with nearly an Tue
traffic managers in the United States. They
had also favored II.
The report said that it would not be adj
visable TO take up the time OF the associa-
ton in stating specific instances of the IN
Justice and absurdity worked by the varied
classification of freight in the United States.
but it was enough TO say that Ii existed
and made the rates for certain classes OF
freight ON some lines lower than for longer
distances on other lines simply because of
the difference of classification of the same
article by the two roads.
A Resolution Adopted.
1t was pointed out that the uniform
classification would never be adopted by
the roads till they were compelled to do so
by legislation, and the committee favored
giving the task of working out a fair and
uniform classification to either the inter
state commerce commission or to a body of
efficient railway freight men. With this
In view the committee recommended the
adoption of the following resolution:
That it is the sense of this convention that
Congress enact law requiring the rail-
roads enaged in interstate commerce
throughout the United States to- within two
years after the passage of such act, prepare
and adopt uniform classification of freight
articles; and in case they failed to do so
within the time required that the interstate
commerce commission at once proceed to
make such classification, and when SO made
by such commission the same shall be the
| legal classification for interstate shipments.
That the secretary forward a copy of this
| report TO the Senate and House of Repre-
| sentatives and call their attention TO the
| former reports of this association on this
| subject.