The Washington times., 1906-04-22
SPEECH CHANGES
RATE BILL STATUS
La Toilette Wins Support
for Appraisal Theory.
WILL PRESS AN AMENDMENT
Conservatives May Accept and Pass
House Bill to Sidetrack Newest
Proposition.

The speech Of Senator La Toilette, 70
which he has devoted two days. and
which he will conclude Monday. has
changed very much the ASPECT of the
lfate legislation situation. Before we
concefn ourselves so greatly about the
courts review OF the order Of the com
mission, let US determine whether we
tBre giving the commission power to do
anything worth reviewing" is the key
note Of La Follette's argument.
He has contributed a real, exhaustive.
statesmanIike discussion of the whole
question He condensed into one long
speech a summary OF the vast inves-
tigation and study and experience he
has devoted to the subject. How well
he succeeded in bringing back the con-
sideration to the original issues. and
away from the side issues of court
review. may be judged from a state
men credited to Senator Bailey after
the speech yesterday. The Texan, like
many others, was deeply impressed with
the Wisconsin mans argument that
there must be an appraisal OF the value
OF the railroad properties of the country
ss a basis to making reasonable rates.
such an appraisal has been made. he
pointed out. in three States. by co-opera
railroads; and such an appraisal must
be had If rates are to be made with in
telligehce.
Negative Effect Without Appraisal
Without such appraisal. argued Sena-
tor La F'cllette, the tendencies of this
legislation will be TO increase rather
than reduce rates.
How radical this proposal is may be
understood from the statement that the
valuations I'm Michigan and Wisconsin
showed Ihat the present capitalization
OF the roads IS more than twice as much
as the valuation the railroads them
selves fixed. That IS. the basing OF
rates on the actual appraised valuation
Of the properties allowing nothing for
franchise, good Will. etc, which is the
rule La Toilette demands-would reduce
by more than half the amount Of capital
ization on which, in order 10 be reason
ably remunerative, the roads would
have to earn returns. Ii would squeeze
the water out OF the capital.
Will Change Whole Scope of Bill
SENATOR La Toilette notified the Sen
ate that he should introduce an amend
menJ 10 have this appraisal made; and
Senator Bailey declared that hs should
vote fer II. If the amendment goes In
the whole scope of the legislation will
be radically changed. The conservatives
will have a far more serious matter
about which to concern themselves than
that of court review.
Nobody in either house knows any
thing about this question in comparison
with La Follette.' Senator Bailey said
to a friend last evening.
Others expressed themselves In no less
complimentary terms Of the discussion
Of The wider aspects of the matter
which La Toilette has been delivering.
As a. result, there is already manifest
disposition on the part OF the extreme
conservatives to make terms. accept
the House bill without worry ABOUT
court review, and get the question out
of the way before La Toilette organizes
a powerful backing for his appraisal
/ proposition.
There IS no doubt that the prospects
I for the bill IN substantially the form in
which il left tho House have improved
lately.