The Washington times., 1907-06-28
RAILROAD RATES
ON NEW BASIS
At BIG HEARING
PhiloS opher Brooks
Adams Addresses Com
mission for Spokane.

Just what President Roosevelt meant
when he declared that a physical vaiu-
alton OF railroads was needed, was
made clear BY the argument OF the an
cient Spokane rate case before the Inter
state Commerce Commission today and
yesterday.
Brooks Adams, philosopher and econo-
mist, on behalf Of the people Of Spokane.
IN his address to the commission, has
placed the question OF railroad rates on
a new philosophical basis. New. that
is. in the annals Of commission argu-
ments, though by no means new TO stu
dents Of the philosophy of the subject
Mr.. Adams, among others has laid down
these propositions:
The power to control its highways is
necessary to a community's sovereignty.
II the community as such does not con-
troll them, whoever does becomes the
real sovereign
Terminal Property Is Trust.
The terminal property Of a railroad
in great city should be regarded as a
trust for both the railroad and the com
munity. The uneGrned Increment which
accrues TO it by reason OF the city's
growth around II should benefit jointly
the community and the railroad com
pany. II must not be monopolized by
the latter
The proportions in which this in
crement should be divided between the
corporation and the public Mr. Adams
declined to undertake 10 state. observing
that nothing less than a law OF Con-
gress coulG settle that.
The basis of fair valuation of public
lNservice properties such as railroads is
the cost Of reproduction
Given Close Attention.
Mr.. Adams was followed with close
attention by the strong array of rail-
road lawyers who sat around him. and
by the fun commission, 1t could not
fairly be said that the interest was also
sympathetic, either on the Part of the
commission OF of the corporation law
yers. The . latter frequently smiled
broadly at his generalizations, and now
and then interjected questions OF a very
| specific character. Mr.. Adams cheerily
! declined 10 answer them; he was max
ing an exposition of the philosophy of
transportation as he conceived It, not
answering hard questions.
] Mr.. Adams philosophy was excellent
/ but his information was limited. Com
missioner Prouty wanted to know about
the value of terminals IN cities, the val
uations of the railroad properties being
/ under discussion. He said:
I'm its schedule of valuation, the
Northern Pacific put in the terminal real
! estate, exclusive of buildings. tracks
\ etc. in the city of Spokane. as worth
| 81, 900, GOO or $1,000, 900. The record shows
also that that land cost the company
| nothing. Part of IL was in the Govern
/ ment's donation of land and right-of-
way, and part was given by the COM
/ munity. What do you say should be
done with that increment of value?"
Community Creates Value.
THE terminal in a city is a trust for
the public replied Mr.. Adams. ''Busi-
ness grows up around it and adds con-
stantly to tits value. That value is put
| into it by the community around il. The
-ublic of course is entitled 70 its share
of the value that the joint activities OF
the corporation and the pubic give the
property"
"And what is the ratio OF division OF
that increment, as between the company
1 and the public2" was asked.
"Oh, that I cannot answer" replied
Continued on Second Pagel