The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1907-06-15
VALUE OF ROADS
THE PROPER BASIS FOR MAKING
REASONABLE RATES.
Inflated Stocks and Bonds No True
Measure of VaIue-Pubiic Opin-
lon Will Force Con-
qress.

There would seem to be a fa1r pros
meet that all the interstate railroads OF
the country will be valued as a basis
| for settling what are reasonable rates
for freight and passengers. The SEN
ate would like to defeat such an ap-
praisement, and Is taking its usual un-
derground way through ~procrastina-
ton. The committee on interstate
| commerce has asked the interstate
| commerce commission whether 1t
would be practical for 1t, in addition
to it's regular work, to make such a
valuation of railroad property as Is
| Droyided for in the La Toilette bill.
| The Republican majority of the COM
mittee has been holding up the bill
for two months with the intention OF
LAYING it Oh the shelf, and this last
move will defeat the bill for this ses-
sion. But the Republican majority OF
the senate will be forced to pass this
necessary provision for arriving at
facts before real railroad reform can
be accomplished and public opinion
will be more powerful with these poll
ticians than their friendship for the
| corporations. So this legislation may
be looked for before long.
The constant increase In the capt
taliZation of corporations is a crying
evil and cannot, be stopped efectually
| until there is a sound basis for know
ing whether further increase Is justi-
fled and necessary. To arrive at the
real value of the railroad property of
the country is a difficult task and Will
require some definite rule for deter
mining values. The total capitaliZa-
ton of the railroads and their bonded
debt Is no fair measure OF value, nor
would the market value of such stocks
and bonds be accepted. 1t is generally
believed that the cost of replacement
would be the fairest valuation that
could be made, but there are objec-
tons to that apparently fair basis for
valuation on account Of the amount OF
| capital that has been invested in time
past and that has been deprecated or
perhaps entirely destroyed. Some
railroads are worth more than they
cost and others nay not be worth the
actual money that has been invested,
valued by what they a earn.
The earning capacity of a railroad
| depends upon volume of business and
the rates charged, and if rates are to
be determined by value of property,
value of property a hardly be de-
termined by the earning capacity
that depends upon rates. 1t Is a puZ-
| zling problem and much more intri-
cate than the valuation of real estate
| and improvements thereon and will
require patience and good judgment
to arrive at a just conclusion.
The railroads have been such pub
lie %plunderers and have so arrayed
honest people against them, tina it
will be very difficult to do them exact
Justice. They are now asking the
public to forget and forgive all their
past corruption and extortion and de-
| clare they have turned over a new
leaf, but the actions of such railroad
magnates as Hartman are still a pub
lie menace.
In a great measure the railroads
have their future in their wv hands.
If they are honestly conducted and the
inside grating is abolished, they will
be helping their own future as much
as the public interests, but if they per-
! sist in the public be damned" state of
mind they will ~exasperate public opin-
ion and suffer accordingly.
The whole question resolves itself
into whether the railroads are to run
the government, or whether the peo-
pie shall run the railroads for their
own protection, and the answer is as
plain as the nose on a mans face.