The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-03-16
Board of Railroad Commission
ers Has Big Tasks Ahead.
viii Likely Hire a Traffic Ex-
pert by the Job.
VALUE OF RAILROADS
May Cooperate With State Tax
mission in Work.
Both Boards Have Ample Funds
and Authority.


Under the laws enacted at the re-
cent session of the legislature the
state board Of railroad commissioners
promises to be one of the busiest
next two years.
The two big undertakings Whlch
confront the board are these:
First-To examine into the freight
rates of Kansas, by means of expert
| assistance obtained through traffic and
rate experts to be employed by the
board.
Second-To determine the actual
value of all the railroad properly III
the state of Kansas.
In order to accomplish these two
objects. the legislature has placed at
the disposal of the board the sum OF
$4,000. more than twice as much as
the board of railroad commissioners
has ever had before.
Thus far, the board has not decided
in just what way it will go about the
accomplishment of the duties lald
down for it. but it is safe to assume
that the board will not hire traffic
expert at a salary of $4,000 a year
as the senate wanted it TO 90: IN
stead of that the board will try 10
find some traffic man already In the
employ of some large city or some
other state board who can be secured
to devote part of his time to the ran
sas situation. and whose pay VIII be
simply in proportion to what he does
The board believes that this is more
economical way than to have man
here to devote his entire time to the
work.
Will the Railroads Help?
In determining the actual value of
railroad property, the board, 1t is said; |
hopes to secure the cooperation Oh
the railroads themselves. to some ex-
tent. If il became necessary for the |
state to hire a corps of engineers to !
traverse every line of road in the
state make surveys, draw prohles, ana
make estimates the task would be an /
immense one, involving possibly more |
expense than even the $4,000 appro-
priated for contingent expenses. OF
course the railroad companies already /
have in their engineering departments
all the Information necessary to deter
mine very closely the cost of dupicat-
ing the construction work OF the line
as it stands Whether the companies
vii be willing to put this information |
at the disposal of engineers employed
by the board is another question >,
In some of the departments of rail-
road management, the roads have /
shown a disposition to furnish the
board all the information possible. In /
the matter of financial affairs, of .
freight and passenger statistics, the
companies make voluminous reports, |
not only to the state board, but to the /
interstate commerce commission.
Whenever the board has found it de-
sira BILE or necessary to obtain any
special information. as was the case
when the Stone resolution report on
freight rates was in course of prepare
ton. the railroads "came across" with
almost anything in the way of figures
the board wanted. VIII they do the
same now that the board is going to
dig down into their maps and charts
and find out just what reasOna bic ex-
pense would be for constructing the
-, S-s-
People generally believe that rail-
roads in Kansas are bonded for much
more per mile than the cost of the
road justifies. Instead of paying a rev.
enue on the real capital invested, the
roads may be paying revenue on a vast
amount of water, represented by sur
plus ca capitalization. In order to in
diligently fix the maximum for freight
rates, the railroad commissioners must
know what the real capital invested is,
and then allow a sufficient rate to pay
a revenue on that capital. regardless
Of what the road is accustomed to pay
on its stocks and bonds. The water
will have to look out for itself and it
cess of readjustment is complete.
May Cooperate With Tax Commission.
1t is possible that in finding out
what the railroads are really worth,
the state board of railroad commits
sioners can work in conjunction with
the newly created state board of tax
which will begin bust
ness on July 1. The law requires the
board of tax commissioners to find out
what the railroad property of Kansas
s really worth. for the purpose of as
sessment- Apparently the two boards
are aiming at exactly the same object,
and there seems to be no reason why
hey should not heartily cooperate. A
report backed by the approval of
both boards would have decisive
weight with the people of Kansas. The
BOARD of assessment and taxation is
uthorized by law to ascertain the val J
lie of railroads; it may employ experts
o assist in this work, and fix their
compensation; ii also has the power
o compel railroads to produce any pa
oers. documents or books which may T
be of value in this work. This power :
would undoubtedly extend to requiring ,
-ailroads to produce the plats sur
-eys and maps of all its lines, and the
NORMA ton would thus be available Z
or both the tax commissioners and
he railroad com missioners
II appears that If these two boards !
made a serious effort to do So they {
an, without any very heavy expense
ind out what the railroads of Kansas
ire worth. and what valuation should
De placed upon them for purposes Of
axation and in the fixing of railroad !
ates on a compensation basis. :
The Sultan Is Coming Around.