Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-06-22
Contest in Congress on
Valuation of Railroads

some roads, wherein there have been
fragrant infiations Of stocks, overcapi-
taliaation would be found, hut that this
would be counterbalAnced by the OK
cess OF values Of the property over the
securities representing It In the case
Of some other roads. He has no idea
Of attempting to get rid Of the water
In existing railroad securities. He con-
sidefs that to attempt tais would be q
step fraught with peril to the financial
stability OF the country.
The position Of Senator La Toilette
and the one on which it ia learned he
will stand next winter is that there
should be an immediate physical valu.
alton Of the railroads by 4 commission
Of experts and that such valuation
would disclose the railroads Of the
country were oyercapital,sed by not
millions but billions OF dollars. He
took up this subject Ia the course
Of the rate debate and delivered an ad-
dress upon It to the senate that u In.
teteStng reading at this time and In
view Of the fact there is eyosy likeli.
hood congress will have to thlssh the
valuation and oyeroapitalfaation Ques.
ton over thoroughly. j. was asserted
by Senator La Toilette that. Of the
$13, 31S, 124,879 capitalization of the
railroads Of the country, as shown by
the 1904 figures, more than half this,
In fact about $4,000 900. 900 was Aetiti
GUS capital
1t was commended by Senator La Fol,
lette that the railroads of the country
amounted to $685., 205, ACT, or 1871 per
that is not earned. President Roose-
Welt in reality takes the same view but
holds It should be applied only as to
sure q fair return on their Investments.
are charging the public vastly more
cent on a total Investment of 81. 000,-
100000. From this fact, Senator La
Toilette pointed out that IL per cent
Thus the total net earnings Of the rail
roads Of the United States In 1904
was q fair rate Of earning, the rail.
roads were charging ut least $4S5, 000..
000 more for transportation than
just return for their services. Taking
8 per cent as fair rate Of earning,
he held the carriers were exaottng too
much for transportation by $28B ,000,-
900 per year, or an annual tax Of $17
for every head Of . family In the
United States.
Regardless Of whether the couten.
ton iB correct that the roads as a
whole are not overcapitalized or the
view that they are vastly overcapital.
tied is the right one, It Is certain that
the President in going into the over
capitalization and valuation has put
upon the shoulders OF congress one Of
the greatest and most troublesome
problems 1t has had to deal with. It
is not unlikely 1t VIII come to surpass
in public interest even the rate strug.
gle Of the first session Of the Fifty
ninth congress-. At the bottom Of the
problem Of railroad valuation is the
question whether the roads are to be
allowed the benefit Of the unearned In
cremept Of their properties. Senator
La Toilette will wage his hght On the
ground that they are not entitled to
It and that the railroad, being quasi
public. cannot have value put into It's
property by the public, and then legit
imately charge the public on the basis
for transportation than enough to In
Of the value coming through increment
the future, not as to the past
J. G. Welliver.