The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1907-03-21
WASHINGTON
From our Regular Correspondent.

Washington, ID. Z. Mar. 16, 1907.
Arrangements are almost COM
pleted for new system of book
keeping by the railroads that will
be uniform throughout the country
and will be the basis for monthly
reports by the roads to the Inter.
state Commerce Commission. The
system has been worked on by Prof.
Henry c. Adams. the statistician OF
the Commission assisted by several
committees OF experts, many of
them from the railroads themselves.
The inauguration Of the system will
mark the beginning Of real govern.
ment SUPERVISION and is regarded as
the most important change brought
about BY the new rate law.
AS the case has stood, the rail.
roads have been supposed to make
reports to the Interstate Commerce
Commission, but they have done so
each on a different system, and
they have rendered the reports
when they pleased and frequently
not at all. Under the new law they
will be required to make the re.
ports by the 25th of each mouth
covering all the operations of the
previous month. The reports will
all be made on the same system
from the same sort of book keep
ing, and there will be no chance
for covering up earnings and ex-
penses for months and years at
time. This has frequently been
done in the past with view to de-
pressing stock far below its real
value and then making a good turn
in the market on the declaration of
a huge dividend. In the future if
the earnings of road increase large
ly, it will not be possible to cover
up the fact by vaguely charging the
profits to improvements aud opera
ting expenses.
1t has been hoped that the new
system of Railroad reports would
be put into effect on the first of the
year, and then the time was set
forward to April. But now it is
said that it positively will be in
augurated on July rst. The system
will be of the greatest advantage to
the investing public as it will show
just what each of the roads is
doing. 1t may help some stocks
and depress Others at the start, but
it would appear to be the nearest
way to arriving at the real market
value Of any railroad security.
There will he chance also, for a :
great deal of dishonest manipula-
tion should there ever develop a
leak such as occurred in connection
with the crop reports of the Agri- ,
cultural Department. But an effort !
will be made to have the system
honestly administered, and after
the first few reports, there natur-
ally cannot be any great and sud-
den fiuctuation as railroads do not
vary in their business SO much as
do the visible supply of grain and
other crops.
***
This beginning OF government
supervision aud control is thing
much more welcome to the rail-
roads now than it would have been
a few months ago. A great change
has come over the managers of the
roads since it was shown that the !
government was in dead earnest
about exposing unsound systems OF
finance and giving the public as
near aa might be square deal in
connection with all industrial cor
porations. The railroads at first
resented the idea even of rate legis.
lation. But after some Of the ex-
posures of railroad mismanagement |
und the accumulation of popular
disapproval. the sentiment against
the roads became so strong that
legislatures in most Of the states |
saw a chance to make great hit |
with their constituents by enacting |
adverse railroad legislation. Some
of this was tair and some was gross
ly prejudiced. But the mere fact
that il was becoming a popular
pastime with the states sent some |
of the biggest railroad men scurry-
ing to the White House to implore
President Roosevelt to use his in