The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-03-29
Commercial Valuation,
Xxx Physical,
lated.
No Attempt to Squeeze
Water Out of
Stocks.
Interstate Commission
Might Wise New
issues.

Senator Doniver of Iowa, who had
Charge OF the railroad rate legislation
OF last year in its early stages. will
probably become the sponsor for the
legislation next winter designed 10 Sc
cure valuation of the properly of rail-
roads.
Senator Deliver has for some time
been interested in this phase of the
railroad question. although he did not
include a provision for such a valua-
ton in the original draft Of the Dolli-
Ver-Hepburn bill.
Between DUiliVer and La Toilette there
is d wide difference Of opinion as to
the theory of this legislation. Senator
La Toilette takes much the more radi-
cal view, and il is net 100 much 10
say that fear that the La Toilette idea
may be adopted is one OF the potent
reasons Tor present -dlstrust of railway
securities. Senator La Toilette wants
physical valuation Of the railroads
made, and in his speeches on the sub
Ject has indicated his belief that this
should be used as a large factor In
determining rates.
Not to Squeeze Out Water.
Senator Delivers plan is understood
10 involve no attempt at squeezing wa
ter out Of present railroad values, but
simply to make a present commercial
valuation which shall be the starting
point from which 10 inaugurate a sys-
tenn OF Government supervision over
issues of capitalization. He simply
proposes TO determine what this pres
ent valuation is and then TO provide
that in future no water shall be in
Jected into securities. This would be
accomplished by provisions giving the
interstate Commerce Commission or
some other proper Government agency
aulnOrlty 10 pass upon the plans Of
railroad companies and 10 wise their
Issues of both stocks and bonds
What is commonly regarded as q very
Ialr commercial value was made three
years ago for the Census Bureau, under
direction Of Prof. Henry Q. Adams
nov IN charge Of statistics for the COM
mission This showed a total valuation
OF approximately Sl4 go 900 900. Since
that time railroad valuations have very
greatly increased, by reason Of immense
Expenditures in extension and better
ments.
Enormous Amount of New Stock.
George Z. Roberts. Director Of the
Mint. has compiled a statement cover
ing the announcements of new stock
and bond issues during a recent period
OF less than three months, which
showed an aggregate of S21S.7O0. 900 OF
bonds and notes issued S637 600 600 of
stock, or a total of $50. 200 900 In this
list IS included 500 003, 900 each Of stock
or The AtC1lsOn, St Paul, Northwestern
and pennsylvania systems; $50. 00G. 90 of
Great Northern STOCK; $50. 0O0G0O OF
Northern Pacific stock; $50 600 900 OF
New York Central stock. so 90. 00I of
New York and Port Chester stock So
CuO.0O Ct Big -Four stock. and smaller
amounts for other lines also notes or
bonds agETeEatiug 500. 900 600 issued by
the Pennsylvania, SIS, O00,0 900 by the Sea-
board Air Lire s.. 900. coo by the Chesa-
peake and Ohio. S24C00.O0 by the New
Haven, S6,c00,eU0 by the Alton, s.. 900. 900
by the Erie, $4,000 600 by the Chicago
and Western Indiana. 81 800 600 bv TIE
tlantic Coast Line. 100000 nv the
Boston and Maine SO 100000 by Buffalo
and SuSque hanna, S6.400OO0 by the Della
ware ard Hudson. $3.50. 600 by the Rock
Island, ard S13001.000 By other lines. Mr..
Roberts notes that this table Is inCOm-
Plete.
The railroads seem determined to aus
courage making any valuat ton at all
and to prevent it if they can. Tt is
doubtful If they would willingly consent
10 opening up the subject even for the
purpose Of making such valuation as
Senator DOlliVer has in mind. They
would fear the conflict between this
Plan ard the La Toilette program, with
the possibility that the latter method
might become So popular as ultimately
10 be forced into consideration.