Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1907-06-13
VALUE OF ROADS
THE PROPER BASIS FOR MAKING
REASONABLE RATES.
Inflated Stocks and Bonds No True
Measure of value-PubIic opin-
ion Will Forces Con-
qress.

There would seem to be a fair pros
ipect 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-
lpraisement, and is taking its usual UNI
lderground way through procrastina-
ton. The committee on interstate
commerce has asked the interstate
commerce commission whether it
would be practical for 1t, in addition
to its regular work, to make such a
valuation of railroad property as is
provided for in the La Toilette bill.
The Republican majority Of the COM
Imittee has been holding up the bill
for two months with the intention of
laying it on 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
Ebe accomplished and public opinion
will be powerful with these poll
l~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 effectually
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, o
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-
lions 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
II lOduoH diC WOltu LuOlC Ludu lIcy
cost and others may not be worth the
actual money that has been invested,
valued by what they can 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 can hardly be de-
termined by the earning capacity
that depends upon rates, 1t is a puz-
cling 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, that it
will he 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 own 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 rs
plain as the nose on a mans face.