The Laclede blade., 1907-04-06
WASHINGTON LETTER
Our Regular Corresponds
ent Discusses Railroad
Dry Valuation

Will AO SPO"n' Vou "o oPo"A
What will he say if he does SPEAK
All these questions are being aske
by the anxious public and the muc
more anxious railroad managers a
over the country as to the railroad
plans Of the president. Up to date h
has given no indication of what he in
tends to do in the announcement line
The president may make some sort o
an announcement at any one of tn
occasions when he speaks,in public il
the course of the next month, Blu
he seems in no hurry to make any
more extensive statement of his posi-
tion than he has made already.
The railroad situation is complicat
ed just now beyond question. There
has been the greatest slump on in the
history of Wall Street. The railroads
are curtailing improvements, and there
Is the threat of a big strike on in the
west that if it becomes reality will
tie up about $4,000 miles of trackage
and affect directly and indirectly half
million men. But there is serious
question in the minds of the presidents
closest advisers as to how far the
slump in Wall Street has been manu-.
factured in an effort to scare the ad-
ministration. There is very little
doubt that as to the curtailing of i'm
provements, the railroads are "bluff.
ing" with the same end in view. The
strike situation is of course serious
enough, but it is believed in Washing
ton that it can be satisfactorily adjust
ed. Any how commissioner of labor
Chas. P. Neill, one of the presidents
close friends, and Chairman Knapp of
the interstate commerce commission
have started west to see ifthey cannot
act as arbitrators. And the president
meantime is standing pat, as pat as
the most ardent protectionist on the
subject of tariff revision.
What the railroad officials fear is
that the president may demand a !
thorough valuation of the physical
property of the railroads. Now there
was very effectual commercial val
uation made by the census bureau
about two years ago. This includes
stocks and bonds and the earning ca
pacity of the lines. For that sort of a
valuation it is quite complete. But
5he railroads fear that if there is an
actual physical valuation" of the
loads, it will show them to be so large
y overcapitalized that large part of
heir stocks and bonds will become
in other words have the wat
II squeezed out of them. 1t is almost
at the same time serious to
ee how the railroad managers are
from one position to another, {
atisfied with the things that are but
lways fearful that something worse is t
,oing to happen. This fear appears G
o increase as the government gets G
carer to the meat of the question, t
amely the real values on which the b
aper values of the roads are based. t
1t will be remembered that before v
ne present rate law was PASSED, the a
abroad officials all shivered, or pro- E
ssed to, over the prospect of federal c.
Interference with the sacred business b
rate making. 1t was a thing too i.
btruse and delicate to be touched
y the rude hands of any but quail L
ID railroad men. But the rate bill b.
assed and then there was fear of W
,vernment control of the roads, and W
e managers declared this was the Il
st straw. 1t would be the death al
nell of the business. Then the state p
gislatures "butted in" with lot Of a
lyerse legislation and the roads ran
the federal government praying for
control as the one thing