Middletown transcript., 1907-04-06

A
Washington that it can be satisfactorily
adjusted. Anyhow Commissioner of
Labor Charles p Neill, one Of the Presi-
dents close friends and Chairman Knapp
of the Interstate Commission have started
west to see If they cannot act as arbitra-
tors. And the President meantime is
standing pat, as pat as the most ardent
protectionist on the subject of tariff revi-
sion. What the railroad officials fear is
that the President may demand thor
ough valuation of the physical property
OF the railroads Now there was very
effective commercial valuation made by
the Census Bureau about two years ago.
This includes stocks and bonds and the
earning capacity of the lines. For that
sort of valuation it is quite complete.
But the railroads fear that if there is an
act physical valuation" Of the roads, it
will show them to be SO largely oyercapi-
talized that large part of their stocks
aud bonds will become vaueiess, in other
words have the water squeezed out Of
them. 1t is almost laughable, at the same
time serious to see how the railroad man
ayers are scurring from one position to
another, satisfied with the things that
are but always fearful that something
worse is going to happen. This fear ap-
pears to increase as the government gets
nearer to the meat, of the question, i
| namely the real values on which the
paper values Of the roads are based 1t
will be remembered that before the pres
ent rate law was passed, the railroad Of
fcials all shivered or professed to, over
the prospect of federal interference with
the sacred business of rate making. 1t
was thing too abstruce aud delicate to
be touched by the rude hands of any but
qualified railroad men. But the rate bill
passed and then there was fear Of gUveru-
ment control OF the roads, and the man
ayers declared this was the last straw. 1t
would be the death knoll of the business.
Then tile. state legislatures 'tbutted i'm.
with lot of adverse legislation and the |
roads ran to the federal government pray
ing for government control as the one
thing essential to their we'll being. Now |
comes the question of the physical valua- |
tion Of the roads, and the management is |
having another fguratiye fit for fear of
what such valuation may reveal There |
are two camps, that of Deliver, who en-
gineered the first rate legislation and who /
is convinced now that commercial val |
uation Of railroad properties is as far as
the government can safely go; and the La |
Toilette camp which consists chiefly of La |
Toilette, who insists that there shall be |
fair physical valuation of railroad prop |
erty. The President is inclined to side !
with Senator La Toilette and good many |
Of his advisors say that no harm can come
of finding exactly the data OH which the
railroads base their own valuation OF |
themselves. At the same time the rail- |
roads, yearning for federal control to pro-
tect them from hostile state legislatures,
ask that pooling be permitted. This is |
coming curiously around to the recommen-
dation of Senator Newlands, once counted
the most radica! Of railroads reformers,
who has always favored unlimited pooling
by the railroads with strict federal super
vision of their stock issues aud the dec
laration Of their dividends. 1t must be
said, however, that permissive pooling
law would necessitate the repeal or modi-
fication Of both the present rate law and
the Sherman antitrust law both Of which
expressly prohibit pooling. This would
mean whole session OF talk and wrang-
ling in Congress and would make year
of futile delay, which perhaps is one of
the things the railroads are after. One
might really think from the eagerness
with which the railroads are waiting a
White House announcement on the sub.
iect Of pending legislation, that the Presi-
dent Of the United States passed tile laws
and Congress merely signed them Now
a reference to the Constitution OF the
United States would prove the error Of
this, even to a railroad president. But
the attitude Of the roads merely shows
the held that the personality fthe Presi-
dent has on their imaginations and the ef-
feet that it has on the practical workings
Of Congress. So the White House an
nouncement OF a "let up" on the roads is ,
eagerly awaited. And in the sence it is
hoped for, it probably will be awaited in {
vain. When the President chooses to
ak for publication, he probably will
'nly repeat the advice he has given be-
lore, ''Act honestly and you will be
.reated fairly; square deal for everyone,
the railroads."