The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-04-20
To AppraiSe Property
Before Government
Begins.
May Become Expert
For All the Great
Roads.

John F. Stevens, late chief engineer
OF the Panama canal is 10 enter the
employ of one of the great Eastern rail-
road systems. for the purpose Of making
a valuation of the physical property Of
the company.
Mr.. Stevens, when asked about his en-
gagement, admitted that he has had
such a proposition, but insisted that il
was not yet finally closed. He declined
TO name the corporation. but the i'm
preston is that the Pennsylvania rail-
road is the one which has practically
if not actually concluded contract
with him TO do this work.
As a railroad manager and engineer
Of long experience. and in view OF his
long and eaIIghtening experience on the
canal. with the most approved modern
methods Of construction, Mr.. Stevens is
considered by railroad men peculiarly
fitted for this work His engagement TO
make such a study for one Of the largest
systems in the country is regarded as
Of the greatest significance, as indicat-
ing a purpose on the part OF the rail-
roads TO demonstrate that their proper
ties are not overcapltalized, to discour-
age the ieda that Government valua-
Alon M9ulQ squeeze any OF t4lE N&AAt out
OF their securities. 70 give them accurate
information IS To the status of their
assets, and especially TO enable them
intelliEently 70 confront and deal with
any proposal of a Federal valuation
Forestalling Government.
In short, the railroads propose To have
some experience in making such vaIua-
tions, so that they may protect them
selves against any possible disposition
on the part of a Government commits
sion TO underestimate the worth of their
properties.
1t has for sore time been known in
inner circles in Washington that the
railroads are fortifying themselves
against the threat Of a Government
valuation. Their chief basis Of conf
dence is in the belief that their prop
critics, under present valuation, would
prove TO be worth more than the amount
of the capital issued against them. They
do not claim that they have cost more
in all cases: but they are prepared,
they believe, to prove that they could
not be duplicated today for anything
like the amount of their capitalization.
II Is believed by the railroad people
that q physical valuation of their prop
critics VIII be made by some Govern
ment agency in the near future. They
know that the Democrats and the
la Toilette group of Republicans favor
IL, and have reason strongly to sus-
pect that the President Will ask of the
next Congress provision for such
valuation Therefore, they are merely
being fCrehanded in setting about the
task on their own account in order
that they may be prepared to meet the
Government on its own ground, and
With superior Information and carefully
developed theories of how ii should be
done. Recently one important railroad
company in the East indicated to the
Government authorities, through its
executive officials, that it had been en-
urely converted TO the idea of a valua-
ton, and was ready and anxious TO
have it made by the Government
Terminals Immensely Valuable.
There are two reasons why the rail-
road people are taking this view. One
Is that they would prefer a single vaIua-
lion, made in systematic and uniform
fashion by the Government to a hap
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