The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-02-17
RAFT WAY Appraisal
RECOMMENDED TO
SENATE COMMITTEE
Commerce Commission
Uses Adams Letter as
Basis of Reply.
Writer Thinks Valuation
of Great Benefit to En-
forcement of Law.

The Senate Committee on Interstate
Commerce a few days ago addressed to
the Interstate Commerce Commission a
request that the commission cOmmuni-
cate to the committee its opinion as to the
desirability OF legislation TO order a val
nation of the railroads. Senator La Fol-
lette, about a year ago. introduced q
bill for this purpose. and the committee
desires TO know whether the commission
believes the work should be undertaken
Today the commission made public for
the first time a letter which has been
the basis OF the reply 10 the Senate
committee. This letter was written by
Prof. Henry c.. Adams, statistician TO
the commission. and was in reply 10 an
inquiry by President Roosevelt. similar
TO that now raised by the Senate COM
mittee.
Urges Appraisal of Roads.
In this letter Prof. Adams strongly
urged the making OF a valuation, and
emphasized that 1t should be strictly a
,nvsfcal valuation. lie declared II
would be Of great value In the admin
istration of laws for regulation OF the
i1 IN view Of the fact that the Presi-
dent has strongly declared for q Valua-
f{ou. that the commission mas recon-
nended it. and that Prof. ADAMS the
cnrntrv's recognized highest authority
ON such subjects, also indorses II, INC
,.,v,,r,,issiou in its own comm 9lliCe
tioD 10 the Senate committee lndorses
ON that Prof Adams SID IN ms re-
TER of May, 1905 IhaJ Lellg. NaS VIM
Ten while the Hepburn DlI was ~
vending in Congress. because ~ -
5T5evefood TO represent the views OF
an the potent influences WIltCtI 80. q
working Tor the valuation ie6lsl' l NJ,
81 is regarded as highly Important AZ
letter says in part;
Would Help Fix Rates.
.Tt is assumed that the prime motive
for a valuation of railway properties at
,,rasent Is the bearing which such a
valuation would have upon the work OF
tba commission in the determination OF
inst and reasonable rates. A Valuauoh
which holds this end in view should De
"a valuation Of the physical properties
and NOT a commercial valuation. Bull
Iatin No. q, issued last year Dy the
Bureau Of the Census, gave the coih-
rnercia! value Of railway properties.
..Vbat is needed is an inventory by
a com5etent engineer. which would re-
suit in a classification OF the pnysleAi
elements OF railway properties ana an
propriate present Yalue-
at would be highly desirable from
MANY points of view 10 0Htermlne 70
what extent the physical valuation was
more or less than the commercial Naioa-
whether or not there is any legal
necessity fer an act of Congress In order
10 carry through successfully the task
under consideration; nave no ogliilo oL-
but I am certain that il would be eN-
pedient to secure the approval or. Con-
gress and for two reasons:
"Firs.-S1eh an act. properly drawn.
would UlaCc beyond question the risht
of the agents of the Government 70
enter upon thr T0uerty and have access
TO the records of the railways.
''Second-Ap act Of Congress IS also
desirable in order that the cost OF inc
undertaking may be met by special ap-
prOpriatIon.
Needs Force OF Engineers,
"a detailed statement OF the organi-
cation necessary to carry to a success
full conclusion the valuation of railway
properties would be out of place in a
eursory letter; Il may, however, be an
propriate 10 call attention TO the fact
that the work IS primarily the work of
expert engineers. This being the case,
the office to which this work is assigned
should be organized in conformity to en-
GineeTing practice.
The other part OF the valuation, that
ls 70 say the valuation Of the non
physical elements, could be provided
for by a more simple organization
Most Of the data for this computation
may be found in the records OF the
statistical division Of the commission.
VIII Take Over Year.
The time required for the valuation
Of railway properties depends very
largely upon the certainty OF the law
and the amount of money appropriated
fer the work. Should two years bC
granted for the work of the field agents
and six months for the compilation OF
the data gathered. the cost per mile OF
sucu a valuation would, in my opinion
be from 70 cents to 81 per mile less thar
IL the same results were obtained within
twelve months. A year or a wear and
a half IS certainly the least time thai
should be required for the completion oil
such a task.
with regard to the cost, I have nc
other guide than the experience Of the
State of Michigan. The valuation OF $50.
cost the State about $3.50 a mile, single
track mileage. Should this be accented
N-as a normal cost, Il would not be safe
10 enter upon this undertaking unless
Congress should appropriate S1,250, 900
for the purpose.
The above rough estimate proceeds
upon the assumption that high class
men are to be secured. Tor this work
and that they are to be Independent OF
political interference.
There is nothing in the field Of in.
NeSugation OF more pressing importance
at the present time than the valuation
suggested"
EARTH as F0OO