The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-15
}. X. KOOntz ON physical Valu-
alton Of Railways"
Santa Fe General Freight Agent
Gives Rail Side.
SAYS 1T is POLITICS.
Freight Man Places Little Faith
in It's Practical Use.
Other Items of General Inter-
est to Traffic World.

The physical valuation talk and
controversy between Governor Stubs
and President Ripley of the Atchison,
Topeka & Santa Fe has attracted coun-
try-Wlde attention in railroad and po-
Htlcal circles. 1t attracts attention in
railroad circles because railroad men
look upon the physical valuation plan
with twinkle in their eye-they
laugh at its practicability. 1t is inter
estlng material in political circles be-
cause a majority of the politicians
have it as a text for the preaching
of their political principles.
In the Get Acquainted Trip" of
the Santa Fe J. r. Koontz, general
freight agent, who has made a study
of the physical valuation problem has
been making strong point of this
feature in his speeches to the people
along the line. He has taken num-
erous branch lines in Kansas and COM
pared them to main lines of other
roads-with this in view he has given
a picture of the working power of
rates based on physical valuation.
In one of his late talks, Mr.. Koontz
had the following to say:
Much has been said by economic
writer's and great deal more by as
pirants for political prestige as to the
relation of physical valuation to the
making of freight rates. Colonel
Roosevelt, although he has had much
to do with stirring events at home and
abroad, has never, at least has not as
yet, been recorded as having parttci-
pated in the making of freight rates.
1 do not question the Colonel's nerve.
The Colonel has volunteered the infor-
nation that while a physical valuation
of railway properties was desirable
for the purpose of limiting capitaliZa-
ton, it very rarely, if ever, could or
would be used as determining a freight
rate 1 concur in the Coloners views.
Probably the fallacy of employing
physical valuation as the basis for de-
termining freight rates can best be
shown by the following illustration:
THE Santa Fe's double track, rock
ballasted line leading from ottawa
to Quenemo is, / am quite certain,
easily worth double the line of the
memo. 1 am quite certain that the ex-
perts, as detailed by the government,
If they saw fit to make the valuation
of these lines of railway would APP
praise the double tracked Santa Fe at
much higher figure than they would
the Missouri Pacific property.
Now, if physical valuation was to
be the basis for arriving at the rates
between Ottawa and Quenemo, which
property would fix the rate? Answer,
Missouri Pacific. Why? Because the
Santa Fe, even though it's property was
assessed at the higher figure, and even
though the government should say to
the Santa Fe that, Your rate based
on your valuation can be higher than
those of your competitors would un-
der stress of competition, be forced to
meet its competitors rate or retire
from the business.
It have for more than 25 years been
associated with the Santa Fe. My par
ticular duties as general freight agent
are to secure tonnage for tranSporta-
ton; to supervise subject to the regu-
latiOnS as imposed by the legislatures
and the commissions of the various
,f.,k, 70 our
rails, and further subject to the para
mount control as exercised by the fed
eral commission, and last, but should
be really first-certainly not leaSt-Sub-
iect to the interests of those who have
invested their monies in Santa, F'e hold
ings I almost forgot having in mind
so constantly the many regulations, re-
quirements and restrictions to which
have to subject my official actions, what
I really have to supervise, but 1t is,
the freight rates which my company
has to assess for the various articles
of commerce and consumption offered,
or which we can by solicitation secure
for transportation over our rails.
ct am one of the men who has spent
almost q quarter of a century in the
avocation of a freight rate maker 1t
has been heralded from one end of the
country to the other-I was almost for
the time being persuaded to forget my
self and employ the favorite phrase
ology of the chronic stump speaker,
would not say politician, and say
heraIded from the Atlantic to the Pa
cific. and from the Lakes to the Gulf
that a freight rate maker was hardly
to be classed as a human, for the rea-
son that Mr.. George R. Blanchard, one
of the greatest students Of traffic econ
omics, once said in answer to ques-
ton propounded by counsel as to what
constituted a reasonable freight rate
replied: What the traffic will bear
Now. what has followed The pol
ftician has goLe through with the six
teen to one;' he has attended the obse-
uuies and is now dancing at the res
direction of the initiative and refer
endun; he has had his OsaWatomie
without adding to the laurels of the
Iamented John Brown, and we are now
up to the All notch, no. that would
be wrong to give the correct answer,
What the traffic will bear
THE newspaper reporter, not having
much thought for the comfort and peace
of mind of the future generation of
freight rate makers, reported to the
World Mr. Blanchard as saying, All
the traffic will bear. Mark the differ
ence between the answer as actually
made and officially recorded, and the
answer as given to the World. Mr..
blanchard said, What the traffic will
bear and the reporter said, All the
traffic will bear.
Now. let us fairly, squarely, con-
slider and answer what is meant by
the. What the traffic will bear 1t does
not mean as the patriot who would
like to ride to Office and glory using