The Bridgeport evening farmer., 1910-11-15
RAILROADS FACE
 THOROUGH INQUIRY
Commerce Board Asks For De- tailed Figures of Property and Financing Devices Used
RATE HEARINGS GAVE HINT
True Basis for Rate Decisions Sought -Hadley Stock and Bond Com- mission Will Gain Data
 Denied It.

which the Interstate Commerce Com
 mission has sent to the railways, and
 in accordance with which reports now
 called for must be made, indicate the
 purpose of the commission to get al
 property of each company and the
 financial administration of that prop
 erty. The nature and scope of the
 statements. which the blanks require the roads to submit, show plainly that the rate hearings held recently in Chi
 cago and elsewhere have furnished
 many hints of significant lines of in-
 Quiry. They show also that these
 hints have been noted and followed
 with clear purpose of obtaining the
 exact information which will enable
 the commission to judge in future of
 the reasonableness of rates. Natur- ally the inquisition is carried deeper into many detafls-especially details of
 financing experimentation has been the case in any previous report called for.
 It is noted that much of the infor- nation sought is such as will be of no small value to the Stock and Bond Commission appointed by President Taft in September under authority of provision in the amendment to the railroad law passed at the last session of Congress. The report has reached
 Washington that 1t was in fact in or der to give this kind of assistance to the commission headed by Dr. Hadley of Yale. that the Commerce Commis- sion prepared the second of the two circulars. At the office of the Com merce Commission. however, this is denied. It is said there that the cir cular was sent out on the motion of the Commerce Commission itself in order to secure additional information for it's use in reaching conclusions in the pending Investigations into pro- posed advances of rates by the rail- roads in the official classification, Western trunk line, trans-M Missouri, and Illinois Freight Committee terri tories. As already stated the circular itself shows as much.
 Hadley Commission Met Refusals.
 It is fact nevertheless that the Stock and Bond Commission has been unable to secure the information 1t de- sired to get from railroad men. Ap- plication to certain railroad men in New York was met by a flat refusal to talk, and as the Stock and Bond Commission has no authority to com pei the attendance of witnesses, and cannot force any one to testify, that refusal seemed likely to end its use fulness prematurely, at least so far as that line of inquiry was concerned.
 The Commerce Commission, on the other hand, has ample authority to compen every railroad in the country to disclose such facts regarding it's operations and management as the commission calls for. It was not un- natural, therefore,, for the@ railroad men to conclude, after their refusal to answer the Hadley Commissions questions. that the supplementary schedule of inquiries from the Com merce Commission had been designed to cover the retreat of the stock and bond investigators.
 It is this supplemental circular which has attracted the most attention from the railroads. It pushes inquiry con- further into the financial af- fairs of the roads than did the forms for annual reports sent to the railroads by the Commerce Commission early Tn the summer It calls for financial April, May, June. July, August, and September for the years 1907, 1908, 1909 and 1910, including a full statement of capitalization and a closely detailed statement of all revenues and expen- 
 Two years ago the commission call ed upon the railroads for the names I1 th6 ICli idl SCS( III OI der to learn who really owned the road. It was a futile effort, and the names of dummies in the lists quickly showed. Last year that line of in vestigation was abandoned and the reports called for lists of stocks of other corporations held by the rail- roads, That was furnished by most of the roads in some detail. This year that question is repeated, and he usual statement of Transportation controlled by the respon- 1ent'' is called for.
 Probe Deep Into Securities.
 Then a call is made for compre- 1ensive statement of capitalization. The demand is for the number of shares authorized. issued, and out or held by respondent, of common, preferred, or debenture, and receipts for installments paid. A further demand is made for details of he purpose of issue, whether for cash, 'or construction of new properties, for additions and betterments. for pur- ,hase of railway or other property. for of securities, or for reor- yanization. It is also specified that Iureties issued for acquisition of other securities are not to be returned as issued for cash.'' The number of shares issued during the last year is IT, standing issue, and the roads are mo- flied that in. case the present man .gement is unable to ascertain the con- alteration upon which the stock was originally issued. that fact should be stated~at.-,e-..
 The following section of the form of eport calls for detailed information the funded debt of the rail- oads, under separate headings of is- ues of mortgage bonds, collateral trust ponds, plain bonds. debentures ands| totes, income bonds, miscellaneous unded obligations. and receipts out tanding for funded debt.
 Under these two sections of the re- 'ort the Commerce Commission experts will be able, if the roads report fully. o compile a fairly accurate and au- statement of the capitali- ,ation of all the railroads in the United States, classified, and with the purpose # issue Further along in the report here is inserted form of balance heet which the roads are required to i'll out This leads off with the state nent, property investment. in two divisions, first to June 30, 1907, and then. ince June 30, 1907. This covers in restments for road, equipment, genera, with an allowance for reserve for accrued depreciation"
 From the information received under his section of the report the Commerce Commission will get a pretty good line m the valuation of the physical prop ,rty of the railroads as set by the 'oads themselves. It is not exactly physical valuation of the kind advo- ,ated by Senators La Toilette. Cum