Omaha daily bee., 1911-02-26
SUCH ACTION WAS EXPECTED
" ghO Claims to Know States His
4 Views in the Matter.
TIRE OPPOSITION BIG BLUFF
Coup Scored to Prevent Physical
Valuation of Properties.
AN APPEAL is NOT LOOKED FOR
HOwIs Of Distress Now Going Up said
to he for the PurpOse of check
ing ANY Attempts at Hos-
tile Legislation.

NEW 1Otth, teD. 10.-(SpeClal Iele-
grsm.)-The decision OF the Interstate Com
meroe commission against advanced freight
rates has been regarded generally as
severe blow to the railroads, but some we'll
Informed persons who are in a position to
know the Inside facts hold views to the
contrary Now comes we'll known finan-
cial authority Of this city who says that
the railroads not only foresaw such an out
come and laid their plans accordingly. but
that, In their secret hearts the magnates
who have been playing very crafty game,
look upon the decision with equanimity
More than that they are not going to make
any fight on the decision, but will be per-
fectly content TO LET the matter rest at
present According to this authority the
railroads really scored a coup-a coup they
had been scheming to bring about. and
which had for its object the prevention OF
the physical valuation OF the railroad prop
critics throughout the country.
A physical valuation of the roads taking
into account the value of the properties
the amount of watered stock and how much
water the different roads pay dividends on.
offered far greater menace than the de-
cision which has just been rendered on
freight rates This is because the govern
ment could use the facts discovered by
such physical valuation as basis for
the adjustment OF rates.
Afraid Of LeRisIatIOn.
The railroads believe said the inform
ant, that II the government undertakes
to find out just how much water is in their
stocks, there would be hostile legislation
and readjustment OF rates that will have a
most demoralizing effect The success of
such movement would send stocks tumb-
ling In a manner not equaled since the
panic Of 1901
Now the railroads decided on a bold
stroke Tney planned deliberately to force
an issue in which they would be worsted,
but what at the same time would stave
off the dreaded physical valuation. So they
united in declaring sweeping increases of
rates, A pitifui mouth was made concern
ing the state OF business. Larger freight re-
eeipts were necessary II bankruptcy was
to be avoided. they said.
As was anticipated the federal authori-
ties halted the increases. Then came more
howls Of distress from the roads. Now
the Interstate Commerce commission has
forbidden the proposed advances The
howis have redoubled. They will continue
for quite time All this win naturally
have the effect OF checking the valuation
movement The friends OF the roads have
good grounds for protesting against fur
ther embarrassments and harassmeHts.
Il looks as though they will succeed IN put
ting off the valuation scheme.
ROads Doing Wen.
II they accomplish this they will have
scored a tremendous victory As matter
OF fact there has been a steady advance
in freight rates for the last six years.
The renorfs of fba rcr,,,,,fs,fo,. .,-g-
The roads are doing well and they will
prosper under existing conditions"
Railway officials representing leading
81 stems OF this country win confer Mon
day in New York in regard to the de-
cision. By that time railroad men will
have read the entire decision and will be
in position to discuss the ruling and
come to some understanding as TO what
viii be the future attitude OF the roads
in the premises,
While railroad men are generally reticent
in regard 20 the developments which may
show themselves at Mondays conference,
there were many expressions OF individual
opinion In regard TO preliminary announce
ments by the Interstate Commerce com
mission. The subject OF various comments
offered By various officials had a certain
uniform character and many agreed that
the financial sufferers under a continued
regime Of enforced low freight rates will
be the public. Patrons 'of railroads. they
hold. win feel the restrictions placed upon
tbs railways by the decision in the de-
creased facilities and service. Shippers
VIII also bs unfavorabiy affected by such
limitations,
II Il believed that the meeting Monday
win finally decide to accept the decision.