Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-07-28
CLIFFORD ThoRNE BELIEVES
STATE SHOULD DETERMINE
RAILROAD VALUATION.
DISCREPANCY BETWEEN
STATE AND NATIONAL REPORT
Many States Have Physical Valuation
Of Roads, and Such Record Proves Of
Great VaIue-Commiss Has Fund
on Hand to Secure Desired Informa-
ton.
Special to Times Republican.

Special to Times publican.
Des Moines. July 2S-Clifford Thorne.
of the state railroad commission. be-
lieves that the time has come Wheh
there should be a commercial Naiua''oH
of the railroads of Iowa. In TINS re-
spect Iowa has fallen far behind other
states In most of these other states some
provision has been made for a phys
ical valuation of the railroads, and this
has in many instances proved OF i'm
mense value to the railroad commits
sion and the taxing boards. Inc con
1ineent funds in the hands OF the ran
road commission We're secured al least
TO some extent with view 10 AaNiA :
a physical valuation made by the com
mission in Iowa. Regarding this SUD-
ject Mr. Thorne stated today:
In 1904 the national governments
made a commercial valuation of The
railroads in the United states uhue'
the direction of Henry c. Adams. sta
-is,Jcian of the interstate commerce
commission. who has recently been en-
r,,oyed by the New York Central lines.
This valuation was also distributed pE
M Adams among the different states
in. order to compare the results 10 the
valuation in those states for assess
ment purposes.
"-rhe actual value Of Iowa railroads
as lust found by our executive couhc'.
is s267S536so. The market Na4ue ol
Iowa railroads within this state as
minated by the national government III
1904 was s344,s47 900. making a differ
euce of the value as found by our eA
ecutive council this year IN the SLUG
sum Of s7S.e93.320 in favor OF the rdl4-
roads Compared to the present mar
ket value this difference Would amour
to more than s1o0,o0o,9OO.
The cost Of road and equipment re-
norted by our Iowa railroads 10 tAe
Iowa commission as shown hE lhe iasl
published report (19o9) amounted 20
s4a0.s4s.os0.05, Gas compared again 10
the valuation Just made by the execu-
tive council amounting to s2SI, S23,oso}
rrhesA returns as to cost include hs-
,,res on the proportional basis
~As a citizen, and as a member OK
+h> railroad commission, I hope to see
IOWA. make an Intelligent valuation OF
her railroads It Will be instructive 10
the executive council in making as
sexsrnents, it will help the commission
An considering the ACCESSIBILITY OF rais-
ing or reducing rates, question pre-
scented in cases now pending pelore
this commission; it will help the com
mission in the cases now pending IN
the federal courts, wherein the ran
roads have formally and spec!hcaiiS
attacked the adequacy OF their preseht
revenue from Iowa business as COM
nared to the value Of their properties
A phvsical valuation is not conclusive
as to the actual fair cash value. BuR
il IS one Of the controlling factors
which must be taken into consldefa-
ton. and be given great weight.
..As some guide to the wisdom Of IN
curing the expense OF making VAL
nation of all the railroads IN tins
state and the effect it would nave OF
our rate situation, we might make d
valuation OF an average or typical
railroad This course has been pursued
elsewhere. It will furnish the basis tor
a test case amongst those now pehd-
ing ir, the federal courts. The necessity
for such a physical valuation was the
chief argument advanced before the
committees of the last general assem-
blv in support of the appropriation 1cG
state investigations which was grant
ed to this commission. The board o.
railroad commissioners now has un-
der consideration the proposition TO
make such a valuation of representa-
tive Iowa railroad.
wisconsin. Washington, Texas.
Minnesota, Michigan and South Da-
kota. have all made actual valuations
of their railroad properties.
"This commission has given the
charge OF handling the legal end Of the
express cases and the cases pending
before the Interstate commerce COM
mission to the attorney general. All
this will give the commission ample
time and opportunity to devote to this
matter their careful attention while
the valuation is in progress
"The purpose of this valuation must
not be to injure any interest whatever,
but to find the true situation. If the
task is undertaken it must be upon a
basis of absolute fairness to all inter
ested parties"