The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-02-26
Magnates Declared by Finan-
cier to Have Played Deep
and Crafty Game.
EXPECT TO STAVE OFF
PHYSICAL VALUATION
With That Accomplished, They
Are Willing to Let the Rate
Matter Rest.
BY PRESTON O. ADAMS.

By Leased Wire to Ths Tribune.
NEW YORK, Feb. 36-The decision
Of the interstate commerce commission
against advanced freight rates has been
regarded generally as severe blow to
the railroads, but some well informed
persons who are In q position TO know
the inside facts hold views to the CON-
trary. Now comes q well known f.
nancial authority Of this city who seys
that the railroads not only foresaw sunh
an outcome and laid their plans accord
ingly, but that, in their secret hearts,
tho magnates who have been playing
very crafty ganls, look upon the de-
clsion with eQuanimity; more than
that, they are not going to make any
fectly content to let the matter rest
at present. According to this author
ity the railroads really scored coup
coup they had been scheming to bring
about, and which had for it's object the
prevention of the physical yaluation OF
the railroad properties Of the country.
A physical valuation Of the roads; TAX
critics, the amount Of watered stock
and how much water the different
roads pay dividends on, offered far
greater menace than the decision which
has just been rendered on freight rates.
This Is because the government could
use the facts discovered by suoh
physical valuation as a basis for the
adjustment of rates.
Would Be Hostile Legislation.
"The railroads realize" said my in.
| formant, "that if the government un-
dertakes to find out just how much
water is in their stocks, there would be
/ hpcfilo lori -loS on1 20
rates that will have most demoraliz-
ing effect. The success OF such move
ment would send stocks tumbling In q
manner not equaled since the panic Of
1901.
"Now. the railroads decided on
bold stroke. They planned deliberately
TO force an issue in which they would
be worsted but which at the same time
would stave off the dreaded physical
valuation. SO they united in declaring
sweeping increases Of rates. A pitiful
mouth was made concerning the state
Of business. Larger freight receipts
were necessary if bankruptcy was to be
avoided, they said,
GAS was anticipated, the federal Gu
thorities halted the increases. Then
came more howls Of distress from the
roads. Now the interstate commerce
commission has forbidden the proposed
| advance The howls have redoubed.
| They will continue for quite time, All
this Will naturally have the effect OF
checking the valuation movement. The
friends of the roads have good grounds
for protesting against further embar-
easements and harrassments. 1t looks
as though they will succeed in putting
off the valuation scheme.
Really a Railroad Victory.
eff they accomplish this they will
/ cooral dong x-1prn AQ
matter of fact, there has been
steady advance in freight rates for the
past six wears. The reports of the CON-
mission show this. The roads are do
ing we'll and they will prosper under
! existing conditions
Railway officials representing lead
ing systems Of this country will confer
| in New York Monday in regard TO the
decision By that time railroad men
will have read the entire decision and
will be in position TO discuss that
ruling and come to some understanding
as TO what will be the future attitude
of the railroads toward such resolu-
| tion.
While railroad men are generally
reticent in regard TO the developments
which may show themselves at Mon.
days conference, there were many ex-
pressions Of individual opinion In re.
gard to preliminary announcements by
the interstate commerce commission.
The subject Of various comments Of.
fcr,l by various officials had GER
| tain uniform character, in that many
agreed that the financial sufferers uu.
der continued regime Of enforced low
! freight rates will be the public; Pat
rons of railroads, they hold, will feel
the restriction placed upon them by
railways by this decision in the de-
creased facilities and service, Shippers
will also be unfavorably affected by
such limitations. It is believed that
the meeting Monday will finally de-
eide to accept the decision.