Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-07-29
VALUE OF IOWA RAILROADS
Commissioner Thorne Makes State
ment Regarding Appraisement.
CALL FOR INTELLIGENT WORK

tFrom a sad correspondent.)

DIES MONIES, Ia, July s.-(Speclal)-
The Iowa Railroad commission Is prepar-
ing to make a start for a physical valu-
alton of Iowa railroads and Clifford
Thorne. member OF the commission. to-
day authorized publication of the follow
ing statement I'm relation thereto:
I'm 1904 the national government made
a commercial valuation OF the railroads In
the United States, under the direction Of
Henry C. Adams, statlstician Of the Inter
state Commerce commission, who has re-
Gently been employed by the New York
Central lines This valuation was also
distributed by Mr.. Adams amongst the
different states, in order to compare the
results to the valuation in those states for
assessment purposes.
THE actual value OF Iowa railroads as
Just found by our executive council is
$267, s5S $50. The market value OF Iowa rail-
roads within this state as estimated by
the national government In 1904 was SSA4-
s47. 900. making a difference Of the value
as found by our national government seven
years ago compared to the value as found
by our executive council this year in the
snug sum of SIC, $685. 800, in favor Of the rail-
roads. Compared to the present market
value this difference would amount to more
than 500 100000
Original Cost of Roads.
1.-THE cost of road and equipment reported
by our Iowa railroads to the Iowa commits
sion, as shown by the last published report
1s09), amounted to $I20.S4s,OSo. Gas com
pared again to the valuation just MADE
by the executive council amounting to
s267, S53, ESQ.,. These returns, as to cost in
clude figures on the proportional basis.
"As a citizen, and as member OF the
railroad commission, l hope to see Iowa
make an intelligent valuation OF It's rail-
roads. 1t will be instructive to the exeeu-
tive council In making assessments, II
will help the commission IN considering the
advisability of raising or reducing rates, a
question presented in cases now pending
before this commission; It will help the
commission in the cases now pending in the
federal courts, wherein the railroads have
| formally and specifically attacked the ade-
quacy Of their present revenue from Iowa
properties. A physical valuation Is not
business as compared to the value Of their
conclusive as to the actual fair cash value
| but II is one of the controlling factors
which must be taken into consideration
and be given great weight.
Possible Effect on Rates.
"As some guide to the wisdom of incur
ring the expense of making a valuation OF
all the railroads in this state, and the ef-
| feet 1t would have on our rate situation, we
might make a valuation of an average or
typical railroad This course has been pur-
| sued elsewhere 1t will furnish the basis
for a test case amongst those now pending
In the federal courts. The necessity for such
a physical valuation was the chief argu-
ment advanced before the committees OF
the last general assembly In support of the
appropriation for state Investigations which
was granted to this commission The board
of railroad commissioners now has under
consideration the proposition to make such
a valuation OF a typical Iowa railroad.
Wisconsin, Washington, Texas, Mime
sota Michigan and South Dakota have al
made actual valuations OF their railroad
4 properties.
| This commission has given the charg'
of handling the express cases and tn
cases pending before the Interstate Com
merce commission to the attorney general
All this will give the commission ampl
thine and opportunity to devote to this mat
ter their careful attention while the valu
aion Is In progress.
THE purpose of this valuation must no
be to injure any interest, whatever but t
find the true situation. If the task IL un
deraken IL must be upon a basis of abso
lutte fairness to all interested parties"