The Washington herald., 1912-03-25
GIANT RAIL WAY
APPRAISAL ASKED
Interstate Commerce Com
mission Asks S3,OOO,OO0
to Learn Valuation.
NEEDED TO FIX RATES
Congress Told Equitable Arrange
ment Cannot Be Made Until
Report Is Obtained.

Presenting a complete plan for the
physical valuation of all the railroads
in the United States and expressing firm
conviction that over-capitalization can
never be prevented or equitable trans
portation rates fixed until such valuation
is made, Democratic and Republican
members of the Interstate Commerce
Commission have Joined hands in an ap-
peal to Congress for an appropriation OF
100000 to accomplish that great work.
They ask for an additional appropriation
TO investigate the amount of water in
present railroad securities.
As one Of the essential steps to an ade-
quate physical valuation, the commission
announces that it would insist upon au-
thority TO investigate the books of ]. Z.
Morgan & Co. and Kuhn, Loeb & Co.
This revolutionary step was advised by
Commissioners Clements, Democrat, and
Meyer, Republican, at an executive ses-
sion of the House Committee on Inter-
state and Foreign Commerce, now con-
sidering a bill drawn by Chairman Adam
son, authorizing the commission to make
the physical valuation and the bond and
stock investigation.
Commissioners Clements and Meyer eX-
pressed belief that they can make the
special Inquiry into stocks and bonds in
Two years, but that It will take at least
three years to complete the valuation of
the railroad properties. which are said
TO be worth sls,5OO.O 10000.
Says 1. c. c. should Probe.
The inquiry 'oI ght TO be extended"
declared Judge Clements, Ito enable the
commission, or whoever makes it. to
make an inspection or examination Of the
books OF these banking institutions that
conduct tHese organizations, like Nor
gan's house in Louisville and Nashville
and the Atlantic Coast Line transactions
and Kuhn Loebs Company that figured
in, the Alton case.
The holding company that stands be-
tween the operating company which
serves the public and is a kind Of screen
for the People who actually control the
operating carrier and vet are not in d.
rect contact technically with 1t, is
matter that ought to be investigated.
- don't believe a Congressional com
IRltt@e is the only body with authority
10 do this work. Our commission could
do il II the law gave US direct authority.
An imperfect valuation would be
worse than none; it would he misln-
formation" Judge Clements continued
IF We make an inventory valuation it
will require engineers with education
and pra ctical experience sufficient to do
their work thoroughly, inteligently. and
accurately, and who have character
enough that the country will feel assured
that they are COLI blOoded in being fair
and unappFoachagie from any standpoint.
The government must pay the cost.
What Is n Reasonable RHtef
The contention OF the roads now is
explained Judge Clements. that they are
entitled 10 earn on the present value of
their property. no matter how that val
ue came about. There has been no de-
cision by the Supreme Court that is
definite or makes plain what will be the
law about, IL.
What is a reasonable rate? II takes
but a glance TO see that the value of