The Washington times., 1913-06-21
STATES DEMAND
PART IN ACTION
Want Representation on Board
to Fix Valuation Of All
Railroad Systems.
CONTINUED from First Page

Continued from First Page.)
month in New York city, and appoints ed
4 committee of eighteen members with
unlimited resources to look after their
side of the case. Samuel Rea. president
If the Pennsylvania railroad, Is chair
man of this committee. The commission
3 win decide the issues. When the United
states has case before the Supreme
court, the Supreme Court of the United
states decides the issues, but the United
states also Is represented by the Attor-
nev General or a Solicitor General, to
meet the arguments Gas an advocate)
advanced by the opposing side. When it
vas sought to dissolve the Tobacco
trust. some one appeared for the to-
bacco companies, and the Attorney Gen.
eral appeared for the United States,
while the Supreme Court decided the
.ssues.
May Influence Rates.
The national appraisal will practi-
cally control results in the present and
all future advanced rate cases. 1t will
practically determine the reasonableness
of our State passenger rates and our
schedules of freight operation; for the
commission is instructed by the act
of Congress to apportion the valuation
among the several States. 1t will In
a large measure affect the attitude Of
of Government regulation; and should
we ever determine to have Govern
ment ownership. this valuation will In
. large measure control the price which
We shall pay.
at will encourage or prevent sub
stantiai reductions in rates for many
wears to come; for IL Ii is found the
railroads are not making reasonable
return upon the fair value of their prop
critics, the public will rightfully frcwn
,-af fo radncfinnc a adverQe
legislation, and will encourage. openly
or by its silence, future rate advances.
The Supreme Court has said that
the basis of all computations as to rea-
value of the property devoted to the
public service We are now formulat-
Ing the basis of our rates for many
years in the future. There will be no
appeal from the commission findings.
In court these findings will be prtria
facie evidence of what is reasonable;
and in actual practice we anticipate
they will be virtually controlling.
Billions Involved.
This appraisal will determine the
ownership of values aggregating in the
neighborhood of fifteen billions of dol
lars. This is a very substantial part
of our national wealth. According to
the estimates of the United States Cen
sus Department the value of American
railroads is greater than the value of
all the live stock in the country added
TO that of all the farming indictments.
tools, and machinery and all the man
ufacturing machining and tools. and all
the gold and silver coin and bullion.
added to the total capitalization OF
all the national banks in the United
States. The revenues of American rail-
ways last year were more than eight
times the total customs revenu OF the
United States Government. And the
earnings from this vast property are
going to be based upon the valuation
determined by the seven men on the
Interstate Commerc Commission.
"The methods used will control re-
suits. One State says the railroads are
entitled to return on all gifts which
the public has made Another says they
are not. One State says the railroads
are entitled to a return on intangible
values aggregating approximately 40
per cent Of the total value of their
physical property; another State says
they are entitled to nothing on intangi-
Bile values. A variation of per cent
in the value VIII mean over a thousand
million dollars.
Score of Issues.
There are a score of issues. Thee
railroads will be represented at every
stage of the controversy by partisans.
advocates, or whatever you may call
their representatives. These men will
advance every argument in reason to
make the value as high as possible. The
public must have its advocate there
The laws of our several States. as
well as the Federal act to regulate COM
merce, empower the State commissions
TO appear on behalf of the public be-
fore the Interstate Commerce Commits
sion: but we would prefer. IL II can be
arranged. to have the national Govern
ment assume this exjense and the neces-
sary work involved. If this method
fails IL was unanimously decided at our
recent conference that the State COM
missions themselves will shoulder the
burden of the work.
I'VE viii not nresume to state the at
titude of the President or the Commits
zion. except to say that they have given
US very kindly reception and our con-
ferences have been entirely satisfac-
torv." - -ss.
Very Much In Earnest.
1t win be observed from the state
ment that the State commissioners are
very much in earnest in their demand