The Topeka state journal., 1913-03-17
LARGEST JOB YET
Commerce Commission Must
Compile History of Railroads.
Work Will Require Several
Years in ConsummatiOn.


Washington. March 1.-THE greatest
administrative task of it's kind ever
undertaken in this or any other coun-
try is today. faced by the interstate
commerce commission. 1t is under in
struction to write a. complete history
of the railroads of the United States:
This is an incidental provision of the
bill, passed by congress and signed by
President Taft on March i, directing
the commission to make a valuation OIL
the railroads, telegraphs, telephones
and-as it is understood by the com
mission-many of the street car syS-
TENS of the land.
The immensity of the task is almost
staggering to the commission. 1t Is
required by the law that the business
be set on foot within 60 days. rms
leaves little time for determining vast
questions of policy, method and ao-
ministration. At the conference ses-
sion of the commission, probably on
April Z, the matter will have to be
taken up.
1t will require several years to do
the work and 1t is estimated by of1-
ciaIs of the commission that from
three to five millions of dollars Will
represent the cost. \ big organlza-
ton, including expert engineers, sta
tisticians, economists and writer's VIII
have to be formed, in addition to when
a force
clerks, etc, will be needed. 1t is ex-
pected that when the work is in full
swing, the organization will be one OF
the biggest bureaus of the government
and that it's force win number more
than half as many people as the en-
tire, esta blishment now operated by the
interstate commerce commission.
The real scope and sisn1heance Oh
the legislation which directs this big
task has not been realized till WITHIN
the last few days. The task was de-
scribed by commission official as "one
that gets bigger every time one looks
at that act-'
Protest Is Expected.
IT is expected that there Will be
protest from the railroad managers
when they realize what is to be done.
The legislation pays no attention 10
franchise values, going concern val
ues. and the like, which the railroads
have always contended were of great
importance. 1t requires that all the
property of every railroad shall be ap-
praised in detail. There shall be
Denomination of it's original cost, of
it's present value, and IF the present
cost of reproduction. with statements
of the depreciation that is charged on
in reaching present valuation
In making these determinations the
commission is directed to ind what
,,ronertv was donated to each railroad,
hat its value was when SO donated,
and what it is now: by whom It was
donated, whether by the national or
state government, in land grants, or
nv nation. states or cities in the form
of taxes or other subsidies. Reporting
on all this the commission must pre-
cont detailed analysis of the method IL
pursued in getting its facts and reach
ing it's conclusions. All property held
nv a carrier for other purposes tnan
that of transportation, must be re-
ported in detail. 80 T..
the requirement of financial ana
nhvsical history of every railroad ThlS
is so written that it means in erect a
complete financial history of every rail-
road CORPORATION that ever built any
of t,e railroads now in operation in the
country. 1t will not be sufficient TO
tell all about the corporations now
owning and operating properties. The
thing must start at the very begin
ming, and every organization, reor-
ganization receivership, sale, issue and
reissue of securities, ETC., must be
detailed.
The commission is authorized to re-
ouire the cooperation of the railroads
and other corporations, in getting at
the facts Whether there is full auth
oritv for enforcing this cooperation is
vet to be determined. 1t is the hope
of the commissioners that the railroads
will decide to lend their assistance in
every possible way, and place their
records at the disposal of the right
authorities.
Somewhat similar valuations of rail-
road and other properties have been
made by many countries, but never on
such a scale. Prussia, Switzerland and
other countries have had to make val
uations as a preliminary to purchase
by the government. But these valua- |
tions were commonly made piecemeal, |
and for properties not comparable in |
extent with the railroad and telegraph
and telephone systems of. this nation. |
The statement that nearly half of all
the worlds railroads are in the Uni |
ted States suggests what an operation |
is ahead
A British royal commission has only |
recently completed the valuation of
the telephone systems of the United |
Kingdom, after years of work. That |
operation, preliminary to their late
purchase by the government, was look |
ed upon as tremendous; yet it would |