Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-06-06
rHoRNE SUGGESTS EVERY
STATE IN UNION co.
Important Step 10 to Back Interstate
Commerce Commission in Making
Physical Valuation Of Railroads.&c.
Have Wide Effect on Future Rate
Making ana Public Ownership.
Special to Times Republican.

everything subject TO Transportation, III
a matter Of nation wide Importance.
was urged upon representatives of eight
state railroad commissions, by Chair
man Clifford Thorne, of the Iowa COM
mission, at their convention today
The matter of such vast Importance
is that Of the physical valuation OF
railroads just entered upon by the IN
teI@tate commerce commission, for all
the American railroads.
"On interstate matters we are the
advocates for the shippers and con-
sumers Of our various states, MI.
Thorne said. IF we should by chance
happened to act inteligently. we would
take preliminary steps at once toward
perfecting a thorough going organiza-
ton to guard the interests of those
whom we represent l do not think
lew states like those gathered together
upon this particular occasion should
carry the burden of the work. ! have
no program. no suggestion whatsoever
to offer; l simply desire to challenge
your attention to the facts and permit
you to deduce your own conclusions,
whenever it may sui: ycnr persona
convenience. I think it would be very
unwise for any definite action to be
taken at this particular time. We may
compare notes and receive some valu-
able suggestions; but any definite move
taken at this time would probably serve
simply to offend those who are not here
and have not been invited. l simply
suggest you should keep in mind that
the state schedules in eacn one of your
states are now being weighed in the
I>nl hx,f intn tof ia ,nY n c {
that you are not holding the scales, and
that it might be well for you to keep
rather close watch on the weights-the
other fellow is doing So"
Fourh In Series.
The conference which commenced to-
day with eight midland states repre-
seated is fourth In series held at state
ca pitfalls to consider this Dig subject Of
railroad valuation. Out of it will prob
ably come a concerted movement in
practically all the states to see to it
| that when the interstate commerce
| commission ges busy on the valuation
| matter the interests OF the people who
pay the freight tax are looked after
4proper,y The national valuation is be-
i ing made under clause in the law in
| serted by Senator LaFollette. The ap-
praisers have already been named. The
railroads have provided for commit
tee Of eighteen to represent their side
Here today in Des Moines is the start
OF a movement to see to it that the
people also are represented.
| THE deciding tribunal has already
commenced its hearings and investiga-
tions, assisted by a corps Of distin-
| guished expects,55 said Mr.. Thorne to
his co-workers on seven other commits
| sions. zone side Of the controversy has
| already effected national organiza :
! ton, has appointed committee with a
| definite head has commenced its work
| and has in its employ the best talent
| in the world which money can hire:
| while the other side has no organization
whatsoever. is taking no steps to keep
in close touch with the early. tentative
formative, stages Of the investigation
has no men in its employ. and will very
probably float along in a mushy hotsam
Of indecision and uncertainty until the
last moment. when 1t will exhibit a
most fascinating example Of maidenly
hysteria in its feverish anxiety tc
meet the Issues before the case is
closed. And so democracy has gener.
ally done"
Effect on Rate Making.
Mr.. Thorne called attention to the
Importance Of the difference in method:
Of arriving at the valuation. and Tho
effect on future rate making. All the
graft In all the financial deals in the
history OF American railroads combined
Is not so important. measured in dol
lars and cents. as Is the proper deter.
mination OF the percentage that shoult
be allowed Tor the single item OF inter.
est during construction. 4 variation g
only Z per cent will mean a variation
Of more than thousand million dol
lars in the national appraisal. On sew
eral items there are differences rang
ing from S to 10 per cent. One stat,
insists that no multiple should be ap
piled to present land values, anothc
uses multiple OF ESQ to 800 per cent
One state makes no allowance for In
tangible values. the engineer for an
: other state recommends a largo allow,
ance for this item. And so on.
The conference considered the mas
nitude Of the issues involved and tn
far reaching consequences to follow
this national appraisal OF railroad val
uations.
mere ~ CONTROVERSY, Nlc Ststi'
man said, Involving several billion
dollars: the stakes are greater than II
any controversy ever before submitte,
to any tribunal since the dawn or civ
Hization.
TT becomes Of supreme importanc
that We shall consider these problem
as to valuation carefully and shal
adopt Just and reasonable methods. w
are under obligation to render entir
justice to the owners of these proper
ties. A spirit OF fairness must pervad
our work. No fair minded citizen WI
, countenance for an instant any Mt
tempt to take away. destroy or injur
property which rightfully BELONGS I
! the stockholders Of American railroad.
At the same time We owe II to tn
present and to all future generation
that unjust burGens snail Be place
upon them thru any fault os ours.
How rates Aee Affected.
And also as 20 the manner In whic
\ tho valuation AFFECTS rates:
1.-THE conclusions reached by IN
: Interstate commerce commission w
have very marked s1ect on "a