The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-03-13
Friday Bargains at CroWley=Milner's

from the railroads
Il l-llk z-llll--l- The railroads want
3. ~. this valuation to be
I =" SAstDN made. They ex-
& meet the result to be bracing to their
credit. They need money for better
4 meats, and they say they expect to
I make . showing as to the actual value
h omd the earning value OF their prop
Il orties which will warrant the issue OF
several hundred million dollars worth
n Of additional stocks and bonds.
y Il F. Loree. president OF the Della
& ware & Hudson Railway company.
aid to the committee when the bill
was under consideration: The rail-
roads Of this country. 1t is pretty gen.
orally conceded, will be called upon to
raise from seven hundred and fifty to
\ one thousand million dollars annually
\ for the expansion OF their properties
to take care OF the business OF the
4 country. Credit Is a very sensitive
4 plant. am not a very old man, but
Il can remember when the bonds and
the notes.-the demand notes of the
United States--sold at less than 40
cents on the dollar. measured in gold,
and 1t IL quite possible that the credit
N Of the roads might be so shaken as TO
amount to public calamity. There
\ tore, what think Is Of great import
e ance IL that in handling this question
y the interstate commerce commission
~ furnished with suitable instru-
.nont for dealing with it,
Prominent railroad officials value
the properties In the United States at
q dfteen billion dollars. Frank Trum-
Efa03l. representing the board OF direc-
Nkors OF the Chesapeake & Ohio rail-
Mwuy, told the same congressional CON-
mittee that the railroads Of this coun-
10y have a book value Of fourteen or
&Afkeen billion dollars-which far ex-
RBeds the properties In Great Britain,
311nce, or Germany"
$ Mr. Trumbull appeared before the
Fpmmittee fav0ring the valuation bi
$500 merely asked that competent men
secured to make the valuation.
Continuing - to the value OF the
rDodS, MT. Trumbull said: The rail.
JDa6s have cost fourteen billion dol
Hrs and the railroad men have rails,
dis by private credit on fourteen bill
- dollars Of property. and If this val
IQnfion work IL poorly done or insuffi.
|n1ontly done you may injure the credit
~ the greatest property In the world.
That fact IL the crux Of the whole
koblem-maintainin our credit"
III Tredertck A. Delano, president Of
ne wabash railroad. told the commit
-: "The only benefit that the rail
roads expect to get out of It IL in allay-
u ing the feeling that seems to be 30
4 1DnerA that railway property is very
much over-valued. Railway men do |
not think that Is SO. They feel per- |
1DC<ly c0nhdent that q fair valuation |
4 v1ll show that It Is not so. But we do |
& 1Ct want TO spend our money without
3 Do9ults. We want to see our money |
spent and the governments money |
fup9ut IN way that will show the
h truth, the whole truth and nothing but
3 ne truth"
The law provides that the railway
8 valuation shall discover UJ original T
4 cost to date, (2) cost Of reproduction |
new, (3) cost of reproduction less de- |
81 peociaGion. () other values and ele- |
6 nents of value-that il. intangible |
n values.
Under one section OF the law the
n commission must find the value of ter.
n Dinals and other properties not strict.
N railroad properties, such as hotels,
Il restaurants, boot-blacking stands, for
81 GDto. lands, and speculative invest
Oents. In learning the value of ter
Ii ntnals, including terminal sites. the
4 eommission IL ordered to get the value
81 - Of the time the terminal was dedi-
& onted to railroad use, and then sepa.
pntoly and later to consider the value
"a which such land or improvements NAV
"a have acquired as q result OF the access
&C population and the growth of bust
q noos. The commission is ordered TO
+ 70 into the history OF early railroad
Grants and md how much the rail.
n Soads paid for certain properties and
n privileges; also how much was given
" e. the railroads In the way of bounties
4 End subsidies by cities. states and ma.
ton.
The law requires that the work be-
Nh: within Nxty days. after the passage
0f the act and that the commission re
yort progress to- every session OF con
0rees. The work IL to be under the
general direction Of the Interstate com
ntrce commission.
The facts collected by this inquiry
4kre Intended 20 furnish ba.is for ar
0ovtnR ut q just. schedule OF rates
WIND Interstate commerce commission
1lII presumably use II in making their
;rnte orders. II will also be a basis
~ arriving at q fair tax valuation OF
n1Droad properties IN the various
49,. The railroads regard this fea
70 ~ favorable. hoping that any
1|1ne down OF values will scale dowr
taxes. On the other hand. an,
- up Of values will Justify high
n % freight rates
railroads anticipates that tn,