The Birmingham age-herald., 1914-02-12
PROUTY AND WILSON
ADDRESS NATIONAL
BOARD OF TRADE
Bearings of Department of
Labor and Commerce Com
mission Upon Business
Are Discussed
BY c. E. STEWART.

washington. feDfuary 1l.-tSpeclal l.)-ln
a speech before the Chamber of Com
merce of the United States tonight C. A.
Prouty of the interstate commerce COM
mission gave vivid outline OF che enor-
nous task delegated to the commission
by Congress when it passed the physical
valuation of railroads act March ]. 1913.
In great detail Mr. Prouty discussed
all phases of the work just begun BY
the interstate commerce commission. He
described what was TO be done; the time
and expense required and the benefit to
be derived. The cost of this task. Mr..
Prouty estimates at from s29 to $40. per
mile of road. and as there are 25o.ooo miles
of railroads in the United States. the
final cost of the work will be from s6,0c0
600 to sl00oo.ooo.
when this work is completed. he
said there will be found in the office
OF the commission at Washington an ac-
curate map and inventory of the property
of every railroad engaged in Interstate
business as of June 30. 1914. together
with other maps and plans Showing all
subsequent additions to the property
Should Protect Investors
connection with railroads, Mr.. Prouty
said: 1T is the duty of the government
within reasonable limits TO see to it that
the would-be investor Is not hoodwinked
in the making of his investment and
that the value of his Investment, when
once made is not destroyed
Now when any investor can know
from reliable sources the exact characte.
of his investment; how much it would
cost to reproduce the property; IN what
state of efficiency that property is be-
ing maintained; above all, what is the
value of that property for use as rail-
road, there has been injected into rail-
road securities an element of certainty
and of permanency which does not now
exist. 1t seems to me, therefore. that
this work of valuation will be of incl
dental benefit to the railway investor
and so to the general public
Mr.. Prouty pointed out that while the
property invested in our railroads and
other public utilities is private property.
the government has in consideration 4ot
the nature of the services rendered. the
right to impose upon this property the
terms and conditions under which it shall
be used. The character or It's equip
ment may be determined by the govern
ment; the schedules upon which its trains
may be run: and. in general the gov
ernment may control the operation OF
the property in addition TO fixing the
rates. insofar as the public has an In
terest therein, with the important quail
fication that. the property must be al
lowed fair return upon the fair value
of the Investment.
Washingt ton. February 11-The
American business world came into per-
sonal touch with men whose ideas and
actions are of great moment to busi-
ness tonight when Secretary Wilson
of the department. of labor and Com
missioner Prouty of the interstate COM
merce commission, addressed the second
annual convention of the Chamber OF
Commerce of the United States. Sec
retary Wilson discussed the relations OF
his department with the business world
while Commissioner Prouty outlined the
great task undertaken by the commits