The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-02-12
OUTLINES
TREMENDOUS TASK
BEFORE /. c. c.
(Continued From First Page


court rs bearing upon the value OF the
property. The valuation act Itself r.-
quires tho commission to ascertain and
report tho cost OF construction the
amount OF money which has been IN
vested In the property. and the sources
from which that money has been de-
rived: to give, in short. II complete cor
porato and financial history oc these
properties; 10 take note Of the earnings
or the property. and having all these
i NC oeioie II: TO determine from !,
OF the property itself
am not saying that IL may not
,iaimily come to pass that the cost OF
actor. many people so Insist Others
urge with equal earnestness that Tho
I've tesl OF value. SO far as IL can be
the property. 80
..r First Road Under Survey.
nissi ne nrst railroad which the COM
MISSION is proceeding to survey in what
- hnown az the Pacific district. is the
Sth iedro. Los Angeles and Salt Lake
i iaisn ni,, from San Pedro. Cal; to Salt
hahe oily, Utah, some 500 miles The
.our Sc OF the road is for the most part
through an arid desert. \ certain sec
w WON OF mo H. ,,, when built, was located
disturbed 10y floods. yet shortly after
~ was opened for operation the Hoods
came and carried out this portion. II
was NJ once reconstructed upou a n.w
location, supposed to be beyond oll
possible danger from e. recurrence OF
tHc previous disaster. nevertheless the
waters again came and washed away
THIS same section, whcreupon IL was
reDuiii upon third location, beyond all
possible reach OF future trouble from
this source. Now. In determining the
value OF this property, what If any
allowance is to be made for this eX-
pcrlmcntal outlay"
The Northern Pacific Railroad runs
through the city of Spokane When
t si,,, road MAS built that city was OF
Of much account. and in the process
Of development it has grown up on
both sides OF this railroad. The North
Wen nave been true, that the cost Of
acquiring its right of way through the
mart tt, OF the city Of Spokane III tho
S5.ooo,0oo. The original cost 10 the
railroad was nothing, the right of way
having been entirely donated either by
i ia ddS oon Nov, TO WHOM belongs this
the right TO tax tho public for return
what Arc ncnctit,s
- VIVA, finally" asked Nh rrouty.
rs me purpose OF and the benefit to
money and of energy? When any in
weston can know from reliable sources
the exact character Of his investment;
how much it would cost To reproduco
the property; in what state Of efficiency
that property is being maintained.
NJ owe all what is the value OF that
has been Injected into railroad Sc
curitics an element - certainty and
OF permancncy which does NOT now
exist. 1t seems to me. therefore, that
this work Of valuation viii he OF in
cldcntal benefit u the railway hives
tor. and so TO the general public. While
TINS has not been generally, pcrhaps
not ut all. remarked upon as an adj
vantage, II Will turn out TO be IL sub
stuntial one.
TO the general apprehension the
subject OF this valuation is 10 deter
mine what rates our railways should
be allowed to charge for their services
to the public
While the, property invested in our
railroads and other public utilities is
private property, the government has.
III consideration or the nature of The
service rendered, the right TO impose
upon this property the terms and condi-
tons under which it shall be used.
1T Is impossible to shake n single
railroad free from every other and fix
its charges upon the basis OF fair re-
turn upon its fair value rs you would
In case Of Il gas or water plant. The
rate established for one OF necessity
Influences and frequently absolutely de-
tcrmines the rate OF all, fact which
must never be forgotten in discussing
this subject
Now, it is evident that if the com
mission should select that road most
whose business is the largest and upon
which the conditions of operation are
the most favorable. and should so adj
per cent upon it's value. every other
railroad standing in competition with
IL would receive less than 6 per cent
return, aud some railroads might re-
cciNe nothing Whatever.
Simplify Rate Problem.
NILE however. wish TO make il
perfectly plain, that the problem of
hl!shinr railway rates VIII not be
solved by this valuation / desire to
say with even greater emphasis that
that problem VIII he enormously sim
1T can be known with certainty
whether the general level Of rates is
or Is not too high. and In establishing
carrier even in nxing the rate upon -
single commodity. IL will be OF much
benefit To know the value OF the prom
ertv involved
while this valuation will be Of Incl
dental benefit to the investor. while II
~ essential TO tho work of the rate
,nooakinr tribunal !, seems to mo that
cai Tho state Of the prhiic mind TO.
wards our railways &c such that this
'nfo"mnH"n " ahsoin'eiv necessarv
"cnnS'dor the dcrelorrnentG Of tbe
'nve situation into the affairs of tho It
louis and San F-ancisco syster. con
Quoted nv tho Interstate Commerce
N"w Fnplard to-dav. whare THO fate
18th ~ III" EnGton and Maine .nd the
~ew H'N"n systems is tr"mbl'po in
the 10 lance None Of thnea f,irce,ione
lions cnn he 'ustlv doal. u.ttt, nrtu ,rc
tsnow tho actn"i value ~ tha"e nronar
'"s THE Is III" Question "'htch a-'ees
"o'"~e tho students ~ thia raiiv,o q
n"nbl"to st every anole Th'e is ,bn
"ucEfion whfcIp ionrf hn are rt-t.-ad l.a
-" tue n-ohl"'" en- hc into1fi""n,i'.
~ Is '-rno"tant thot TITO wo~t, should
TO nr"oTnd 10 q connpletton IN IN" n1oat