The Washington herald., 1914-11-19
ROAD VALUATION
GREAT QUESTION,
ASSERTS PROUTY
Discussion Of Government
Ownership May Hinge
on Report.
MAY NEED INCREASES
Higher Rates Probably Need
ed to Strengthen Their
Earning Capacity.
ENTITLED TO FAIR TREATMENT
Clifford Thorne. of Iowa. Is Chosen
President of Railway Commits
MAY NEED INCREASES
ENTITLED TO FAIR TREATMENT
Clifford Thorne. of Iowa. Is Chosen
President of Railway Commits
sioners at Annual Meeting.

Probably the most important practical
question before this country today is its
treatment of our railroads. and I have
felt that his valuation which We are 70
make must have a profound influence
upon its discussions" said Charles A.
Prouty, director Of valuation OF the In
terstate Commerce Commission, before
the National Association Of Railway
| Commissioners yesterday
The primary Question:" said Mr..
| Prouty, "is whether the government take
! over these agencies of transportation. or
! they be left to the operation OF private
| capital? This question never can be an
swered satisfactorily in the minds Of
most people until we know what relation
| that actual value bears to the present
outstanding securities. A definite answer
TO that question one way or the other
will undoubtedly profoundly affect public
opinion upon this question.
Grave Doubt About Earnings.
Assuming that we are to leave the dis
charge Of this function to private enter
prises. there arises the even more difficult
question as to what the treatment of this
private capital shall be. What rates
shall be accorded in order that the pres
ent investment may be fairly dealt with
and that such further investment will be
induced as will render possible tho proper
development of these facilities. In the
past this question has not been acute, for
rates have beer sufficient to maintain
railroad credie, but it is evident that the
time is near at hand. II II is not already
here, when grave doubt exists as to
whether these rates must not be generally
increased. This question cannot be salts
factOrily answered until there is a ma
tionaI valuation of these properties"
Mr. Prouty said that. when completed,
the national valuation should be as far as
possible finality.
The report made by the Committee on
Railroad Taxes and Plans for Ascertain
ing Fair Valuation OF Railroad Property
says, in part:
1T is our belief that the work mapped
out in the statute is impossible to be ac-
complished in its entirety, but we fur
ther believe, proceeding under this stat
ute, the Interstate Commerce Commission
will develop the difficulties of the plan.
While We are not pessimistic as to the
value Of this work, still We believe 1t will
not meet with the expectations Of those
who framed the statute under which the
work was undertaken.
And we most strongly urge the neces-
sity, both on the part Of the Interstate
Commerce Commission and the States, |
Of being awake to the program OF the
carriers involved to lay a foundation for
proceedings in court which may ultimate
ly vitality affect both regulation, while !
regulation exists. and public ownership /
should the government find 1t necessary |
to enter into the ownership of the rail- |
roads of this country. The owners are |
entitled, while private ownership exists. |
to fair treatment and a reasonable earn |
ing, and II the railroads shall become the |
subject of purchase or condemnation !
they are likewise entitled to a fair price |
for their properties"
The association elected these officers:
Clifford Thorne. of Iowa, president; |
Robert P. Prentis, OF Virginia, first vice |
president; Max Thelen. OF California, sec |
ond vice president: William H. Connolly, |
of Washington. secretary; James Blaine |
Walker. assistant secretary OF the first /
district public service commission Of New |
York assistant secretary.