The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-02-12
Body Entrusted With
Fixing Valuation Of All
Common Carriers.
WILL TAKE YEARS
TO FINISH WORK
Country Divided Into Five Dis
tricts for Preliminary Surveys,
Which Begin This Month.
Expense Expected to Ex-
coed $6,Oo0,OOO Knotty
Problems to Be Solved.

Washington, February l1.-An out
line of the tremendous task intrusted
by Congress To the Interstate Com
mcrcs Comm isson-the valuation OF
tho property OF all common carriers
tion-was given here tonight by Com
missioner G. y. Prouty before the
Chamber of Commerce of the United
States, in annual convention. The
commissioner cleared up a popular mis-
conception as to the nature OF the un-
dertaking. resulting from the use oi
the term physician valuation" while the
matter was pending before Congress
and since. lie explained that the com
mission is to determine Just what each
carrier is worth, taking into considcra-
tion what IL costs to produce the prop
crty and to build up the service; what
IT would cost TO reproduce ii to-day,
and what the line or company would
sell for with it's enhanced or depreciat-
ed valuation, its acquired privileges
and its patronage
That part Of the work relating to
railroads alone was dealt with at
length by Mr.. Prouty. He SAID that
the task had not sufficiently progress
ed so that its details could be either
intelligently or prohtably discussed.
Preliminary surveys are being made,
the country being divided for the pur-
pose into five districts, by States, each
containing approximately $4,000 miles
of railroad.
Surveys I'm Progress.
Each of these districts" said Mr..
Prouty will have an organization of
its own which will conduct the sur
veys within those particular limits.
subsequently these surveys Will be
worked out partly in the district and
partly at the head Office In Washing
ton. Surveys began in all the districts
except one about February /, and will
begin In that district about February
15.
1t has seemed 10 the commission
the part OF wisdom to proceed with
caution until sure Of Its ground. In
This view railroad has been selected
in each district upon which these sur
veys Will proceed with deiiberation
and in such manner as to afford kind
of instruction schoo! to all employees.
This preliminary work Will occupy
three or four months, which means that
we shall not be in position to rapidly
develop our organization until about
July l. Beginning then. or slightly
before. our force can be rapidly In
creased.
while il is somewhat hazardous TO
make an estimate OF the time required
without more experience than we have
had II is my opinion that the field
SURVEYS ought to be concluded III from
four TO six years from July / next II
is hoped that the accounting and other
work will keep pace with our Held
surveys.
The putting together OF these facts,
that is, the actual valuation Will neces-
sarily lag somewhat behind the OBJ
tanning of the facts themselves. The
commission will in the near future
have all the data with respect to some
railroads. but whether valuation VIII
be at once announced in such cases
must depend upon the method which
the commission selects for determin-
ing the various questions which Will
arise, and to which reference has been
made.
No Estimate of Expense.
ANY estimate OF the expense must
be even more unreliable than that OF
the time. Railroads have been valued
both by public authority and by them
selves, and the cost OF these valuations
has run all the way from 50 TO SIS
per mile. Knowing what must be done.
the methods which must be followed,
the rate of accomplishment which has
been attainablc in other places, I
should say, basing my estimate upon
the experience of State commissions,
that Sl5 per mile would be sufficient
to cover the engineering part Of the
X,
and other features. This would ag
gregatc for the entire 100000 miles
between s6,oO0000 and s7,000,00o.
"Evidently, before 1t can be de-
termined what ii would cost to build
particular railroad as 1t to. day cX-
lists, we must know exactly where
and what that railroad is. This means
that as a preliminary to the work Of
valuation every railroad must furnish
ba ,tcUi with and DllnQ
which will identify its property. When
this work is completed, there will be
found in the Office of the commission
at Washington an accurate map and
inventory Of the property Of every
railroad engaged in interstate business
as OF June 80 1911. together with other
maps and plans showing all subsequent
additions TO tho property. This of 1t
self is a work of great magnitude
which must be done by the carriers as
q part of the general undertaking.
Must Verify Inventory.
when the commission has been fur
nished with this complete inventory by
railroad ii must proceed to verify
it-that is. it must ascertain whether
the facts stated in the inventory are
yards, of carthwork. the number of
yards Of rock. the culverts, the tun-
nels. the bridges, together with the
character and cost or construction. 1t
cannot properly be obtained without
sending surveying party over every
mile of the railroad.
"rhs work is often referred to as a
physical valuation" of railways, and
most people probably understand that
this cost OF reproduction. with or with
out depreciation. determines the value
of the railway. so that, having ascer-
tanned and reported these facts the
duty of the commission has been dis
charged. But this is by no means
Hin to the present time the hold :
ing Of the Supreme Court Of tho United
States Is that cost OF reproduction now.
or cost OF reproduction less deprecia-
tion, are only factors entering into the