Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-11-14

political economy at Harvard, who
spoke at the morning session. the sec
ond was discussed by samuel c.
Dunno, editor OF the Railway Age Ca
xcttc, at n banquet Of the society to-
night. Smaller Mathews. dean of the
divinity school OF the University OF
Chicago and president Of the society.
presided.
Harvard Experts Speech.
The Harvard expert. author Of
many works on railroads, assigned TO
the subject OF the Investors interest
In railway valuation, traced immense
losses 10 investors who were the vic
Tins, he said. OF over-capitalization
which would not have been possible
or which would have been curtailed
by physical valuation. Mr.. Dunno.
whose subject did not require him to
inspect the rights or wrongs OF rail-
road bookkeeping. showed by com
parlson with the railroads Of France
and Germany, dollar for dollar, OF
capitalization the railroads OF the
United states, give the greatest serv-
ice.
Luxurious Service.
Mr.. Dunno submitted table pur-
porting to show the highest efficiency
In the United States. In the freight
haul he admits this country has the
advantage OF long hauls and bulk tom
mage, but our large expense for pas
senger traffic, he says, Is due to the
luxurious service rendered as COM
pared with European trains, and he
pointed to the fact that while a large
proportion OF European passenger
travel Is third and fourth class there
1 Is no such class In the United States.
Efficiency of Traffic.
MIR. Dunno alleged that at the be-
ginning Of railway rate agitation the
efficiency of the roads was used as
an argument for higher wages. safety
devices. better service aud so forth.
When the roads began to crack under
the strain and asked for an adequate
return on their Investments. he said
that The roads were then charged with
Iinefficency. lie quoted Harrington
Edwards, an efficiency engineer, as
stating that the railroads could save
100000, geo a year by more efficient
methods The assertion. he added
had failed Of proof
Other Speakers Present.
Other speakers today were Prof.
David Friday Of the University Of
Michigan. Pierce Butler Of st. Paul,
valuation counsel Of the western
group Of railways, I. $. Adams of the
Wisconsin tax commission. William D.
Kerr, lecturer at Northwestern uni
versty on interstate commerce law;
Albert w pullard, an investment
banker Of Chicago Asa Cation, head
Of the Interstate commerce. depart
.ment of LaSallc Extension university;
IInlford Erickson. railroad commits
sioncr Of Wisconsin John Gray OF the
UniNcrsity Of Minnesota. and II. 7.
Ripley, president Of the Atchison, To-
peka q Santa Ie railroad. The con
ference WIN conclude tomorrow.
railroad Valuation.
The subject assigned to Mr.. Butler
was Valuation Of Railway Property
for Purposes OF Rate Regulation" lie
said that 1T is not to be understood
that because of the use OF the cap
tlon that the speaker approved any
such docrine.
MIR. Butler alluded to a widespread
belief that railroad carriers seek to
maintain schedules Of rates not only
70 pay all operating expenses, includ-
ing maintenance and taxes, bat also
TO pay interest upon bonds and divi-
dends on stock improvidently and ex-
travagantly issued
Further on he said
Basis for Taxation.
II is clear that reliable knowledge |
concerning the value Of railroad prop |
erty may be useful for various pur-
poses. for example as basis Of tax
alton, as guide to investors in rail-
road securities. as an aid TO the pub
lie control of the issuance of stocks l
and bonds. as an aid 70 the test of
tho reasonableness Of the general level
uf rates and as a guide for further
Legislation,
II is. however, mistake to snp- |
pose that railroad rates MS practical
matter be made or based on the value |
OF the property used TO render the
service. BY those who have given at
tention to the subject 1t Is we'll under
stood that rates substantially depend
on many cher considerations
Problem Grave One.
Commenting on the paper by Mr. |
Butler. Mr. Kerr said:
THE railroads are unquestionably
face 10 face with a practical problem
Of immense Importance. 1t would /
seem that their duties to stockholders
and 10 the public can be DISCHARGED (
more effectively by frank recognition
uf the real situation MIR. Butler Is
skeptieai about the real utility for
rate-making purposes Of the vaiua-l