The Washington herald., 1914-03-15
VALUATION OF RAILROADS MAMMOTH LABOR FOR $500

Does the capitalization Of a railroad
now determine its ratesT
by no means in every instance. Two
lines from New York TO Chicago. let
US say. carry passengers and freights
at the same rates. One road may be
poor and the other road may be rich.
but they meet on equal terms as bid
ders for business. The heavily capt.
talized road cannot charge more f2r
transportation than can the road the
capitalization of which is great deal
less"
what will happen II you find that
a big railroad Is worth, say, about
twice the amount of its bonds and
sharesT
Il don't know. offhsnd. would say
that such a discovery made In num-
ber Of important cases would answer
good many questions and clear the
atmosphere Of much criticism and all
speculation. Railroad men declare. as
have said before, that their property
Is worth more than. the total of their
bonds and shares. II that Is so. the
people, I am sure. will be glad to get
the information. II II is not so. they
ought to have the truth"
VIII the Government Buy Thcmf
rs the valuation now going on the
ship and operation of all railroadsT
mo one can tell. II railway men
have been accurate in their statements
about the actual worth of our trans
portation lines. the country. j suppose,
will be satisfied with the present ar
rangements as to ownership and man
agement. II contrary state OF facts
is developed and II is found that car
rying charges are based on highly ar
az NrfRn Nryfl
given to the movement toward pub
lie ownership and operation"
'will you inquire into the commissions
paid TO bankers for the selling OF large
issues Of railroad bonds?"
THE law makes such an inquiry man
datory We are directed to report upon
the syndicating. banking. and other n
nancial arrangements under which bonds
and stocks have been sold. and. quoting
the language OF the statute. the expense
thereof Furthermore. we are Obliged to
find out how the money so obtained was
used by the railroads"
Suppose a railroad should object to
the valuation as fixed by the Interstate
Commerce Commission
1T will! have thirty DAYS in which to
file a protest. The commission will then
hear the case. II the railroad should be
dissatisfied at the end OF the hearing 1t
may appeal TO the courts
You told me several years ago.
said that II the question Il govern
ment ownership were before the country
you would probably vote against it out OF
sentiment"
did I?' Mr.. Prouty asked. with the
genial half-smile for which he is famous
among those who know him well. l
waited but he also waited, and then,
realizing that he did not intend to break
his silence. reminded him Of some other
things he spoke of at that time.
THE national government. you said.
is competent to do anything. Moreover.
you added. what the government does is
done well"
''I'll not dispute those statements now"
Mr.. Prouty replied. yet he ventured on
no new ground. but sat looking at me
with his wise but friendly gray eyes.
VIII he Fought Out Some Day.
You referred to the postoffice." went
on. "as an example OF the governments
efficiency in carrying on business and of
the reluctance OF express companies to
compete with the postoffice in the trans
portation Of small packages. You fur
ther said that the government was dig
ging the Panama Canal without scandal.
labor troubles or any waste of public
funds