The Washington times., 1915-03-13
Valuationof fRailroads
Presents Big Problems
Interstate Commerce Commission Must Solve Them
Before Going Much Further-To Hold Con-
ference With All Parties Interested.
BY JUDSoN c. ,WELLIvER.

II gentleman in rather large way
of business decides to build himself 4
thousand miles of railroaj, Just be-
cause he euesses he would like to have
IL; ....
And II the building proves very ex-
pensive, and pieces Of IL have to be
done over two or three times;
And IL the gentleman who is build :
ing 1t has plenty OF money to pay all
the expenses, and does pay them reg =
ularly--
Whose affair Is II, anyhow?
The inquiry is from the valuation
division of the Interstate Commerce
Commission. 1t pertains to the affair
of former Senator William A. Clark,
who built the San Pedro. railroad Just
because he wanted II, and could affori
II. He owned a very big copper mine
in Arizona, and wasn't pleased with
the treatment the Southern Pacific
accorded him; SO he decided to have
and while getting It. he would get a
good one. 80 he built all the way
from Salt Lake to Los Angeles.
Concerns One Road.
1t turned out that building a rail
road was easier than running 1t. Sotne
sections OF the San Pedro were locat-
ed I'm places where they just naturally
disappeared into the earth. The des-
ert through which they passed would
look. in dry season, as II 1t had never
would be watersoaked. and miles Of
railroad would be swallowed, track
banks, and all, as II by quicksand
Two or three times the line had to
be reconstructed, at an aggregate cost
Of some millions, before 1t would
stick.
Senator Clark in time got tired trying
to run his railroad. and sold It to the
Southern Pacific. which still has It,
The valuation of railroads by the Ma
tional Government is In progress, and
Judge $. +. Prouty, former Interstate
commissioner. Is managing It. Here is
the question:
rs the San Pedro roads valuation
lions that were spent building lines that
disappeared In the quicksand, plus all
other costs of building It? Or was the
money that went into the quicksands
lost forever"
This Is one of the biggest questions
that has come before the valuation d.
vision. 1t concerns not only Senator
Clark's road but. In some fashion or
other. most OF the other railroads.
Hetty Green Has a Railway.
Senator Clark. however. is not the
only person with q railroad that has
proved expensive. Mrs. Hetty Green
has a road. the Texas Midland. liz miles
long. which presents another set OF
problems. Mrs. Green began by buying
fifty-three miles at a foreclosure sale.
paying les than S3oo. 600 for 1t. or course
it had cost several times that sum; but
there are no records in existence to
indicate what 1t cost. Is its, "valua-
ton" as OF the date when Mrs. Green
bought II. to be put down at the baga-
telle she paid? Or was II valued At
the sum It had cost former owners to
produce It?
These are hard questions. and the
commission Is now confronting the, ne
cessity Of answering them and a rnul-
farther with making the valuation OF
conference OF ell parties interested in
the valuation business has been called
for March 2. with the Interstate Com
merce Commission. On behalf OF the
railroads, the Presidents Association
has named advisory committees on en-
gineering, land and accounting. The
National Association Of Railroad Com
missioners has also named a commit
tee to represent 1t. These will mect
with the engineering and valuation ex-
perts of the Interstate Commission. In
convention that may be In session
for a week, to consider the whole ar.
ray of problems involved in the valua-
ton.
In the last hours of the late session