The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-04-27
RAILROAD news.
Valuation Meeting of /. C.. C.. at
Washington in May.
Will Discuss Methods Used on
Five Smaller Roads.
SANTA FE BUYS AN EXTENSION
Will Build Connection to Oil
Line in Oklahoma.
Other Items of General Interest
i'm the Traffic World.

The interstate commerce commits
sion. which is charged with the work
of railway valuation, has been anxious
to secure as much information as pos
sible before adopting a definite valua-
ton method. 1t is not yet committed
to the method employed in the case
of the five small roads, is the report.
1t will listen, however, to all that will
be said in favor of that method by the
valuation experts, and to criticisms
and proposals that will be made by
the representatives of the railroads
and of the association of railway COM
commission will probably be ready to
announce the plan to be followed in
hurrying the work to a conclusion.
According to report received by
| Topeka railroad men, G. A. Prouty,
director of valuation, has grouped
under 3 heads the questions which
the conference will consider. They
are as follows:
1. The form of the report to be
presented to the interstate commerce
commission by the valuation division
and by the commission to congress.
2. In determining "cost of new
construction" to what extent shall
reference be had to conditions they
existed at the time of the original con-
struction?
8. Shall the road be reproduced in
the form and manner in which it was
originally built?
4. What overhead charges are to
be allowed and in what amount? By
overhead charges is meant such items
as engineering, contingencies, interest,
taxes, etc.
s. Shall allowances be made for
appreciation? If so, to what parts of
the property?
6. How shall depreciation be de-
Z. How shall unit prices be deter
mined? If for an average period,
what shall the period be and shall it
be the same for all roads?
How shall the present value of
lands used for transportation purposes
| be determined?
8. When are lands owned and
used for common carrier purposes
When are lands "dedicated' to the
public use?
The system to be followed in the
probably be figured out at confer
| ence to open in Washington, May 81,
between representatives of the rail-
roads, representatives of the national
| association of state railway commits
sioners. the men in charge of the
valuation division of the interstate
| commerce commission and the mem
| bers of the commission. Perhaps 100
persons will attend the conference,
which will last a week and possibly
| longer.
1t will be the purpose of the confer
ence to dispose of the numerous trou-
blesome problems that have come up
/ in connection with the valuation work.
Preliminary reports are substantially
1
submission to the interstate commerce
| commission, covering five of the
shorter systems of the country. These
| reports will present on a compare
lively small scale all the problems that
will confront the government when it
| gets around to the valuation of the
great trunk lines.
The prices applied in the valuation
reports for these five roads are not
| final, but are given subject to correc-
ton; but in all other respects the re-
ports represent the final conclusion of
the valuation division.
The May conference will examine
these five reports with great care and
come propositions of various kinds,
and in the end an agreement as to the
| method of procedure for the railroads
| of the country generally.
In other words, the methods en-
| p1oyed in the case of the five roads
will be submitted to the conference
for such amendment as may be
deemed advisable. The interstate
commerce commission will be the final
Judge. The representatives of the
railroads, of the national association
Of railway commissioners and of the
| valuation division, will argue their
sion, which will then decide what is
to be done. The program adopted will
be made final, and upon it the work
of valuation will be pushed to as
/ speedy a conclusion as possible.
| 10. When original cost cannot be
shown on the books of the carrier,
shall an estimate be made?
/ IL. Is it the duty of the commits
] sion to distribute the value of equip