The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1920-06-17
THE NATIONAL CAPITOL
(By j. E. Jones)
What are Railroads. Wort


The long disputed question as to the
actual value of the railroads of the
country seems about to be cleared up
thru the Investigations now being
made by the Interstate Commission.
The government has been at work for
years in making valuation OF the
properties and nearly $30,000,0O0 has
been expended. But up to within
few days ago there has been no COM
prehensive picture as to what the re-
ports will finally disclose. It now
seems that on the basis of these re-
ports the railroad valuation will
show the aggregate worth of all the
roads of the country to be greatly in
excess of the value shown on the
carriers own books, more than$2,-
OOO,OO0,O 900 in excess of their capital
ization, and more than $4,000, 600, 900
in excess of the present aggregate
market value of thei~ stocks and
bonds. The forecast, based upon the
completed field reports of the gov
eminent engineering experts for
nearly $4,000 miles of road in all
parts of the country shows the cost
of reproduction of SO railroads on the
basis of nineteen hundred and four
teen cost of labor and materials,
when prices were about half what
they are today. These roads, in
Guiding land they occupy, cost 49,
202, 1888. They are carried as in
vestments on carriers books at 49,
1925, 156.
The ten largest roads in the list Of
fifty, based upon the report of the
costs of reproduction as of nineteen
fourteen are Illuminating. The at
tention of the Commission has been
directed to the fact that the New
York, New Haven & Hartford in
ventory shows a reproduction cost of
one hundred twenty-four millions in
excess of the company's own state
ment of investment; the Boston and
Maine, an excess Of $8O,O0O,OO0; the
Rock Island, an excess of forty-seven
millions; the Great Northern, an ex-
cess Of thirty-four millions; and the
Big Four an excess of fifteen mil
lions.
Are the Minimum Figures
The railroad valuation figures that
have just been. brought to light thru
the Interstate Commission hearings,
and which have been presented by
Thomas w. Hume of Philadelphia
vice-chairman of the conference COM
mittee on valuation for the carriers
are to be regarded as the minimum
figures. On this point Mr.. Hume
says: wherever there is difference
of opinion between the local engineer
ing forces of the Government and
the representatives of the carriers,
the Government engineers put in the
figures that they deemed to be the
minimum, so that the supervising
officers of the Bureau of Valuation
In Washington may have opportunity
in the first instance to consider the
claims of the carriers as to what ad-
ditional amount should be allowed.
In such large inventries involving
such great amounts it is but natural
that there should be some errors and
numerous differences Of opinion,
which, when considered, result mater
iaf increases in the total of the in
ventories as first rendered to the car
riers. Aside form questions of fact
which are individual to carrier, there
are great differences now existing
between all the representatives of the
railroads and the representatives of
the Bureau of Valuation as to costs
of grading, track-laying and surfac-
ing, general expenditures, and inter-
est during construction"
For Drawing cali Rivers BeII