The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-11-18

what is fair in both of these cases
Obviously it must be done through
some public agency--a body of meI
representing the public. 1t is neces
sary to have organization--gove
in order to carry out all social aims
and to put confidence in the agencie.
of government and sustain them
They are not infallible, and they are
answerable TO the public for the man.
ner in which they discharge their re-
sponsibilities, but criticism of them
should be well-iuformed and directed
to specific faults of administration. II
is a symptom of social incompetency
for people TO raise a great outcry
against a court or an administrative
body simply because its decisions or
actions run counter to what is popu-
larly desired at the time. II is like the
outcry of schoolboys against an UNI
pire.
Two such Boards have been estab-
lished to deal with the railroads and
railroad employes-one the Interstate
Commerce Commission and the other
the Railroad Labor Board.
In 1913 because of the differences
of opinion existing about the actual
value of the railroad property, Con-
gress directed the Interstate Com
merce Commission to undertake a de-
tailed survey ard valuation. 1t
proceeded to organize a subordinate
body of engineers, accountants, etc,
for the purpose and UP to June 80,
1920, approximately Sol, 349,4l0 had
been expended on the work, now far
advaaced. The data thus gathered was
taken by the Commission as the basis
of the tentative valuation required by
the Esch-C ummins act.
1t should be understood that this
valuation for rate-making purposes is
not based upon the amount of bonds
and stocks outstanding, and therefore
that the talk of "watered stock" in
this connection has no foundation.
This was definitely set forth By Mr.
Edgar z. Clark, then chairman of the
Interstate Commerce Commission, be-
fore the Senate Committee on Manu-
features last year when it had under
consideration the Calder bill for the
regulation of the coal industry. The
question Of railroad rates being up,
the valuation CT the railroads adopted
by the Commission became a subject
of inquiry by members Of the Com
mittee, as follows:
Senator Reed: "How did you get at the
value of the property What is the gen
erai basisg is i stocks and bondsf Is Il
physical value"
Mr. Clark: Stocks and bonds were rot
considered az all. The question Of cspitslizz-
ton was not thought Of Il is the fair value
as closely as could be estimated and approx.
mated at that time Of the physical property
which was devoted 10 the transportation
service. We had a mass Of information
gathered in our. valuation work. which is
not in complete form 20 be given out in the
form Of reports and findings. and the trans
avail ourselves Of that information. We
awaited ourselves Of al the information we
couid."
Senator Jones Of New Mexieo: Does
that figure lsls, 900 600 .000) include the
percentage arriving from the increase il the
value Of materials and property in recent
years, since the reads were consfructedY"
Mr.. Clark. no, i does not attempt 70
equate the values. The principal figures
that we used in cur values are as Of 1913
and 1914. We hxed the price units On
given railroad valuation 80 Of June 30 1914.
Those price Units we think were aecurste.
and they we're based on experiences Of
series Of years in the past up 70 that date,
and the prices then prevailing for the
of What was Up 70 that tine
the normal price fer fxinR the value az a