The weekly times-record. (Valley City, N.D.) 1912-1922, 1921-11-10
By GEORGE E. ROBERTS

what is fair in both of these cases
Obviously it must be done through
some public agency-a body of mer
representing the public 1t is neces-
sary to have OBSERVATION-DISCLOSURES
in order to carry out all social aims
and to put confidence in the agencies
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-informed and directed
to specific faults of administration. II
is symptom of social incompetency
for people to raise great outcry
against court or an administrative
body simply because its decisions or
actions run counter to what is popu-
larly desired at the time. 1t is like the
outcry of schoolboys against an u1n-
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 CON-
merce Commission to undertake de-
tailed survey and 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
advanced. The data thus gathered was
taken by the Commission as the basis
of the tentative valuation required by
the Esch-Cummins 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 Of 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.
eral basis?, Is it stocks and bonds? Is it
Mr.. Clark: Stocks and bonds were no,
considered at all. The question of capitalize.
tion was not thought of. 1t is the fair value
as closely as could be estimated and approx.
mated At that time Of the physical property
which was devoted to the transportation
gathered in our. valuation work, which is
not in complete form to be given out in the
form of reports and findings, and the trans
portation act specifically authorized US to
avail ourselves Of that information. We
availed ourselves d all the information we
could"
Senator Jones Of New Mexico: "Does
that figure ($l8,900,00O,0 00) include the
percentage arizing from the increase in the
value of materials and property in recent
years. since the roads were constructed"
Mr.. Clark: mo. it does not attempt to
-,Guate the values. The principal figures
md 1918. We fixed the price units on
given railroad valuation as Of June 80. 1914.
" o-e price i,n;'s we think were accurate
nd tic, were based on experience of
series cf Years in the past up to that date.
AMI tie prices then prevailing. for the
determination Of what xas up 10 that time
the normal price for fixing the value Of .