Imperial Valley press., 1921-11-10
BY GEORGE E. ROBERTS

what is fair in both of these cases?
Obviously it must be done through
some public asency-.-a body of men
representing tfre public. 1t is neces-
sary to have organization-government
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.inforned and directed
to specific faults of administration. 1t
is symptom of social incornpetency
for people TO raise q 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. It is like the
outery of schoolboys against an UNI
plre.
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 and valuation. 1t
proceeded to organize a subordinate
body OF engineers, accountants, etc,
for the purpose and up to June 30,
1920, approximately SOL ,340,4l0 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 E. Clark, then chairman of the
Interstate Commerce Commission, be.
fore the Senate Committee on Manu-.
tactures 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 bsndss Is it
Mr.. Clark: Stocks and bonds were not
considered at all. The question Of captaliza.
ton was not thought of. 1t i. the fair value
as closely as could be estimated and approxi.
mated at that time Of the physical property
which was devoted to the transportation
service, We had mass of information
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 Of all the information We
could"
Senator Jones Of New Mexico: "Does
that figure (SlS,90o, ,000,000) include the
percentage arizing from the increase in the
value OF materials and property in recent
years, since the roads were constructed"
Mr.. Clark: "No, it does not attempt to
equate the values The principal figures
that We used in our values are as of 1913
and 1914. We fixed the price units on a
given railroad valuation as Of June 80, 1914.
Those price units we think were accurate,
and they were based on experience Of a
series OF years in the past up to that date,
and the prices then prevailing, for the
determination Of what was up to that time
she normal price for fixing the value OF q