New-York tribune., 1922-12-31
Transportation Act

The threat of resembling the ,,s,,.
poflatioh act 20 AZ 10 cancel The ~.
called guarantees is an empty one. 4,
We shall attempt % show. In the s,,,
place, there Is no guaranty: IN. a..
called 5a or per cent return I,
merely q guide 20 the lnterstats Con-.
merce Commission for hxinz rsts,
The weaker roads would earn ius, !,
little and "litller.' it might B. .g
with Or without the transporatiss
act. similarly, the stronger road,
would earn more tnan they elsf IN
IN conditions warranted e. In ths i,t.
ter case the surplus over the so-esll,l
fixed return is divided betwss, "A.
railroad and the government. 20 ,isi
il the transportation sct were "a, /,
existence, railroads would siiIl hg,
the right 20 claim p return fof ..tr
.ervices which would be fair arS r,,.
sonable as well A. justified By al "A.
circumstances and conditions unl,f
which the service is rendered.
The Supreme Court Of the Urf,3
States IN the Consolidated Gas ,,,
lately decided. has again asirna M
basic protection offered eofpsn.i,r,
engaged in public service itli Ds,.
erty used for a public ser'y i ,r.
titled 20 a proper return on atiil ,.
vested. Accordingly, neithG Cnu,s
nor the United States IntennV ca
merce Commission can i'sgi nif-
festos which would deprive uilFeals
Of n fair return on their property
We could simply 90 into a question Of
valuation all over again.
The country must nop b fairy cor
yinced that some nineteen billion do.
lars worth Of rallTcsd valuation Z
fair. Politicians may rave ard sii
"hoax!" The United States Sup prri
Court and the Constitution stand, A.
do the valuations that hsro be'a
computed by impartial appraiser
under very conservative conditions y
many eases the roads have been iosr'
20 be under-capitali1ed. end y ~
cases they have been found % y
capitalized az prices not muea 70 a.
cess Of the valuation.
so that In conclusion We might az
that the basic points underlying u'
situation hold forth a much bfighisi
aspect than the present gloomy ieft
bodings would appear % indicate.
In summary We may conflude'
That the volume o. traffic is lifl,
and appears profitable under nofna
conditions an
Thst the political agitation is gu
far removed from actual occomP.N
mcnt; the farmers must realize u,, ,,
the conditions Of which they eonpla,,
cannot be remedicd By their rsdlei
procram. but that better business -.
q otld settlement would do much men
% alleviate the situation, and 20 aii
20 remove their unfortunate bias
That the threatened radical lesisib
zion cannot in itself diminish the fef,
nues OF the railroads, because f'le
must be sufficient TO bring iiI ~
turn 70 the properties under our O'H
stitution. .r,..ss
Tlat the valuation Of our railiojgt. r.g.
has shown that they are, fenii.1
sneakinr. in no sense overeag 49,, 49,.
That the present market .,,S siiu..s,.S
for railroad securities have s..a.r a.sss--
the worst that Is likely y p .vor,
That the present out'os is,.,,si ...sis
seasonable volume :. 49,, u' ~,
Tor the next wear, and, finally ~. -. 49,
aytlook FOR 1928 denotes be,tsf 49,
Tor railroad securities, l....,, leas,ss u, T ,s.
account those railroad ny, !, ne main
curities whose prices are ~
Influenced by interest rates