The labor world., 1922-12-09
By CHARLES NJ. KELLEY

BY CHARLES NJ. KELLEY
The opening gun in what may pos
sibly be the most stupendous finan-
cial struggle ever waged in this
country was fired recently, when the
Interstate Commerce commission put
up for the inspection and criticism
Of carrier representatives the find
ings oc its experts as to the value OF
40 railroad properties.
The railroads are taking excep-
ton to the commissions methods OF
reaching value. claiming that they
are entitled to many billions of dol
lars more than has been allotted to
them.
AS q result OF attacks upon tenta-
tive valuations, railroad manage
ment expects to secure confirmation
Of every dollar of fictitious value
plowed into the property investment
accounts, aggregating, it is declared
by experts, an amount between six
and ten billions Of dollars.
The commission, acting under a
mandate of congress, is appraising
land used for railroad purposes at
the market value Of adjoining prop
erty. Under this plan the railroads
contend that they will be able to
show an aggregate value for the
country as a whole of something in
excess Of $2S.0OO,O00,0O0.
Means Big Rate Increase.
That sum is $4,100,e00,000 larger
than the tentative valuation Of $1S,-
9OO,OOO,444 now employed by the
commission for rate making pur-
poses.
If the transportation acts guaran-
tee Of 6 per cent annually on prop
feet, the railroads may justly claim,
under such valuation as the COM
mission is now making, about $780,
100000 year more profit than they
are now entitled to take.
But the railroads are not satisfied
with this generous treatment. They
contend that they are entitled to land
ent market value.
The commission has been told by
railroad lawyers that it is required
to find the reproduction value of
railroad property.
In doing so, they argue, the COM
mission must take into consideration
the cost Of condemning land, which,
they say. is always at least three
times the cost of land taken.
Courts Will Get Issue.
If the commission refuses to rec
ognize this formula, railroad lawyers
frankly say they will appeal to the
courts with the hope Of better sue
cess.
Anyway, they argue, the question
OF value is judicial rather. than leg
islative or administering. :. If the
roads do not get from-tlre commits
sion all they believe they are entitled
to have they will go to the courts
and endeavor to secure the maxi
mum of their demand.
If they get them the American
people will be forced to assume new
burdens. Of transportation charges
that will make existing rates seem
moderate in comparison.
The present hearing is for the
purpose Of giving the railroads some
idea Of the methods pursued by the
commission in making it's valuations.
The carriers have for years been en-
dcavorins to get this information.
Just a few weeks ago the st. Louis
Southwestern railway began suit in
the District Of Columbia Supreme
Court to compel the commission to
permit access to certain records de-
sired by the company in connection
with the valuation Of its property.
4 Roads After Secret Records.
+ The members Of the commission
are confident that eventually the
whole question will find it's way into
court, and for that reason have been
holding secret the records which are
to be used to protect the public in
terest. To place this information in
the hands Of the carriers would be
to prejudice the governments case
in judicial proceedings. For that rea-
son the commission has permitted
only it's own employees to study the
engineers reports.
The anxiety Of the roads to ex-
anime this important prospective evil
dence is thus easily understood. They