The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-12-08
TENDE NCY
TO PLAN
NOTED
Increasing Number of i. C. @.
Members Wish to Estimate
Original Cost of Railroads.
BY WILLIAM HARD.

Something must be done IN
Congress-and done quick-if the
La Toilette theory of railroad
/ valuation is not to sweep and
swamp the Interstate Commerce
Commission and bring upon the
railroads of the country, all the
woes and losses which they have
believed and asserted it would
carry with it If put into force.
i. C. G.. Decision Cited.
This conviction came suddenly to
conservative observers in Washing
ton today when they turned their
minds away from the Presidents
message and from Congressional
politics long enough to notice the
startling decision handed down by
the Interstate Commerce Commission
in q proceeding brought by the La
Toilette valuation conference in con.
nection with the valuing OF the
Chicago, Indianapolis, and Louisville
railroad.
On the surface this decision il
against the La Toilette valuation
conference, but q little digging be-
meath the surface has shown that.
IN TACT, the Interstate Commences
Commission is on the very verge of
having a majority of members who
wish to go ahead and follow the La
Toilette idea to the extent of finding
or estimating the Original COST Of
every railroad in the country.
This would mean new great ex-
pendltures OF public money for re-
search purposes, according to the
Claims put forth by disguised con.
serVatives, and it would mean an
enormous reduction in the values as
signed to the railroads and, there
Aore, IN the values of their stocks
and bonds, according to elated radi.
Gals 49,
Situation AT Present.
President Coolidge's message
eclipsed this event; but it has now
come out Of the shadow ana IT
shows itself as follows:
The La Toilette Valuation Con.
Terence requested the Interstate
commerce Commission to send All
It's valuation findings back to its
variation bureau, there to be re-
MADE by Including in them q full
finding of original cost in each
ana every case. either by use of the
original aceount-bookS or else nv
the use of estimates.
The commission denied this re-
quest but it denied it in the follow
Ing circumstances:
There are eleven members of the
commission. Three of them did no:
take part in the decision. Of the
remaining eight there We're six who
0OEaG6 inc \
La toilette Valuation Conference:
but there were two of these six
who. while technically denying the
request, expressed themselves out.
rightly in favor of the idea be-
hind it.
Their point was that instead of
RENTING the job of Original costa
to the Commissions Valuation
Bureau they wanted certain sters
toward it taken first by the com
mission itself
These two Commissioners are
Potter and Cox, the one formerly a
railroad president and the other
formerly an active business man.
think, said Commissioner Pot.
ter, speaking for himself and also
for Commissioners Cox, in separare
memorandum, that in all Of orr
valuations we should make the find.
ings (the original cost findinrsl
which the petitioner (the La Fol.
lette Valuation Conference CIesir IS"
Evenly Divided.
The commission thus, in fact,
stood evenly divided insofar as the
eight Commissioners taking part in
this decision are concerned. Four
Of them are for the present methods
Of valuation. Four of them. on the
other hand, are for changing those
methods toward a surer and larger
determination of Original cost" as
suggested by LAFollette and also
by Justice Holmes and Brandeis
Of the United States Supreme Court.
Now it happens further that
one of the three Commissioners.
who did not take part in this de-
cision, is committed fully and firmly
TO the Original cost" determination
idea.
1t also happens that one Of the