The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-05-25
Progressive Conference at
Chicago Develops Into
Political Boom,

BIZ United Press
CHICAGO, May 25.-American rail
roads are prepared to demand valu-
alton increase that would add $780,
100000 annually 30 the cost of living,
leaders in Senator Robert N. La Fol
Isttes national progressive bloc"
conference for lower valuation de,
clared today.
Arrival Of La Toilette. Mayor John F.
Hylan, New York, and others whose
names have been linked with a pro-
posed insurgent political movement
was a signal for reports that med
icine will be mixed" at the two-day
session, which began today, fer a
coalition Of La Toilette and William
Randolph Hearst followers and some
labor leaders into a third party for
1924.
Politicians Among Delegates
Several members Of Congress, Gov
ernors. labor and public interest or
ganizatOn heads are among tire dele
gates. Some Of the congressional
Conservative progressives, however,
failed to arrive after being announced
as delegates.
The outstanding figures in the
meeting besides La Toilette included:
William Jennings Bryan; John Hylan,
mayor Of New York: William Dever,
mayor of Chicago; Governors Ross,
Montana; Sweet, Colorado; Hunt OF
Arizona AMI Blaine Of Wisconsin.
About twelve representatives in Con-
gress were on hand.
There viii be no third party until
there is a major league ignored by
both old parties" said Bryan.
Donald R. RIchberg. legal adviser
to the conference, today sounded the
keynote Of the sessions in Chicago
City Hal council chambers with as
serions that on the basis Of inter
state commerce commissions policy
OF fixing valuation on reproduction
costs the railroads will demand S10.-
O00. 900, 600 increase over the so-called
"1214 valuation" Of $1S900.o 900, 600.
This would add $3.50 000, 900 yearly
to national freight and passenger
rates which would be tripled when
passed onto the American people IN
form of increased cost of ccmmodi-
ties"
Commission Accused
Richberg accused the interstate
commerce of failing to obey the
valuation act which provides the
commission shall determine the in
vestment Of the railroads and the re
production costs and then set a
reasonable valuation on the basis Of
which the SO guaranteed return shall
be determined
IN arriving at the 1914 valuation
which IS tentative, the commission
took the reproduction costs at that
time" Bichberg declared. The com
mission within the next year Will COM
plete It's permanent valuation estimate
ard this viii be based on 1914 re-
production costs, we understand.
When. this is done it VIII he a simple
Smatter for the railroads to come for
Sard and demand a valuation on
rNresent- cost Of reproduction which
wA7uld be 100000 600 higher.
Original Cost Is Basis
This conference holds that the true
valuation should be a fair estimate
based on the actual original cost of
the roads and the reproduction costs,
as stated in the valuation act. Such
a compilation would decrease the 1914
tentative valuation and lower rates
and the cost Of living millions Of dol
lars. It would give the railroads the
return to when they are entitled. and
an adequate one under efficient man
agement.
This case IS a suit Of the railroads
against the people for 10000 900. 900
more than they have loaned the PEG
pie. Evidence on behalf Of the PEG
ple-through failure Of the I. c. c.
10 determine the actual investment
Of the roads-is being practically e1.
Guided"