The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-12-17

NV Aot1IN0IOIN, Lee. 1f.--W nat
lWI is the value of the railroads?
- Upon that question depends
much Of the future story of transpor-
tation and the possibility of reduced
railroad rates.
The interstate commerce commission
said the value was $4,000, 000, 900
three years ago for a particular rate
problem, but members of the commits
sion then said they supported the de-
cision only because Congress demand
ed a valuation"
Senator Cummins said the figure
startled him.
The interstate commerce commits
sion is working on q complete valua-
ton OF the roads. When the work is
ended. the courts will try many a val
uation case. 1t will be years before
anything definite is fixed.
Progresslves contend the commits
sion is making no endeavor to ascer-
tain the most important thing-the
amount of money prudently and hon
estly invested in the roads. The COM
mission insists that cannot be done in
most cases.
Lana OrantS Free
Land grants to railroads by the
Government and the States included
territory equal to all that within the
boundaries Of Maine, Vermont. New
Hampshire, Massachusetts, Rhode
IslGnd, Connecticut, New York. Penn
sylvania, Maryland. Virginia, North
Carolina and South Carolina. The
railroads got more than $4,000
square miles freeaof charge.
These Federal Wand grants were
made with the express stipulation
that the roads were to sell them to
settlers at moderate cost. But the
railroads held on to some Of the most
valuable lands The Northern Pa
cific. for example. recently announced
the organization of the Absaroka Oil
Development Company to develop oil
and mineral resources on its land
grants In Montana, North Dakota and
Wyoming.
Servant of Financiers
Opponents Of the railroad execu-
tives persist in the charge that the
average railroad president today is
master Of actual operation only
and that he is a servant Of the fin
anciers in their chickering's.
Railroad executives, Of course, deny
the statement.
Another charge is as follows:
Take the Baldwin Locomotive
Works. 1t IS owned by the big men
IL the Pennsylvania. The income Of
the Pennsylvania is regulated. The
income Of the Baldwin is not
The Pennsylvania might send it's
locomotives to Baldwin for repair or
buy new locomotives there at an ex-
cessive cost That would lessen the
earnings Of the Pennsylvania The
railroad then might come to the In
terstate Commerce Commission with
poor mouth and demsnd an increase
In rates. AT the same time, they
would be taking excessive profits out
of the Baldwin. The public would pay
twice.
Related to Roads
II is true that the various construc-
ton companies that deal with the
railroads have made wonderfully fine
profits. as a rule. And it is true most
Of these construction companies are
related to the railroads In some de
gree. So also are some of the coal
lands So also is the steel trust
The railroads are spending more
than a billion dollars this year. In
vestment Of a billion dollars I'm bust
mesa controls. to a great extent. the
general business situation. Invest q
billion dollars and there is a good
prospect for business prosperity. Cut
It off and bushes will lag.
Another thing-political. It is best
explained by an immediate example.
The Republican leaders today insist
there is a good chance to elect Presi-
dent Coolidge provided business con.
ditions remain good. The railroads
can contribute much to keeping them
good next year.
Thereby, the railroads assert a ire
mendous political control