The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1927-08-11
EDWARDS PROTEST
TO CONSOLIDATION

/ EDWARDS PROTEST
TO CONSOLIDATION
IN our issue Of last week we gave
notice to our readers OF the publish
ing Of the proposed consolidation OF
the Northern Pacific and Great Nor
thern railways. An able man, Frank
J. Edwards, former mayor Of Hell
ena has taken a stand against the
proposed consolidation and in the
lowing article as continued from last
week gives reasons for the protests:
8 The figures representing the
baluations Of the railroad properties
CT the Northern Pacific and the
Great Northern Railway companies
Indicate that representatives of the
said rail companies were not far dis
tant from the employees Of the Valu-
alton bureau when appraisements
and corresponding figures were
made In these appraisals for rate
making purposes there were unheard
of discoveries Of valuable railroad
properties. (a) Discarded boxcars
were tented as bunk-houses and
inventoried at prices ranging from
$3.50 to $4OO each. (bs Old boilers
we're taken from discarded loco
motives and valued at $4,000 eacn.
(c.) Sidewalks around passenger
and freight stations which were re-
sultant from the dumping and
spreading Of coal cinders were in
ventoried at values equal almost toa
that Of concrete. In connection with
such items and others of like inl-l
pcrtance, the labor performed was
charged to the maintenance of way
and structures expense account, and
during those years when per cent
dividends were regularly declared
and paid,5 and during which years
millions Of dollars Of additional ac
cumulated property were credited tol
surplus. (d) Another discovery Of
property and one which has double
value, is the payment Of special i'm
provment district taxes, including
street payements, and after being
charged to expense account, these
items are brought forward and en-
tered as part Of the capital invest
ment. BY this method, earnings are
ohscured, and fictitious properties
arc created and capitalized. And
through such procedure the recap
ture feature Of the transportation
Act is defrauded DIFFERENTIATION
of railroad properties generally may
be reflected through the important
item of relay steel, of the weight OF
Sc pounds. These rails were on sale
here at $40 per ton, in the year 1911.
For the same year this item was
given value by the Bureau Of $50
per ton, less 10 per cent These
rails were the main line trackage of
the Northern Pacific and the Great
Northern prior to 1887 (f.) Ter
minals, rights-of-way,J and properties
similarly situated, are in reality
liabilities. For taxes, upxeep, main
tenance and depreciation, these prop
critics are dependent entirely upon
rail operation, such properties there
for. should be given values based IN
on theories that are not susceptiye
to rational analyses.
8. Consolidation Of rail systems
should not be considered until their
political management will have beenl
removed from the picture Watered
stocks and watered bonds are Great
ures Of political power and control,
and this character of paper is given
both value and returns through law
yer-strategy and lawyes-management.
The management of railroads by
h,siness men. actuated by business
nrinciples. would be productive Of
greater returns for capital actually
invested, lower freight and passen-
ger rates. and the maintenance Of
wage schedules not inferior to those
now prevailing Management q
rail systems on strictly business
principles would tend to simplify the
duties Of the members of the !. G. C..
as appeals would be based upon
CONTINUED on last page) /