Rail Valuation

In 1913 the Interstate Commerce commission began the mighty task of placing a physical reduction on United States railways. Most of the expense involved was foisted upon the roads themselves, although a minor proportion of it was met with Government funds. Down to the end of 1924, the Class I roads have spent $80,380,350; by the middle of last year the Interstate Commerce Commission had spent $25,597,543, with an estimated outlay of $510,000 more for the last six months of 1924. Up to the beginning of the present year, therefore, a total of $106,487,893 has been spent.

As to the amount of work thus far accomplished, final reports have been made on 58 valuations, covering 79 corporations in the 8033 miles of road--or 3.3 per cent of United States total mileage. Tentative valuations number 562, covering 859 corporations in the 112,693 miles of road--or 46.1 per cent of total mileage. There still remains untouched 492 valuations covering 1078 corporations with 131,684 miles of trackage--53.9 per cent of th total. In other words, the work is by no means half done.

Two major cases relating to methods and principles of valuation followed are still in the counts: those of the Kansas City Southern and the Los Angeles & Salt Lake. Other railroads whose tentative valuations have been announced, have declared their intention of taking their cases into court--Southern Railway is a leading example.