REPORT OF IOWA FARM BUREAU FEDERATION 383 



after hearing finally adopted, then we shall have figures that will enable 

 regulatory and tax-assessing bodies to work intelligently. In the mean- 

 time the work of valuation is progressing satisfactorily, although it does 



seem slow to those who are anxious to get results. 



* 



Endless Amount of Work Involved 



The task of evaluating the railroads is an enormous one. Holes must 

 be made in ballast to determine the condition of it; ties and rails must 

 be inspected; bridges carefully analyzed; station houses and other build- 

 ings valued after careful auditing. Nothing may escape the closest 

 scrutiny, and that is what the agents of the Interstate Commerce Com- 

 mission have been doing for many years, until at last the field work; 

 has been practically completed, at a cost to date of about $24,000,000. 

 The railroad companies in making their figures have spent approximately 

 $65,000,000, and many states, including Iowa, have spent varying sums 

 in checking up the work. 



In Iowa the work has been devoted exclusively to checking of land 

 values, and it has produced some very interesting situations. If any of 

 you are interested, our valuation department will be glad to give you 

 more detailed information. In my opinion our work has already saved 

 Iowa hundreds of thousands of dollars on railroad valuations, and I am 

 hoping the Fortieth Assembly now in session will appreciate the impor- 

 tance of this work and provide as liberally as possible for its continu- 

 ance. 



The valuation of rail properties when completed will not only enable 

 the railroad commissions and the Interstate Commerce Commission to 

 intelligently fix just, fair, and reasonable rates hut be of the utmost im- 

 portance to our State Executive Council in fixing the assessments of 

 railroad properties in the state. It will do away with litigation that has 

 plagued our state with costs of thousands of dollars. 



Rock Island Asks Big Increase 



The federal statute requires the Interstate Commerce Commission to 

 fix final valuation by states, and a resolution recently passed by the 

 United States Senate provides among other things that "The Commis- 

 sion report the amount of the value of each of the railroads in each 

 state, respectively, so far as the same has been compiled." 



Just now the Rock Island Railway valuation is before the Interstate 

 Commerce Commission. In this case the railway company is demand- 

 ing an increase of more than eighty-two million dollars in the Interstate 

 Commissions reported reproduction cost new, and of practically ninety- 

 nine million dollars in present values of lands, other increases bringing 

 the total increased valuation asked to $208,463,716. The valuation of this 

 property is of particular value to Iowa, so our state commission has been 

 in the thick of the fight. While there have already been other valua- 

 tion cases of importance, this is the first involving a great railroad sys- 

 tem. It has been selected by the valuation committee of the national 

 association and the group of state railroad commissions which are acting 

 with it in valuation matters, as offering the best immediate opportunity 

 for getting real results. 



