,,am]ican ,,society ,,( ,,civil ,,eng9e]s ,,in/itut$ #aheb ,,transactions ,pap] ,no4 #aaij ,,! ,,valuation ,,( ,,public ,,s]vice ,,corporation ,,prop]ty4#a ,,by ,,h5ry ,,e>le ,,riggs1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 ,,) ,,discussion ,,by ,,messrs4 ,f4 ,,lavis1 ,,*>les ,h4 ,,higg9s1 ,s4 ,d4 ,,newton1 ,,william ,v4 ,,polleys1 ,c4 ,p4 ,,h[>d1 ,j4 ,e4 ,,will\ghby1 ,,h5ry ,c4 ,,adams1 ,,c>l ,c4 ,,witt1 ,r4 ,a4 ,,?ompson1 ,,*>les ,h4 ,,l$lie1 ,,william ,g4 ,,raymond1 ,w4 ,h4 ,,williams1 ,p4 ,e4 ,,gre51 ,e4 ,,kui*l+1 ,,ri*>d ,t4 ,,dana1 ,,george ,t4 ,,hammond1 ,,leon>d ,,metcalf1 ,,*>les ,,hansel1 ,j4 ,,m>t9 ,,s*reib]1 ,,cl9ton ,s4 ,,burns1 ,,halb]t ,p4 ,,gillette1 ,,ar?ur ,l4 ,,adams1 ,c4 ,d4 ,,purdon1 ,a4 ,,mordecai1 ,w4 ,b4 ,,ruggles1 ,,& ,,h5ry ,,e>le ,,riggs4 ,,introductory4 ,! indu/rial & economic developm5t ( ! pa/ two decades has op5$ _m new l9es ( special "w 9 ! ,pr(ession ( ,eng9e]+1 none ( :i* is m difficult & complicat$ or ( great] ultimate value to ! public at l>ge ?an t ( ! appraisal or valuation ( ! prop]ty own$ & op]at$ by public s]vice corporations2 & none ( ! fields ( eng9e]+ specialization requires great] c>e or calls = m skill1 exp]i5ce1 integrity1 or s\nd judgm5t4 ,! individual eng9e]1 or commission ( eng9e]s1 ent]+ ^u an appraisal ( l>ge magnitude1 p>ticul>ly "o includ+ prop]ties ( m ?an "o company1 w f9d conditions v>y+ 9 e "o1 & ea* prop]ty pres5t+ new1 complex1 & confus+ elem5ts ( value to pass ^u & det]m9e4 ,prior to #aijj !re _h be5 few calls on eng9e]s = l>ge appraisals1 & ! lit]ature descriptive ( eng9e]+ ef=t along ?is l9e 0 practically no?+4 ,s9ce #aijj _m ext5sive appraisals h be5 und]tak5 by ,/ates1 by railroad & bank+ corporations1 & by cities2 c]ta9 well-def9$ l9es ( practice h be5 develop$2 _m diff]+ op9ions z to c]ta9 me?ods & pr9ciples h be5 br\ght out2 & en\gh has be5 add$ to ! pr9t$ lit]ature to enable "o to comp>e me?ods ( "w & to fix ) reasonable c]ta9ty ^u "s z correct1 & to disc>d o!rs z improp]4 ,!re are s _m complex factors ent]+ into ! problem ( valuation1 s _m widely diff]5t plans h be5 pres5t$1 & !re are s _m ?9k+ m5 :o h oppos$ & d hone/ly & s9c]ely oppose any =m ( valuation1 t a mo/ ?or\gh /udy ( ! subject %\ld be made4 ,x %\ld be exam9$ f all angles1 & e possibility ( dang] f legislation reg>d+ x %\ld be weigh$ ) utmo/ c>e4 ,! "q ( railroad valuation1 involv+ z x does ! l>ge/ indu/ry ( ! nation1 naturally takes fir/ place 9 su* a discussion1 b s _m ( ! g5]al pr9ciples ( railroad valuation are applicable to ! appraisem5t ( corporate prop]ty1 s _m argum5ts h be5 advanc$ by eng9e]s & o!rs1 & s _m judgm5ts ( ! ,c\rts h be5 r5d]$ 9 connection ) wat]-works & gas-works valuations1 t x is n desirable to limit ?is discussion :olly to ! problem ( railroad valuations4 ,! reasons = requir+ t valuations be made may be broadly divid$ into two g5]al classes3 ,fir/4--,z a ,matt] ( ,public ,int]e/4--,! public1 & p>ticul>ly ! inve/+ public1 requires valuations 9 ord] to gu>d aga9/ unwor?y & di%one/ corporation securities1 to be assur$ t corporations are be>+ _! legitimate & prop] %>e ( ! burd5 ( taxation1 & to furni% a prop] basis = fix+ equitable & j rates = ! s]vices r5d]$ by ! corporation4 ,"u ?is class w\ld come all appraisals made = in=mation to be us$ z a basis = legislation relative to3 7a7 ,taxation ( ,corporations4--,su* 7 ! valuations 9 ,mi*igan & ,wiscons94 7b7 ,rate ,regulation4--,?is 0 ! reason :i* prompt$ ! "w 9 ,m9nesota & ,nebraska4 7c7 ,limitation ( ,capitalization4--,! regulation ( issue ( /ocks & bonds 0 ! purpose ( ! ,texas valuation4 7d7 ,fix+ a ,price = ,sale4--,_m ( ! wat]-works & electric light valuations 7 made 9 ord] to det]m9e a fair price to be paid = ! prop]ty at ! expiration ( ! fran*ise4 7e7 ,! ,g5]al ,in=mation ( ! ,public4--,to be us$ 9 connection ) ! fix+ ( t]ms = fran*ise r5ewals1 etc41 etc4 ,second4--,z a ,matt] ( ,corporation ,necessity or ,exp$i5cy4--,valuations are made 9 ord] to guide l>ge inve/ors1 to secure a safe & up-to-date basis on :i* to negotiate a sale1 a pur*ase1 or a reorganization ( ! prop]ty1 or a consolidation ) o!r l prop]ties1 & to secure ju/ice to hone/ly adm9i/]$ corporations4 ,! great majority ( appraisals "u ?is head h be5 9 accordance ) "s o!r me?ods ?an ^? adopt$ 9 ! ,/ate valuations4 ,x is n int5d$ 9 ?is pap] to engage 9 any argum5t z to ! v>i\s purposes ( appraisals1 or ev5 to urge ! necessity or desirability ( a g5]al appraisal ( prop]ties4 ,an absolutely accurate & correct /atem5t ( ! co/ ( reproduction ( all ! physical prop]ties ( ! railroads ( ! c\ntry1 a correct /atem5t ( ! actual capital ne$$ to reproduce ^! prop]ties z !y exi/1 &1 along ) ?is1 a /atem5t ( ! actual physical depreciation1 w\ld be a docum5t ( vital int]e/4 ,?is pap] is conf9$ to a discussion ( ! me?ods :i* %\ld be us$ 9 arriv+ at a correct figure ( co/ ( reproduction & depreciation--x does n take up que/ions involv+ ! propriety ( ^? figures :5 rea*$4 ,! propriety or legality ( us+ su* figures z a basis = an assess$ valuation1 z a basis = rate-mak+ 7rate-mak+ be+ an art 9 itself involv+ complications z great z ^? enc\nt]$ 9 valuation71 or any argum5ts z to ! ju/ice or inju/ice ( legislation re/rict+ issues ( /ocks or bonds1 w be conc$$ no place 9 ?is pap]4 ,x is assum$ t all ^! que/ions w\ld h be5 tak5 up & a satisfactory answ] rea*$ be=e a valuation c\ld h be5 ord]$4 ,! diff]5t elem5ts ( value 9 prop]ty1 ! relations ( ?is prop]ty to ! public1 ! me?od ( det]m9+ ! wor? ( ^! elem5ts ( value :i* h be5 adopt$ 9 ! pa/ by m5 engag$ on valuation "w1 a comp>ison ( ^! me?ods1 a discussion ( ! objections t h be5 made to !m1 & a pres5tation1 n only ( ! writ]'s views z to prop] me?ods1 b ^? 9 :i* he disagrees ) usages adopt$ by o!rs--^! def9e ! scope ( ?is pap]4 ,no matt] :at p>ticul> end is to be s]v$ by a valuation1 ! commission engag$ ^u x w be ask$ to furni% a fair value1 p]haps ) reasonable limitations 9 ! in/ructions1 p]haps ) a g5]al & indef9ite in/ruction to f9d ! value4 ,!y w enc\nt]1 among o!r difficulties3 ,fir/4--,! fact t human ma*9es are n exact duplicates1 & t all[ance mu/ be made = a l>ge measure ( error1 on acc\nt ( ! p]sonal equation ( ! m5 engag$ on ! "w1 z individual errors ( judgm5t are frequ5t on any "w ( magnitude4 ,?is p]sonal elem5t mu/ be correct$ by uni=mity ( me?od1 by con/ant *eck+1 &1 z f> z possible1 by subord9ation ( p]sonality to sy/em4 ,second4--,! fact t human selfi%ness is a dom9ant quality--! railroad manag] :o opposes me?ods :i* he believes w increase values 9 an appraisal = taxation1 or :o1 on ! o!r h&1 uses e possible argum5t to increase values if ! "w be z a basis = rate-mak+ or = re/riction ( bond issues1 or ! ,/ate (ficial :o is desir\s ( us+ orig9al co/ on a valuation to be us$ = rate-mak+ 9 ord] to keep ! valuation d[n to a m9imum1 & ! politician :o dep5ds on an un5light5$ public op9ion to create suffici5t outcry to influ5ce ! "w to 8 advantage--are all actuat$ by a p]fectly human wi% to atta9 ends :i* seem to !m desirable1 & are b typical ( m5 :o w endeavor to influ5ce e appraisal4 ,9 view ( ^! consid]ations1 x is a "q :e!r results are n frequ5tly affect$ by ! k ( _! int5d$ use1 & :e!r a sy/em :i* w entirely remove su* causes ( error c be appli$ to ! "w4 ,if an eng9e]1 or a commission ( eng9e]s1 is direct$ to exam9e a c]ta9 prop]ty & report ! true co/ ( reproduction1 depreciation1 or pres5t value1 tak+ into acc\nt all facts connect$ !re)1 ! f9al figures %\ld n diff]1 :e!r ! report is to be us$ z a basis = reorganization1 sale to ano!r corporation1 or is to be us$ by a ,/ate legislature z a basis = =mulat+ a rate bill1 or z a basis = a value = taxation4 ,! result secur$ is a necess>y prelim9>y on :i* dep5ds ! accuracy1 fairness1 & ju/ice ( ! o!r "w :i* is to foll[4 ,?is is an eng9e]+ "w1 a /atem5t ( c]ta9 physical prop]ty1 ! e/imat$ co/ ( reproduc+ x new1 less ! e/imat$ depreciation1 &1 beyond ! diff]5ces due to p]sonal judgm5t1 ^! figures may n v>y4 ,! ^w value is 9 common use1 & yet1 9 ! m9ds ( _m p1 its exact mean+ is vague4 ,x is true t ! value ( a prop]ty is an un/able figure1 subject to fluctuations due to natural or artificial causes1 & t a mat]ial *ange 9 value may occur sudd5ly1 b ! value ( any giv5 prop]ty on any giv5 date is1 or %\ld be1 f an eng9e]+ /&po9t1 a def9ite sum :i* may n be v>i$ or *ang$ to suit ! :im or w ( ! p = :om ! "w is done4 ,9 all ! subsequ5t discussion ( values & me?ods ( obta9+ values1 x is assum$ t1 unless specifically limit$ to a det]m9ation ( co/ ( reproduction & depreciation1 a valuation commission %\ld be gov]n$ by ! foll[+ rules3 #a4--,no acc\nt may be tak5 ( ! purpose = :i* ! resultant figure ( value is to be us$2 & ! result %\ld n v>y1 no matt] :at t purpose may be4 #b4--,! resultant figure %\ld be ! hone/ judgm5t ( ! m5 compos+ ! commission1 z to ! actual co/ ( reproduction1 pres5t physical value1 or fair value1 & %\ld be asc]ta9$ by a sy/ematic & sci5tific me?od :i* takes into acc\nt all ! facts conc]n+ ! prop]ty1 its physical value1 its /rategic location1 its op]at+ rev5ues & exp5ses1 & its fran*ises1 rights1 competition1 opposition1 & all o!r tangible or intangible elem5ts :i* w\ld affect values4 ,! me?od ( valuation %\ld be su* z to m9imize or entirely elim9ate all diff]5ces due to errors ( p]sonal judgm5t4 #c4--;,all prop]ties be+ apprais$ are consid]$ z op]at+ prop]ties4 ,"o :i* is dead1 in]t1 & n 9 use1 _c be consid]$ z com+ "u su* a discussion z ?is1 & su* prop]ties are n treat$ 9 ?is pap]4 ,! t]m go+ conc]n is n us$ 9 connection ) ! physical prop]ty1 any elem5t ( value impli$ by ! t]m1 ov] & above ! ov]head *>ges1 be+ treat$ z an intangible or non-physical elem5t ( value4 ,9 /at+ ?is position1 ! writ] is aw>e t x is a difficult matt] inde$ to get away f ! fact t "s specific purpose--taxation1 = example--is ! def9ite end 9 view 9 e valuation1 & t1 in/9ctively1 m5 engag$ on ! appraisal w f9d !mselves modify+ _! figures to meet "s real or fanci$ condition :i* !y conceive might arise1 or to prev5t "s inju/ice :i* !y believe might be done4 ,e subord9ate employee ne$s to be wat*$1 e man 9 *>ge mu/ wat* himself1 or he w f9d himself unwitt+ly1 almo/ in/9ctively1 color+ 8 results by "s old prejudice ( 8 e>ly ye>s ( employm5t1 or "s loyalty to 8 own ideas ( gov]nm5tal or economic policy4 ,! writ] has not$ ?is 9 e appraisal on :i* he has be5 engag$1 & calls p>ticul> att5tion to x z ! fir/ difficulty :i* mu/ be ov]come 9 ! organization ( ! =ce = a l>ge appraisal4 ,9 ! foll[+ pages all complications :i* might arise f ! purpose ( ! appraisem5t are consid]$ z elim9at$1 & ! possibility ( errone\s conclusions be+ rea*$ by reason ( ! p]sonal factor 7:ile recogniz$ z be+ ev] pres5t7 w n be specially emphasiz$4 ----- ,footnote #a3 ,pres5t$ at ! meet+ ( ,janu>y #d?1 #aiaa4 ,,! ,,relation ,,( ,,public ,,s]vice1 ,,or ,,quasi-,,public ,,corporations1 ,,to ,,! ,,p4 ,9 ref]5ce to que/ions ( value1 ! eng9e]+ commission mu/ he>1 consid]1 & reconcile argum5ts advanc$ by adv]se & (t5 ho/ile int]e/s4 ,on ! "o side /& ! corporations1 ) l>ge f9ancial int]e/s involv$1 (t5 ) an excessive am\nt ( /ock & bonds issu$ on ! prop]ty1 ! exi/5ce ( :i* issues ! corporation wi%es to ju/ify1 &1 :e!r prop]ly capitaliz$ or n1 ! managem5t be+ imbu$ ) ! p]fectly human desire to def5d corporate int]e/s f attack ( any k9d2 on ! o!r side is public op9ion1 (t5 unreasonable1 (t5 mis9=m$1 & frequ5tly prejudic$4 ,x appe>s necess>y1 !re=e1 to consid] briefly ! relation :i* ^! int]e/s be> to "o ano!r1 to /udy ! causes :i* h l$ to mutual misund]/&+s1 & to note ! prop] relations :i* %\ld1 if possible1 be e/abli%$ & ma9ta9$ betwe5 ! p & ^? corporations organiz$ to p]=m c]ta9 ( ! functions ( ! ,/ate4 ,a public s]vice or quasi-public corporation is a corporation :i* is op]at+ "u ! t]ms ( rights1 grants1 or fran*ises giv5 by ! public1 ei!r to ?is p>ticul> corporation direct or grant$ by /atute to a class ( corporations4 ,! prop]ty ( ! corporation is us$ to r5d] c]ta9 s]vices to ! public1 ) ! expectation ( f9ancial ga94 ,x is n mat]ial :e!r ! grant be a fran*ise p]mitt+ a wat]-works company to use ! /reets & alleys ( a city = its ma9s1 & ! s]vice be ! pump+ ( wat] = dome/ic s]vice & fire protection1 or :e!r ! grant be ! /atutory rights ( corporate exi/5ce & em95t doma91 & ! s]vice r5d]$ be ! transportation ( freight & pass5g]s2 ! g5]al pr9ciple is ! same2 ! company has secur$ f ! p c]ta9 rights :i* enable x to d bus9ess1 & ! p are directly b5efit$ by ! s]vices r5d]$ by ! company4 ,! increas$ com=t ( liv+ makes = ! gr[? ( ! city2 ! increas$ transportation facilities build & develop ! c\ntry trav]s$ by ! railroad2 & ?is gr[? & developm5t1 n only op]ate to ! advantage ( ! p1 b also to t ( ! company 9 ! way ( increas$ bus9ess & increas$ rev5ues4 ,! capital requir$ to build & develop ^! prop]ties 0 furni%$ 9 ! hope (1 & ) ! expectation (1 a prop] f9ancial rew>d4 ,x has frequ5tly happ5$ t su* prop]ties h be5 built ye>s 9 advance ( suffici5t developm5t to support ! ent]prise1 built1 9 fact1 )\t expectation ( imm$iate returns1 & long p]iods ( "t h (t5 elaps$ be=e any pr(it has be5 secur$4 ,x has also frequ5tly happ5$ t corporations h be5 aid$ to a v l>ge ext5t by public funds1 by ! vot+ ( aid bonds1 by ! donation ( l>ge tracts ( l&1 by paym5t = c]ta9 s]vice at su* rates z w\ld l>gely relieve ! company f loss 9 op]ation1 by ! remission ( taxes1 or by ! direct donation ( funds4 ,! company is cle>ly entitl$ to e>n a reasonable pr(it on ! actual capital inve/$1 9 addition to ! legitimate co/ ( op]ation1 paym5t ( taxes1 & s9k+ funds to cov] depreciation & obsolesc5ce4 ,! public is cle>ly entitl$ to good s]vice at ! l[e/ rates t w p]mit ! company to e>n its reasonable pr(it & exp5ses4 ,increases 9 tonnage1 population1 & consequ5t net e>n+s ( ! corporation %\ld entitle ! public to a b5efit 9 r$uc$ *>ges = s]vice1 :5 ! increas$ e>n+ is ( a p]man5t "*4 ,! g5]al t5d5cy ( ! ,c\rts has be5 to treat a fran*ise z a contract1 & to be gov]n$ closely by ! language & evid5t int5t ( ! mak]s1 b to safegu>d ! rights ( ! public to ! fulle/ ext5t consi/5t ) ju/ice4 ,a fran*ise requires specific p]=mance ( specific acts4 ,no?+ w be assum$ or impli$4 ,! ,c\rts recognize t ! inve/ors are entitl$ to reasonable returns1 & t ! public is entitl$ to fair rates4 ,9 ! case ( ,los ,angeles ,wat] ,company vs4 ,city ( ,los ,angeles 7#ajc ,u4 ,s41 #gaa71 ! ,unit$ ,/ates ,c\rts held t at ! expiration ( a #cj-ye> fran*ise1 :i* provid$ t ! city 0 to pay = ! value ( all improvem5ts1 :5 ! city fail$ to agree ^u1 t5d]1 or pay su* value1 s long z ! company compli$ ) ! t]ms ( ! contract1 & until ! city t]m9at$ x by mak+ or t5d]+ paym5t1 ! passage ( an ord9ance by ! city fix+ rates 0 void4 ,9 ! case ( ,wea!rly vs4 ,capital ,city ,wat] ,company 7,ala4 #bb ,s41 #adj71 ! ,alabama ,c\rts held t ! acceptance ( a fran*ise involv$ a grave responsibility1 & t ! company c\ld n /op furni%+ wat] & fire protection1 ev5 if ! "w 0 done at a loss4 ,9 ! case ( ,my] vs4 ,br[n 7#fe ,cal41 #ehi71 ! ,c\rt said3 ,x is well occasionally to recall ! fact t !re is no m reason to p]mit a municipal gov]nm5t to repudiate its obligations ent]$ into = value1 ?an to p]mit an individual to d s4 ,good fai? & fair deal+ %\ld be exact$ ( "o equally ) ! o!r4 ,judge ,brew]1 9 ! ,kansas ,city ,wat]-,works case 7#fb ,f$4 ,rep41 #hec71 said3 ,all contracts involv+ prop]ty rights & obligations1 betwe5 municipalities & individuals1 mu/ be presum$ to be bas$ ^u & to recognize ! ord9>y laws ( bus9ess transactions4 ,9 #aijc ! ,ma9e ,supreme ,c\rt issu$ a set ( in/ructions to apprais]s appo9t$ to fix values ( c]ta9 prop]ties4 ,! ,c\rt set =? its views z foll[s3 ,summ>iz$1 ^! elem5tal pr9ciples are1 ! "r ( ! company to d]ive a fair income bas$ ^u ! fair value ( ! prop]ty at ! "t x is be+ us$ = ! public1 tak+ into acc\nt ! co/ ( ma9t5ance & depreciation & ! curr5t op]at+ exp5ses1 & ! "r ( ! public to dem& t ! rates %all be no high] ?an ! s]vices are wor? to !m1 n 9 ! aggregate1 b z individuals4 ,! ,supreme ,c\rt ( ! ,unit$ ,/ates has aga9 & aga9 giv5 its views1 :i* may be summ>iz$ z foll[s3 ,x _c be said t a corporation is entitl$1 z ( "r1 )\t ref]5ce to ! int]e/s ( ! public1 to realize a giv5 p] c5t4 ^u its capital /ock4 ,:5 a "q arises :e!r ! legislature has exce$$ its con/itutional p[]s 9 prescrib+ rates to be *>g$ by a corporation controll+ a public highway1 /ockhold]s are n ! only p]sons ^: rights & int]e/s are to be consid]$4 ,! rights ( ! public are n to be ignor$4 99 99 99 99 99 ,! public _c prop]ly be subject$ to unreasonable rates 9 ord] simply t /ockhold]s may e>n divid5ds4 ,! legislature has ! au?ority 9 e case1 :]e its p[] has n be5 re/ra9$ by contract1 to proce$ ^u ! gr\nd t ! public may n rightfully be requir$ to submit to unreasonable exactions = ! use ( a public highway e/abli%$ & ma9ta9$ "u legislative au?ority4 7#afd ,u4 ,s41 #egh47 ,x is n to be inf]r$ t ! p[] ( limitation or regulation is itself )\t limit4 ,?is p[] to regulate is n a p[] to de/roy1 & limitation is n ! equival5t ( confiscation4 ,"u pret5se ( regulat+ f>es & freights ! ,/ate _c require a railroad corporation to c>ry p]sons or prop]ty )\t rew>d1 nei!r c x d t :i* 9 law am\nts to ! tak+ ( private prop]ty = public use )\t j comp5sation4 99 99 99 7#aaf ,u4 ,s41 #cjg47 ,9 ! case ( ,smy? vs4 ,ames 7#afi ,u4 ,s41 #dff71 ! ,c\rt said3 ,if a railroad corporation has bond$ its prop]ty = an am\nt t exce$s its fair value1 or if its capitalization is l>gely fictiti\s1 x may n impose ^u ! public ! burd5 ( su* increas$ rates z may be requir$ = ! purpose ( realiz+ pr(its ^u su* excessive valuation or fictiti\s capitalizations2 & ! app>5t value ( ! prop]ty & fran*ises us$ by ! corporations1 z repres5t$ by its /ocks1 bonds & obligations1 is n alone to be consid]$ :5 det]m9+ ! rates t may reasonably be *>g$4 99 99 99 ,we hold1 h[ev]1 t ! basis ( all calculations z to ! reasonabl5ess ( rates to be *>g$ by a corporation ma9ta9+ a highway "u legislative sanction mu/ be ! fair value ( ! prop]ty be+ us$ by x = ! conv5i5ce ( ! public4 99 99 99 99 99 ,:at ! company is entitl$ to ask is a fair return ^u ! value ( t :i* x employs = ! public conv5i5ce4 ,on ! o!r h&1 :at ! public is entitl$ to dem& is t no m be exact$ f x = ! use ( a public highway ?an ! s]vices r5d]$ by x are reasonably wor?4 ,! relations betwe5 ! corporations & ! public t !y s]ve h be5 cle>ly def9$ by ! ,c\rts1 z ! =ego+ quotations %[4 ,t ! mutual relations exi/+ betwe5 ! managem5t ( ! corporations & ! public are f> f :at !y %\ld be1 !re c be no d\bt4 ,on ! "o h&1 ! great mass ( ! vot+ public is un9=m$ z to actual rev5ues1 disbursem5ts1 & op]ations ( ! corporations1 z to :e!r _! income is unreasonably l>ge1 or :e!r !y are /ruggl+ to exi/4 ,! sums ( money involv$ 9 ! deal+s ( ! corporations are s /up5d\s 9 comp>ison ) ! am\nts us$ 9 an ord9>y private bus9ess--ev5 9 "o ( consid]able magnitude--t ! majority ( ! public _c compreh5d !m4 ,! publi%$ /ati/ics are 9 su* =m t only ! c>eful /ud5t ( affairs c und]/& or analyze !m1 & b few ( ! public (ficials :o receive !m are able to read ! reports ( ! prop]ties & compreh5d !m4 ,z a consequ5ce1 ! corporation1 z a political issue1 has be5 ! subject ( je/1 gibe1 & c>toon2 !re has n be5 an intellig5t public discussion ( available reports & /ati/ics1 & x may be said t1 g5]ally1 ! mass ( ! public has come to class all corporations z grasp+1 ov]be>+1 & unju/1 & to consid] !m all z exce$+ly prosp]\s4 ,?is has be5 tak5 advantage ( by politicians = _! own selfi% ends1 & has l$ to sundry legislation1 "s ( :i* has be5 unreasonable & unju/ to ! corporations1 & mu* ( :i* is aim$ at real abuses t nev] ought to h exi/$4 ,! reasonabl5ess ( a rate dep5ds1 n alone on ! am\nt ( capital inve/$1 b on ! volume ( traffic1 ! d5sity ( population1 ! actual co/ ( s]vice1 & _m o!r elem5ts4 ,rate legislation has be5 attempt$ )\t full inve/igation4 ,acts h be5 pass$ compell+ ! e/abli%m5t ( /ations & t]m9als1 ! improvem5t ( roadway & /ructures1 ! pur*ase ( new equipm5t1 ! in/allation ( safety appliances & block signals1 & _m o!r requirem5ts h be5 made1 "s 7b by no means all7 ( :i* are unreasonable & burd5some4 ,ne>ly "o-half ! ,/ates ( ! ,union h by law requir$ a #b-;c5t1 or #b-;c5t1 pass5g] f>e1 reg>dless ( d5sity ( population1 am\nt ( traffic1 or o!r consid]ations :i* might r5d] su* rates unreasonable4 ,! regulation ( ! c>ri]s1 by legislature1 by railroad commissions1 by ,/ate (ficials1 & by ,c\rts1 ! addition ( burd5s ( exp5se1 & ! cutt+ (f ( rev5ue1 all give consid]able gr\nd = ! opposition ( ! c>ri]s to any?+ t looks l ho/ile legislation1 & compels ! /ud5t ( affairs to admit t !re is ju/ice 9 ! claim ( ! managem5ts1 t !re is grave dang]1 n only ( s]i\sly crippl+ _m roads1 b ( s impair+ ! cr$it ( ! railroads z a class t x w be increas+ly difficult to secure capital to provide = ! necess>y ext5sions & developm5t ( ! transportation facilities ( ! c\ntry4 ,on ! o!r h&1 p]fect frankness compels ! admission t ! /ate ( public op9ion :i* compell$ ! passage ( ^! laws has be5 caus$ l>gely by ! corporation (ficials !mselves4 ,!re is probably no m loyal body ( m5 9 ,am]ica to-day ?an ! (ficials & employees ( railroads4 ,_! loyalty1 h[ev]1 is all to our company4 ,!y ent] its s]vice z boys or "y m52 !y gr[ up to ! full /r5g? ( manhood work+ = its good2 !y take little or no "p 9 public affairs2 !y h no "t = ! /udy ( public que/ions4 ,_! fri5ds are almo/ exclusively among _! own associates 9 ! s]vice ( ! road1 & _! developm5t is along ! l9es ( _! own special "w 9 ! s]vice4 ,z a body ( hone/1 honorable1 & wor?y m51 absolutely loyal to _! employ]s1 !y h few equals2 b x is d\btful if any equal numb] ( m51 ( equal intellig5ce1 h z limit$ a k ( ! fundam5tal tru?s ( gov]nm5t1 or k s color$ by bias4 ,x is also d\btful :e!r any equal numb] ( m5 h 9 _! ranks s few :o be> an active "p 9 ! duties & activities ( citiz5%ip1 or :o ex]cise l>ge influ5ce on _! neighbors4 ,:ile ! =ego+ /atem5t is believ$ to be absolutely true1 x w n d to pass ov] ! notable exceptions4 ,su* m5 z ,james ,j4 ,hill1 ,f4 ,am4 ,soc4 ,c4 ,e41 ,m4 ,e4 ,+alls1 & o!rs ( ! high] (ficials1 :o h tak5 an active "p 9 public affairs1 h _h comm&+ influ5ce4 ,!irs has be5 ! s\nd policy1 z ! prop]ty 9 _! h&s has n suff]$4 ,! %ort-sight$ policy :i*1 9 ,decemb]1 #aiji1 induc$ ! managem5t ( "o road to compel all its employees hold+ municipal (fices to resign1 is b\nd to react & create ho/ile feel+ on ! "p ( ! public4 ,! entire tr5d ( a tra9+ 9 railway s]vice is to fill a man ) prejudice aga9/ all ?+s t und]take to regulate or control ! corporations1 & (t5 goes s f> z to enable him to d1 will+ly & z a matt] ( "r1 ?+s :i* ) a broad] view ( ! int]e/ ( ! :ole community he w\ld n agree ) at all4 ,! result ( ?is int5sive tra9+ is t ! railway s]vice has 9 x ?\s&s ( m5 :o become impati5t ) any ef=t to regulate or control2 :o p]mit _! irritation to %[2 & :o1 by _! own attitude1 create unnecess>y ho/ility4 ,f4 ,a4 ,delano1 ,m4 ,am4 ,soc4 ,c4 ,e41 ,presid5t ( ! ,waba%1 9 an address#b at ,hannibal1 ,mo41 on ,m>* #be?1 #aiji1 said3 ,9 ord9>y manufactur+ or comm]cial und]tak+s1 e man has 8 own notions ab\t ! conduct ( 8 bus9ess1 & does n want to be int]f]$ )1 or dictat$ to by p :o "k less ab\t 8 bus9ess ?an he does himself4 ,n[1 :ile x may be argu$ 9 ! case ( public s]vice corporations t ! p :o h put _! money into ^! ent]prises1 h done x ) _! eyes op5 & ) full k t !y 7 subject to gov]nm5tal regulation & control1 !re is no?+ 9 t argum5t :i* makes public int]f]5ce any m palatable to ! man or gr\p ( m5 :o are int]f]$ )4 ,?is address well expresses ! _s ( ! railway manag]s & employees t[>d all =ms ( inve/igation1 & ! complete lack ( und]/&+1 on ! "p ( ^! manag]s1 ( ! legal & moral relations :i* !y be> to ! communities :i* !y s]ve4 ,x is extremely un=tunate t railway & corporation p h n tak5 ! public fully into _! confid5ce1 & fully & freely giv5 out correct in=mation z to ! op]ation & depreciation ( _! prop]ties2 also1 x is un=tunate t1 :5 a corporation (ficial does feel a grievance1 he p]mits himself to make a p>tisan spee*1 or write an unwise article = publication4 ,mu* ho/ility is traceable to fooli%1 undiplomatic say+s or writ+s ( corporation manag]s 7:i* are (t5 b half quot$71 or to equally fooli% spee*es or newspap] editorials 9 opposition to ! corporations1 :i* are tak5 s]i\sly by ! manag]s4 ,:atev] may be ! cause1 !re is a regrettable ho/ility1 &1 on ! "p ( ! corporation (ficials1 !re is an app>5t unwill+ness to admit "r motives to anyone advanc+ !ories reg>d+ corporate regulation & control1 due l>gely to ! tra9+ & atmosph]e surr\nd+ ! corporate s]vice4 ,! public has a l>ge bill ( p>ticul>s1 "o ( :i* is ! promotion ( wildcat companies1 su*1 = in/ance1 z ! ,new ,york & ,*icago ,air ,l9e project :i*1 only a ye> or s ago1 drew f #b1jjj1jjj to #c1jjj1jjj f ! p 9 a limit$ t]ritory4 ,^! p 7 inve/+ 9 railway /ocks4 ,a ,f$]al control ( ! issue ( /ocks & bonds w\ld h prev5t$ ?is & hundr$s ( l sw9dles4 ,any move to secure su* a law has always be5 oppos$ by ! managem5t ( l>ge & legitimately op]at$ corporations1 "u ! impression t !y are ab\t to be p]secut$1 &1 naturally1 ! victim classes ^! corporations ) ! alleg$ "o t secur$ 8 money4 ,! issue ( /ocks & bonds f> 9 excess ( any possible co/ or value ( railroad1 /reet railroad1 & o!r prop]ties1 & ! mak+ ( l>ge p]sonal =tunes by ! promot]s1 are matt]s ( su* frequ5t occurr5ce t x is difficult1 inde$1 to dismiss !m ) a m]e d5ial4 ,!re is h>dly a community ( any size :i* has n _h its example ( consolidation1 comb9e1 or m]g]1 :i* has result$ 9 ! issue ( excessive securities2 & !re is h>dly a citiz5 ( any intellig5ce :o has n ei!r se5 or _h exp]i5ce ) "s =m ( corporation promotion c>ri$ on /rictly )9 ! law1 b :i*1 nev]!less1 9 pla9 language1 0 a sw9dle4 ,^!1 to say no?+ ( "s gigantic deals involv+ millions1 w soon] or lat] compel "s =m ( regulation ( ! issues ( /ocks & bonds4 ,9 ! la/ analysis1 x is ! money ( ! p1 ! hundr$s ( ?\s&s ( small inve/ors1 depositors 9 banks1 & own]s ( life insurance1 ^: money goes into corporation securities1 &1 until ! (fic]s ( ! great railroads co-op]ate 9 secur+ su* =ms ( control ( /ock & bond issues z w make impossible ! purely speculative wildcat corporations1 & ?us safegu>d m9or corporations1 z to furni% at lea/ reasonable security to ^? ^: money is inve/$1 all =ms ( corporation security mu/ be "u suspicion ) ! public1 & ! agitation = control mu/ cont9ue4 ,x is n1 z ,mr4 ,delano says1 a case ( put y\r money 9 ) y\r eyes wide op52 x is an ef=t on ! "p ( ! p to safegu>d ?is =m ( corporate security 9 su* a way t x c be treat$ z any o!r =m ( s\nd inve/m5t4 ,x %\ld n be necess>y to require t all inve/ors 9 corporate securities be f9ancial exp]ts4 ,x is ! writ]'s op9ion1 bas$ on 8 obs]vation & pr(essional practice1 t ! railroads are n g5]ally op5 to *>ges ( ov]-capitalization4 ,:ile !re are flagrant in/ances1 ! *ief culprits are among o!r classes ( corporations4 ,if su* be ! fact1 x w\ld seem t ! int]e/s ( ! great railway corporations w\ld be 9 no wise jeop>diz$ by sane & reasonable control4 ,! !ory ( taxation is t e "o %all be> 8 proportionate burd5 ( ! co/ ( ma9ta9+ ! gov]nm5t4 ,reg>dless ( any op9ions t may be held z to ! propriety ( ! me?ods adopt$ 9 ! ,int]/ate ,comm]ce ,commission's comm]cial valuation ( railroad prop]ties1 x w be conc$$ t ! results gave a set ( figures = all ! ,/ates ( ! ,union1 secur$ by a uni=m me?od ( computation & di/ribution4 ,table #a1 :i* is a compilation f ,tables #a to #aa ( ,bullet9 #ba1 %[s cle>ly :y1 9 c]ta9 ,/ates1 corporate taxation is a live issue1 & if 7z sugge/$ by ,mr4 ,williams 9 8 article1 else:]e ref]r$ to7 am5dm5t ( ! ,con/itutions ( "s ( ! ,/ates is necess>y1 x is safe to assume t ! condition ( inequality %[n by ?is table is su* z to compel ^! *anges4 ,x is ne$less to cite fur!r in/ances2 en\gh has be5 said to indicate3 ,fir/4--,t ! corporations & ! public h su* intimate bus9ess relations t a bl[ at ei!r mu/ necess>ily injure ! o!r s]i\sly2 ,second4--,t ! ,c\rts h def9$ q cle>ly ! legal relation exi/+ betwe5 ! two int]e/s2 ,?ird4--,t !re is lack+ a prop] _s ( mutual confid5ce1 & ! two int]e/s at ! pres5t "t are g5]ally ho/ile2 ,f\r?4--,t !re h be5 errors & abuses on ! "p ( bo? corporations & public2 & ,fif?4--,t capital inve/$ 9 corporations is1 & %\ld be1 ! money ( ! p1 & %\ld be safegu>d$ s z to prev5t its loss by manipulation1 & insure a fair return4 ,,table #a4--;,,comp>ison ,,( ,,assess$ ,,valuation ,,& ,,comm]cial ,,value ,,( ,,railway ,,prop]ties4 ,/ate or ,miles ( ,comm]cial ,,valuation ,,= ,ratio ( t]ritory4 s+le value3 ,june ,,assessm5t4 assess$ to track4 #cj?1 #aijd4 comm]cial valuation3 ,p]c5tage4 ,ye>4 ,am\nt4 ,alabama #d1ffi4ce #aej1baa1jjj #aijeec1ibf1jbf #ce4i ,arkansas #d1abf4dd #abd1fbf1jjj #aijd #cd1gji1fbc #bg4h ,cali=nia #f1bfb4ed #cej1fid1jjj #aijd #ib1cgh1eej #bf4c ,colorado #d1igf4bd #aih1bfa1jjj #aijc #di1dib1ace #be4j ,connecticut #a1jag4gb #aje1cfi1jjj #aijdabj1dic1fdh #aad4d ,florida #c1eee4hd #hj1dfg1jjj #aijd #ba1hag1dgh #bg4a ,georgia #f1cjd4gb #aef1fjc1jjj #aijc #fc1aje1haj #dj4c ,idaho #a1dfa4ec #ia1hgg1jjj #aijd #aj1aae1cgh #aa4j ,ill9ois #aa1fbb4gd #hje1jeg1jjj #aijddbe1gji1jee #fc4h ,indiana #f1iag4he #cge1eda1jjj #aijdafe1hfc1cfg #dd4b ,i[a #i1hei4bc #cdd1hdg1jjj #aijd #eg1ece1afj #af4g ,kansas #h1haa4dc #cef1cef1jjj #aijd #fj1jic1ecd #af4i ,k5tucky #c1bec4jj #aee1ggb1jjj #aijd #gg1feh1jdj #di4i ,l\isiana #c1hih4gd #abc1dja1jjj #aijd #bi1jdd1aie #bh4i ,mi*igan #h1ffj4bi #bgg1eig1jjj #aijdaif1gie1jjj #gj4i ,m9nesota #g1haa4jd #dff1gcd1jjj ,mississippi #c1dhj4be #ajg1hhd1jjj #aijb #bi1hdg1fdj #bg4g ,miss\ri #g1gaa4je #cji1gfh1jjj #aijc #ig1iaf1hfi #ca4f ,montana #c1bfg4aj #aif1bji1jjj #aijd #cf1gei1hbg #ah4g ,nebraska #e1hbj4hh #bfc1agj1jjj #aijd #df1jhb1hec #ah4e ,nevada #ihf4ef #dc1gde1jjj #aijd #ac1ggh1jdi #ca4e ,new ,hamp%ire #a1bge4ig #gi1ghf1jjj #aijd #bb1fbe1jjj #bh4c ,new ,j]sey #b1bgg4he #ccc1efh1jjj #aijdbca1fee1ebe #fi4e ,new ,york #h1big4bi #hih1bbb1jjj #aijcbbi1ehb1jfd #be4f ,nor? ,c>ol9a #d1jge4jj #aac1adf1jjj #aijd #fi1dhj1igd #fa4d ,nor? ,dakota #c1aij4gg #fhi1gig1jjj #aijdacc1heh1ide #ai4d ,oklahoma #b1faa4jc #gh1ffh1jjj #aije #aa1icf1cag #ae4b ,p5nsylvania #aa1jbc4bd #a1dbj1fhj1jjj ,rhode ,isl& #baa4hi #be1gai1jjj #aijd #ae1hcb1jjc #fa4f ,s\? ,c>ol9a #c1age4bh #ge1ejj1jjj #aijc #bi1dfg1gaf #ci4j ,s\? ,dakota #c1jdg4ad #di1fdf1jjj #aijd #ad1ced1icj #bh4i ,t5nessee #c1dhj4hc #aca1aff1jjj #aijc #eh1ecf1eff #df4f ,texas #aa1hdh4jc #bcg1gah1jjj #aijd #ie1bji1ghe #dj4j ,utah #a1ggi4fi #ij1cbe1jjj #aijd #bj1fhb1dfa #bb4i ,v]mont #a1jfc4be #cg1caa1jjj #aijb #bg1cdd1jbj #gc4c ,virg9ia #c1icb4cc #baa1cae1jjj #aijd #fc1bfi1fbc #cg4g ,we/ ,virg9ia #b1hcf4hc #bja1gii1jjj #aijd #bh1gga1ceh #ad4b ,wa%+ton #c1cee4hc #ahb1hcg1jjj #aijd #bf1jff1idi #ad4c ,wiscons9 #g1jdh4gf #bhd1eaj1jjj #aijdbah1jbd1ijj #gf4f ,wyom+ #a1bdg4gj #ajj1cjg1jjj #aijd #g1dih1bcb #g4e ,arizona #a1gea4ce #fh1cef1jjj #aijd #f1ffg1cdi #i4g ,di/rict ( #cb4jj #e1egh1jjj #aijd #b1dhf1jbd #dd4f ,columbia ,new ,mexico #b1ejd4ff #h1fdj1jjj #aijd #h1eaa1ech #i4i ,total1 ,u4,s4,a4 #bac1icb4acaa1bdd1heb1jjj ,9 conclud+ ?is subject1 x may n be amiss to quote ! language ( ! ,supreme ,c\rt 9 ! ,knoxville ,wat] ,case 7#bab ,u4 ,s41 #a71 z foll[s3 ,regulation ( public s]vice corporations1 :i* p]=m _! duties "u conditions ( necess>y monopoly1 w occur ) great] & great] frequ5cy z "t goes on4 ,x is a delicate & dang]\s function1 & ought to be ex]cis$ ) a ke5 s5se ( ju/ice on ! "p ( ! regulat+ body1 met by a frank disclosure on ! "p ( ! company to be regulat$4 ,! ,c\rts ought n to be> ! :ole burd5 ( sav+ prop]ty f confiscation1 ?\gh !y w n be f\nd want+ :5 ! pro( is cle>4 ,! legislatures & subord9ate bodies to :om ! legislative p[] has be5 delegat$ ought to d _! "p4 ,our social sy/em re/s l>gely ^u ! sanctity ( private prop]ty1 & t ,/ate or community :i* seeks to invade x w soon discov] ! error1 9 ! disa/] t foll[s4 ,! slight ga9 to ! consum]1 :i* he w\ld obta9 f a r$uction 9 ! rates *>g$ by ,public ,s]vice ,corporations1 is z no?+ comp>$ ) 8 %>e 9 ! ru9 :i* w\ld be br\ght ab\t by d5y+ to private prop]ty its j rew>d1 ?us unsettl+ values & de/roy+ confid5ce4 ,on ! o!r h&1 ! companies to be regulat$ w f9d x to _! la/+ int]e/ to furni% freely ! in=mation ^u :i* a j regulation c be bas$4 ----- ,footnote #b3 ,railroad ,age ,gazette1 ,april #af?1 #aiji1 p4 #heg4 ,,explanation ,,( ,,t]ms4 ,9 ord] t !re may be no d\bt z to ! exact mean+ ( ! t]ms us$ ?r\gh\t ?is pap]1 a few def9itions or explanations are submitt$3 ,appraisal1 or ,valuation4--,^! words are us$ int]*angeably1 & ref] to ! eng9e]+ "w ( det]m9+ ! pres5t wor? ( bo? physical & intangible prop]ties ( corporations4 ,co/ ( ,reproduction4--,?is expression ref]s to ! e/imate ( co/ ( reproduc+ ! physical prop]ties z !y exi/ on ! date ( ! appraisal1 all elem5ts ent]+ into ! co/ be+ consid]$ z new & n affect$ by ! elem5ts ( depreciation or obsolesc5ce4 ,co/1 or ,orig9al ,co/4--,^! t]ms ref] to ! actual am\nt ( money paid = ! prop]ty1 ei!r :5 x 0 orig9ally con/ruct$1 or 9 its condition at ! "t ( appraisal1 ! latt] case be+ ! orig9al co/ plus ! co/ ( additions & bett]m5ts1 less ab&on$1 replac$1 or worn-out prop]ty4 ,?is figure ought to be repres5t$ by ! book co/1 b x is n (t5 t book co/ & actual co/ are ! same4 ,pres5t ,value1 or ,pres5t ,physical ,value4#c--,^! t]ms are us$ 9 describ+ ! physical prop]ty z reproduc$ aft] x is affect$ by all elem5ts ( depreciation or appreciation4 ,! use ( ! ^w value 9 ?is expression is un=tunate1 z x may lead to "s confusion4 ,x mu/ be kept cle>ly 9 m9d t1 :]e ?is t]m is us$1 x ref]s only to physical prop]ty z depreciat$1 & is 9 no case int5d$ to ref] to ! f9al or fair value ( ! prop]ty4 ,non-physical1 or ,intangible1 ,value4--,^! t]ms are us$ to repres5t ^? elem5ts1 ent]+ into ! f9al wor? ( ! prop]ty z a bus9ess conc]n1 :i* arise out ( ! op]ation ( ! prop]ty & are n atta*able to ! physical prop]ty4 ,all ! =ego+ t]ms h to d ) ! det]m9ation ( ! elem5ts :i* ent] into ! f9al value4 ,:at is value8 ,9 def9+ ! exact mean+ ( ?is t]m1 z appli$ to ! prop]ty ( a public s]vice corporation1 _m elem5ts mu/ be tak5 into acc\nt4 ,/&>d au?orities give _m def9itions ( value1 none ( :i* appe>s to meet fully ! requirem5ts ( ! t]m z us$ h]e94 ,be=e consid]+ ! elem5ts :i* ent] into ! value ( corporation prop]ty1 or attempt+ to det]m9e ! me?ods to be us$ 9 fix+ prop] figures ( wor? = ea* ( ^! elem5ts1 x is prop] & necess>y to obta9 a cle> def9ition ( value1 ! ?+ s\ght to be asc]ta9$ by ! inquiry4 ,! t]m1 comm]cial value1 has be5 consid]$ 9 place ( value1 b is n us$ because x is held to be m prop]ly applicable to ! sell+ or ex*ang+ value ( fractional int]e/s 9 ! prop]ty1 & ! me?ods ( comput+ ! comm]cial value ( securities :i* are 9 common use _c be adopt$ 9 an eng9e]+ valuation4 ,! ,/&>d ,diction>y def9ition ( comm]cial value is3 ,! s\rce ( comm]cial value1 accord+ to diff]5t s*ools ( economi/s1 is 7#a7 ! degree ( want felt = a commodity z %[n 9 ! relation ( supply & dem&1 7#b7 ! am\nt ( labor embodi$ 9 x1 or 7#c7 ! co/ ( reproduction4 ,practically1 comm]cial value is t = :i* a ?+ c be sold or ex*ang$ at a giv5 "t & place4 ,! def9ition giv5 by ,pr(essor ,adams is3 ,! e/imate plac$ ^u ! wor? ( a prop]ty1 reg>d$ z a bus9ess proposition4 ,bo? ^! def9itions are 9 a measure involv$1 & ! writ] consid]s t ! t]m1 ,comm]cial ,value1 is too n>r[ & re/rict$ to be prop]ly us$4 ,z a def9ition ( t e/imate ( wor? :i* an eng9e]+ commission %\ld report z ! result ( a complete appraisal1 ! writ] submits ! foll[+3 ,! value ( a prop]ty is its e/imat$ wor? at a giv5 "t1 measur$ 9 money1 tak+ into acc\nt all ! elem5ts :i* add to its usefulness or desirability z a bus9ess or pr(it-e>n+ proposition4 ,!re are two classes ( elem5ts ent]+ into ! f9al value3 7#a7 ,! ,physical ,prop]ty ,elem5t ( ,value4--,?is consi/s ( ^? ?+s :i* are visible & tangible1 capable ( be+ inv5tori$1 _! co/ ( reproduction det]m9$1 _! depreciation measur$1 & )\t :i* ! prop]ty w\ld be unable to produce ! commodity on ! sale ( :i* income dep5ds4 ,?is physical prop]ty is consid]$ z an op]at+ entity1 & n z collat]al ( in]t & p>tly worn-out equipm5t1 &1 be+ s consid]$1 c>ries1 z "p ( ! physical value1 ^? co/s & *>ges :i* are an insep>able "p ( ! co/ ( con/ruction b d n appe> 9 ! inv5tory ( ! complet$ prop]ty4 7#b7 ,! ,non-,physical or ,intangible ,elem5ts ( ,value4--,^! are ^? ?+s :i*1 add$ to or tak5 f ! wor? ( ! physical prop]ty1 make up ! value1 & include :atev] accrues to ! prop]ty by reason ( its op]ation1 or by reason ( grants1 contract rights1 competition1 or location1 :i* at ! "t ( appraisal affect favorably or unfavorably ! wor? ( ! prop]ty4 ,! wor? ( ! physical prop]ty is prim>ily t on :i* ! value ( ! :ole prop]ty re/s4 ,:ile x is cle> t ! wor? ( ! physical prop]ty1 be+ ! co/ ( reproduction less depreciation1 is n necess>ily ! value ( ! prop]ty1 x is equally cle> t ! physical wor? mu/ be> "s v def9ite relation to value1 & ! writ] is /rongly ( ! conviction t ?is relation is su* t value _c be asc]ta9$ )\t a det]m9ation ( physical wor?4 ,! physical prop]ty elem5t repres5ts ! inve/m5t on :i* a fair return is to be e>n$1 & 9 mo/ cases an appraisal is necess>y = ! det]m9ation ( ! am\nt ( money actually inve/$4 ,z illu/ration ( ! fact t physical value & value are n ! same1 ! case ( two railroads actually exi/+ & 9 op]ation betwe5 two cities 9 ,mi*igan may be cit$4 ,road ,a occupies a n>r[ valley ?r\gh high & abrupt hills4 ,its alignm5t is fair = hilly c\ntry2 its maximum grade is #a p] c5t4 ,x has a numb] ( bridges1 all %ort & l[4 ,its co/ ( reproduction might reasonably be plac$ at #bh1jjj p] mile4 ,a m9+ t[n at "o end %ips a heavy tonnage d[n grade to a lake port at ! o!r4 ,road ,b 0 con/ruct$ sev]al ye>s lat]1 &1 be+ b>r$ f ! only valley1 built a l9e across ! hills1 involv+ heavy grad+1 v long & high /eel tre/les1 a long] l9e1 maximum grades ( #b1 & a heavy climb f ! m9+ t[n to ! summit be=e />t+ to drop to ! lake4 ,! co/ ( con/ruction 0 m ?an d\ble t ( ,l9e ,a1 & ! tonnage :i* c be haul$ 9 ei!r direction is b a small fraction ( t :i* c be haul$ ) ! same p[] by ,road ,a4 ,a reasonable figure = co/ ( reproduction may be giv5 z #fj1jjj p] mile4#d ,"h is cle>ly a case :]e ! old]1 less exp5sively built road has a value z an e>n+ proposition f> 9 excess ( t ( ! new road4 ,! rate on commodities does n affect ! relative diff]5ce4 ,a high] rate1 :ile p]mitt+ ,road ,b to live1 greatly adds to ! value ( ,road ,a1 :ile ! latt] c op]ate at a pr(it on rates :i* w\ld n p]mit ,road ,b to pay exp5ses4 ,?is example indicates ! exi/5ce ( non-physical values1 n only positive 9 ! case ( ,road ,a1 b also negative z to ,road ,b4 ,_m prop]ties h be5 built 9 ! ,unit$ ,/ates1 repres5t+ l>ge inve/m5ts ( capital1 :i* are n1 & "s ( :i* c nev] be1 pr(itable bus9ess inve/m5ts4 ,9 all su* ! physical valuation w exce$ ! f9al value :]e ! prop]ty is consid]$ z an op]at+ conc]n1 & a negative factor to cov] improp] location1 uneconomical design1 ill-advis$ inve/m5t1 or :atev] ! tr\ble may be1 %\ld be appli$4 ,! physical prop]ty is t :i* enables ! corporation to d bus9ess4 ,)\t physical prop]ty x c\ld n produce ! commodity :i* x sells4 ,! am\nt ( money actually inve/$ 9 acquir+ t physical prop]ty repres5ts ! measure ( capital on :i* x is morally entitl$ to e>n int]e/ & pr(it2 &1 9 ! /age ( promot+ & f9anc+ ! ent]prise1 all hope ( e>n+s is bas$ on ! am\nt ( money requir$ to con/ruct ! prop]ty4 ,^! consid]ations lead ! writ] to cont5d t ! true me?od ( valu+ a corporate prop]ty is fir/ to det]m9e ! co/ ( reproduction ( ! prop]ty & its depreciation1 & modify ?is figure by any applicable positive or negative non-physical elem5ts ( value4 ----- ,footnote #c3 ,! t]m pres5t value1 z us$ 9 ?is pap]1 %\ld n be conf\nd$ ) its use by bank]s or acc\ntants1 or ) ! pres5t wor? ( a sum ( money due at "s future "t4 ,footnote #d3 ,9 ?is case1 traffic z to ,l9e ,b is limit$1 & z x is feasible to d\ble-track ,l9e ,a at less co/ ?an ,l9e ,b1 no advantage c be assign$ to ,l9e ,b on acc\nt ( developm5t ( future bus9ess4 ,,! ,,mi*igan ,,/ate ,,appraisals4 ,organization4 ,! ,/ate ,legislature ( ,mi*igan1 at ! session ( #ahii1 pass$ an act creat+ a ,bo>d ( ,/ate ,tax ,commission]s & outl9+ & prescrib+ _! duties4 ,?is act au?oriz$ ! bo>d to inquire into & asc]ta9 ! value ( ! prop]ty ( corporations pay+ specific taxes "u any ( ! laws ( ?is ,/ate4 ,! object ( ?is valuation 0 to det]m9e ! rate at :i* ! corporations 7 pay+ taxes1 to ! end t necess>y laws %\ld be pass$ s t all taxable prop]ties 9 ! ,/ate might be tax$ uni=mly4 ,on ,septemb] #a/1 #aijj1 ! ,bo>d ( ,tax ,commission]s appo9t$ ,pr(essor ,mortim] ,e4 ,cooley ,apprais] ( ,prop]ties4 ,imm$iately !reaft] ! g5]al organization 0 mapp$ out along ! foll[+ l9es ( division ( labor & responsibility3 #a4--;,adm9i/ration4--,all matt]s ( g5]al policy 9 reg>d to ! conduct ( ! "w1 all matt]s relat+ to negotiations & conf]5ces ) (ficials ( corporations1 all transactions ) ! ,/ate ,tax ,commission1 ! ,gov]nor1 or ! ,bo>d ( ,/ate ,auditors1 & ! entire direction ( all relations ) ! public ?r\gh newspap]s & o!r *annels1 7 reta9$ by ! apprais]1 :o 0 ! f9al arbit] on all matt]s ref]r$ to him reg>d+ ! details ( ! "w4 #b4--;,civil ,eng9e]+4--,! appraisal ( all prop]ty :i* 9 ! c\rse ( con/ruction w\ld fall "u ! sup]vision ( ! civil eng9e]+ dep>tm5t ( a road1 includ+ l&1 roadway1 bridges1 & /ructures1 0 9 *>ge ( ! writ]4 #c4--,me*anical ,eng9e]+4--,! appraisal ( all motive p[]1 roll+ /ock1 & prop]ty :i* 9 ! c\rse ( con/ruction w\ld fall "u ! sup]vision ( ! me*anical eng9e]1 includ+ p[] & electric plants1 %op tools & ma*9]y1 wat] /ations1 etc41 0 9 *>ge ( ,mr4 ,!odore ,h4 ,h9*man1 ,jr41 ( ,detroit1 ,mi*4 ,9 ! matt] ( ! f9al assembl+ ( figures1 computation ( p]c5tage values1 & compilation ( f9al results1 ,mr4 ,h9*man & ! writ] work$ toge!r ) jo9t g5]al sup]vision4 #d4--,telegraphs4--,! inspection & appraisal ( all telegraph prop]ties 0 "u *>ge ( ,mr4 ,william ,s4 ,conant1 ( ,detroit1 ,mi*4 #e4--,telephones4--,! appraisal ( all telephone prop]ties 0 direct$ by ,mr4 ,william ,j4 ,rice1 ( ,new ,york4 #f4--,vessel ,prop]ties4--,all vessels belong+ to companies ^: prop]ty 0 involv$ by ! appraisal 7 inspect$ & apprais$ by ,h]b]t ,c4 ,sadl]1 ,pr(essor ( ,naval ,ar*itecture & ,m>9e ,eng9e]+ at ! ,univ]sity ( ,mi*igan4 ,9 ! foll[+ n>rative1 no special m5tion is made ( ! "w execut$ "u ! direction ( ,messrs4 ,conant1 ,rice1 & ,sadl]1 because !y really _h *>ge ( indep5d5t appraisals :i* 7 conduct$ on l9es simil> to ^? adopt$ 9 ! railroad appraisal1 & _! me?ods 7 n diff]5t f ^? ( ! latt]2 h5ce any description ( _! "w w\ld be 9 a l>ge measure repetition4 ,?is omission is 9 no wise to be con/ru$ z any reflection on ! importance or high "* ( _! "w4 ,! organization z j outl9$1 :ile necess>ily t\*+ & ov]lapp+ at po9ts1 0 g5]ally def9$ s cle>ly t !re 0 no duplication ( "w4 ,ea* head ( dep>tm5t 0 responsible = ! "w ( 8 special division1 & direct$ ! lay+ out & execution ( ! "w done by 8 m54 ,! fir/ task1 aft] decid+ on ! g5]al organization1 0 to det]m9e ! g5]al me?ods to be adopt$ & ! mann] ( gett+ ! necess>y detail$ in=mation4 ,! magnitude ( ! "w 0 appall+4 ,!re 7 sev5ty-eight diff]5t incorporat$ companies1 own+ "s #aj1jjj miles ( railroad1 scatt]$ ov] #ed1jjj sq4 miles ( t]ritory4 ,9 addition1 !re 7 a numb] ( small un9corporat$ railroads1 telegraph1 telephone1 plank road1 & o!r corporations1 _m ( :i* _h no records1 no complete inv5tory1 & no dep>tm5t organiz$ s t ! in=mation c\ld be readily secur$4 ,x 0 det]m9$3 7#a7 ,to make or secure a complete detail$ inv5tory ( e piece or p>cel ( prop]ty belong+ to ea* company2 7#b7 ,to exam9e ea* sep>ate ?+1 place on x an e/imate ( co/ ( reproduction & depreciation2 7#c7 ,to prep>e1 z a basis = ! f9al figure ( value1 an e/imate ( ! pres5t value1 be+ ! co/ ( reproduction less ! depreciation4 ,hav+ det]m9$ on a detail$ physical inv5tory & appraisal1 ! next /ep 0 to outl9e ! "w s z to secure absolute uni=mity4 ,! difficulties :i* confront$ ! apprais] at ?is p]iod 7 _m1 *ief among :i* 73 7a7 ,lack ( ,complete ,und]/&+ on ! ,"p ( ! ,/ate ,(ficials4--,! ,gov]nor & ,bo>d ( ,tax ,commission]s r5d]$ e possible assi/ance1 b ! ,bo>d ( ,/ate ,auditors 0 n at fir/ fully committ$ to ! "w1 & ! unc]ta9ty z to :e!r or n bills w\ld be paid1 delay$ s]i\sly ! employm5t ( m5 & ! full comm5cem5t ( "w = #c or #d weeks aft] ! fir/ organization 0 made4 7b7 ,! ,attitude ( ! ,railroad ,corporation ,manag]s4--,:ile ?is 0 n actively ho/ile1 x 0 a s]i\s cause ( delay1 z !y c\ld n =esee :at effect ! "w might h on ! int]e/s 9 _! *>ge1 &1 :ile n refus+ access to _! records1 !y delay$ & held back in=mation2 9 fact1 a long "t elaps$ be=e all ! companies op5$ _! records to ! apprais] & 8 /aff4 7c7 ,! ,confus$ ,condition ( ! ,records4 ,_m small corporations _h absolutely no?+ 9 ! way ( records ( build+s1 bridges1 l&1 or o!r prop]ties4 ,o!rs _h v complete records 9 c]ta9 dep>tm5ts & v imp]fect ones 9 o!rs2 /ill o!rs _h records :i* _h e appe>ance ( be+ complete1 b !y 7 n up-to-date4 ,fac+ an appraisal ( ?is magnitude1 ) a "t limit ( only #d mon?s = ! entire "w1 ) delays at ! outset :i* s]i\sly hamp]$ ! organization = #b or #c weeks1 ! apprais] 0 compell$ to occupy ?is "t 9 prep>+ ! blank =ms to be us$ on ! "w1 & 9 conduct+ correspond5ce ) ! m5 :o 7 to make up ! work+ =ce1 inve/igat+ _! ref]5ces1 etc4 ,! blank =ms1 ,figs4 #a to #aj1 7 ! result ( a s]ies ( conf]5ces betwe5 ! memb]s ( ! /aff4 ,by ?is "t x 0 q evid5t t no great am\nt ( help c\ld be hop$ = f ! corporations4 ,_h x be5 possible to secure access to ! records ( su* railroad companies z ! ,mi*igan ,c5tral or ! ,lake ,%ore & ,mi*igan ,s\!rn be=e ! f9al drafts ( ! =ms 7 prep>$1 ! writ] believes t sev]al might h be5 simplifi$ & _m improvem5ts c\ld h be5 made4 ,h[ev]1 ?is 0 n possible1 & ! =ms 7 prep>$ & pr9t$ be=e access to any railroad (fice _h be5 grant$4 ,illu/ration3 ,,fig4 #a4 ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#i ,,appraisal ,(fice ,inspector ,railroad ,,alignm5t ,,& ,,pr(ile ,,9 ,date ,,mi*igan ,field ,inspector ,,divisions ,,alignm5t ,,( ,,road ,,f ,,to ,l5g?,numb],aggregate,numb] ,total ,:at is ,miles ( ,l5g? ( ( ,curvature,degree ,curves ,curv$ ,curves ov] #c ( ,l9e ov] #c ,degrees ,maximum ,miles ,degrees ,curves ,,pr(ile ,aggregate,sum ( ,sum ( ,numb],numb],:at is ,l5g? (,asc5ts,desc5ts ( ( rate ,level ,feet ,feet ,miles ,miles ,y\r ,grades ,grade ,grade ,maximum #j4d ,ov] ,grades to #a #a & :at _! l5g? ,miles ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#d ,,appraisal ,(fice ,inspector ,railroad ,,"r ,,( ,,way ,,& ,,real ,,e/ate ,date ,field ,inspector ,,9 ,,fill+ ,,out ,,/atem5t ,,k9dly ,,sep>ate ,,l&s ,,& ,,"r ,,( ,,way ,,by ,,c\nties ,,z ,,f> ,,z ,,possible ,,c\nty,trackage ,,wid? ,,( ,,"r ,,( ,,way ,,9 ,,feet ,total ,total ,"r ,acreage,acreage only ( ,l&s ,miles ,"r own'd ( ,way by ,company o!r ?an ,"r ( ,way ,less #dj to#fj to#gj to #ajj ,ov] ?an #fj #gj #ii ,miles #ajj #dj ,miles,miles,miles ,miles ,miles ,,total ,,real ,,e/ate ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#h ,,appraisal ,(fice ,inspector ,railroad ,,mileage1 ,,rail ,,& ,,ties ,date ,field ,inspector ,total ,total ,y>d ,d\ble,rail ,rail ,rail ,rail ,rail ,l5g?,numb],tracks,track #dj #dj to#dj to#fj to#gj to ,miles ( ,miles ,miles lbs4 #di #di #fi #gi ,side p] lbs4 lbs4 lbs4 lbs4 ,tracks y>d p] p] p] p] or ,milesy>d y>d y>d y>d ,spurs ,miles,miles,miles,miles ,ma9 to ,track f ,rail ,rail ,rail ,numb],p]c5tage,p]c5tage,p]c5tage #hj to#ij toov] ( ( ,oak ( ,hemlock ( o!r #hi #ajj #ajj ,ties ,ties ,ties ,ties lbs4 lbs4 lbs4 p] p] p] p] mile y>d y>d y>d ,miles,miles,miles ,illu/ration3 ,,fig4 #b4 ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#ah ,,appraisal ,(fice ,inspector ,railroad ,,int]lock+ ,,plants ,,9 ,,mi*igan ,date ,field ,inspector ,include all ,electric ,cross+s hav+ full ,int]lock]s4 ,,location,cross+ ,/yle ,:eel,connections1,numb] ( ,lev]s or ) ( or ,pipe or ,:eels ,ma*9e,lev] ,cable ,work+,space,total ,by ,:om ,date ,proportion,proportion ,erect$,put 9 ( ,co/ ( ,s]vice ,paid by ,ma9t5ance ?is ,co4 ,paid by ?is ,co4 ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#h ,,appraisal ,(fice ,inspector ,railroad ,,/atem5t ,,( ,,cross+ ,date ,,protection ,,9 ,,mi*igan ,field ,inspector ,,divisions ,total ,numb] ,numb] ,total ,total ,,( ,,road ,numb] ,grade ,grade ,numb] (,numb] ( ,unprotect$,cross+s,cross+s ,highway ,highway ,grade ,protect$,protect$ ,"u ,ov] ,cross+s by ,al>m by ,gates ,cross+s,cross+s ,bells ,:at ,:at ,device is ,device is ,us$ ,us$ ,f ,to ,total ,numb] (,numb] ( ,:at ,numb] ( ,electric ,electric ,proportion ,unprotect$ ,railway ,railway d ,y ,pay ,electric ,cross+s,cross+s ( ,railway ,protect$,protect$,in/allation ,cross+s by by or ,d]ail] ,d]ail] ,ma9t5ance )\t ) ( ,electric ,signals ,signals ,railway on ,/eam on ,/eam ,cross+s ,r4,r4 ,r4,r4 ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#a ,,appraisal ,(fice ,inspector ,railroad ,,eng9e ,,h\ses ,,& ,,turn ,,tables ,date ,field ,inspector ,,location ,,eng9e ,,h\ses ,k9d ( ,no4 ,no4 ,pit ,:5 ,/ructure,/alls,pits,dim5sions,built ,feet ,,turn ,,tables ,l5g?,,k9d ,f\ndation,,curb+,:5 ,feet ,,( ,built ,,table ,illu/ration3 ,,fig4 #c4 ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#b ,,appraisal ,(fice ,inspector ,railroad ,,field ,,inspection ,,report ,date ,betwe5 & ,miles ,numb] ( ,tracks ,ties1 ,c4 to ,c4 ,highe/ s*$ule pass5g] tra9 miles p] h\r1 ,freight miles p] h\r1 ,inspector ,,mile ,,grade ,,ties ,,rail ,y>dage,classification,k9d,condition,wei ght,condition ,,balla/ ,,f5ce ,,frogs ,,& ,,swit*es ,,cross+s ,k9d,condition,k9d,condition,numb],k9d,c ondition,numb],condition ,,dra9age,,alignm5t,,rem>ks ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#g ,,appraisal ,(fice ,inspector ,railroad ,,bridges ,date ,field ,inspector ,include all wood51 /eel or comb9ation trusses1 all gird]s & ,i beams spans - if solid floor & balla/ please s /ate4 ,,f\ndation ,bridge,,location ,,"n ,frame or ,/one or ,,pi]s ,approx4 ,numb] ,numb] ,,( ,pile ,concrete ,cu4 ,ft4 ( ,ft4 ,,/ream,abutm5ts,abutm5ts ,masonry ,bridge ,pi]s & ,seat ,abutm5ts to ,wat] ,,sup]/ructure ,numb],,k9d,l5g?,specification ,no4 ,no41 ,size,size ,h[ ( out to = ,load+ ,panels& ,k9d & ,support$ ,spans out ,requir$ ,/r+]s,k9d ( ,beams ,size,date ( ,built ,ties ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#ag ,,appraisal ,(fice ,inspector ,railroad ,,draw ,,bridges ,date ,field ,inspector ,9 ?is table furni% data z to draw span & pivot pi]s only - o!r spans 9 o!r bridge record4 ,bridge,,location ,"n ,date ( ,,f\ndation ,no4 ( ,erection ,/ream ,mat]ial,size,approx4,height ,cubic ,above ,feet ,wat] ,masonry ,,sup]/ructure ,approx4 ,l5g?,k9d,mat]ial,,specification ,:at ,k9d ,dep? ,draw ( ,,= ,,load+ k9d ( ( ,foot+s ,span ,p[] ,turn ,bel[ us$ =,tables ,wat] sw++ ,illu/ration3 ,,fig4 #d4 ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#aj ,,appraisal ,(fice ,inspector ,railroad ,,culv]ts ,date ,field ,inspector ,,division ,total ,total ,total #ah 94 or #bd in* ,iron ,numb] ,numb] ,numb] small] ,iron ,pipe ,/one ,wood5 ,wood5 ,pipe ,box ,box ,op5 ,culv]ts,culv]ts,culv]ts ,f,to ,no4 ,approx4 ,no4 ,approx4 ( ,no4 ( ,no4 ,l9es,feet (,l9es,feet ( ,pipe ,pipe #cj in* ,iron #cf in* ,iron #dh in* ,iron #fj in* ,iron ,pipe ,pipe ,pipe ,pipe ,no4 ,approx4 ,no4 ,approx4 ,no4 ,approx4 ,no4 ,approx4 ( ,no4 ( ,no4 ( ,no4 ( ,no4 ,l9es,feet (,l9es,feet (,l9es,feet (,l9es,feet ( ,pipe ,pipe ,pipe ,pipe ,iron ,pipe ,ov] #fj ,total ,total ,total ,total in* ,no4 ,no4 ,no4 ,no4 ,sew] ,sew] ,pit ,surface ,pipe ,pipe ,cattle,cattle ,culv]ts,culv]ts,gu>ds,gu>ds "u #bdbd in* in* & ov] ,no4 ,size,approx4 ( ,no4 ,l9es ,feet ( ,pipe ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#aa ,,appraisal ,(fice ,inspector ,railroad ,,ar*es ,date ,field ,inspector ,bridge ,,location ,,/ream ,date ,l5g? (,l5g? ( ,no4 ,built ,span ,ar* 9 ,feet ,face to ,face ,,?is ,,space ,,= ,,b9d+ ,height ,approx4 ,,k9d ,,( ,,k9d ,,( ,feet ,no4 ,cubic ,,ar* ,,mat]ial ,feet ,masonry ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#bi ,,appraisal ,(fice ,inspector ,railroad ,,c> ,,f]ry ,,t]m9als ,date ,field ,inspector ,,g5]al ,,description ,items,own],us$,location,date ,type ,no4 ,dim5sions ,/ruc4 by ,built ,tracks ,/eel ,iron & ,me*4 furni%$ by ,,quantities ,,values ,,rem>ks ,iron ,bolts ,piles,lumb],excavation,e/imat$ & & l94 feet ,fill1 ,co/ ,/eel ,nails feet b4m4 ,dr$g+ ,p\nds,p\nds,k9d ,k9d ,cu4 ,yds4 ,illu/ration3 ,,fig4 #e4 ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#bj ,,appraisal ,(fice ,inspector ,railroad ,,coal ,,*utes ,date ,field ,inspector ,,location,l5g? ,k9d (,f\ndations,size ( ,numb] ,capacity ( ,tre/le ,build+ ( ( ,tre/le ,pockets,pockets ,date ,"n ( ,if ,built,build],hoi/+ or ,convey+ ,ma*9e 9 use1 ,/ate ,:at ,k9d ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#ai ,,appraisal ,(fice ,inspector ,railroad ,,wat] ,,/ations ,date ,field ,inspector ,/ate :e!r ,p[] is ,/eam1 ,gasol9e1 ,w9d1 ,gravity1 or ,hydraulic ,ram4 ,,location,s\rce ,,pump ,,boil] ,,pump ,,h\se ( ,wat] ,supply ,k9d,size ,k9d,size ,k9d,size ,date ,built ,,tank ,l5g? & ,size ( ,suction & ,dis*>ge ,size,capacity,f\ndations,date ,gallons ,built ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#bh ,,appraisal ,(fice ,inspector ,railroad ,,ore ,,docks ,date ,field ,inspector ,,g5]al ,,description ,,item,own$,location,date ,type ,,dim5sions & ,built ,us$ by ,no4 ,cap4 ,hgt4 ,hgt4 ,wid? ,pkts4,tons,wat] to,wat] ,c4,l4,hge4 to ,dock ,,quantities ,,values ,,rem>ks ,rods1 ,piles,lumb],fill &,e/imat$ ,bolts1,l94 ,feet ,dr$g+ ,co/ ,iron1 ,feet ,b4,m4 ,p\nds,k9d ,k9d ,l'g? ( ,*utes ,illu/ration3 ,,fig4 #f4 ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#ae ,,appraisal ,(fice ,inspector ,railroad ,,/ock ,,y>ds ,date ,field ,inspector ,,location,numb],size ( ,date ( ,,wells ( ,y>ds ,completion ,p5s ,feet ,dep?,diamet] ,feet ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#ad ,,appraisal ,(fice ,inspector ,railroad ,,track ,,& ,,/ock ,,scales ,date ,field ,inspector ,,location,,"n ,,(,capacity ,l5g? ,date ,,scales ,tons ,built ,illu/ration3 ,,fig4 #g4 ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4#ac ,,appraisal ,(fice ,inspector ,railroad ,,/atem5t ,,( ,,miscellane\s ,date ,,build+s ,field ,inspector ,include 9 ?is report all %ops1 w>eh\ses1 c> h\ses1 wat*m5's %anties1 flagm5's build+s1 elevators1 g5]al (fice build+s & all o!r /ructures n specifically ask$ = 9 o!r reports4 ,,location,,description ,,size ,k9d ( ,date ( ,,( ,,build+ ,bldg41 ,brick1,completion ,/one or ,frame ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#ab ,,appraisal ,(fice ,inspector ,railroad ,,/ation ,,build+s ,date ,field ,inspector ,,location ,,description ,,size ,k9d ( ,date ( ,,/ations ,,( ,,build+ ,bldg41 ,brick1,completion ,/one or ,frame ,illu/ration3 ,,fig4 #h4 ,,?is ,,space ,,= ,,b9d+ ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#bb ,,appraisal ,(fice ,inspector ,railroad ,,real ,,e/ate ,date ,,n ,,us$ ,,= ,,railroad ,,purposes ,field ,inspector ,,location ,,description ,assess$ ,value ,,total ,,taxes ,,c\nty ,,assessm5t ,,am\nt ,,am\nt ,,di/rict ,,paid ,,?is ,,space ,,= ,,b9d+ ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#bc ,,appraisal ,(fice ,inspector ,railroad ,,miscellane\s ,,equipm5t ,date ,,roll+ ,,/ock ,field ,inspector ,location ,no4 ,"n ,description,capacity ,date ,co/ ,:5,rem>ks ,built ,new ,illu/ration3 ,,fig4 #i4 ,,?is ,,space ,,= ,,b9d+ ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#bd ,,appraisal ,(fice ,inspector ,railroad ,,%op ,,ma*9]y ,,& ,,tools ,date ,field ,inspector ,description ,mak] ,date ,built ,size ,co/ ,:5 ,new ,rem>ks ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#be ,,appraisal ,(fice ,inspector ,railroad ,,/eam ,,%ovels1 ,,dr$ges1 ,,pile ,date ,,driv]s ,field ,inspector ,,make ,,(,,prop]ty ,date ,size ( ,%op ,co/ ,pres5t ,,rem>ks ,,%ovel ,,( ,built ,dipp] ,numb] ,:5 ,value ,cu4 ,yds4 ,new ( ,new ,,mi*igan ,,railroad ,t4 ,c4 ,=m ,r4,r4#bf ,,appraisal ,(fice ,inspector ,railroad ,,docks ,,& ,,:>ves ,date ,field ,inspector ,,g5]al ,,description ,,items,own],us$,location,date ,type,dim5sions by ,built ,,quantities ,,values ,,rem>ks ,rods1 ,piles,lumb],excavation ,e/imat$ ,bolts1,l94 ,feet ,fill ,co/ ,nails1,feet ,b4,m4 ,dr$g+1 etc4 ,k9d ,k9d ,cu4 ,yds4 ,p\nds ,illu/ration3 ,,fig4 #aj4 ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4 #ba ,,appraisal ,(fice ,inspector ,railroad ,,classification ,,( ,,freight ,,c>s ,date ,field ,inspector ,,note3--,"u rem>ks specify :e!r box c>s are v5tilat$1 /ock c>s are s+le or d\ble deck1 gondolas are pla91 hopp] or drop bottom2 also any o!r special features4 ,,gr\ps ,class1 ,capacity,total ,,dim5sions ,,( ,,c> ,,body ,,by z 9 lbs4 weight ,,numb]s ,/ock1 ( c> ,gondola1 & ,flat1 trucks etc4 9 lbs4 ,outside ,inside ,l5g? ,l5g?,wid? ,height ov] end sills #a,no4 to ,no4 ,sup]/ructure ,"u ,,trucks ,brakes1,c\pl]1 wood1 /eel1 frame ,manual1 ,k9d or composite wood1 or air /eel1 or & composite s& ,k9d,size ( ,bol/]s1 j\rnal wood or /eel ,body,trucks ,date ,numb] ,co/ ( ,,rem>ks built ,9 ea* c> s]vicecomplete :5 new ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4 #bg ,,appraisal ,(fice ,inspector ,railroad ,,pass5g] ,,equipm5t ,division ,field ,inspector ,date ,,numb] ,class ,,dim5sion ,,trucks ,coa* #a1 ,,inside #b1 #c1 ,mail ,express1 ,comb4 ,,:eels ,,spr+s ,frame1 ,wood1 ,/eel or ,comb4 ,no4,size,k9d,rolet],equaliz] ,size ,size ,,int]ior ,,f9i% ,head ,,seats ,lights1 ,closet ,,sa% ,curta9s l9+ numb] & or ,wood1 & ,lavatory ,bl9ds ,/eel ,k9d or ,canvas ,comb4 ,no4,k9d ,d\ble,glass or ,plate ,s+leor ,d4 ,s4 ,,plat=m ,heat1 ,,build]s,date ,numb] ,direct ,builtn[ 9 ,/eam ,s]vice or ,heat] ,decoration,/eel ,ve/ibule ,c\pl] or ,v5tilator1or ,hook ,wood ,wide or ,n>r[ ,co/,,rem>ks :5 new ,,mi*igan ,,railroad ,t4,c4 ,=m ,r4,r4 #e ,,appraisal ,(fice ,inspector ,railroad ,,locomotives ,division ,field ,inspector ,date ,,note3-,co/ :5 new %\ld include orig9al co/ ( eng9e & t5d] plus orig9al co/ ( all accessories1 z brakes1 bell r+]1 s&]1 wat] scoop etc4 add$ :5 eng9e 0 pur*as$4 ,,place ,,( ,no4 ( ,type ,build],size ( ,weight ,pass41 ,,inspection,eng9es ( & ,cyl9d] )\t ,frt4 ,eng9e ,class ,t5d]1 lbs4 or ,swit* ,p4,f4 or ,s4 ,work+,empty ,ord] #a #b ,:5 ,new ,la/ ,c\pl$ ,driv]s ,k9d ( ,heavy ,headlight ,repairs ,date,co/,date,co/,numb] ,c5tres ,tires ,diam4,/eel,diam4,mak] or iron ,,boil] ,bell ,s&] ,r+] ,k9d,/eam ,total,g4,s4,la/ ,new ,/eam ,press4,h4,s4 ,sq4 ,boil] ,heat] ,built ,sq4 ,ft4 ,= ,ft4 ,date,co/ ,,brake ,,t5d] ,,rem>ks ,size,k9d ,tra9 ,wat] ,coal1,weight,wat] ( ( ,signal,gallons,tons ,empty ,scoop ,pump,brake lbs4 ,t a few *anges 7 made 9 #aijd 0 to h be5 expect$2 t ^! =ms 7 almo/ 9 _! entirety made a basis = ! simil> "w ( ! ,wiscons9 apprais]1 "s ?ree ye>s lat]1 0 9 ! nature ( a high complim5t & goes f> t[>d answ]+ ! criticisms ( ?is "p ( ! "w1 g5]ally to ! effect t ! =ms call = mu* m in=mation ?an c\ld possibly be us$1 & t !y %[ lack ( c>e 9 arrangem5t4 ,x may be said "h1 prop]ly1 t ! unc]ta9ty z to ! f9al attitude ( ! companies made x ess5tial t ! apprais] prep>e1 if ne$ be1 to make 8 inv5tory by p]sonal inspection 9 ! field4 ,inde$1 ?is 0 done 9 ! case ( sev]al roads1 &1 :ile mo/ ( ! companies f9ally accord$ e c\rtesy1 ei!r giv+ ! apprais] access to _! records1 or furni%+ ! in=mation desir$1 x is n probable t ! %ortness ( ! "t limit w\ld h enabl$ ! apprais] to secure any sort ( result _h a modifi$ plan be5 adopt$4 ,! law provid$ no requirem5t t ! companies %\ld furni% any in=mation4 ,9 ord] to secure ! data1 x w\ld h be5 necess>y to employ a l>ge numb] ( m51 & ?is w\ld h be5 su* a s]i\s exp5se to ! companies t refusal to comply w\ld probably h foll[$ su* a reque/4 ,_m ( ! companies _h no m5 9 _! s]vice able to prep>e ! requir$ data2 &1 f9ally1 eight or t5 m5 aft] hav+ work$ 9 ! files ( companies own+ reasonably full records1 7 mu* bett] able to take (f ! desir$ data intellig5tly f ! records ( o!r companies ?an m5 unfamili> ) ! ne$s ( ! apprais] & ) no prior exp]i5ce4 ,!n1 too1 ! "w secur$ 0 t ( "o body ( te*nical m51 all exp]i5c$ 9 diff]5t phases ( railway "w1 & ?us 0 uni=m & consi/5t4 ,_h sev5ty-five or eighty diff]5t m5 or sets ( m5 prep>$ ^! inv5tories1 !re w\ld c]ta9ly h be5 a great v>iation 9 _! wor? & reliability4 ,x mu/ be kept cle>ly 9 m9d t lack ( "t 0 ! ma9 feature :i* kept ! apprais] f consid]+ any su* plan ( co-op]ation ) ! railroads z 0 adopt$ lat] 9 ,wiscons9 & ,m9nesota1 & t no di/ru/ ( ! railroads1 or lack ( desire to co-op]ate1 _h any?+ to d ) ! apprais]'s decision to use ! me?od :i* 0 adopt$4 ,%ortly aft] ! prep>ation ( ! blanks1 access 0 grant$ to ! records ( ! ,ann ,arbor ,railroad1 & almo/ imm$iately !reaft] sev]al o!r companies op5$ _! files to ! apprais]2 ! ,/ate ,bo>d ( ,auditors det]m9$ to pay ! bills1 z approv$ by ! apprais]2 & ! initial difficulties 7 s f> remov$ t x 0 possible to c>ry out1 )\t any fur!r delays1 ! plan ( organization :i* _h be5 p]fect$4 ,! p]sonnel ( ! /aff 0 consid]$ to be ( ! greate/ importance1 &1 9 ! selection ( m51 ! requirem5ts desir$ 73 exp]i5ce 9 ! con/ruction & op]ation ( railroads1 ?or\gh te*nical tra9+1 high /&+ 9 ! ,pr(ession1 z %[n by memb]%ip 9 ! ,am]ican ,societies ( ,civil or ,me*anical ,eng9e]s1 or ( o!r ,societies ( high /&+1 & high moral "*4 ,politics1 resid5ce 9 ! ,/ate1 or local influ5ce1 _h absolutely no weight 9 ! selection ( any ( ! m54 ,9 a numb] ( cases m5 7 secur$ :o _h = "s ye>s occupi$ ! position ( ,*ief ,eng9e] ( important l9es4 ,9 a v l>ge numb] ( cases m5 :o 7 engag$ on ?is "w h s9ce its completion held ! position ( ,*ief or ,pr9cipal ,assi/ant ,eng9e] ( important railroads1 & practically all ( !m return$ to railway s]vice4 ,doz5s ( ^! m5 are well kn[n1 & _! "w des]ves t full cr$it %\ld be giv5 to ea*1 b x is impossible to d s )9 ! limits ( ?is pap]4 ,! m9or positions1 su* z assi/ants 9 ! field & 9 ! comput+ & compil+ rooms1 7 assign$ to y\ng] m51 g5]ally ) "s railroad exp]i5ce1 & 9 _m cases !y 7 graduates ( te*nical s*ools1 ,cornell1 ,yale1 ,r5ssela]1 ,mi*igan1 ,ohio ,/ate1 & o!r s*ools hav+ repres5tatives4 ,! writ] believes t no m h>moni\s or loyal organization 0 ev] ga!r$ toge!r be=e1 or has be5 s9ce4 ,m5 :o _h held ,*ief ,eng9e]-%ips trudg$ miles 9 ! wilds ( ,mi*igan on foot1 inspect+ & inv5tory+ prop]ty1 & came into ! (fice & work$ long h\rs at ! comput+ tables ) ! utmo/ *e]fulness & cam>ad]ie4 ,!re 0 complete h>mony1 absolute loyalty1 & z p]fect a _s ( unselfi% devotion to ! "w z ! writ] has ev] se5 9 any organization4 ,! fact t su* a /aff ( eng9e]s1 ( wide exp]i5ce 9 railroad con/ruction & ma9t5ance1 _h be5 assembl$1 made x feasible to c>ry out a plan ( ! apprais] :i* prov$ to be ( great value4 ,at frequ5t int]vals1 dur+ ! progress ( ! "w1 conf]5ces 7 held :i* 7 att5d$ by all ! heads ( dep>tm5ts & by _m ( ! old] & m exp]i5c$ eng9e]s4 ,matt]s ( policy1 details1 g5]al pr9ciples1 & rules & me?ods = conduct+ ! appraisal1 7 fully discuss$1 & /5ographic records 7 made ( ! discussion & conclusions4 ,^! conf]5ces cov]$ practically e "q t arose2 !y 7 ( su* a nature z to draw out ! op9ions ( ! m5 fully & freely2 & _! effect 0 to elim9ate ! error due to individual judgm5t1 & h>monize & unify ! me?ods & results ( ! appraisal4 ,special emphasis has be5 laid on ! organization ( ! /aff1 because ! criticism has be5 made t ?is "w 0 lack+ 9 c>e1 0 hurri$ly done1 & 0 unreliable4 ,! "w mu/ be judg$ by its results1 b ! criticism t x did n receive prop] c>e is absolutely unju/ifi$ 9 fact4 ,! m5 engag$ 7 ( ! highe/ type ( exp]i5c$1 te*nically educat$1 & highly qualifi$ eng9e]s2 !y ent]$ ! "w unres]v$ly1 & gave ! be/ !re 0 9 !m4 ,! ,mi*igan appraisal 0 n a "o-man job2 x 0 ! "w ( _m m51 & all are entitl$ to cr$it4 ,t "s m5 9 an organization su* z ?is1 ga!r$ f all ov] ! ,unit$ ,/ates1 %\ld prove to be lack+1 & %\ld fail to hold _! place ) _! fell[s1 0 to h be5 expect$4 ,t ! numb] ( su* m5 %\ld n exce$ half a doz5 0 rem>kable4 ,9 fact1 almo/ e su* case 0 f\nd :5 ! fir/ notes 7 return$ to ! (fice1 & 9 only two or ?ree in/ances 0 x necess>y to s5d a second man to d "w :i* _h be5 once cov]$4 ,9 sev]al cases m5 7 s5t ov] c]ta9 sections :i* _h be5 inspect$ by "s "o else1 ) a view ( gett+ an idea ( ! p]sonal judgm5t ( ! diff]5t m51 b 9 su* cases ! results 7 a/oni%+ly close1 & creat$ ! greate/ confid5ce 9 ! figures ( depreciation :i* 7 be+ receiv$4 ,look+ back on ?is "w1 aft] ! lapse ( #aj ye>s1 aft] hav+ fully review$ x twice1 & exam9$ all records1 aft] hav+ he>d ! m5 engag$ on x te/ify 9 c\rt1 & kn[+ ! record ( ^! m5 s9ce ! completion ( ! "w1 ! writ] believes himself fully ju/ifi$ 9 /at+ t1 no matt] :at op9ion may be held z to ! accuracy1 reliability1 or value ( ! result1 no *>ge ( c>elessness1 neglect1 undue ha/e1 or lack ( consid]ation c be su/a9$ z aga9/ ! /aff4 ,to /r5g!n ! "w fur!r1 to elim9ate ! elem5t ( p]sonal error1 to gu>d aga9/ ! dang] ( dull$ p]ceptions due to con/ant application to ! "w1 & to =e/all1 if possible1 e po9t ( objection to me?ods1 a ,bo>d ( ,review 0 *os5 by ,apprais] ,cooley to :om 7 ref]r$3 7a7 ,! me?ods ( inv5tory & valuation1 z det]m9$ by ! /aff2 7b7 ,all po9ts on :i* special discussion or diff]5ce ( op9ion 7 not$ 9 ! work+ conf]5ces2 7c7 ,que/ions z to elem5ts ( value 9 ! physical prop]ty :i* 7 9 !mselves n tangible or capable ( inv5tory2 & f9ally1 7d7 ,! results ( ! :ole "w4 ,! memb]s ( ?is bo>d 7 *os5 on acc\nt ( pre-em95t /&+ 9 ! ,pr(ession1 & on acc\nt ( exp]i5ce & prom95ce 9 railway eng9e]+4 ,! bo>d 0 compos$ ( f\r m51 z foll[s3 ,*airman1 ,octave ,*anute1 ,pa/-,presid5t1 ,am4 ,soc4 ,c4 ,e41 =m] ,consult+ ,eng9e]1 ,at*ison1 ,topeka1 & ,santa ,fe ,railway1 b at ! "t n engag$ 9 active railway "w4 ,george ,w4 ,vaughn1 ,m4 ,am4 ,soc4 ,c4 ,e41 ,eng9e] 9 *>ge ( ,track ,elevation 9 ,*icago4 ,*>les ,e4 ,gre5e1 ,m4 ,am4 ,soc4 ,c4 ,e41 ,dean ( ! ,s*ool ( ,eng9e]+1 ,univ]sity ( ,mi*igan4 ,*>les ,hansel1 ,m4 ,am4 ,soc4 ,c4 ,e41 =m] ,eng9e]1 ,waba% ,railroad1 =m] ,*ief ,eng9e]1 ,ill9ois ,railway & ,w>eh\se ,commission1 & at t "t ,g5]al ,manag] ( ! ,national ,swit* & ,signal ,company4 ,^! g5tlem5 7 n engag$ 9 any detail$ "w on ! appraisal2 !y came to ! "w = "o week ea* mon? ) m9ds entirely cle> ( all confusion rais$ by issues ( detail1 & 7 ?us enabl$ to pass z a c\rt ^u all matt]s laid be=e !m4 ,_! association 0 ( ine/imable value 9 giv+ confid5ce to ! memb]s ( ! /aff4 ,! _m ye>s ( railway s]vice ( ,messrs4 ,*anute & ,vaughn1 & _! unque/ion$ ability 9 t special field ( eng9e]+1 gave ! /amp ( f9ality to po9ts decid$ by !m4 ,! special k ( ,mr4 ,hansel 9 ! field ( signal eng9e]+1 & 8 kn[n ability z an exp]t 9 organization & adm9i/ration1 7 ( ! greate/ value4 ,! s]vice ( ,pr(essor ,gre5e 0 t ( ! analy/ & logician2 8 cle> & judicial m9d enabl$ him to =mulate ! f9al argum5ts 9 _m cases "u consid]ation4 ,! writ] wi%es to make x p]fectly cle> t he has n attempt$ to m9imize ! "w ( ,pr(essor ,cooley by /at+ ! exact relation ( ! _m eng9e]s on ! /aff to ?is "w1 b to br+ out & emphasize ! fact t no "o man1 or no two or ?ree m51 7 responsible = any s+le "p1 b t ! :ole repres5ts ! be/ ef=ts ( sixty or sev5ty exp]i5c$ m5 work+ to secure a fair1 hone/1 unprejudic$1 eng9e]+ e/imate along su* l9es z w\ld elim9ate1 z f> z possible1 all errors ( individual judgm5t4 ,x has nev] be5 claim$ = ! "w t x 0 p]fect1 or t x 0 entirely free f errors4 ,x has be5 & is claim$ = x t x probably repres5ts z close & cons]vative an e/imate ( co/ ( reproduction & depreciation z x w\ld be possible = any set ( m5 to make "u ! conditions !n exi/+4 ,pr(essor ,cooley 0 9 con/ant t\* ) ! "w1 knew its e detail1 pass$ ^u & approv$ e rule & ord]1 presid$ at e conf]5ce1 & no?+ m ?an 8 activity1 optimism1 & con/ant wat*ful c>e & tireless en]gy kept ! =ce at "w day & night & br\ght ab\t ! prompt completion ( ! details4 ,8 recogniz$ high /&+1 8 rem>kable ability z an executive & organiz]1 & 8 p[]s ( diplomacy1 m ?an any?+ else1 br\ght ab\t ! f9al acquiesc5ce ( ! railroad manag]s & kept up ! confid5ce ( ! ,/ate au?orities2 8 p]sonality p]vades ! entire "w4 ,aft] giv+ all due cr$it to ! /aff1 & !y 7 entitl$ to mu* cr$it1 ! real honor mu/ g to ,pr(essor ,cooley4 ,x 0 8 conception1 8 plan1 & ! brunt ( ! battle 0 84 ,(fice & ,field ,me?ods4 ,! prelim9>ies ( ! organization hav+ be5 complet$1 & ! =ms prep>$1 a portion ( ! work+ =ce 0 br\ght on ! gr\nd1 & ! "w 0 actively comm5c$4 ,x 0 subdivid$ into f\r p>ts3 7#a7 ,(fice inspection1 or inv5tory2 7#b7 ,field inspection2 7#c7 ,computation2 7#d7 ,compilation = ! p]man5t record4 ,! m5 *os5 z field inspectors 7 old & exp]i5c$ railroad eng9e]s4 ,z f> z possible1 !y 7 assign$ = a %ort p]iod to (fice inspection1 !n !y 7 s5t into ! field1 aft] :i* !y work$ at ! computation ( values2 s t ea* man 0 engag$ on _m diff]5t phases ( ! "w1 & h&l$ ! notes ( _m ( 8 fell[s1 & no "o man made up "o complete appraisal1 except z specially not$4 ,mak+ ! ,inv5tories4--,(fice inspection1 or ! prep>ation ( inv5tories1 0 assign$ to p>ties usually ( "o or two exp]i5c$ m5 ) f two to f\r y\ng] eng9e]s z assi/ants 9 ! comput+-room4 ,^! m5 w5t to ! g5]al (fices ( ! railroad companies & made a complete exam9ation ( maps1 pr(iles1 bridge & build+ records1 records ( motive p[]1 roll+ /ock1 etc4 ,9 %ort1 !y prep>$1 z f> z x 0 possible to d s1 a complete inv5tory ( e build+1 /ructure1 or piece ( prop]ty own$ by ! road2 !y took (f complete ab/racts ( real e/ate & "r-(-way records2 !y not$ pr9cipal y>ds & t]m9als1 & secur$ maps ( su* z 7 mo/ complex1 or furni%$ li/s ( su* maps & records z 7 mo/ ess5tial = ! field m51 & !y made z complete a report z possible ( ! corporate hi/ory ( ! road & ! g5]al condition ( its eng9e]+ records4 ,no ef=t :atev] 0 made to exam9e or audit ! f9ancial books ( any company1 or to secure f su* books any data z to co/ ( prop]ty2 ! "w 0 entirely limit$ to ! li/+ ( physical prop]ty4 ,mo/ ( ! railroad companies co-op]at$1 & gave access to _! records2 "o or two fill$ 9 ! =ms2 a numb] _h practically no records1 & only "o or two companies )held in=mation4 ,reque/s = blue pr9ts ( l>ge y>ds & t]m9als1 & ( plans ( /&>d /ructures 7 g5]ally grant$ *e]fully1 &1 al?\gh !re 0 no su* _s ( co-op]ation z 0 %[n lat] by ! ,wiscons9 roads1 mu* labor 0 sav$ by ! data furni%$4 ,! result ( ! (fice inspection 0 ! fil+ ( inv5tories1 :i* 7 g5]ally q complete1 ! secur+ ( maps & plans1 ! ga!r+ ( data z to prevail+ prices ( labor & mat]ial1 & ! secur+ ( "s v valuable co/ data z to special /ructures & classes ( /ructures4 ,all inv5tories 7 made up = roads1 or = divisions ( roads1 ) ea* class ( prop]ty li/$ sep>ately1 = example1 /ation build+s1 int]lock+ plants1 bridges1 etc41 s t1 if necess>y1 any special class ( inspection might be assign$ to "o man1 :ile to o!rs c\ld be assign$ ! rema9d] ( ! "w on t p>ticul> road or division4 ,(fice ,inspection z a ,*eck on ,field ,"w4--,! (fice inspection furni%$ _m valuable data = *eck+ ! judgm5t ( ! field m54 ,= example1 ! numb] ( cubic y>ds ( excavation & embankm5t on probably ! great] "p ( ! mileage _h to be secur$ by ! field inspectors1 ei!r because ! records _h n be5 kept or ! *anges ( l9e & grade _h be5 s ext5sive z to de/roy _! reliability4 ,e field inspector1 !re=e1 made 8 own e/imate ( ! y>dage ( pay e>?4 ,! (fice inspection reports1 h[ev]1 gave reliable data 7f pr(iles or orig9al contract e/imate files7 ( ! actual y>dage on possibly #bjjj or #cjjj miles ( l9e1 s widely scatt]$ t x con/itut$ a *eck on ! "w ( a majority ( ! field m54 ,?is "w ( (fice inspection disclos$ ! foll[+ po9ts1 :i* w be practically common to all l>ge valuation jobs3 7a7 ,!re 0 no uni=mity ( me?od 9 ! keep+ ( records ( p]man5t way & /ructures2 7b7 ,!re 0 a va/ am\nt ( c>elessness 9 keep+ records up to date1 ev5 on ! l>g] roads2 7c7 ,! small] roads1 n only _h little or no?+ 9 ! way ( records1 b _h 9 _m cases no dep>tm5t ) employees qualifi$ to make or keep su* records2 7d7 ,! pur*ase ( new equipm5t1 ! con/ruction ( new build+s & bridges1 & ! de/ruction1 sale1 or removal ( old prop]ty1 create a condition ( cont9u\s *ange :i* is seldom record$ by ei!r op]at+ or acc\nt+ (ficials1 & makes book inv5tories d]iv$ f ! roads ( v d\btful value = use 9 an appraisal4 ,field ,inspection4--,! decision _h be5 rea*$1 aft] c>eful discussion1 n to p]mit ! field inspectors to place a money value on any /ructure1 b to exam9e x1 make a full description ( x 9 all p>ticul>s1 & assign to x a p]c5tage :i* %\ld repres5t ! pres5t value1 or ! depreciation f a simil> new /ructure rat$ at #ajj p] c5t4 ,! field inspectors 7 furni%$ ) ! records ( ! (fice inspection cov]+ ! di/rict assign$4 ,!y 7 giv5 notebooks1 tape l9es1 & v>i\s blanks = report+ progress & record+ orig9al e/imates 9 ! field4 ,provision 0 made = inspection by ! field m51 ei!r by ! use ( h&-c>s1 gasol9e inspection c>s1 or velocip$e c>s1 al?\gh1 ) "o or two ( ! roads1 no satisfactory arrangem5t c\ld be made1 & ! m5 7 compell$ to g on foot4 ,a c>eful inspection ( e /ructure 0 made4 ,if any correction to ! (fice inspection record 0 necess>y1 x 0 made2 if ! /ructure 0 new1 x 0 c>efully measur$ & describ$1 & ev]y?+ not$ :i* w\ld be ( s]vice 9 e/imat+ its value4 ,side-tracks 7 measur$1 & ! weight & type ( rail not$4 ,all culv]ts & bridges 7 exam9$1 describ$1 & _! condition not$4 ,e/imates 7 made ( excavation & embankm5t1 cle>+ & grubb+1 etc4 7bas$ on ! /&+ timb] at ! "t ( ! exam9ation71 & c>eful e/imates 7 made ( classifications ( mat]ial4 ,! records ( ! field inspector g5]ally conta9$ only ! description & ! p]c5tage1 b1 occasionally1 :5 app>5tly valuable in=mation z to co/ ( any p>ticul> /ructure 0 available x 0 not$1 z 0 special in=mation ( local matt]s affect+ ! value ( any "p ( ! "w4 ,x 0 ! plan 7c>ri$ out ) b few exceptions7 to complete ! record ) ! field inspector s t f 8 notes a full & accurate descriptive inv5tory might be made4 ,!re 7 a few exceptions to ! g5]al me?od ( field inspection "w z outl9$1 :i* 73 ,special ,"w on ! ,*icago & ,nor?we/]n ,railway4--,! ,*icago & ,nor?we/]n ,railway _h no records ( any sort1 all con/ruction pap]s hav+ be5 de/roy$ by fire4 ,?is company organiz$ & plac$ 9 ! field f\r complete eng9e]+ p>ties1 ea* "u "o ( its own eng9e]s1 & ) ea* p>ty 0 s5t "o field inspector4 ,! l9e 0 c>efully survey$ & cross-section$1 & complete records ( e build+ & /ructure 7 made1 side-tracks 7 measur$1 & data tak5 = rail & balla/ *>ts1 etc4 ,all "w 0 done 9 ! pres5ce ( ! field inspector1 & he 0 giv5 copies ( all notes4 ,he plac$ 8 own p]c5tage ( depreciation on ev]y?+4 ,! e/imates1 made up indep5d5tly by ! ,*icago & ,nor?we/]n eng9e]s & ! appraisal /aff1 us+ 9 ! latt] case ! same unit prices z appli$ else:]e 9 ! ,upp] ,p59sula1 v>i$ less ?an #b p] c5t4 ,special ,valuations4--,c]ta9 special /ructures1 su* z ore docks & ore & coal h&l+ ma*9]y1 7 ( su* a "* z to require exp]t appraisal4 ,^! 7 exam9$ 9 ! field1 apprais$1 & valu$ by ,g4 ,h4 ,hut*9son1 ,m4 ,am4 ,soc4 ,c4 ,e41 ^: special tra9+ & exp]i5ce 9 su* "w _h qualifi$ him p]haps bett] ?an any o!r man4 ,int]lock+ & signal+ plants 7 specially apprais$ by ! late ,elliot ,f4 ,moore1 :o = #aj ye>s _h be5 ,eng9e] ( ! ,mi*igan ,railroad ,commission1 & ^: intimate p]sonal k ( almo/ e plant 9 ! ,/ate specially qualifi$ him = ?is "w4 ,"s ( ! bridges 7 ( su* a "* z to require exp]t k1 & ?is inspection 0 assign$ to ,william ,dunb> ,j5k9s1 ,m4 ,am4 ,soc4 ,c4 ,e41 a man ( ripe exp]i5ce & s\nd judgm5t4 ,! l>g] & m elaborate /ation build+s 7 exam9$ & apprais$1 & values f9ally plac$ by ,mr4 ,f4 ,g4 ,susemihl1 ,*ief ,ar*itect ( ! ,mi*igan ,c5tral ,sy/em1 ^: special "w 9 railway build+s made him ?or\ghly famili> ) ^! values4 ,"w equipm5t & special equipm5t 7 apprais$ by ,mr4 ,g4 ,l4 ,lewis1 :o _h be5 connect$ ) ! ,m>ion ,/eam ,%ovel ,company = _m ye>s4 ,except = ^! special assignm5ts1 all ! field inspection 0 h&l$ 9 accordance ) ! apprais]'s plan4 ,z /at$ previ\sly1 9 only two or ?ree cases 0 x necess>y to re-inspect1 &1 :ile sev]al sections 7 int5tionally gone ov] a second "t1 )\t lett+ ! field inspector "k :o _h done ! "w previ\sly1 or :at 8 p]c5tages _h be51 ! result ( all ^! *ecks 0 to ju/ify ! figures 9 ! e>li] inspection & to /r5g!n confid5ce 9 ! "w4 ,! field inspection ( ! ,me*anical ,dep>tm5t involv$ exam9+ & plac+ a p]c5tage value on ea* locomotive1 pass5g] c>1 & piece ( special equipm5t1 & on all %op ma*9]y4 ,inasmu* z sev]al po9ts ( special int]e/ are involv$ 9 ?is inspection1 x w be discuss$ at m l5g? 9 ! section ( ! pap] relat+ to ! me?ods ( "w ( ! ,me*anical ,dep>tm5t4 ,computation4--,aft] ! completion ( ! field inspection1 all notes 7 plac$ 9 ! h&s ( ! comput+ =ce4 ,?is organization consi/$ ( two classes ( m51 eng9e]s br\ght 9 f field inspection1 & y\ng] eng9e]s4 ,all computations 7 made indep5d5tly by two m51 & all "w 0 *eck$ c>efully4 ,e man 9 ! comput+ room 0 furni%$ a l>ge b\nd blank-book1 9 :i* he 0 requir$ to make all 8 notes & computations1 no figures ( any sort be+ made on loose pap]4 ,! "n ( ea* man 0 plac$ on 8 notebook1 & ea* set ( field & (fice inspection notes work$ ^u by him 0 sign$ ) 8 initials4 ,x 0 easy to trace ! "w ( e man1 & 9 ! subsequ5t trial ( ! ,tax ,cases1 e man 9 ! s]vice return$1 &1 n only te/ifi$ z to 8 (fice & field inspection1 b 0 able to turn to & id5tify all ! computations made by him1 & produce 8 orig9al figures & memor&a4 ,v soon x became evid5t t su* a volume ( reports1 notebooks1 memor&a1 maps1 plans1 pamphlets1 & o!r data 0 be+ accumulat$ t1 unless a special sy/em 0 develop$ = fil+ & h&l+ 9 ! (fice1 ! confusion w\ld be s]i\s & co/ly4 ,fil+ 9 ,(fice4--,! sy/em ( fil+ & record keep+ _h ! m]it ( be+ simple & inexp5sive4 ,!re 0 borne 9 m9d1 9 devis+ ?is plan1 ! necessity ( keep+ all pap]s connect$ ) "o division ( any road toge!r1 ! ne$ = r$uc+ to a m9imum ! labor ( fil+ & index+1 ! con/ant use ( pap]s1 & _! frequ5t )drawal f ! files1 mak+ x necess>y t !y c\ld be at once locat$ :5 !y 7 n 9 ! files4 ,! vault 9 ! apprais]s' (fice 0 arrang$ s t l>ge manilla envelopes1 ea* ( suffici5t size to hold all ! reports1 notes1 maps1 etc41 ( ea* road or division1 c\ld be fil$ v]tically4 ,ea* road 0 giv5 a numb]2 if !re 7 sev]al divisions1 ea* division 0 giv5 a lett]1 z #ae-;,a1 #ae-;,b1 etc41 & ea* division 0 fil$ sep>ately4 ,e report1 book1 map1 or o!r pap] 0 /amp$ ) its road or division numb] & lett]1 & giv5 a %eet numb]4 ,9 ?is mann] e pap] 0 id5tifi$1 & c\ld be at once plac$4 ,a record 0 kept 9 a book1 describ+ e pap] fil$ 9 ea* envelope4 ,9 issu+ pap]s = "w1 ! entire file 0 tak5 & kept toge!r at all times4 ,"o man _h *>ge ( ! fil+ & record+1 & no "o else 0 p]mitt$ to ent] ! vault4 ,:5 a file 0 )drawn1 a receipt 0 tak51 & 0 put 9 ! place ( ?is file2 & :5 ! pap]s 7 re/or$ to ! vault ! receipt 0 de/roy$4 ,! sy/em prov$ adequate1 & 0 mu* less cumb]some ?an a m elaborate sy/em ( c>d index+ ( sep>ate pap]s c\ld possibly h be54 ,! net result ( (fice & field inspection _h be5 an inv5tory bas$ on ! railroad records1 *eck$ by a man 9 ! field1 ) a p]c5tage repres5t+ ! field inspector's judgm5t z to depreciation1 toge!r ) a consid]able numb] ( special data z to orig9al co/1 etc4 ,x 0 n[ necess>y to place figures ( e/imat$ co/ ( reproduction & depreciation 9 t]ms ( money4 ,! ,/ate ( ,mi*igan is made up ( two p59sulas1 widely sep>at$1 ) radically diff]5t conditions prevail+ z to c]ta9 items ( ! co/ ( con/ruction4 ,computation ,tables4--,?is appraisal involv$ sev5ty-eight incorporat$ & =ty-sev5 un9corporat$ railroads4 ,x 0 necess>y to adopt su* a sy/em z w\ld apply uni=m me?ods & prices to all l prop]ty4 ,accord+ly1 ! field inspectors 7 assembl$1 &1 aft] conf]5ce1 x 0 det]m9$ to prep>e a set ( tables1 cov]+ all classes ( railway con/ruction1 mat]ial1 & /ructures1 values be+ comput$ = #ajj value1 & = ea* #aj depreciation4 ,^! tables cov]$ diff]5t weights1 sizes1 & types ( /ructures & mat]ial1 & 7 all comput$ on ! basis ( ! agre$ e/imat$ co/4 ,unit ,prices4--,! unit prices 7 ! result ( a mo/ c>eful /udy & discussion4 ,= _m items1 su* z cle>+1 grubb+1 e>?work1 masonry1 etc41 ! price 0 fix$ by agreem5t dur+ ! discussion at a figure :i* repres5t$ ! fair av]age co/ ( ?is p>ticul> item dur+ ! #e-ye> p]iod prec$+ ! appraisal4 ,= rails & rail /ructures1 an av]age price 0 secur$ f m>ket quotations = a p]iod ( #aj ye>s1 a price 0 det]m9$ z ! value ( scrap1 & ! p]c5tage ( depreciation 0 appli$ to ! we>+ value ( ! rail4 ,! unit price 0 #bh2 ! agre$ scrap value 0 #ab1 leav+ #af z ! we>+ value ( ! rail4 ,if an inspector report$ rail at #ij1 or at #cj1 ?is p]c5tage 0 tak5 f ! #af we>+ value & to ?is 0 add$ ! scrap value4 ,! tables 7 arrang$ s t1 = any weight ( rail & any p]c5tage1 ! co/ ( reproduction & ! pres5t value c\ld be tak5 f ! tables 9 doll>s p] mile4 ,! same 0 true ( bolts1 spikes1 angle-b>s1 fi%-plates1 & frogs & swit*es4 ,9 ! case ( mat]ial su* z ties1 :]e no scrap value c\ld be atta*$1 ! p]c5tage 0 appli$ directly to ! fir/ co/4 ,9 ! case ( bridges1 ! tables gave weights p] foot & p] span = v>i\s l5g?s1 types ( /ructures1 & load+s1 & only ! co/ ( reproduction 0 e/imat$4 ,e/imat$ co/s p] cubic foot 7 d$uc$ = build+s ( v>i\s /&>d railroad types & p] squ>e foot = depot plat=ms4 ,^! figures 7 obta9$ by r$uc+ to ?is basis ! co/ ( a l>ge numb] ( build+s ( kn[n co/1 by comp>ison ) data obta9$ f railroad companies & f a numb] ( eng9e]s :o _h kept su* records1 & by consultation ) ar*itects4 ,^! build+ tables did n apply to ! m elaborate & co/ly /ructures1 all ( :i* 7 apprais$ specially4 ,balla/+1 track lay+1 & surfac+ 7 divid$ into ?ree & f\r classes1 9 ord] to cov] ! diff]5t g5]al types ( railroads1 & prices p] mile 7 fix$4 ,on ,upp] ,p59sula roads balla/+ 0 e/imat$ at a high] price ?an on ,l[] ,p59sula roads1 :ile ties & timb] con/ruction 7 e/imat$ at a l[] figure4 ,9 addition to ^! prices1 secur$ by av]ag+ sev]al ye>s' quotations1 or by agreem5t ( exp]i5c$ con/ruction eng9e]s1 _m valuable figures 7 obta9$ f manufactur]s ( locomotives1 c>s1 me*anical equipm5t1 & bridges2 & 9 sev]al cases access 0 giv5 to ! me*anical co/ data ( ! l>g] roads4 ,specifications = locomotives1 c>s1 & %op tools 7 s5t out to build]s ) a reque/ t !y give av]age prices = a p]iod ( ye>s4 ,f all ?is mass ( data ! unit prices = ! valuation 7 det]m9$4 ,= locomotives1 values 7 plott$ = eng9es ( diff]5t weights1 9 ord] to e/abli% a curve1 & curves repres5t+ det]ioration1 scrap value1 & major repairs 7 also plott$1 s z to asc]ta9 diagrammatically ! value ( an eng9e ( giv5 weight & /at$ condition4 ,! tables & diagrams prov$ ( incalculable b5efit 9 r$uc+ ! "w1 & 9 secur+ t absolute uni=mity ( me?od necess>y to give ! appraisal /&+4 ,x may n be amiss to /ate "h t 9 su* a "w no set ( unit prices c\ld possibly be adopt$ :i* w\ld n "w "s app>5t inju/ice4 ,a numb] ( ,mi*igan lumb] roads 7 ( ! *eape/ possible type ( con/ruction1 & any unit price appli$ to ties or timb]1 :i* w\ld be at all reasonable = su* roads z ! ,mi*igan ,c5tral1 ,gr& ,rapids & ,indiana1 ,p]e ,m>quette1 & o!rs1 w\ld be f> 9 excess ( ! actual money paid out by ^! little roads4 ,a few individual in/ances ( su* app>5t discrepancy 7 cause ( compla9t & criticism1 b1 on analysis1 v g5]ally1 ^! did n appe> to be any?+ b a disagreem5t ) book values1 9 :i* ties cut (f ! "r ( way 7 treat$ z hav+ no co/2 or 9 "s simil> item c]ta9 local conditions may h made ! fir/ co/ s l[ z to am\nt to a donation ( prop]ty4 ,conc$+ ! propriety ( ! objections1 ! reason = mak+ ! appraisal 0 to furni% in=mation on :i* ! legislature might det]m9e :e!r ! ,/ate %\ld g f a specific to an ad valorem basis1 & 9 view ( ?is purpose ! objections became unimportant1 z !y appli$ to b a few miles ( road4 ,classification4--,all "w ( computation 0 classifi$ 9 /rict accordance ) ! ,int]/ate ,comm]ce ,commission's classification ( con/ruction acc\nts1 to :i* 7 add$ "o or two classifications n recogniz$ by t ,commission1 & f9al summ>ies 7 return$ on %eets simil> to ^? illu/rat$ by ,figs4 #a to #aj4 ,9 comput+1 ! /aff made use ( all data ( e nature :i* 0 be=e !m1 *eck$ ! judgm5t ( ! field inspector :]ev] any reliable data 7 furni%$1 took into acc\nt age1 special notes1 or co/s1 &1 9 case ( any s]i\s discrepancy 9 8 p]c5tage1 report$ to ! head ( ! dep>tm5t = ei!r a re-inspection or = a conf]5ce ) ! apprais] & inspector4 ,9 ?is dep>tm5t e possible safegu>d 0 ?r[n ar\nd ! "w to insure its absolute ma!matical correctness1 & to gu>d aga9/ errors 9 ! p]sonal equation4 ,compilation4--,aft] ! calculations 7 *eck$ & complet$ !y pass$ to ! compil]s1 :o arrang$ & classifi$ !m1 & prep>$ ! =m ( ! f9al report4 ,?is consi/$ ( a detail$ li/ ( e piece ( prop]ty & e /ructure1 ) a %ort description & specification1 & a /atem5t ( e/imat$ co/ ( reproduction & pres5t value4 ,! division is made by roads1 by divisions ( roads1 & by c\nties4 ,?is 0 done aft] ! completion ( all o!r "w1 & ! disb&+ ( ! organization1 a small =ce be+ reta9$ by ! ,/ate to compile & put 9 p]man5t =m all ! pap]s ( ! appraisal4 ,?is "w 0 done "u ! direction ( ,messrs4 ,james ,walk] & ,o4 ,c4 ,le ,su] 9 consultation ) ,pr(essor ,cooley4 ,! f9al compilations 7 typewritt5 on l>ge %eets & b\nd1 & con/itute ! f9al record ( ! physical valuation4 ,aft] ! completion ( ! #aijj appraisal1 all pap]s connect$ ) ! "w ( ! comput+ (fice 7 arrang$ 9 prop] ord] & b\nd4 ,special ,problems ( ! ,me*anical ,dep>tm5t4 ,! ,civil ,eng9e]+ section dealt :olly ) fix$ prop]ty locat$ entirely )9 ! ,/ate2 & ! "w (f]$ no special difficulties 9 ! way ( assignm5t ( values4 ,x is true t1 :5 ! "q ( t]m9al values 0 "u discussion1 ! ,wiscons9 & ,mi*igan ,railroad (f]$ a v pretty example1 9 t ! rev5ue-produc+ half ( its mileage lay 9 ,mi*igan1 :ile its %ops1 y>ds1 docks1 & c> f]ries1 compris+ ! great bulk ( its physical prop]ty1 7 9 ,wiscons94 ,?is in/ance m]ely emphasiz$ ! fact t no ,/ate valuation ( an int]/ate prop]ty c settle f9ally & def9itely all ! que/ions t arise4 ,assignm5t ( ,value to ,/ates4--,! ,me*anical ,dep>tm5t 0 compell$ to h&le ! valuation ( mov+ prop]ty1 & to assign values z betwe5 ! ,/ates on su* a basis z w\ld be fair to all p>ties4 ,! ,c\rts h be5 incl9$ to view ! di/ribution ( values betwe5 t]ritorial units on ! track-mileage basis z be+ a fair "o4 ,! /udy ( ! problem 9 ,mi*igan indicates t :ile ?is me?od1 p]haps1 is j 9 mo/ cases1 x w n hold 9 all4 ,assignm5t 0 made ^u sev]al bases1 z foll[s3 7a7 ,ma9-l9e mileage2 7b7 ,total track-mileage2 7c7 ,c>- & locomotive-mileage ( equipm5t op]at+ 9 ,mi*igan2 7d7 ,c>- & locomotive-mileage1 entire equipm5t2 7e7 ,freight-c> mileage ( ! entire sy/em4 ,! results secur$ by ^! diff]5t me?ods %[1 9 _m cases1 v little diff]5ce2 all are close1 & no inju/ice is work$ by any me?od1 :ile1 9 o!r cases1 ! figures are widely div]g5t4 ,! ,lake ,%ore & ,mi*igan ,s\!rn ,railway owns a high-class ma9 l9e betwe5 ,*icago & ,buffalo1 & = "p ( ! way !re are two l9es sev]al miles ap>t2 ! entire l9e is d\ble-track$1 & !re is mu* ?ird track4 ,none ( ?is l9e is locat$ 9 ,mi*igan1 except "s #hj miles ( s+le-track ma9 l9e ( ! ,mi*igan ,division betwe5 ,tol$o & ,elkh>t4 ,! company1 h[ev]1 has sev]al hundr$ miles ( bran* l9e 9 ,mi*igan1 :i* comprises mo/ ( ! bran*-l9e mileage ( its sy/em4 ,^! l9es1 g5]ally1 are f> inf]ior to its ma9 l9e4 ,any apportionm5t ( its equipm5t betwe5 ,/ates on ! basis ( ei!r l9e-mileage1 total track-mileage1 or locomotive- & equipm5t-mileage ( total equipm5t w result 9 ! assignm5t to ,mi*igan ( a value f> 9 excess ( a prop] or fair am\nt4 ,an apportionm5t ( locomotive & pass5g]-c> equipm5t on ! basis ( equipm5t-mileage or equipm5t op]at+ 9 ! ,/ate1 & = freight c>s on ! basis ( c>-mileage ( total equipm5t1 0 f\nd to be mo/ fair4 ,9 mak+ ! assignm5t ( values1 ?is /udy 0 made = all int]/ate roads1 & su* basis us$ z 0 app>5tly mo/ fair 9 ea* case1 ! dep>tm5t mak+ a special ef=t n to assign to ,mi*igan undue values or ^? :i* c\ld n be su/a9$4 ,freight ,c> ,inspection4--,"o ( ! mo/ p]plex+ problems :i* 0 fac$ by ! ,me*anical ,dep>tm5t 0 ! prop] & satisfactory inspection & valuation ( freight equipm5t4 ,! freight c>s own$ by ! companies 7 scatt]$ ov] ! ,unit$ ,/ates & ,canada1 & ! inspection ( any consid]able p]c5tage ( ^? own$ by any company 01 ( c\rse1 an impossibility4 ,! fact t ^! c>s _h be5 pur*as$ 9 s]ies1 s t !re 7 consid]able numb]s 9 a gr\p1 all ( ! same age1 & built accord+ to ! same specifications1 made possible a valuation by gr\ps4 ,! acceptance1 h[ev]1 ( any arbitr>y p]c5tage ( depreciation by ye>s1 or ! acceptance ( ! rules ( depreciation ( ! ,ma/] ,c> ,build]s ,association1 )\t mak+ indep5d5t inve/igation ) a view ( e/abli%+ ! correctness ( ! rule1 appe>$ to be unwise4 ,! sev]al companies submitt$ c>efully prep>$ /atem5ts ( equipm5t4 ,^! /atem5ts 7 comp>$ ) ! equipm5t regi/] & ! reports to ! ,commission] ( ,railroads4 ,! prices us$ 7 ^? ( ! rules ( int]*ange ( ! ,ma/] ,c> ,build]s ,association :]ev] applicable4 ,prices 7 furni%$ by ! lead+ manufactur]s1 & 9 _m cases 7 secur$ f ! books ( ! railroad company4 ,9 ord] to det]m9e ! condition ( ! equipm5t1 ! inspectors ( ! dep>tm5t p]sonally exam9$ #cb1jjj freight c>s 9 ,mi*igan & adjo9+ ,/ates4 ,_! reports 7 sep>at$1 classifi$1 & analyz$ by gr\ps1 ) ! result t ! inspection fully confirm$ & ju/ifi$ ! use ( ! rule = depreciation ( ! ,ma/] ,c> ,build]s ,association1 :i* 0 !re=e appli$4 ,9 ! #aijb appraisal ?is rule 0 accept$ )\t any inspection or fur!r /udy ( ! problem4 ,! criticism ( ?is "p ( ! "w by ! apprais] ( ! ,/ate ( ,wa%+ton is :olly unju/ifi$1 z ! "w 0 necess>y 9 ord] to qualify 9 ,c\rt & def5d ! rule adopt$1 & ! actual co/ ( ! "w 0 small4 ,locomotives4--,! inv5tory ( locomotive equipm5t 0 secur$ f ! companies1 & *eck$ aga9/ reports & ! equipm5t regi/]4 ,p]sonal inspection 0 made ( e locomotive 9 ! ,/ate1 !n a complete description 0 prep>$1 & ! p]c5tage ( depreciation assign$4 ,curves ( depreciation _h be5 comput$ & plott$1 & ! figures ( ! inspectors 7 comp>$ c>efully ) ! curve 9 ord] to elim9ate possible errors4 ,vessels4--,pr(essor ,sadl]'s appraisal ( vessels involv$ a p]sonal exam9ation ( e vessel4 ,?is survey includ$3 7a7 ,! hull ( ! vessel & g5]al equipm5t2 7b7 ,! ma*9]y & boil]s4 ,an indep5d5t e/imate ( ! co/ ( reproduction & depreciation 0 made1 &1 :]ev] possible1 ?is 0 *eck$ by comp>ison ) ! detail$ orig9al co/4 ,9 case ( mat]ial diff]5ce1 v>i\s %ipbuild]s 7 consult$1 & indep5d5t e/imates ( co/ 7 secur$4 ,9 e case ^! latt] e/imates 7 confirmatory ( ! e/imat$ co/ ( reproduction1 :i* figures 7 us$ ?r\gh\t ! appraisal4 ,ov]head ,*>ges4 ,!re are c]ta9 exp5ses connect$ insep>ably ) ! con/ruction ( any public "w1 :i*1 on ! completion ( t "w1 are n capable ( physical id5tification1 b :i*1 nev]!less1 belong to & mu/ be a "p ( ! co/ ( ! physical prop]ty4 ,^! exp5ses are legitimate2 &1 z long z ! prop]ty is op]at$1 a v l>ge "p1 if n all1 ( ! entire exp5se rema9s 9 ! pres5t value ( ! prop]ty z a go+ conc]n4 ,apprais] ,cooley & 8 /aff took up ! discussion ( ^! items & dispos$ ( ^? :i* 7 c>ri$ into ! valuation by ! plac+ ( a p]c5tage4 ,^! items are3 ,eng9e]+4--,?is cov]$ all ! co/ ( prelim9>y & location surveys1 design1 & sup]vision ( con/ruction ( ! "w1 & all exp5ses connect$ !re)4 ,?is 0 cov]$ by a *>ge ( #d ( ! co/ ( reproduc+ ! p]man5t way & /ructure1 b n ! equipm5t4 ,legal ,exp5se4--,?is item is insep>able f ! con/ruction "w1 & 0 fix$ at "o-half ( #a ( ! co/ ( ! same items z affect$ by ! eng9e]+ *>ge4 ,organization ,exp5se4--,?is cov]$ ! co/ ( promotion1 f9anc+1 & g5]al sup]vision ( con/ruction1 toge!r ) g5]al (fice exp5se4 ,^! items 7 cov]$ by an application ( #a ( ! co/ ( ! above items4 ,int]e/4--,?is item is int5d$ to cov] int]e/ on money dur+ ! p]iod ( con/ruction4 ,! l5g? ( "t tak5 to build w\ld1 ( c\rse1 be v>iable4 ,x 0 assum$ t #c on ! entire co/ ( con/ruction & equipm5t w\ld be cons]vative1 & ?is figure 0 us$4 ,disc\nt on ,bonds4--,?is 0 n includ$1 = ! reason t x 0 consid]$1 n z a prop] capital *>ge1 b r z an adju/m5t ( ! int]e/ rate to ! exi/+ m>ket condition1 & z *>geable to int]e/ acc\nt & n capital4 ,! discussion among memb]s ( ! /aff indicat$ su* a wide range ( op9ion z to ! prop] p]c5tages to apply1 t ! f9al det]m9ation ( ! rates 0 pass$ ^u by ! ,bo>d ( ,review4 ,!re c be no "q z to ! propriety ( ^! items z prop] elem5ts 9 ! fir/ co/ ( con/ruction ( a new railroad4 ,on ! !ory t ! co/ ( reproduction ( ! physical prop]ty %\ld include e item ( exp5se :i* w\ld ent] into ! co/ ( reproduc+ ! prop]ty z x exi/$ on ! date ( ! appraisal1 !y are prop] t]ms to include 9 ! appraisal4 ,z to :e!r ! fix$ rates 7 high en\gh 9 e case1 is an op5 "q4 ,! ,*>ge ( ,t5 ,p] ,c5t4 = ,cont+5cies4--,p]haps no s+le feature ( ! ,mi*igan appraisal ( physical prop]ty has be5 s g5]ally criticis$ z ! *>ge ( #aj ( ! entire e/imat$ co/1 includ+ all ! p]c5tage *>ges1 to cov] cont+5cies4 ,at ! "t ! fir/ appraisal 0 made1 ! writ] 0 n at all satisfi$ t su* an item1 9 su* am\nt1 %\ld be includ$4 ,! reasons advanc$ 7 s /rong t x 0 done1 & ! writ]'s subsequ5t "w has fully conv9c$ him t x 0 prop] & ju/ifiable1 because3 7a7 ,! conditions "u :i* ?is p>ticul> inv5tory & appraisal 7 made1 z to "t & lack ( co-op]ation ( ! companies1 made x practically c]ta9 t "s items ( value 7 miss$ 9 ! appraisal1 su* z /ation & miscellane\s equipm5t1 frogs1 swit*es1 track /ructures1 build+s own$ by ! companies & occupi$ by o!rs1 etc4 7b7 ,t !re 7 _m & l>ge elem5ts ( physical co/ n asc]ta9able by a physical inspection1 su* z deep f\ndations1 _m ?\s&s ( y>ds ( e>? 9 swamps & s9k holes 7a v g5]al condition ( roads 9 ! ,s\!rn ,p59sula71 conceal$ classification due to gr[? ( grass or wa%+ ( banks1 & _m o!r cases ( "w actually done1 invisible aft] a lapse ( ye>s4 ,! writ] kn[s ( _m su* in/ances on prop]ty :i* 0 9 8 *>ge _m ye>s ago2 9 sev]al cases !re 7 exp5ditures ( f #j1jjj to #ej1jjj :i* are n[ entirely invisible to an eng9e] pass+ ov] ! l9e4 7c7 ,! failure on ! "p ( railroad companies to keep any?+ l a complete hi/ory ( con/ruction op]ations1 & ! *anges ( op]at+ (ficials f ye> to ye>1 cause ! loss ( record ( practically all ! exp5se due to extra haz>d & risk :i* ! con/ruction eng9e] provides = by 8 cont+5cies4 7d7 ,! inclusion 9 op]at+ exp5se1 e ye>1 ( sums :i* are prop]ly con/ruction1 & :i*1 if add$ to unit prices ( con/ruction "w1 w\ld cause ! cry t su* unit prices 7 too high4 ,= in/ance1 ! appraisal e/imate on e>? 0 #ag c5ts p] cu4 yd41 ) no all[ance = ov]haul4 ,v mu* ( ! grade 9 ! ,/ate _h actual co/s f> 9 excess ( ?is figure1 & practically e road sp5ds a l>ge sum annually = ! fir/ f\r or five ye>s1 :i* is *>g$ to op]ation b is 9 reality a "p ( ! co/ ( complet+ ! roadb$4 7e7 ,no acc\nt 0 tak5 ( appreciation ( any ( ! elem5ts ent]+ into a road4 ,!re is no d\bt t roadb$1 = example1 does appreciate1 due to balla/+ & track "w4 ,^! items g f> t[>d acc\nt+ = ! cont+5cies item on an old road su* z ! ,mi*igan ,c5tral4 7f7 ,!re is a consid]able am\nt ( co/1 :i* _c be tak5 out ( capital1 :]e facilities are ab&on$ or l9e or grade *ang$4 ,^! *anges are common to all gr[+ roads2 !y are due to ! dem&s = great] traffic2 !y are necess>y to ! welf>e ( ! community s]v$2 !y are (t5 made at po9ts :]e no *>ge ( defective design w apply4 ,!y might be t]m$ exp5ses due to ! developm5t ( ! ,/ate1 &1 9 ! developm5t ( ! railroad bus9ess1 !y 7 absolutely necess>y = its pres5t /&>d ( effici5cy4 ,!y are incapable ( exact & def9ite det]m9ation1 & mu/ ( necessity be includ$ z cont+5t exp5ses4 ,9 ! case ( a new road1 :]e ! exact co/ is asc]ta9able1 ! records h be5 fully kept1 ! orig9al plans are on file1 & ! hi/ory is fre% 9 ! m9ds ( ! (ficials1 x w be readily admitt$ t a *>ge = cont+5cies 9 l>ge am\nt w\ld n be ju/ifiable2 b1 9 ! case ( ! ,mi*igan ,c5tral ,railroad1 a l9e m ?an #ej ye>s old1 :i* has *ang$1 rebuilt1 & add$ l>gely to its prop]ty2 9 ! case ( ! ,p]e ,m>quette ,railroad1 made up ( ! union ( a doz5 less] prop]ties1 )\t any complete hi/ory2 9 ! case ( doz5s ( little l9es1 )\t maps1 pr(iles1 or records1 "s su* all[ance is fully ju/ifi$ & prop]4 ,! exp]i5ce ( ! writ]1 9 ! ye>s t h pass$ s9ce ^! appraisals1 leads him to ! op9ion t ! difficulty ( e/imat+ values on an old prop]ty are su* t 9 _m cases an apprais] might add1 ) p]fect propriety1 ev5 m ?an #aj = ! cont+5cy item4 ,9 comput+ ov]head *>ges1 no all[ance 0 made = work+ capital1 & no addition to ! physical valuation 0 made to cov] any su* elem5t z go+ conc]n value4 ,"r-(-,way ,values4 ,l& values 7 ! subject ( a great deal ( discussion dur+ ! appraisal ( #aijj1 b subsequ5t inve/igations z to actual railroad pur*ases result$ 9 q radical *anges 9 "s ( ! figures 9 ! lat] valuations4 ,9 view ( ! fact t _m criticisms ( ^! values h be5 made by railway attorneys1 special emphasis is "h giv5 to ! subject4 ,! conclusions rea*$ 9 ,mi*igan 9 #aijb agree s closely ) ! conclusions ( ,taylor 9 ,wiscons9 & ,morgan 9 ,m9nesota t x is ?\ght advisable to give a r full acc\nt ( ! me?ods us$ 9 bo? appraisals1 & ! l9e ( reason+ :i* br\ght ab\t ! *anges made 9 #aijb4 ,! #aijj appraisals me?ods 7 z foll[s3 ,"w 9 ,detroit1 ,gr& ,rapids1 ,sag9aw1 ,bay ,city1 & "s o!r l>ge cities 0 assign$ to special apprais]s1 :o visit$ ! cities1 exam9$ critically all ! prop]ty1 conf]r$ ) lead+ real e/ate m5 & exp]ts 9 values1 & plac$ an e/imate p] acre or p] squ>e foot4 ,?is "p ( ! "w 0 done ) great c>e1 & 0 sub/antially un*ang$ 9 ! lat] appraisals4 ,9 all o!r l& valuations1 9 cities & villages1 & c\ntry "r ( way1 a p]sonal exam9ation 0 out ( ! "q )\t mak+ a v l>ge & exp5sive addition to ! /aff1 z ! field eng9e]s g5]ally 7 n famili> ) realty values1 & c\ld n take ! "t to make ! l>ge numb] ( inquiries4 ,! apprais] did n see 8 way cle> to organize a special dep>tm5t1 !re=e ! matt] 0 turn$ ov] to a sub-dep>tm5t ( ! ,civil ,eng9e]+ ,section1 ! "w ( :i* may be briefly outl9$1 z foll[s3 ,l&s 7 classifi$ z3 7#a7 ,f>m l&1 7#b7 ,b>r5 l&1 7#c7 ,villages hav+ a population ( less ?an #ejj1 7#d7 ,villages f #ejj to #c1jjj1 7#e7 ,cities hav+ less ?an #aj1jjj1 7#f7 ,cities hav+ m ?an #aj1jjj4 ,! p]c5tage ( wa/e l& 0 fix$ z a result ( int]views ) roadma/]s1 sup]9t5d5ts1 & o!r (ficials & employees ( ! roads1 by reports f field inspectors & o!rs4 ,lett]s ( inquiry 7 s5t to real e/ate m5 & bank]s 9 e c\nty 9 ! ,/ate 7"s #ejj be+ communicat$ )71 z to l& values 9 ! t[n or c\nty ( ea*4 ,! responses1 :i* 7 num]\s & indicat$ consid]able c>e 9 prep>ation1 7 classifi$1 & on ^! data1 supplem5t$ by z mu* p]sonal inspection z x 0 possible = a few m5 to give 9 a limit$ "t1 ! values ( ! v>i\s classes ( l& 7 det]m9$ by a sy/em ( av]ages4 ,! nak$ l& values 7 !n tak51 & to !m 7 add$1 z foll[s3 ,s\? ( a l9e ea/ & we/ ?r\gh ,sag9aw1 #abe plus a fix$ *>ge v>y+ f #h4ej p] acre d[nw>d 0 add$ to ! s-call$ nak$ l& values = f>m l&4 ,no wa/e l& values 7 consid]$ 9 ?is di/rict4 ,nor? ( ?is ea/ & we/ l9e3 ,f>m l&1 #ajj & a fix$ *>ge ( #c p] acre & upw>d2 wa/e l&1 #bjj plus a fix$ *>ge ( #c p] acre2 = all village l&s1 #abe plus #h4ej1 fix$ *>ge2 = all city l&s1 #ajj plus #h4ej1 fix$ *>ge4 ,! fix$ *>ges 7 int5d$ to cov] ! exp5se ( acquir+ ab/racts1 record+ de$s1 etc4 ,slightly diff]5t figures 7 made = ! ,upp] ,p59sula4 ,! result ( ?is "w 0 a set ( v l[ figures 9 _m c\nties1 ! av]age price p] acre h>dly rea*+ ! go+ price ( improv$ f>m l&s4 ,!re 0 s little "t to review ^! figures aft] !y 7 9 %ape t !y 7 us$ 9 #aijj1 al?\gh ! apprais] 0 conv9c$ t !y 7 g5]ally too l[4 ,9 ! appraisal ( #aijb a v c>eful /udy ( real e/ate values 0 made4 ,! (fices ( ,regi/]s ( ,de$s 9 t5 or twelve c\nties 7 visit$1 a c>eful ab/ract ( all railway transf]s = a p]iod ( #aj ye>s 0 tak5 (f1 ! acreage det]m9$1 ! av]age price p] acre = diff]5t classes ( l& comput$1 & !n a v c>eful /udy ( transf]s ( adjac5t improv$ & unimprov$ l&s 0 made4 ,z a result1 mat]ial increases 7 made 9 ! f>m l& values1 wa/e l& values 7 elim9at$1 ! #aijj valuation1 made by special apprais]s 9 l>ge cities1 0 practically un*ang$1 :ile v radical *anges 9 ! way ( equalization ( values ( l&s 9 villages & small cities 7 made4 ,inasmu* z ! #aijb valuation 0 at issue 9 ! ,c\rts1 ! writ] believes he is ju/ifi$ 9 discuss+ at "s l5g? ! d$uction ( ! /aff on ! conclusion ( ! #aijb prelim9>y /udies1 :i* l$ to ! f9al adoption ( ! new figures4 ,"o w\ld fall into error if c\ntry values = f>m purposes 7 conflict$ ) c\ntry values = railroad purposes4 ,!re is1 und\bt$ly1 a close relation%ip betwe5 ! two classes ( values2 ?is ! writ] has endeavor$ to discov]1 & x is indicat$ 9 ,tables #b to #f4 ,! use to :i* l& is put c & does *ange its value4 ,f>m l& 9 a c]ta9 t[n%ip may be wor? #ej p] acre = f>m+1 b ! discov]y ( oil w\ld affect values1 z f> z oil purposes are conc]n$4 ,! pres5ce ( a ve9 ( coal w\ld give a di/9ct value = m9+ purposes4 ,f>m prices w\ld n gov]n values = any special use1 su* z oil drill+1 m9+1 or railroad op]ation4 ,9 ! case ( city bus9ess prop]ty1 f>m prices _c be appli$1 z ! use to :i* ! l& is put & ! build+s plac$ on x give x a greatly increas$ e>n+ p[]1 & h5ce increas$ value4 ,?us1 ) a railroad "r ( way1 ! cont9uity ( ! /rip ( l&1 ! sev]ance ( l&s cross$ by x1 ! great] e>n+ p[] x d]ives f ! con/ruction plac$ on x1 9 %ort1 ! uses to :i* x is put1 give x a value f> 9 excess ( adjo9+ l&s4 ,an excell5t pro( ( ?is is f\nd 9 ! fact t _m ?\s&s ( miles ( "r ( way h be5 b\ght by promot]s & ei!r sold to a company1 :i* built ! l9es1 or us$ 9 f9anc+ ! road4 ,9 no case has ! sell+ price be5 bas$ on f>m values4 ,x is n cont5d$ t railroad l& values d n be> a direct relation to l& values = o!r purposes1 z ^? ?+s :i* t5d to increase g5]al values usually make ! con/ruction ( a railroad pr(itable1 & ! bett] & m fully develop$ ! c\ntry1 ! great] is ! ne$ = transportation facilities & ! high] ! prices ( l& = all purposes4 ,?is is %[n 9 ! figures submitt$ h]e)4 ,= purposes ( appraisal1 !re=e1 9 #aijb ! av]age value1 z d]iv$ f ! #aijj appraisal1 0 tak51 &1 by comp>ison ) actual pur*ases1 an attempt 0 made to asc]ta9 ! relation exi/+ betwe5 ! appraisal figures ( #aijj & ! usual pur*ase price = railroad prop]ties1 z det]m9$ by actual transf]s4 ,9 mak+ ^! figures ! apprais] 0 =c$ to ! foll[+ conclusions3 7#a7 ,t ! nak$ l& value is n a prop] "o to use 9 c\ntry l&s1 b t ! go+ value ( c\ntry l&s ) all improvem5ts %\ld be us$ z a basis = comput+ ! add$ increm5t due to railway use2 7#b7 ,t a classification ( f>m l& & wa/e l& %\ld n be made1 except z a basis = arriv+ at ! relative diff]5ces 9 quality ( l& 9 diff]5t sections ( a c\nty2 7#c7 ,t ! add$ value = railroad purposes is due to ! ?ree elem5ts3 7a7 ,cont9uity1 7b7 ,sev]ance or damages1 7c7 ,*ang$ e>n+ p[]1 all ( :i* ! f>m] or own] has cognizance ( 9 mak+ 8 price2 7#d7 ,t 9 mak+ up l& values1 acc\nt %\ld be tak5 (3 7a7 ,! co/ ( acquir+ ! l&1 or exp5se1 7b7 ,! co/ ( ! l& itself4 ,! reasons are3 ,i4--,9 mak+ a price on a #dj-;acre f>m1 ! own] does n make two prices1 "o on l& & "o on improvem5ts4 ,he arrives at a flat price p] acre = ! entire f>m1 & usually asks m p] acre = a "p ?an ! :ole4 ,a man :o valu$ 8 l& at #ajj p] acre1 ) improvem5ts1 w\ld h>dly sell #e acres f a corn] ( 8 l&1 ev5 = resid5ce purposes1 at nak$ l& prices4 ,! #aijj appraisal 0 bas$ on nak$ l& prices1 z e/imat$ by a numb] ( citiz5s ( ea* c\nty1 & ?is flat rate 0 us$ 9 mak+ figures = ! s-call$ ,m>ket ,value ( ,"r-(-,way4 ,x is fair to assume t a railroad company c pur*ase l>ge tracts ( l& = gravel pits1 or a n>r[ /rip adjo9+ & wid5+ its exi/+ "r ( way1 at ab\t m>ket prices1 z ! elem5ts ( sev]ance1 abutt+ damages1 etc41 are abs5t4 ,prices = ?is class ( l& ought to be1 & usually are1 l[] ?an ^? paid = a new "r ( way4 ,,table #b4--;,,c\ntry ,,l&4--,,additional ,,/rip ,,= ,,wid5+ ,,"r ,,( ,,way1 ,,gravel ,,pits1 ,,etc4 ,c\nty4 ,description3 ,road & purpose4 ,av]age ,av]age p] acre1 p] acre1 #aijj transf]4 appraisal4 ,jackson ,mi*igan ,c5tral4 ,wid5+ "r ( way #hd4dg #aef4jh ,kalamazoo,mi*igan ,c5tral4 ,additional "r ( #hi4da #adj4jj way ne> ,augu/a ,kalamazoo,gr& ,trunk ,we/]n4 ,additional /rip #id4ei #abj4ej = d\ble track+ ,cass ,mi*igan ,c5tral4 ,gravel pit #hd4ig #id4ae ,cass ,gr& ,trunk ,we/]n4 ,additional /rip #ga4gi #bjc4ec = d\ble-track+ ,b]ri5 ,mi*igan ,c5tral4 ,additional "r ( #aji4dj #aac4ff way ,wa%t5aw,mi*igan ,c5tral4 ,additional "r ( #di4ce #acj4fh way ,wa%t5aw,ann ,arbor4 ,additional "r ( way #hh4fj #aaf4ab ,ionia ,p]e ,m>quette4 ,gravel pit #gg4ej #abe4jj ,actual pur*ases are av]ag$ f rec5t transf]s1 & repres5t consid]ation paid own]s1 b n co/ ( acquir+4 ,! #aijj appraisal av]ages %[ c\ntry l& aft] fix$ *>ges & p]c5tages are add$4 ,! tables giv5 h]e) are summ>iz$ f a v l>ge mass ( in=mation introduc$ z evid5ce 9 a suit ( ,mi*igan ,c5tral ,railroad et al4 vs4 ,p[]s 7,! ,mi*igan ,tax ,cases71 & are select$ z av]age examples ( conditions ?r\gh\t ! ,s\!rn ,p59sula4 ,x is evid5t f ! figures 9 ,table #b t no su* nak$ l& values z ^? us$ 9 #aijj 7 consid]$ by ! f>m]s 9 plac+ values on _! l&s1 z ! sales cov]$ 9 t table d n involve any l>ge elem5t ( damages4 ,all transf]s are ( a /rip a rod or m 9 wid? adjo9+ an exi/+ "r ( way4 ,,ii4--,x is true t 9 "s sections ( ,mi*igan !re are l>ge tracts ( b>r5 or l[-pric$ l&4 ,9 #aijj b>r5 l& prices 7 us$1 & 7 mu* l[] ?an f>m l&2 9 ! poor] p>ts ( ! ,/ate l>ge p]c5tages ( b>r5 l& 7 us$4 ,?is fact br\ght ! av]age p] acre ( c\ntry l&1 z appli$ 9 ! appraisal1 v l[ 9 _m ( ! c\nties1 & ju/ifi$ ! apprais] 9 us+ ! av]age c\ntry price ( #aijj z ! base price = a re-valuation4 ,g5]ally1 ! #aijj appraisal av]ages = c\ntry l&s 7 fair indices ( ! diff]5ce 9 actual value 9 diff]5t p>ts ( ! ,/ate4 ,9 ! #aijj appraisal1 ! ,mi*igan ,c5tral 0 cr$it$ ) hav+1 9 ,jackson ,c\nty1 #cji4a acres ( f>m l& 7nak$ value1 #ch1 av]age rate #ic4cj71 & #cd4ce acres ( b>r5 l& at #e p] acre4 ,! field inspectors report$ t "p ( ! di/rict betwe5 ,p>ma & ,albion1 9 ! vic9ity ( ,ba? ,mills1 0 wa/e or b>r5 l&4 ,! ,jackson & ,battle ,creek ,traction ,company p>allels & adjo9s ! ,mi*igan ,c5tral ,railroad "r ( way f ,p>ma to ,ba? ,mills4 ,an inve/igation ( records ( de$s %[$ t !y b\ght #be4jb acres ( l& 9 ?is di/rict at #fe4gi p] acre1 & t ! av]age price ( all _! l& 9 ! c\nty 0 #bci4eb p] acre4 ,:ile !re 0 a m>k$ diff]5ce 9 ! rates ( diff]5t grades ( c\ntry l&1 no "o w\ld be ju/ifi$ 9 putt+ any l& s\? ( a l9e drawn f ,sag9aw to ,muskegon at prices z l[ z #b to #aj p] acre4 ,an av]age bas$ on ! #aijj classification ( l&s w\ld probably elim9ate all wa/e l& classifications1 )\t do+ any inju/ice4 ,,table #c4--;,,av]age ,,values ,,p] ,,acre ,,( ,,c\ntry ,,l&s1 ,,( ,,! #aijj ,,appraisal1 ,,( ,,! ,,jackson1 ,,lans+ ,,& ,,sag9aw ,,railroad1 ,,aft] ,,all ,,! ,,p]c5tages ,,& ,,fix$ ,,*>ges ,,7 ,,add$4 ,c\nty4 ,price4 ,jackson #ge4ga ,+ham #gd4ij ,cl9ton #db4ch ,%iawassee #fg4ah ,sag9aw #dj4hj ,bay #ch4fi ,ar5ac #cb4dg ,ogemaw #h4fi ,roscommon #aj4gd ,craw=d #h4da ,otsego #ae4fb ,montmor5cy #ab4ch ,*eboygan #ag4ac ,table #c illu/rates q cle>ly ! extremely l[ figures appli$ 9 _m c\nties 9 ! #aijj appraisal1 & also repres5ts q well ! relative diff]5ce 9 value 9 ! diff]5t c\nties4 ,t ! #aijj rate v>ies ab\t z ! pur*ase price1 is %[n by ! fact t ! ,p]e ,m>quette ,railroad built a l9e 9 ,montcalm ,c\nty1 buy+ #aee4c acres at an av]age price ( #ace4ai p] acre1 :ile ! #aijj appraisal %[$ an av]age ( #bi on ! #iah acres apprais$4 ,! pur*ase price 0 #d4ff times ! #aijj appraisal4 ,9 ,calh\n ,c\nty1 ! ,gr& ,trunk ,railroad b\ght #fc4b acres at #dia4ac p] acre1 :ile ! #aijj appraisal 0 #fa4dd on all ! c\ntry l& 9 ! c\nty1 or only "o-eigh? ( ! actual pur*ase price4 ,,iii4--,!re c be no d\bt t a railroad "r ( way co/s mu* m ?an an equal acreage ( f>m l&s4 ,! writ] has always be5 incl9$ to hold ! view t an ord9>y "r ( way ?r\gh good f>m+ c\ntry w\ld co/ f two to ?ree times f>m prices1 no matt] h[ mu* c>e is us$ 9 ! acquisition ( ! l&4 ,9 rec5t ye>s ! price ( "r ( way has be5 greatly increas$4 ,! ,newton & ,nor?we/]n ,railroad "r ( way1 9 ,i[a1 co/ #bfg p] acre1 on a l9e #hj miles long4 ,?is is ne>ly all c\ntry l&1 ab\t #a mile 9 ! outskirts ( ,boone 7population #ab1jjj71 & ab\t mile 9 ,newton 7population #f1ejj71 be+ ! only city l& to increase ! av]age4 ,! ,rock ,isl& ,sy/em & ! ,*icago ,great ,we/]n paid high] c\ntry prices 9 ! same t]ritory4 ,?is l9e is 9 su* c\ntry z ,s\!rn ,mi*igan1 & l& is held at f #fe to #ajj p] acre4 ,! ,tol$o ,urban & ,int]urban "r ( way1 9 ,lucas ,c\nty1 ,ohio1 0 b\ght by ! writ] 9 #aija at an av]age net price ( #cbi4ba p] acre4 ,! av]age assess$ valuation is #ee p] acre4 ,! go+ value ( f>m l&s w range f #ajj to #bbe2 probably a fair av]age is #ace p] acre4 ,! prices paid by ,mi*igan railroads are fully su/a9$ by ^! p]sonal exp]i5ces4 ,! figures 9 ,table #d %[ t ! actual av]age price paid = new "r ( way is great] ?an ! av]age ( ! #aijj appraisal1 aft] ! #abe & fix$ *>ges are add$1 by f #bcj to #gbf p] c5t4 ,! argum5t t a *ange ( l9e co/s m ?an a new l9e is n su/a9$ by ,table #d4 ,9 ,jackson ,c\nty1 ! ,mi*igan ,c5tral ,railroad *ang$ its l9e at an av]age co/ ( #afe4fg p] acre4 ,! ,jackson & ,battle ,creek1 a new l9e1 p>allel ) & adjo9+ ! ,mi*igan ,c5tral1 paid #bci4ec2 ! ,jackson & ,suburban1 a new electric l9e1 paid #bic4cd1 & ! ,ypsi-,ann ,electric paid #cic4gd4 ,all ! new l9es 9 ,monroe ,c\nty are high] ?an any *anges ( l9e 9 simil> c\ntry4 ,! ,ann ,arbor *ange 9 ,wa%t5aw ,c\nty1 locat$ by ! writ]1 is at "o po9t #c miles f ! old "r ( way1 & only at ! two ends ( ! #g-mile l9e does x run on f>ms own$ by p>ties cross$ by ! old road2 !re=e1 to all int5ts & purposes1 x is a new l9e4 ,! nak$ l& values us$ 9 #aijj1 be+ cle>ly too l[1 7 ( no use & 7 dropp$4 ,! s-call$ m>ket price ( "r ( way z giv5 9 #aijj 0 mislead+4 ,,table #d4--;,,comp>ison ,,( ,,c\ntry ,,l& ,,values4 ,! actual pur*ases are av]ag$ f rec5t transf]s1 & repres5t consid]ation paid to l& own]s1 b n ! co/ ( acquir+4 ,! #aijj appraisal av]ages %[ all c\ntry l& aft] fix$ *>ges & p]c5tages 7 add$1 p] rule ( #aijj4 ,c\nty4 ,railroad4 #aijj ,railroad4 ,actual ,appraisal1 transf]1 av]age av]age p] acre4 p] acre4 ,jackson ,mi*igan ,c5tral4 #ga4cf,mi*igan ,c5tral #afe4fg ,air ,l9e ,air ,l9e4 ,new ,l9e ,mi*igan ,c5tral4 #hh4dg;,jackson & ,battle #bci4ec ,creek4 ,av]age entire c\nty ,mi*igan ,c5tral4 #e4jj;,jackson & ,battle #fe4gi ,wa/e l& ,creek4 ,wa/el& ,mi*igan ,c5tral4 #ic4cj;,jackson & ,battle #bih4ea ,fir/-class f>m ,creek4 ,fir/-class f>m ,jackson1 ,lans+ #ge4gb;,jackson & #bic4cd & ,sag9aw4 ,suburban4 ,av]age c\ntry values ,detroit1 ,ypsilanti #cic4gd & ,ann ,arbor ,monroe ,fl9t & ,p]e #ic4cj;,fl9t & ,p]e #bae4ba ,m>quette4 ,m>quette4 ,monroe to ,tol$o ,mi*igan ,c5tral4 #ic4cj,tol$o & ,monroe4 #dfa4ac ,electric ,lake ,%ore & #ic4cj;,detroit & ,tol$o #bad4ch ,mi*igan ,s\!rn4 ,%ore ,l9e4 7,duffy7 ,detroit & ,tol$o #bfb4di ,%ore ,l9e4 7,burt7 ,kalamazoo,mi*igan ,c5tral4 #hi4da,mi*igan ,c5tral4 #bcf4bb ,kalamazoo to ,mattawan ,van ,bur5,mi*igan ,c5tral4 #ff4ed,mi*igan ,c5tral4 #aif4jj ,kalamazoo to ,mattawan ,cass ,mi*igan ,c5tral4 #hd4ig,mi*igan ,c5tral4 #bfj4fa ,cut-(f ne> ,pokagon ,mi*igan ,c5tral4 #aj4jj,mi*igan ,c5tral4 #fj4jj ,wa/el& ,wa/e on cut-(f ,g5esee ,gr& ,trunk #ih4aj;,gr& ,trunk #ccg4ef ,we/]n4 ,we/]n4 ,improv$ l9e ,g5esee ,p]e ,m>quette4 #hj4ha;,fl9t & ,p]e #bcd4jj ,m>quette4 ,*ange ( l9e ,montcalm ,p]e ,m>quette4 #bi4jj,p]e ,m>quette- #ace4ha ,gre5ville-,/anton4 ,calh\n ,gr& ,trunk #fa4dd;,gr& ,trunk #dia4ac ,we/]n4 ,we/]n4 ,*ange ( l9e we/ ( ,battle ,creek ,calh\n ,mi*igan ,c5tral4 #gd4ch;,jackson & ,battle #bah4gd ,creek4 ,electric ,tuscoia ,mi*igan ,c5tral4 #fj4ge,mi*igan ,c5tral4 #gc4jd ,c>o-,ow5dale ,/4 ,clair,p]e ,m>quette4 #dc4ah,rapid4 #bhg4je ,an*orville-,m>9e ,city ,wa%t5aw,ann ,arbor4 #ch4fj;,ann ,arbor4 ,*ange #bhe4ej ( l9e ne> ,ann ,arbor ,ionia ,p]e ,m>quette4 #gg4ej,p]e ,m>quette4 #aab4cj ,l[ell-,beld+ ,mani/ee ,ann ,arbor4 #be4dj;,ann ,arbor4 ,*ange #dg4cc l9e ne> ,h>lan ,osceola ,p]e ,m>quette4 #dj4jc,p]e ,m>quette4 #eg4ic ,*ange l9e ne> ,ev>t ,hav+ %[n t !re is an increase 9 co/ ( railroad ov] f>m l&1 ! "q arises3 ,is x legitimate8 ,if x is a prop] item ( co/1 has x a place 9 ! pres5t value column8 ,9 build+ a new railroad1 eng9e]s prep>e _! e/imates ( co/1 includ+ grad+1 rail & fa/5+s1 ties1 bridges1 &1 among o!r items1 "r ( way4 ,_! cli5ts provide funds to build ! l9e1 & furni%1 among o!r items1 ca% = ! "r ( way4 ,! "r-(-way acc\nt 9 no wise diff]s f t ( any o!r item ( physical co/4 ,! "r ( way1 ) all its hold-ups1 items = damages1 c\rt co/s1 legal exp5ses1 bills = p]sonal s]vices & exp5ses 9 secur+ x1 ab/racts & record+ ( de$s1 is j z mu* an elem5t ( physical co/ z ! rails4 ,! co/ ( acquir+ ! "r ( way is z prop] an elem5t z *>ges = inspect+ ! rails1 freight *>ges on !m1 ! load+ & unload+1 or any o!r *>ges t ent] into ! co/ ( rails deliv]$ to ! track-lay+ contractor4 ,%\ld ! co/ ( reproduction ( "r ( way be c>ri$ to ! pres5t value column8 ,cle>ly1 yes4 ,if a road is un=tunate en\gh to buy its rails :5 !y are at a price ( #fj p] ton1 ! full price is *>g$ to capital acc\nt2 & :5 ! l9e is sold to "s l>ge corporation1 no r$uction is made1 ev5 ?\gh ! price ( rails be mu* less at ! "t1 b ! sell+ price is bas$ on ! con/ruction acc\nt z a :ole4 ,! same is true ( ! "r ( way4 ,9 no case :i* has come "u ! writ]'s notice has a new company1 or a set ( promot]s dispos+ ( a new l9e or a new "r ( way1 ev] cons5t$ to deal except on ! basis ( con/ruction acc\nt1 plus promot]s' pr(it4 ,! co/ ( a "r ( way is increas$ on acc\nt ( cont9uity4 ,a f>m] is ju/ifi$ 9 increas+ 8 price p] acre by reason ( ! fact t ! road mu/ h a cont9u\s l9e1 reg>dless ( h[ x affects ! individual4 ,he mu/ re>range 8 fields1 replant 8 or*>d1 *ange 8 f5ces1 dit*es1 & tile l9es1 & re-adju/ 8 entire prop]ty to accommodate ! necessity ( ! road4 ,he mu/ also take into acc\nt sev]ance or damages4 ,he is compell$ to cross ! l9e at an inconv5i5t place1 op5 & close two gates 9 e lane or at e cross+1 drive 8 cattle back & =? to wat]1 haul 8 produce ov] a %ort heavy grade across ! track1 & he mu/ n int]f]e ) ! railroad4 ,he is 9 con/ant dang] ( loss ( prop]ty f fire or f accid5t1 & he is 9 p]sonal dang] e "t he passes f 8 own l& on "o side ( ! railroad to 8 own l& on ! o!r side4 ,e "o :o has b\ght "r ( way kn[s ^! argum5ts1 & is aw>e t ! f>m] kn[s !m & *>ges extra on acc\nt ( !m4 ,! law provides t1 9 condemnation1 ! jury %all take into acc\nt two elem5ts1 ! value ( ! l&1 & damages4 ,! railroad pays !m1 & v promptly *>ges ! entire co/ to ! "r-(-way acc\nt4 ,no "o w "q ! propriety ( ! f>m] tak+ !m into acc\nt 9 fix+ 8 price4 ,! value ( cont9uity to ! railroad c h>dly be measur$ 9 doll>s & c5ts4 ,a fair illu/ration ( cont9uity may be f\nd 9 coal l&s4 ,a promot] w secure option on a l>ge acreage4 ,z long z 8 hold+s are disconnect$ & widely sep>at$ !y are ( no m value ?an adjo9+ l&s1 b let him close options on a l>ge block ( l& all 9 "o body1 & imm$iately he c add f #ajj to #bjj to ! value ( 8 l& = m9+ purposes4 ,?is add$ p]c5tage is due to cont9uity4 ,! conditions surr\nd+ ! pur*ase ( railway l&s 9 ,mi*igan h *ang$ mat]ially 9 ! pa/ few ye>s4 ,9 a new c\ntry1 )\t means ( transportation1 l& values are l[1 &1 9 ord] to op5 new m>kets1 l& own]s c af=d to donate ! "r ( way4 ,und\bt$ly1 a v l>ge p]c5tage ( ! total "r ( way on ! old] l9es 0 ei!r donat$ or b\ght at v l[ prices4 ,z a community gr[s & develops1 acquires new indu/ries1 & receives new improvem5ts1 prop]ty values increase2 &1 along ) a g5]al appreciation ( o!r values1 ^? ( railroad prop]ty mu/ increase4 ,x w\ld c]ta9ly be true t ! pres5t value ( ! site ( ! ,maje/ic ,build+1 9 ,detroit1 is n ! same z x 0 9 #ahej2 ! argum5t t its actual co/ 9 #ahej 01 say1 #bjj1 w\ld n be any ju/ification = su* a value to-day4 ,equally is x true t ! value ( prop]ty own$ by ! ,mi*igan ,c5tral ,railroad is n to be measur$ by ! price paid = x #ej ye>s ago4 ,! great] bus9ess1 & ! l>g] income d]iv$ f t bus9ess1 make ! ,detroit ( to-day a mu* m valuable t]m9al = ! road ?an ! ,detroit ( #ej ye>s ago4 ,! same argum5t w apply to any city :i* has gr[n up aft] ! con/ruction ( railroads4 ,! orig9al "r ( way 0 f>m l& & may h be5 a donation1 b ! *ange f f>m to city c]ta9ly increases ! value ( ! railroad l& j 9 proportion z ! surr\nd+ l& increases4 ,! same reason+ is prop]ly applicable to l&s :i* decrease 9 value4 ,:]e a railroad buys "r ( way to ga9 access to valuable timb] l&s1 &1 aft] ! removal ( ! timb]1 ! l& is too poor to support a population1 ! pres5t value %\ld depreciate 9 ! same ratio z ! surr\nd+ l&1 & imm$iately on its ab&onm5t z a "r ( way x w\ld cease to h a railroad value4 ,9 an appraisal1 x appe>s to be fair to base ! co/ ( reproduction on ! co/ ( build+ a new l9e on ! location ( ! road "u appraisal1 all o!r means ( transportation rema9+ z !y are to-day1 s z to secure z ne>ly z possible ! conditions t w\ld be enc\nt]$ by a new company build+ a new l9e on ?is location4 ,! argum5t 0 made 9 #aijj1 & reit]at$ frequ5tly1 t railroad companies secure _m donations4 ,x may safely be said t1 9 a develop$ c\ntry1 su* z 9 ! s\? half ( ! ,l[] ,p59sula1 ! donations are ( little acc\nt4 ,few donations 7 f\nd 9 an exam9ation ( records ( de$s cov]+ #aj ye>s2 & 9 "s cases ! conditions 7 s burd5some t x may be said t ! gift l& 0 ! mo/ exp5sive4 ,a condition = a cattle-pass co/+ f #djj to #fjj1 a side-track co/+ f #a to #a4ej p] ft41 & o!r l specifications are f\nd2 & 9 _m de$s :]e a lib]al consid]ation is nam$ conditions :i* add greatly to ! co/ are n infrequ5t4 ,! rec5t new l9es 9 ,s\!rn ,mi*igan secur$ b few donations1 al?\gh all consid]ations ( #a & o!r good & valuable consid]ations 7 class$ z donations unless ! contr>y 0 susceptible ( pro(4 ,9 ! case ( ! ,ann ,arbor ,railroad1 9 ,wa%t5aw ,c\nty1 ! #a consid]ation repres5ts a high] price ?an ! av]age1 ?is be+ kn[n by ! writ]1 z he b\ght x4 ,! same is true ( ! ,detroit & ,tol$o ,%ore ,l9e1 9 ,monroe ,c\nty4 ,9 mak+ an appraisal1 no d$uctions %\ld be made = donations1 if !re are any1 z ! fact t l& is donat$ does n indicate abs5ce ( value2 nor %\ld an addition be made to ! appraisal value on acc\nt ( ! fact t a road has be5 held up & compell$ to pay exorbitant prices 9 c]ta9 localities4 ,9 "s c\nties ! base values ( l& 9 villages & small t[ns 7 giv5 at ridicul\sly l[ prices 9 #aijj2 "s are z l[ z f #ej to #ajj p] acre 9 t[ns ( f #a1jjj to #c1jjj population4 ,:5 "o /ops to consid] t a lot #d by #h rods conta9s acre1 & t su* lots 9 a t[n ( consid]able size range f #ej to #cjj ea*1 x is readily se5 t f #bej to #a1ejj p] acre are n excessive figures4 ,! figures = an adjo9+ c\nty 7 (t5 v high1 & village values 7 put up to sub/antially full value4 ,! result ( add+ p]c5tages 9 #aijj 0 to magnify discrepancies1 & little villages ( f #bjj to #ejj population 9 "o c\nty 7 apprais$ at a high] rate ?an t[ns ( f #b1jjj to #e1jjj 9 ! next4 ,9 #aijb ! apprais] und]took to equalize all su* discrepancies1 & f\nd t no h>d-&-fa/ rule w\ld apply4 ,a comp>ison ( village values1 z det]m9$ by actual pur*ase1 ) ! #aijj appraisal1 is giv5 9 ,table #e4 ,! #aijj appraisal = city l&s1 outside ( ,detroit & ,gr& ,rapids1 0 g5]ally v cons]vative or l[4 ,9 "s cases ! figures 7 extremely l[4 ,,table #e4--;,,av]age ,,price ,,p] ,,acre ,,= ,,village ,,l&4 ,actual pur*ases are av]ag$ f rec5t transf]s4 ,! #aijj appraisal av]ages are av]ages ( prices z appli$ aft] all p]c5tages & fix$ *>ges are add$4 ,c\nty4 ,"n ( road4 ,"n ( ,appraisal1 ,actual village4 #aijj4 transf]4 ,av]age p] ,av]age p] acre4 acre4 ,jackson ,mi*igan ,c5tral ,p>ma #agg4be #a1aff4fe ,van ,bur5 ,mi*igan ,c5tral ,mattawan #ega4jj #b1dci4jd ,tuscola ,mi*igan ,c5tral ,c>o #ega4jj #gcc4db ,oakl& ,p]e ,m>quette ,clyde #cdf4jj #ccc4jj ,oakl& ,p]e ,m>quette ,mil=d #ega4jj #a1acf4cg ,g5esee ,p]e ,m>quette ,gr& ,blanc #aba4jj #cbg4hg ,k5t ,p]e ,m>quette ,l[ell #ega4jj #a1eeb4bf ,ionia ,p]e ,m>quette ,beld+ #a1jjj4jj #ifg4gg ,wa%t5aw ,mi*igan ,c5tral ,dext] #ega4jj #gah4ge ,wa%t5aw ,mi*igan ,c5tral ,delphi #bcc4ej #b1chc4cd ,cass ,gr& ,trunk ,we/]n ,cassopolis #deh4ej #a1fjj4jj ,cass ,gr& ,trunk ,we/]n ,edw>dsburg #bbb4be #dff4fg ,! conclusion rea*$ by ! apprais] 9 #aijb 0 t1 = railroad purposes1 "r ( way is wor? :at x co/s to produce x4 ,x w\ld be j z consi/5t to claim t a railroad has a mis=tune 9 hav+ a riv] to cross1 & t no value %\ld be plac$ on ! bridge :i* spans x1 z to claim t "r ( way1 :i* co/s ?ree times f>m-l& values1 %\ld n be valu$ at a high] figure ?an f>m l&4 ,,table #f4--;,,comp>ison ,,( ,,valuation ,,figures ,,) ,,actual ,,consid]ations--,,comp>ison ,,( ,,imm$iately ,,adjo9+ ,,prop]ties1 ,,gr& ,,rapids1 ,,mi*igan4 ,! prices are p] squ>e foot or p] acre4 ,location4 ,size ( ,mi*igan ,p]e ,actual lots4 ,c5tral ,m>quette transf]4 appraisal4 appraisal4 ft4 deepp] sq4 ft4p] sq4 ft4 ,fulton to ,isl& ,/reet #ej by #ajj #b4jj #a4dj ,isl& to ,oakes ,/reet #ej by #ajj #b4jj #a4bb ,oakes to ,*]ry ,/reet #b4jj #a4cc ,*]ry ,/reet ,frontage #acj deep #a4bc #a4bc ,*]ry to ,williams ,/reet #ej by #acj #a4ee ,williams ,/reet ,frontage #acj deep #j4ib #j4ed ,williams to ,b>tlett ,/reet #j4gf ,b>tlett ,/reet ,frontage #acj deep #j4gg #j4df ,b>tlett to ,goodri* ,/reet #j4fbe ,goodri* ,/reet ,frontage #acj deep #j4fb #j4ch ,goodri* ,/reet to #j4cie ,weal?y ,av5ue ,prescott to ,fir/ ,/reet #j4be #j4ed ,fir/ to ,second ,/reet #j4be #j4af p] acre4 p] acre4 ,l& on ,hall ,/reet #a1ejj #a1cei #c4ge ,nor? side ( ,hall ,/reet #a1jjjp] acre4 ,hall to ,/ev5s ,/reet #a1ejj #hjj #a1cea4aa ,on ,cr(ton ,/reet #djj #djj4jj ,! problem ( an apprais] is to det]m9e1 ) ! be/ evid5ce at h&1 :at l& is fairly wor? = railroad purposes at ! "t ( appraisal4 ,he mu/ take into acc\nt ! railway-purpose increm5t1 if he is consi/5t 9 8 appraisal4 ,non-,physical ,values4 ,! =ego+ n>rative acc\nt ( ! g5]al field & (fice h&l+ ( ! ,mi*igan appraisal ( physical prop]ty1 :ile n t\*+ on matt]s ( pr9ciple ( valuation1 except z to l& values1 is submitt$ z describ+ briefly ! ma*9]y ( ! appraisal4 ,a numb] ( v important issues 7 rais$ :i* h to d ) ! !ory ( valuation4 ,^! are wor?y ( discussion at l5g?1 9 ! subsequ5t consid]ation ( ! me?od ( det]m9ation ( a fair value1 b are n "h ref]r$ to4 ,)9 any %ort limits x is impossible to give a compreh5sive description 9 detail ( all ! "w ( ! ,mi*igan appraisal4 ,sev]al articles descriptive ( ?is "w h be5 writt51 giv+ q full extracts f ! v>i\s sets ( rules :i* 7 promulgat$1 & describ+ "s phases ( ! "w 9 mu* m detail ?an is "h attempt$4 ,! physical valuation1 z repres5t$ by two figures--! co/ ( reproduction ( ! physical prop]ty1 & its pres5t value--0 submitt$ to ! ,bo>d ( ,/ate ,tax ,commission]s z ! "w ( ,pr(essor ,cooley1 & 9 mo/ ( ! lit]ature descriptive ( x1 x has be5 t]m$ ! ,cooley ,appraisal4 ,aft] ! completion ( ,pr(essor ,cooley's "w1 8 figures 7 submitt$ to ,pr(essor ,h5ry ,c4 ,adams1 :o _h be5 mak+ a /udy ( ! income acc\nts ( ! v>i\s companies1 & to :om _h be5 assign$ ! duty ( det]m9+ ! non-physical or fran*ise values ( ! prop]ties4 ,pr(essor ,adams has describ$#e v fully ! plan adopt$ = ?is "w1 & ?is plan has be5 comm5t$ on s fully t any l5g?y description is deem$ unnecess>y4 ,x appe>s to be p]fectly prop]1 h[ev]1 to correct c]ta9 mis/atem5ts reg>d+ ?is "w4 ,:5 x 0 fir/ det]m9$ to make ! appraisal1 ,pr(essor ,cooley--n ,pr(essor ,adams--0 reque/$ to take *>ge4 ,! assignm5t to ,pr(essor ,adams ( ! non-physical valuation 0 made aft] ! physical valuation 0 well "u way4 ,! use ( a negative or subtractive non-physical value 0 consid]$1 & advis$ by ,pr(essor ,adams4 ,! "w 0 n und]tak5 ) a view ( increas+ ! assessm5ts1 b to put ! ,tax ,commission 9 possession ( a figure :i* w\ld repres5t ! bus9ess value ( ! prop]ty z well z ! physical value4 ,pr(essor ,adams held t ! non-physical elem5t ( value 0 n a simple comm]cial elem5t1 b includ$3 to be a corporation1 ,! fran*ise to use public prop]ty1 ,! possession ( traffic n expos$ to competition1 ,! possession ( traffic ?r\gh connections1 ,! b5efit ( economies due to d5sity ( traffic1 ,! value due to organization & vitality ( indu/ries s]v$4 ,he also held t1 z no?+ visible or tangible gave support to ?is value1 x mu/ be det]m9$ on ! basis ( in=mation secur$ f ! income acc\nts ( ! company4 ,)\t go+ into any complete description ( ,pr(essor ,adams' me?od1 x may be said t he made an analysis ( ! income acc\nts1 &1 aft] provid+ = op]at+ exp5ses & taxes1 he d$uct$1 z an annuity prop]ly *>geable to capital1 a c]ta9 p]c5tage ( ! apprais$ value ( ! physical prop]ties4 ,any rema9d] 0 capitaliz$ to give ! true value ( ! immat]ial elem5t1 or ! bus9ess value4 ,9 ! rates ( capitalization & annuity us$ 9 #aijb1 !re 7 c]ta9 *anges1 mak+ !m diff] f ^? us$ 9 #aijj1 & c]ta9 *anges 9 ! detail ( analysis ( income acc\nts & me?ods ( det]m9+ ! rates ( int]e/ :i* are entirely immat]ial to ! pres5t n>rative4 ,! "w 0 ( great importance z be+ ! fir/ exposition ( ?is me?od ( obta9+ non-physical values4 ,x 0 a fair1 logical1 & bus9ess-l attempt to det]m9e ^? elem5ts :i* give a well-design$1 economically-built1 or advantage\sly-locat$ prop]ty a great] value z a money-e>n+ conc]n ?an ! actual capital inve/$1 or ?an ! actual value rema9+ 9 its physical prop]ty4 ,x w be se5 t1 9 ! case ( a prop]ty 9 :i* ! surplus e>n+s dep5d on excessive rates = s]vice1 x w fail z a me?od ( det]m9+ a value = use z a basis ( rate-mak+2 & x fails1 9 ! =m 9 :i* x 0 us$ 9 #aijj & #aijb1 to br+ out ^? negative or subtractive elem5ts :i* may be det]m9$ f ! income acc\nts1 9 ! case ( prop]ties :i* d n e>n a fair return on ! inve/m5t4 ,?is1 h[ev]1 0 due to ! fact t ! taxation laws ( ,mi*igan made no provision = any r$uction ( value because prop]ty 0 idle or non-productive1 & any su* d$uction 9 ! case ( corporation prop]ty w\ld place x on a diff]5t basis f o!r prop]ty4 ,pr(essor ,adams & 8 associates1 !re=e1 appli$ only positive values1 :]e any su* 7 f\nd1 al?\gh advocat+ ! use ( negative values4 ,! writ] has se5 no criticism ( ,pr(essor ,adams' "w :i* is n app>5tly incit$ by1 ei!r ! direct int]e/ ( corporations 9 l[]+ valuations = taxation1 or by an ef=t to confuse ! subject ( valuation s z to discr$it ! "w 9 ! eyes ( tax+ au?orities4 ,any p]son compet5t to discuss ! matt]1 :o has giv5 ,pr(essor ,adams' me?od c>eful ?\ght1 w be =c$ to ! conclusion t ?is 0 a long /ep 9 ! direction ( ! f9al solution ( ^! important & p]plex+ elem5ts ( value4 ,hi/ory & ,results ( ! ,mi*igan ,appraisal4 ,bas$ on ! valuation ( #aijj1 ! ,bo>d ( ,/ate ,tax ,commission]s 0 enabl$ to comply ) ! /atute 9 report+ to ! ,legislature4 ,new laws 7 pass$1 sundry suits 7 br\ght1 &1 f9ally1 ! case ( ! ,mi*igan ,c5tral ,railroad vs4 ,p]ry ,f4 ,p[]s1 ,auditor-,g5]al1 & a numb] ( o!r cases 9 behalf ( o!r roads1 7 br\ght to trial be=e ! ,unit$ ,/ates ,c\rt = ! ,we/]n ,di/rict ( ,mi*igan4 ,?is ,mi*igan ,c5tral case 0 a suit to re/ra9 ! collection ( taxes bas$ on ! new assessm5t1 ! railroads claim+ t _! prop]ty 0 assess$ at full value1 :ile g5]al prop]ties ( ! ,/ate 7 assess$ at a consid]ably l[] p]c5tage ?an full value4 ,?is suit 0 ess5tially a valuation ( ! railroad prop]ties z ( ,april1 #aijb4 ,?is "w 0 done along ! same l9e z ! =m] valuation1 by a portion ( ! same /aff4 ,! old "w 0 br\ght d[n to date1 & c]ta9 special /udies 7 made1 :i* result$ 9 a *ange ( "r-(-way valuation1 z has be5 relat$4 ,9 ! trial ( ! case ( ,mi*igan ,c5tral ,railroad vs4 ,p[]s1 ! two valuations 7 fully te/ifi$ to by all ! m5 engag$1 & ! record relative to ! appraisal fills sev]al volumes4 ,subsequ5tly1 9 #aijf1 ,pr(essor ,cooley 0 engag$ by ! ,attorney-,g5]al1 &1 re-assembl+ ! /aff1 br\ght ! "w d[n to date z ( ,april1 #aijf4 ,!re has be5 no p]man5t =ce engag$ on ! "w 9 ,mi*igan1 & ! re-appraisals h only be5 made z actual necessity dem&$4 ,m>ket ,value ( ,/ocks & ,bonds4--,dur+ ! progress ( ! appraisal ( #aijj an indep5d5t =ce ( m5 0 engag$ 9 /udy+ ! m>ket values ( /ocks & bonds ( ,mi*igan roads ) a view to secur+ in=mation on e possible l9e t w\ld aid ! apprais] 9 rea*+ prop] conclusions1 or enable him to *eck 8 figures4 ,^! figures 7 us$ only z a *eck1 & no report ( ! details ( ?is "w 0 submitt$4 ,error 9 ,publi%$ ,reports z to ,mi*igan ,"w4--,9 sev]al articles descriptive ( ! ,mi*igan "w1 "o q s]i\s mis/atem5t ( fact has inadv]t5tly be5 made4 ,! writ] is n q sure h[ or :]e ! wrong impression orig9at$1 b x has be5 not$ 9 sev]al articles & editorials4 ,sub/antially1 all acc\nts are simil> to t ( ,pr(essor ,taylor1#f :i* is3 ,9 look+ ov] ! notes & results ( ! "w done 9 ,mi*igan1 x 0 notic$ t ,mr4 ,cooley's eng9e]s1 c>-m5 & o!r exp]ts w5t ov] ! prop]ty ( ea* railway company & enum]at$ & valu$ ! same1 & !n ! railway company g5]ally _h its own m5 p]=m ! same "w 9 ord] to *eck up ! appraisal made by ! ,/ate au?orities4 ,?us1 ?is exp5sive "w 0 unnecess>ily duplicat$4 ,und\bt$ly ?is /atem5t 0 made 9 good fai?1 & has ga9$ curr5cy by n hav+ be5 correct$1 b x is n ! fact4 ,! ,*icago & ,nor?we/]n ,railway took imm$iate /eps to make surveys & secure data1 z has be5 describ$1 & made a complete appraisal1 us+ ! ,mi*igan =ms4 ,! result ( ?is appraisal 03 ,*icago & ,nor?we/]n1 pres5t value #h1eea1ecj ,/ate appraisal1 pres5t value #h1bha1jij ,9 ?is case ! railroad _h no records1 & ! "w 0 ( value to !m1 n only z a *eck on ! "w ( ! ,/ate1 b also z giv+ !m complete records ( p]man5t way4 ,x 0 n done indep5d5tly (1 & aft]1 ! ,/ate "w1 b 0 organiz$ s t ! field "w ( bo? railroad company & ,/ate 0 done at ! same "t4 ,no o!r complete "w ( valuation 0 done by ! railroad companies4 ,dur+ ! trial ( ! cases1 no contr>y or diff]5t valuations 7 set up4 ,no special attack 0 made on ! "w1 except to select "h & !re "s specific example ( a build+ :i* 0 apprais$ at a high] figure ?an co/1 p]haps half a doz5 9 all1 & to introduce exp]t evid5ce1 p>ticul>ly on l& & "r-(-way values4 ,aside f ! money exp5d$ on ! litigation1 !re 7 no exp5ditures by ! roads 9 *eck+ up ! "w4 ,on ! contr>y1 a numb] ( manag]s1 at _! own exp5se1 _h typewritt5 copies ( ! f9al report z to _! own l9es made1 9 ord] to file 9 _! records4 ,x is a fact t only "o ( ! sev5ty-eight roads made a complete appraisal1 cov]+ #chg4h miles ( ma9 l9e1 & none ( ! o!r roads or mileage w5t to any consid]able exp5se4 ,! ,co/ ( ! ,"w4--,no complete /atem5t ( ! total co/ ( ! "w ( valuation 9 ,mi*igan has ev] be5 issu$ z a public docum5t4 ,! co/ ( ! "w1 includ+ sal>ies ( apprais]1 eng9e]s1 assi/ants1 cl]ks1 all exp5ses ( ! ,bo>d ( ,review1 all exp5ses connect$ ) ,pr(essor ,adams' non-physical appraisal1 also all (fice r5t1 /ation]y1 supplies1 telegraph1 telephone1 & railroad exp5ses1 pr9t+ & b9d+--9 %ort e doll> *>geable to ! ,mi*igan railroad appraisal ( #aijj--;foot$ up to #gj1fjd4ba4 ,! exact mileage ( roads 9 ! ,/ate 03 ,ma9 track #g1jhb4ce miles4 ,second track #afd4hc ,bran*es #gcj4ib ,spurs & sid+s #b1ijd4gj ,total #aj1hhb4hj miles4 ,av]age co/ p] ma9-l9e mile #i4ig total-track #f4ej ,! exact figures ( co/ ( ! subsequ5t "w ( appraisal1 or ! co/s ( ! litigation1 are n available to ! writ]4 ,9 a g5]al way1 x may be said t ! co/ to ! ,/ate ( ! railroad tax cases 0 n f> f #ge1jjj1 & t ! exp5ses ( ! second & ?ird appraisals 7 less ?an #ej1jjj1 s t1 to date1 ! entire co/ to ! ,/ate ( ,mi*igan is less ?an #bjj1jjj = ! ?ree appraisals & ! litigation gr[+ out ( !m4 ,"s in=mation z to details ( co/s may n be out ( place4 ,all employees 7 paid a sal>y & requir$ to provide _! own subsi/5ce4 ,sal>ies rang$ f #bej to #ejj p] mon? = exp]i5c$ m51 f #abe to #bej = m5 ) only a few ye>s ( exp]i5ce1 & f #ge to #abe = assi/ants & cl]ks4 ,all travel+ exp5ses 7except hotel & subsi/5ce7 7 paid1 ! ,/ate issu+ mileage books to all employees1 & receiv+ a complete *eck on ! movem5ts ( e man ?r\gh ! mileage bureau4 ,! telegraph & long-di/ance telephone 7 us$ almo/ exclusively 9 communication betwe5 ! (fice & ! m5 9 ! field1 all bills be+ paid by ! ,/ate4 ,all exp5ses ( inspection by h&-c>1 velocip$e-c>1 etc41 7 paid by ! ,/ate1 except z ! roadma/]s made trips ) ! inspectors4 ,! unv>y+ policy ( ! apprais] 0 to reimburse ! companies = all extra exp5ses incurr$ on acc\nt ( ! "w1 & to accept no transportation or favors f any company4 ,,table #g4--;,,gr& ,,summ>y ,,( ,,railroad ,,appraisal ,,( #aijj ,,z ,,to ,,sev5ty-,,eight ,,incorporat$ ,,railroads4 ,,physical ,,appraisal4 ,item ,subject4 ,co/ ( ,pres5t ,no4 reproduction4 value4 #a;,eng9e]+1 #d on items #b to #be1 #e1chf1ggb #e1chf1ggb inclusive1 & on item #cc #b,"r ( way & /ation gr\nds #bg1gde1cac #bg1gde1cac #c,real e/ate #hfc1ccg #hfc1ccg #d;,grad+ #ba1fii1iie #ba1fic1jbd #e,tunnels #a1adh1jgj #a1jic1dde #f;,bridges1 tre/les1 & culv]ts #h1jbg1aai #f1ccg1hai #g,ties 7cross- & swit*-ties7 #aa1aci1ibd #f1adh1gdh #h,rails #bh1gjc1jab #ba1hfe1iid #i,track fa/5+s #c1hde1jcj #b1ihg1ihb #aj;,frogs1 swit*es1 & cross+s #a1dfi1gha #a1jdj1abj #aa;,balla/ #c1gbc1eeh #c1gbc1eeh #ab,track lay+ & surfac+ #f1eee1fch #f1djj1igb #ac;,f5c+ #b1gfc1eie #a1fbg1gij #ad;,cross+s1 cattle gu>ds1 & signs #fjg1edb #dbh1dgd #ae;,int]lock+ & signal app>atus #eja1hhc #ddh1fhf #af,telegraph 7#cj7 telephones #beh1ihe #acd1gig #ag,/ation build+s & fixtures #d1ajh1gcf #c1aaa1ajc #ah,%ops1 r\nd-h\ses1 & turn-tables #b1aeg1bbh #a1dfg1efi #ai,%op ma*9]y & tools #a1ajg1iaj #hhb1fcd #bj,wat] /ations #gbe1fgj #ebb1ace #ba;,fuel /ations #cjc1bhi #bja1dfa #bb;,gra9 elevators #a1ccf1gid #a1fji1jdc #bc,w>eh\ses #beh1fdf #ahc1iaj #bd;,docks & :>fs #e1eca1iai #c1hca1icd #be,miscellane\s /ructures #a1bcd1cde #hef1bec #bf,locomotives #i1jba1eag #e1jib1jec #bg,pass5g] equipm5t #c1aig1dgc #b1bgg1bga #bh;,freight equipm5t #ai1gcd1bdj #ac1fij1ehg #bi,miscellane\s equipm5t #gjb1idj #dbc1fhi #ca;,f]ries & /eam%ips #a1gbe1jjj #a1jie1ejj #cb;,electric plants #ic1jfa #hi1hih #cc,t]m9als4 ,includ$ 9 ,items #a to #cb #cd,legal exp5ses1 #j4e on items #b to #be1 #fgc1cdi #fgc1cdi inclusive1 & on item #cc #ce;,int]e/1 #c on items #a to #cd1 #e1bij1edi #e1bij1edi inclusive #cf,miscellane\s,organization1 #a4e on #b1fde1bgg #b1fde1bgg exp5ses items #a to #cd1 inclusive ,cont+5cies1 #aj on #ah1dbh1gei #ae1abg1aaj items #a to #cd1 inclusive ,,total ,,co/ ,,( ,,con/ruction ,,& #bjb1gaf1bfb #aff1cih1aef ,,equipm5t4 #cg,/ores & supplies #a1dgd1hbi #a1dgd1hbi ,av]age p] ma9-l9e mile #bh1bfc #bc1die total-track mile #ah1fbg #ae1bij ,,total ,,value ,,( ,,non-,,physical ,,elem5t #ce1had1jdc 7,h4 ,c4 ,,adams7 ,! ,result ( ! ,mi*igan ,"w4--,any und]tak+ mu/ be judg$ by its results4 ,! ,attorney-,g5]al's report = #aijf1 on pages #ba & #bc1 /ates3 ,^! cases are among ! mo/ important 9 ! hi/ory ( ! ,/ate4 ,!y con/itute ! la/ /ep 9 subject+ railroad prop]ty 9 ,mi*igan to taxation on ! same basis & at ! same rate z o!r prop]ty is tax$1 & secure practical uni=mity & equality ( taxation betwe5 railroad & o!r prop]ty4 ,z a result ( ^! cases ! v>i\s railroad corporations paid 9 taxes #d1ghg1dgh4ae1 & z p5alty !reon #a1aeh1cba4ah1 a total am\nt ( #e1ide1gii4dc = ! ye>s #aijb1 #aijc & #aijd4 ,! #aije tax be+ paid soon aft] ! decision ( ! ,supreme ,c\rt1 no?+ 0 paid "u ! =m] law 7specific tax on e>n+s7 &1 ( c\rse1 !re 0 no p5alty on ! #aije taxes z !y 7 paid be=e ,may #a1 #aijf4 ,9 %ort1 ! roads are pay+ to ! ,/ate ( ,mi*igan an av]age ( #a1eie1hbf4je m p] ye> ?an !y paid "u ! old law1 & to date ! ,/ate has receiv$ ab\t #aj1gej1jjj m f taxes ?an x w\ld h receiv$ "u ! old specific tax law4 ,railroad developm5t 9 ,mi*igan has receiv$ no appreciable *eck1 & not)/&+ a #b-;c5t f>e & ! be>+ ( an equal burd5 ( taxation1 ! prop]ties are ma9ta9$1 & improvem5ts1 d\ble-track+ & bett]m5t ( g5]al /&>ds fully keep pace ) simil> "w 9 o!r ,/ates4 ,( c\rse1 x mu/ be recogniz$ t o!r =ces besides ! appraisal help$ to br+ ?is ab\t4 ,! appraisal ( #aijj furni%$ ! in=mation4 ,public op9ion compell$ ! passage ( ! ne$$ laws1 & ! magnific5t legal "w ( ,attorneys-,g5]al ,blair & ,bird1 ,congressman ,t[ns5d1 & ,judge ,knapp51 & _! associates1 loyally support$ by ,pr(essors ,cooley & ,adams & ! appraisal /aff1 7 all factors 9 secur+ ! decision ( ! ,supreme ,c\rt ( ! ,unit$ ,/ates4 ----- ,footnote #e3 ,bullet9 #ba1 ,u4 ,s4 ,bureau ( ! ,c5sus1 p4 #gh4 ,footnote #f3 ,bullet9 #ba1 ,u4 ,s4 ,bureau ( ! ,c5sus4 ,,railroad ,,appraisal ,,( ,,! ,,/ate ,,( ,,texas4 ,au?ority = ! ,"w4--,9 #ahic ! ,legislature ( ,texas enact$ :at is kn[n z ! ,/ock & ,bond ,law1 :i* 0 design$ to control & limit ! total am\nt ( /ocks & bonds t may be issu$ on any railroad prop]ty to ! reasonable value ( said railroad prop]ty4 ,?is law fur!r provides t3 ,x %all be ! duty ( ! ,railroad ,commission to asc]ta91 & 9 writ+ report to ! ,secret>y ( ,/ate1 ! value ( ea* railroad 9 ?is ,/ate includ+ all its fran*ises1 appurt5ances & prop]ty4 ,! "w ( valuation 9 ,texas ant$ates t 9 ,mi*igan1 & (f]s "s int]e/+ opportunities = comp>ison ( me?ods "u some:at simil> conditions1 z f> z ! exi/+ roads 7 conc]n$4 ,! "w be+ 9 ! h&s ( a p]man5t commission ) v broad p[]s1 x has be5 possible to secure f rec5tly built roads v full & specific data z to con/ruction1 b ) ^! lat] valuations & ) ! curr5t "w ( ! dep>tm5t1 ?is pap] w n deal4 ,! ,commission ( ,texas int]pret$ ! law to mean ! e/imat$ co/ ( reproduc+ or duplicat+ ! prop]ties at ! date ( valuation1 all[+ curr5t m>ket prices = all mat]ial & fair valuations on all real prop]ty4 ,me?od ( ,physical ,appraisal4--,! ,commission duly appo9t$ eng9e]s to make ^! valuations4 ,! railroads ( ! ,/ate 7 unfavorably dispos$ t[>d ! "w1 & 7 incl9$ to )hold in=mation4 ,! ,texas /aff enc\nt]$ ! difficulty due to de/ruction or loss ( con/ruction records1 maps1 & pr(iles4 ,!y _h = _! guidance only ! pr(iles1 fil$ "u a prior law1 & 7 ?us compell$ to dep5d :olly on orig9al field "w to secure _! data4 ,f a pap] by ,r4 ,a4 ,?ompson1 ,m4 ,am4 ,soc4 ,c4 ,e41#g ! foll[+ description is tak53 ,!y ! eng9e]s ) ! pr(iles 444 9 h&1 made a detail$ inspection ( ! railroads on ! gr\nd4 ,! quantities ( excavation & embankm5t1 :]e ! actual quantities c\ld n be obta9$1 7 e/imat$ approximately f ! pr(iles1 us+ ! c5t] heights ( ! cross-sections4 ,! classification ( ! mat]ials 9 excavation 0 det]m9$ by inspection4 ,:]e orig9al plans & e/imates ( co/ ( ! bridges1 build+s & /ructures ( all k9ds c\ld n be obta9$ f ! records ( ! railroads1 _! value 0 e/imat$ f measurem5ts tak5 on ! gr\nd4 ,! ext5t & acreage ( ! "r ( way1 ! depot & t]m9al gr\nds1 7 det]m9$ by actual measurem5t1 or f maps furni%$ by railroads1 or f city & c\nty tax records4 ,aft] an exam9ation ( a railroad _h be5 made by ! eng9e]s ( ! ,commission1 its valuation 0 prep>$ on e/imate %eets4 ,^u %eets m>k$ ,e/imate ,%eet ,a 444 7 record$ ! values ( ! "r ( way & depot gr\nds1 roadb$1 track1 bridges1 /ructures & way build+ = ea* mile1 ! value ( t5 miles be+ record$ on ea* %eet4444 ,on ^! %eets space 0 provid$ = ! units & prices1 & columns = c>ry+ out ! values = ea* mile & ! totals4 ,! value ( all roll+ /ock & equipm5t1 & ! value ( su* prop]ties z 7 prop]ly applicable & *>geable to ! entire railroad1 7 record$ on a sep>ate e/imate %eet1 only "o %eet be+ us$ = a railroad4 ,x ?us appe>s t ! g5]al me?ods ( secur+ ! data & mak+ ! field exam9ation 7 q simil> to ^? adopt$ on ! ,mi*igan "w4 ,! classification ( items on ! %eets is r m full ?an on ! ,mi*igan summ>y %eets1 b app>5tly n s completely 9 detail z ! f9al compilation ( "w4 ,9 g5]al1 h[ev]1 ! physical items includ$ are complete 9 bo? cases4 ,! =m 9 :i* ! results are f9ally put up is radically diff]5t4 ,! foll[+ po9ts ( v>iations f ! practices ( ! ,mi*igan appraisal are not$3 7a7 ,! unit prices 7 curr5t m>ket prices4 7b7 ,! value appli$ to "r ( way & real e/ate us$ = railway purposes 0 9 accordance ) ! curr5t m>ket value ( o!r prop]ty imm$iately adjo9+1 disreg>d+ donations or prop]ty acquir$ at less ?an value4 7c7 ,no d$uction 0 made on acc\nt ( depreciation1 z x 0 consid]$ t all /ructures mu/ be ma9ta9$ 9 fir/-class1 s]viceable value1 & r5ew$ :5 necess>y1 & no all[ance 0 made = appreciation ( roadb$4 7d7 ,no all[ance 0 made = fran*ise values ( any k9d1 except track rights 9 /reets4 7e7 ,no all[ance 0 made = cont+5cies1 except z made 9 prices or quantities4 ,_! practice 0 9 accord ) ! ,mi*igan appraisal1 9 all[+ f #e to #f to cov] legal & eng9e]+ exp5ses & sup]9t5d5ce1 & f #e to #f to cov] int]e/ dur+ con/ruction4 ,! ,result ( ! ,texas ,"w4--,! object s\ght 9 ,texas 0 to secure a capitalization 9 h>mony ) ! actual inve/m5t 9 ! physical prop]ty2 9 %ort1 to squeeze out wat]4 ,( c\rse1 all /ock & bond issues out/&+ 9 #ahid are /ill 9 exi/5ce1 except z a few roads h be5 sold out or re-organiz$4 ,no new issues ( /ock or bonds may be made on roads 9 excess ( ! valuation4 ,consequ5tly1 new roads are limit$ to issues ( bonds n f> f #ae1jjj p] mile4 ,! effect is %[n by ,table #h1 f ! ,railroad ,commission's ,report4 ,,table #h4--,,miles ,,( ,,railway ,,9 ,,op]ation ,,9 ,,texas1 #ahid ,,to #aijh1 ,,) ,,out/&+ ,,/ocks ,,& ,,bonds4 ,on ,june ,miles ( ,/ocks ,bonds ,total /ock & #cj?4 railway 9 out/&+1 out/&+1 bonds op]ation4 p] mile4 p] mile4 out/&+1 p] mile4 #ahid #i1aed #ae1jgf #be1gbf #dj1hjb #ahie #i1bia #ad1hgd #be1dbj #dj1bid #ahif #i1dcg #ad1fdg #be1cjb #ci1idi #ahig #i1dhd #ad1cbj #bd1gic #ci1aac #ahih #i1edj #ad1bje #bd1jcf #ch1bda #ahii #i1gjb #ac1iig #bc1efb #cg1eei #aijj #i1hfg #ac1gbd #bc1bjb #cf1ibf #aija #aj1aed #ab1ibb #bb1fdi #ce1ega #aijb #aj1fag #ab1chh #ba1ggi #cd1afg #aijc #aa1jbi #aa1iga #ba1dfd #cc1dce #aijd #aa1die #cb1djj #aije #aa1ffb #cc1dah #aijf #ab1jef #cb1hhf #aijg #ab1egg #cb1adb #aijh #ab1hcj #cb1cje ,total r$uction1 up to #aijc1 ( /ock p] mile #c1aje bonds #d1bfb ,total /ock & bonds #g1cfg ,e4 ,l4 ,cor!ll1 ,m4 ,am4 ,soc4 ,c4 ,e41 speak+ ( results secur$ by ! ,texas law1 says#h3 ,! law1 & g5]ally its j op]ation1 has cur$ _m unmitigat$ & notori\s evils4 ,n only has ! public 9 ,texas be5 b5efit$1 b also ! inve/or 9 railroad securities f ! outside ( ! ,/ate4 ,! p ( ,texas n[ h j & uni=m rates ( transportation1 & ! inve/or kn[s :at he is pur*as+1 & may be reasonably sure ( a return on 8 inve/m5t4 ,mr4 ,?ompson says#i3 ,ano!r significant fact is t only a %ort "t be=e ! ,/ock & ,bond ,law became effective ab\t #ci ( ! railroads 9 ,texas 7 9 ! h&s ( receiv]s4 ,to-day !re is n a mile1 ( ! #aa1cjj miles 9 ,texas1 9 ! h&s ( receiv]s1 &1 ) a few unimportant exceptions1 no railroad has be5 9 ! h&s ( receiv]s s9ce ! law w5t into effect4 ,! fact is t !re has be5 no piece ( legislation1 9 ?is or any o!r ,/ate ( ! ,union dur+ ! pa/ decade1 :i* has be5 s fruitful ( results & b5efic5t 9 its action1 alike to ! railroads & ! p4 ----- ,footnote #g3 ,transactions4 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lii4 p4 #cbh4 ,footnote #h3 ,transactions4 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lii4 p4 #cdf4 ,footnote #i3 ,ibid41 p4 #cfd4 ,,railroad ,,appraisal ,,( ,,! ,,/ate ,,( ,,wiscons94 ,! ,/ate ( ,wiscons9 made a valuation ( railroad prop]ties ( ! ,/ate z ( ,june #cj?1 #aijc1 ! "w be+ "u ! direction ( ,w4 ,d4 ,taylor1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,! plan adopt$1 ! me?ods ( "w1 & ! g5]al result ( indep5d5t /udies conduct$ by ,pr(essor ,taylor h be5 describ$ s fully 9 v>i\s te*nical pap]s & reports else:]e li/$1 t a v brief /atem5t ( po9ts ( diff]5ce betwe5 ! ,mi*igan & ,wiscons9 works appe>s to be all t is necess>y "h4 ,pr(essor ,taylor associat$ ) him = consultation ,pr(essor ,cooley1 ( ,mi*igan1 made a c>eful /udy ( me?ods us$ 9 e>li] appraisals1 us$ ! ,mi*igan blank =ms z a basis = ! prep>ation ( 8 own1 & ?or\ghly outl9$ 8 g5]al plan & ! scope ( ! in=mation desir$ be=e actually organiz+ 8 /aff or comm5c+ "w4 ,9 connection ) ! e>li] /ages ( ! "w1 conf]5ces 7 held ) ! (ficials ( ! pr9cipal railways ( ! ,/ate1 & develop$ a ?or\gh und]/&+ & plans = co-op]ation betwe5 ! apprais] & ! roads4 ,z a result ( ^! conf]5ces1 ea* l>ge railway company ( ! ,/ate1 act+ ?r\gh its heads ( dep>tm5ts1 made an inv5tory & appraisal ( its own prop]ty 9 ! ,/ate1 us+ !re= ! =ms & blanks prep>$ by ! apprais]4 ,at ! same "t1 ! apprais] organiz$ a consid]ably small] =ce ?an 0 us$ 9 ,mi*igan1 made 8 own (fice & field inspection1 & secur$ data to complete ! appraisal on ! small roads1 9 :i* _! own eng9e]+ or op]at+ dep>tm5ts 7 n organiz$ s z to d ! "w accord+ to plan4 ,! "w turn$ out by ! l>ge roads 0 !n *eck$ by ?is =ce1 ! v>i\s po9ts 9 :i* !y 7 out ( h>mony 7 *eck$ & unifi$1 a numb] ( he>+s 7 held1 c]ta9 portions ( ! "w 7 *eck$ ov] by ! apprais]s' m51 sundry *anges 9 quantity & price 7 made1 & f9ally1 :5 ! "w 0 compil$ & put 9 %ape = pres5tation1 ! apprais] _h reason to believe t he _h secur$ a result :i* 0 reasonably free f error1 & "o 9 :i* ! railroads _h co-op]at$ to su* an ext5t t no *>ge ( prejudice or unfairness w\ld lie4 ,x is not$ t ! av]age co/ ( reproduction & ! pres5t value p] mile 9 ,wiscons9 are high] ?an 9 ,mi*igan1 :i* is probably z x %\ld be1 z ,mi*igan has a less mileage ( high-class ma9 trunk l9e road ?an ,wiscons94 ,9 g5]al1 ! two appraisals 7 v simil>4 ,! det]m9ation ( unit prices1 ! plac+ ( depreciation1 ! apportionm5t ( locomotives1 freight1 & pass5g] equipm5t1 & o!r roll+ /ock1 ! use ( ! ,int]/ate ,comm]ce ,commission's con/ruction classification1 ! application ( p]c5tage values = eng9e]+1 int]e/ dur+ con/ruction1 adm9i/ration1 legal exp5ses1 & cont+5cies 7?is latt] fix$ at #e4e71 all 7 along l9es simil> to ^? develop$ 9 ,mi*igan4 ,! "w ( ! ,wiscons9 appraisal 0 c>ri$ on at ! same "t z ! second ,mi*igan appraisal4 ,! inve/igations made by ,mr4 ,van ,ran/ ,pond & ! writ]1 z to ! actual sale prices ( "r ( way1 fully discuss$ h]et(ore1 7 conduct$ at ! same "t z ,pr(essor ,taylor's "w 9 ,wiscons9 0 be+ done1 & nei!r p>ty _h any k ( ! "w ( ! o!r4 ,! prior discussion relative to ?is phase ( ! ,mi*igan valuation is practically a revision ( a memor&um submitt$ by ! writ] to ! ,attorney-,g5]al 9 ,janu>y1 #aijd4 ,! tables are ab/ract$ f mu* m ext5sive ones :i*1 support$ by ! evid5ce ( ,regi/]s ( ,de$s ( "s t5 c\nties ( ,mi*igan1 are "p ( ! record ( evid5ce 9 ,mi*igan ,c5tral ,railroad vs4 ,p[]s4 ,x is1 !re=e1 n only ( great int]e/1 b great value1 z support+ ,pr(essor ,cooley's "r-(-way valuations1 to note ! foll[+ extract#aj f ,pr(essor ,taylor's discussion ( ! pap] by ,mr4 ,r4 ,a4 ,?ompson on ! ,texas railroad valuations3 ,9 ! ,wiscons9 appraisal1 ! me?od foll[$ = valu+ ! "r ( way & t]m9al l&s 0 ab\t z giv5 bel[4 ,p>ts ( ! "r ( way ( "s ( ! l>g] sy/ems are e/imat$ at high] ratios ?an ?is1 b 9 su* cases ! roads !mselves fix$ ! "r-(-way value4 ,! m>ket value = o!r purposes ( ! "r ( way & t]m9al l&s 0 judg$ to be ! same z t ( contigu\s prop]ty4 ,9 f>m+ l&s1 small t[ns1 & suburban & resid5ce prop]ty1 ! "r-(-way value 0 tak5 to be #bej ( ! m>ket value = o!r purposes4 ,9 city prop]ty1 ! "r-(-way value 0 tak5 to be #acc ( ! m>ket value = o!r purposes1 :]e ! l& 0 own$ 9 /rips ( #ajj ft4 wid? or less1 & #aaj ( ! m>ket value = o!r purposes1 :]e ! l& 0 own$ 9 blocks1 or 9 wid?s great] ?an #ajj ft4 ,no ef=t :atev] 0 made 9 ! ,wiscons9 valuation to det]m9e any non-physical or intangible values1 ! report cov]+ only co/ ( reproduction & pres5t value ( ! physical prop]ties4 ,! ,wiscons9 "w is notewor?y z ! fir/ appraisal 9 :i* ! he>ty co-op]ation ( ! railroads 0 secur$ f ! outset4 ,9 ,mi*igan ! roads at ! inception view$ ! "w ) di/ru/1 b by ! completion 7 9 he>ty sympa?y ) ! ef=ts ( ! apprais] to use j & honorable me?ods1 & ! managem5ts ext5d$ e c\rtesy 9 ! way ( access to records = v]ification purposes4 ----- ,footnote #aj3 ,transactions1 ,am ,soc4 ,c4 ,e41 ,vol4 ,,lii4 p4 #cei4 ,,! ,,m9nesota ,,/ate ,,railway ,,appraisal4 ,! valuation ( railway prop]ties 9 ! ,/ate ( ,m9nesota 0 und]tak5 ) a view to e/abli%+ a basis = rate-mak+4 ,! "w 0 9 *>ge ( ,mr4 ,dwight ,c4 ,morgan1 ,eng9e] ( ! ,railroad & ,w>eh\se ,commission ( ! ,/ate1 ^: full & complete report is a v valuable addition to ! lit]ature ( valuation practice4 ,?is "w 0 und]tak5 aft] ! completion ( t 9 ,mi*igan & ,wiscons91 & advantage 0 tak5 ( ! exp]i5ces ( ! apprais]s 9 ^! two ,/ates4 ,! ,wiscons9 plan ( co-op]ation ) ! railroads 0 adopt$1 & ea* company s*$ul$ & apprais$ its own l9es4 ,! co/ ( reproduction1 & pres5t value ( physical prop]ties 7 ! two sets ( figures %[n 9 ! f9al results4 ,unit prices 7 fix$ on ! basis ( curr5t prices 9 #aije1 9 pref]5ce to an av]age ( #e or #aj ye>s4 ,apportionm5t ( locomotives & roll+ /ock 0 made on an eng9e- & c>-mileage basis4 ,! organization ( an (fice =ce 0 und]tak51 & special /udy 0 made ( ! subjects ( unit prices & ! v>i\s local conditions surr\nd+ ! diff]5t prop]ties1 *eck+ ( quantities ( e>?work1 rails1 etc41 & prep>+ to h>monize & unify ! e/imates z !y %\ld be receiv$ f ! railroads4 ,! greate/ diff]5ce betwe5 ?is "w & t 9 ! o!r ,/ates 0 ! fact t ! field inspection1 in/ead ( be+ made by _m m51 0 made by ,apprais] ,morgan1 accompani$ by two assi/ants1 inspection be+ made 9 a special tra91 :i* 0 paid = by ! ,/ate4 ,! detail$ reports ( ! railroad companies 7 complet$ & 9 ! h&s ( ! apprais]1 maps & pr(iles ( ! road 7 prep>$ & available1 ! tra9 0 run at sl[ spe$1 & _m /ops 7 made = exam9ation ( bridges1 culv]ts1 & /ructures4 ,ab\t #ajj miles p] day 7 cov]$1 b ?is did n include ! l>g] t]m9als ( ,/4 ,paul1 ,m9neapolis1 & ,dulu?1 :i* 7 giv5 _m days4 ,9 ! prep>ation ( f9al summ>ies1 p]c5tage values 7 plac$ z foll[s3 ,eng9e]+1 sup]9t5d5ce1 & legal #d p] c5t4 ,cont+5cies #e ,int]e/1 "t ( con/ruction v>y+ accord+ to #d mileage f #a to #h ye>s ,9 addition to ^! ?ree items1 ! item ( adaptation & solidification ( roadb$ 0 giv5 a l>ge place1 be+1 = all ! roads ( ! ,/ate1 #aa1gdc1jjg4ae4 ,?is feature 0 novel to ?is class ( valuation1 & x is to be regrett$ t1 9 8 report1 ! apprais] did n n>rate m fully ! detail$ me?ods by :i* he arriv$ at 8 resultant figure4 ,l& ,valuation4--,! vex$ "q ( a prop] value to give to l&s own$ by a railway company1 0 treat$ by ,apprais] ,morgan 9 a diff]5t way ?an x _h be5 9 ,wiscons9 or ,mi*igan4 ,a numb] ( special ag5ts 7 appo9t$1 :o made an exhau/ive /udy ( ! transf]s & assess$ values ?r\gh\t ! ,/ate4 ,! discussion ( ?is subject 9 ,mr4 ,morgan's report is exhau/ive1 & ( great int]e/4 ,! conclusions are quot$4 ,x is regrett$ t ! discussion ( me?ods ( valuation c only be giv5 9 brief =m4 ,c>eful & full consid]ation ( all in=mation made available = e/abli%+ ! value ( ! "r ( way own$ & us$ by ! railway companies = railway purposes1 l$ to ! conclusion t 9 ! /ate at l>ge exclusive ( ! ?ree t]m9als ( ,/4 ,paul1 ,m9neapolis & ,dulu?1 a multiple ( ?ree 7#c7 appli$ to ! true value or normal value ( l&s1 z obta9$ f ! transf]s1 w\ld 9 g5]al satisfy ! conditions4 ,dur+ ! p]iod ref]r$ to1 ! railway companies paid = ! prop]ty acquir$ by !m1 ov] & above its normal value1 an am\nt suffici5t to ju/ify ! use ( ! foll[+ multiples3 ,/4 ,paul1 "o & ?ree-f\r?s 7#a72 ,m9neapolis1 "o & ?ree-fif?s 7#a71 & ,dulu?1 "o & "o-f\r? 7#a71 :i* :5 appli$ to ! normal value ( ! l&s z e/abli%$ f contigu\s & surr\nd+ prop]ty1 =m$ ! basis = measur+ ! co/ ( reproduc+ ! exi/+ t]m9als ( ! railway companies4 ,9 ! f9al compilation ( results1 two sets ( s*$ules 7 r5d]$3 7a7 ,^? :i* gave ! l& values ) add$ increm5t1 7b7 ,^? :i* omitt$ ! increm5t4 ,! co/ ( ! eng9e]+ "w 0 ab\t #gj1jjj2 ?is cov]$ #g1eif4d miles ( ma9 track1 #dbg4d miles ( second track1 & #b1dad miles ( side-track1 or a total ( #aj1dcg4h miles ( all tracks4 ,z yet !re has be5 no decision by ! ,c\rts on ! ,m9nesota rate cases4 ,=ms ,us$ 9 ! ,compilation ( ,in=mation4--,! =ms us$ 9 ! ,mi*igan appraisal h be5 describ$ & fully illu/rat$4 ,!y 7 all pr9t$ on #h by #aa-;94 %eets4 ,! ,wiscons9 appraisal us$ ! ,mi*igan =ms z a basis1 tw5ty ( !m be+ practically id5tical ) ! correspond+ ,mi*igan =ms4 ,! =ms %[n by ,figs4 #aa to #ba are mat]ially diff]5t f ^? us$ 9 ,mi*igan4 ,! =ms us$ 9 ,m9nesota 9 #aijf 7 bas$ on ^? ( ,mi*igan & ,wiscons91 & 7 pr9t$ on #ad by #ah-;94 %eets4 ,!y 7 remodel$ & elaborat$ to su* an ext5t1 h[ev]1 t ! writ] believes himself ju/ifi$ 9 submitt+ reproductions ( ! entire set1 z repres5t+ ! mo/ complete =m = inv5tory yet us$ on any ( ! ,/ate appraisals4 ,! apprais] 9 ,nebraska 9 #aiji1 & ,mr4 ,hansel 9 ,new ,j]sey 9 #aiaj1 h bo? return$ to ! #h by #aa-;94 %eets1 &1 :ile bo? cle>ly foll[$ e>li] prec$5t 9 g5]al1 bo? h modifi$ ! details to suit ! requirem5ts 9 _! respective ,/ates4 ,,! ,,wa%+ton ,,/ate ,,appraisal4 ,! ,/ate ( ,wa%+ton1 ?r\gh its ,railroad ,commission]s1 made an appraisal ( railroad prop]ties )9 its bord]s1 ! "w be+ "u ! direction ( ,halb]t ,p4 ,gillette1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,illu/ration3 ,,fig4 #aa4 ,,wiscons9 ,,railroad ,w4,b4,a4 ,=m #a ,,appraisal ,,( #aij ,(fice ,inspector ,"n ( ,road ,,roadb$ ,,report ,field ,inspector ,betwe5 & ,,"p ,i ,date #aij ,,location ,,acres ,,total ,,excavation ,,ties ,,& ,,embankm5t ,cle>+,e>?,loose,solid,numb],k9d,conditi on & cu4 ,rock ,rock ,grubb+yds4 cu4 cu4 yds4 yds4 ,,balla/ ,,rails ,k9d ,condition,l5g?,weight,condition & ( ,am\nt ,s+le ,track 9 ft4 ,,wiscons9 ,,railroad ,w4,b4,a4 ,=m #b ,,appraisal ,,( #aij ,(fice ,inspector ,"n ( ,road ,,roadb$ ,,report ,field ,inspector ,betwe5 & ,,"p ,,ii ,date #aij ,,location,,tie ,,plates ,,& ,,braces ,,fa/5+s ,numb],k9d,condition,numb],weight,condit ion p] foot ,,frogs ,,& ,,swit*es ,r4,r4 ,,cross+s ,numb],k9d,condition,numb] ,rail ,condition ,weight ,,wiscons9 ,,railroad ,w4,b4,a4 ,=m #f ,,appraisal ,,( #aij ,(fice ,inspector ,"n ( ,road ,,signal ,,app>atus ,field ,inspector ,betwe5 & ,date #aij ,,location ,,"n ,,& ,no4 ,miles ,co/ ,condition ,,description ,s+le ,l9e ,new ,p] ,c5t ,,wiscons9 ,,railroad ,w4,b4,a4 ,=m #h ,,appraisal ,,( #aij ,(fice ,inspector ,"n ( ,road ,,miscellane\s ,field ,inspector ,betwe5 & ,,roadway ,,items ,date #aij ,,location,sets ,section ,tools1,condition ,,cross+ ,,protection ,h& ,c>s1 etc4 ,p] ,c5t ,k9d,am\nt,condition ,p] ,c5t ,illu/ration3 ,,fig4 #ab4 ,,wiscons9 ,,railroad ,w4,b4,a4 ,=m #i ,,appraisal ,,( #aij ,(fice ,inspector ,"n ( ,road ,,telegraph1 ,,in/rum5ts ,,& ,,/ation ,,equipm5t ,field ,inspector ,betwe5 & ,date #aij ,,own] ,,l9e ,,keys,,s\nd+s ,,relays ,repeat]s,cut ,,betwe5 ,outs ,we/]n,box,key ,union on base ,,swit* ,,bo>ds ,numb] ,make ( ,l5g? ,condition ( ,batt]y,telegraph,p] ,c5t ,batt]y or ,cells ,telephone ,l9es ,numb],numb] ( ( ,/raps,bo>ds ,,wiscons9 ,,railroad ,w4,b4,a4 ,=m #ch ,,appraisal ,,( #aij ,(fice ,inspector ,"n ( ,road ,,f5ces1 ,,cattle ,,gu>ds ,,& ,,highway ,,cross+s ,field ,inspector ,betwe5 & ,date #aij ,,location ,wire ,l5g? ,no4 ,size ,no4 ,size ,condition ,k9d or ( ,po/s ( ,plank ( ,p] ,c5t ( ,wood5 ,f5ce ,p] ,po/s or ,plank ,cattle ,f5ce 7,s+le,mile ,wire or ,gu>d ,l9e7 ,p] ,wire ,mile ,condition,ft4 ,b4,m4,condition ,p] ,c5t ,cross+,p] ,c5t ,plank ,,wiscons9 ,,railroad ,w4,b4,a4 ,=m #db ,,appraisal ,,( #aij ,(fice ,inspector ,"n ( ,road ,,timb] ,,tre/les ,,& ,,op5+s ,field ,inspector ,betwe5 & ,date #aij ,,location ,,description ,av]age ,no4 ,av]age ,condition ,total ,l5g?2 ,pile ,height ,piles,p5etration,p] ,c5t or ,frame2 ,numb] ,top ,p] ( ,piles ,/r+]s2 ,b4,m4 ,gr\nd ,b5t ,fram+2 ,p] ,l94 ,to ,base ,ft41 ,etc4 ,rail ,illu/ration3 ,,fig4 #ac4 ,"n ( ,op]at+ ,=m #ba ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,docks ,,& ,,:>ves ,) or ,)\t ,coal or ,ore ,h&l+ ,equipm5t ,,docks ,,& ,,:>ves ,,location,item,dim5sions,piles ,fram+,plat=m,masonry,concrete ,l9eal ,b4,m4 ,b4,m4 ,cubic ,cubic ,feet ,feet ,feet ,y>ds ,y>ds ,,sup]/ructure ,,= ,,h&l+ ,,coal ,,or ,,ore ,fill+,age,condition,type,dim5sions,timb ],numb] ,capacity,numb] ,cubic ,p] ,c5t ,b4,m4 ( ( ( ,y>ds ,feet ,pockets,pockets ,hoi/s ,e>? ,/one ,,complete ,av]age ,,plant ,condition ,p] ,c5t ,age ,co/ ( ,reproduction ,"n ( ,op]at+ ,=m #bb ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,int]lock+ ,,plants ,,location,"n (,:5 ,,t[] ,,h\se ,k9d ( ,railway,built ,ma*9e ,cross$ ,k9d,dim5sions,cond4 ,p] ,ct4 ,,numb] ,,( ,,lev]s,,k9d ,,( ,,connection ,,pipe ,f\ndations1 ,,signal ,,or ,,wire ,,to ,wood or ,,po/s ,concrete ,"w,sp>e,total,d]ails,swit*es,signals ,high,dw>f ,,numb] ,,( ,,functions ,,electric ,av]age ,p] ,c5t ( ,p] ,c5t ( ,,op]at$ ,,circuit ,condition,con/ruction,ma9t5ance ,,= ,p] ,c5t ,co/ ,paid ,by ,co/ ,paid ,?is ,company ,by ,?is ,company ,d]ails,swit*es,signals ,p] ,c5t ,co/ ( ( ,reproduction ,op]at+ ,co/ ,paid ,by ,?is ,company ,"n ( ,op]at+ ,=m #bc ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,signal ,,app>atus ,,location ,,tra9 ,,ord] ,,& ,,manual ,,block ,,signals ,,op]at$ ,,9 ,,conjunction ,,) ,,! ,,telegraph ,type ,manufactur$ ,numb] ,condition,miles ( ,type ( by ,in/all$,p] ,c5t ,s+le ( ,signal ,l9e ,signal ,protect$ ,,automatic ,,block ,,signals ,manufactur$ ,numb] ,numb] ,circuit ,miles ( ,condition ,type by ,in/all$ ,swit* ,track or ,s+le ,p] ,c5t ( ,indicators ,wire ,l9e ,signal ,protect$ ,,di/ant ,,swit* ,,signals ,numb] ,condition,location ,in/all$,p] ,c5t ,,electric ,,bells ,,= ,,highway ,,cross+ ,,protection ,manufactur$ ,numb] ,circuit,condition by ,in/all$ ,track ,p] ,c5t or ,wire ,"n ( ,op]at+ ,=m #bd ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,telegraph1 ,,telephone ,,l9es ,,appurt5ances ,9 ,case ,l9es are n ,own$1 ,only ,%[ ,su* ,equipm5t z ,actually ,belongs to ! ,railroad ,company ,(fice ,compil] ,,location,,own] ,numb],numb],numb],k9d ,numb],numb],numb] ( ( ( ( ( ,miles ,poles,wires ,wire ,keys p] ,/rung ,mile ,,g5]al ,,description ,numb] ,numb] ,numb] ,numb] ( ,k9d (,numb] ,co/ ( ( ( & ,telephone ,batt]y ( ,reproduction ,s\nd]s,relays,capacity,transmitt]s ,cells ( & ,swit* ,receiv]s ,bo>ds ,,rem>ks ,condition ,p] ,c5t ,illu/ration3 ,,fig4 #ad4 ,"n ( ,op]at+ ,=m #be ,company ,field ,inspector ,locomotives 9 ,s]vice ,,m9nesota ,,railroad 9 ,m9nesota ,,w>eh\se ,,commission ,(fice ,compil] ,total ,numb] ,,railroad ,,appraisal ,,( #aijf ,,locomotives ,"n ( ,build] ,eng9e,class ,simple ,s]vice,dim5sions,diam4 ,work+ ,numb] or ( ( ,pressure ,comp\nd ,cyl9d]s ,boil] ,,eng9es ,driv+ ,weight ,weight ,weight,haul+ ,brake ,:5 ,:5 ,:eels on on on ,capacity,equipm5t,built ,giv5 ,driv+,trail+,truck ,g5]al ,:eels ,:eels ,repairs ,no4,diam4 ,,t5d] ,total ,co/ ( ,condition ,weight,reproduction,p] ,c5t ,eng9e ,t5d] ,load$ ,wat] ,coal ,capacity,capacity ,"n ( ,op]at+ ,=m #bf ,company ,field ,inspector ,pass5g] ,equipm5t on ,,m9nesota ,,railroad ,sy/em ,c>s ,,w>eh\se ,,commission ,(fice ,compil] ,pass5g] ,equipm5t ,,railroad ,,appraisal ,,( #aijf ,assign$ to ,m9nesota ,c>s ,pass5g] ,c> ,mileage1 ,,pass5g] ,,equipm5t ,sy/em ,miles ,pass5g] ,c> ,mileage1 ,m9nesota ,miles ,s]ial ,k9d ( ,class,dim5sions,design (,k9d (,numb],k9d ,numb],equipm5t ,ve/ibule,c\pl] ( ( ,seats ,heat ,k9d ,trucks ,brake ,"n (,:5 ,total ,co/ ( ,condition ( ,numb],equipm5t,build],built,numb] ,reproduction,p] ,c5t ,light ( ( ,c>s ,:eels ,n[ 9 ,s]vice ,give ,numb] ( ,c>s ,ea* ,s]ies ,assign$ to ,m9nesota ,"n ( ,op]at+ ,=m #bg ,company ,field ,inspector ,freight ,c> ,mileage1 ,,m9nesota ,,railroad ,sy/em ,miles ,,w>eh\se ,,commission ,(fice ,compil] ,freight ,c> ,mileage1 ,,railroad ,,appraisal ,,( #aijf ,m9nesota ,miles ,,freight ,,c> ,,equipm5t ,include ,cabooses 9 ?is ,/atem5t4 ,s]ial ,class ( ,sills,dim5sions,capacity,k9d ( ,size ( ,numb]s,equipm5t & ,c\pl]s,j\rnals ,body ,/eel or ,wood ,brake ,"n (,:5 ,numb] ,co/ ( ,condition,,rem>ks ,equipm5t,build],built( ,c>s,reproduction,p] ,c5t ,n[ 9 ,s]vice ,"n ( ,op]at+ ,=m #bh ,company ,field ,inspector ,,m9nesota ,,railroad ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,miscellane\s ,,equipm5t ,include ,sn[ ,pl[s1 ,flang]s1 ,/eam ,%ovels1 ,pile ,driv]s1 ,d]rick ,c>s1 ,dr$ges1 & all ,special ,equipm5t1 ,locat$ or us$ 9 ,m9nesota4 ,,location ,,description ,"n ( ,age ,co/ ( ,condition ,build] ,reproduction ,p] ,c5t ,illu/ration3 ,,fig4 #ae4 ,"n ( ,op]at+ ,=m #ad ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,/ation ,,build+s ,,& ,,fixtures ,includ+ ,/ation ,equipm5t & ,plat=ms ,,location ,,build+ ,mat]ial,dim5sions,age ,g5]al ,condition ,description,p] ,c5t ,,equipm5t ,,plat=ms ,(fice ,condition ,wood ,c9d]s,concrete,brick ,squ>e,condition & ,p] ,c5t ,squ>e,squ>e ,squ>e ,squ>e ,ft4 ,p] ,c5t ,wait+ ,ft4 ,ft4 ,ft4 ,ft4 ,room ,items ,"n ( ,op]at+ ,=m #ae ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,miscellane\s ,,build+s ,includ+ ,g5]al ,(fice ,build+s1 ,w>eh\ses1 ,elevators1 & all ,o!r ,build+s ,n ,specifically ,call$ = 9 ,blank ,=ms ,,location ,,g5]al ,,description ,,rem>ks ,mat]ial,dim5sions,age ,co/ ( ,condition ,reproduction,p] ,c5t ,"n ( ,op]at+ ,=m #af ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,eng9e ,,h\ses ,,& ,,turntables ,,location ,,eng9e ,,h\ses ,,mat]ial ,,( ,no4 ,dep? ,numb] ( ( ( ,fire ,/alls,/alls ,walls ,f\ndations,walls,fram+ ,numb] ,,pits ,,heat+ ,,smoke ,age ( ,,jacks ,build+ ,mat]ial,dim5sions,/eam,hot,k9d,no4 ,air ,,turntables ,condition,type ,l5g?,built ,load+ ,turn+ ,age ,p] ,c5t ( ,feet ,by ,specification,app>atus ( ,table ,tons ,table ,,turntable ,,pits ,condition ,c5t] ,,curb+ ,end ,condition ,p] ,c5t ,f\ndation ,pac+,p] ,c5t ,k9d,cubic ,yds ,b4,m4 ,feet ,illu/ration3 ,,fig4 #af4 ,"n ( ,op]at+ ,=m #ag ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,c9d] ,,pits ,,& ,,track ,,scales ,,location ,,c9d] ,,pits ,,& ,,hoi/s ,mat]ial,dim5sions,age ,pneumatic ,condition,,location ( ,pit or ,p[] ,p] ,c5t ,hoi/s4 ,g5]al ,description ,,track ,,scales ,,rem>ks ,"n ( ,mat]ials ,dim5sions,capacity,condition ,manufactur] ( ,tons ,p] ,c5t ,production ,"n ( ,op]at+ ,=m #aj ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,l5g? ( ,ma9 ,l9e ,,f5ces ,,cattle ,,gu>ds ,,& ,roadway ,miles ,,signs ,,location ,,"r ,,( ,,way ,,f5ces ,,wood ,,f5ce ,,wire ,,f5ce ,no4 ,no4 ,no4 ,condition ,no4 ,no4 ,no4 ,condition ,bo>ds,po/s,miles,p] ,c5t ,wires,po/s,miles,p] ,c5t ,p] ,p] ,p] ,p] ,p] ,p] ,panel ,mile ,l9e ,panel,mile ,l9e ,,sn[ ,,f5ces ,,cattle ,,gu>ds ,,tempor>y ,,p]man5t ,,wood ,,iron ,l5g?,b4,m4 ,total ,condition,k9d,numb],condition,k9d,numb] ,p] ,ft4 ,l5g?,p] ,c5t ,p] ,c5t ,panel ,p] 9 ,panel,l9e> ,feet ,,highway ,,cross+s ,,miscellane\s ,,plank+ ,,us$ ,,roadway ,,sights ,condition ,numb] ,total,condition ,k9d ,numb],condition ,p] ,c5t ( ,b4,m4 ,p] ,c5t ,p] ,c5t ,cross+ ,ft4 ,us$ ,mile ,po/s ,:i/l+ ,po/s ,"n ( ,op]at+ ,=m #a ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,l5g? ( ,ma9 ,l9e ,,l&s ,,= ,,"r ,,( ,,way1 ,roadway ,miles ,,y>ds ,,& ,,t]m9als ,sep>ate by ,c\nties1 & = ,incorporat$ ,cities1 ,villages & ,t[ns ,%[ ,jo9t ,"r ( ,way ,sep>ately & ,indicate ,division ( ,own]%ip ,,location ,"n ,"n ( ,,wid? ,,( ,,"r ,,( ,,way ,total ( ,incorporat$ ,acres ,c\nty ,city1 ,"r ,village or ( ,t[n ,way ,,feet ,,feet ,,feet ,,feet ,,feet ,miles,miles,miles,miles,miles ,av]age,av]age,,l&s ,,= ,,y>d,av]age,av]age ,,rem>ks ,m>ket ,"r ,,& ,,t]m9als ,m>ket ,value ,value ( ,way ,value = ,p] ,value ,value ,railway ,acre ,p] ,p] ,purposes ,acre ,acre ,p] ,acre ,,location,total ,acres ,illu/ration3 ,,fig4 #ag4 ,"n ( ,op]at+ ,=m #ah ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,/eam ,,electric ,,p[] ,,plants-,,gas ,,plants ,include all ,%aft+1 ,belt+1 ,motors1 ,etc41 ,op]at$ f ,c5tral ,plant ,,location,k9d ,,g5]al ,,description ( ,plant ,,p[] ,,build+ ,mat]ial,dim5sions,age ,co/ ( ,condition ,production,p] ,c5t ,,p[] ,co/ ( ,condition ,,equipm5t,production,p] ,c5t ,"n ( ,op]at+ ,=m #ai ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,g5]al ,,repair ,,%ops ,,location ,,motive ,,p[] ,,& ,,repair ,,%op ,dim5sions ,,mat]ial ,,us$ ,,= ,age ,g5]al ,ye>s,description & ,purposes = ,:i* ,ea* ,build+ is ,us$ ,f\ndations,walls,frame ,co/ ( ,condition ,reproduction,p] ,c5t ,"n ( ,op]at+ ,=m #bj ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,%op ,,ma*9]y ,,& ,,tools ,sep>ate by ,build+s 9 ,:i* ,!y are ,locat$ ,%aft+1 ,belt+1 ,motors1 ,etc41 to be ,includ$ on ,=m ,no4 #ah ,p[] ,plants ,,ma*9es ,,) ,,accompany+ ,,tools ,,rem>ks ,"n ( ,"n ( ,age ,co/ ( ,condition ,ma*9e ,mak] ,reproduction ,p] ,c5t ,illu/ration3 ,,fig4 #ah4 ,"n ( ,op]at+ ,=m #g ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,pile ,,bridges ,,& ,,timb] ,,tre/les ,include ,timb] ,ov]head ,highway ,bridges ,erect$ at ,exp5se ( ,railway ,company ,,location ,,g5]al ,,description ,,piles ,bridge,total ,av]age,numb] ,k9d ,numb] ,total ,numb],l5g?,height ( ( ( ,l9eal ,b5ts ,timb],piles ,feet ,p] ,pill+ ,b5t ,,caps ,,fram$ ,,b5ts ,k9d ,dim5sions,numb] ,k9d ,dim5sions,b4,m4 ,feet ( ( ( ,includ+ ,timb] ,caps ,timb] ,sills & ,caps ,,sup]/ructure ,,= ,,pile ,,or ,,fram$ ,,/r+]s ,,ties ,k9d ,dim5sions,no4 ,k9d ,dim5sions,numb] ( ,p] ( ( ,timb] ,span,timb] ,ties ,,b5ts ,/ructure ,av]age ,condition ,p] ,c5t ,,gu>d ,,rails ,k9d ,dim5sions,l9eal ( ,feet ,timb] ,"n ( ,op]at+ ,=m #h ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,culv]ts ,include all ,ar*1 ,box1 ,ca/ ,iron or ,vitrifi$ ,pipe ,culv]ts ,,location,culv]t,design,mat]ial,dim5sio ns ,,masonry ,concrete ,numb] ,cubic ,y>ds ,class,cubic ,y>ds ,,pav+ ,timb],age,condition,,rem>ks ,b4,m4 ,p] ,c5t ,feet ,mat]ial,cubic ,y>ds ,"n ( ,op]at+ ,=m #i ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,track ,,& ,,bridge ,,tools ,,location ,,track ,,tools ,,assign$ ,,to ,,sections ,numb] ,,h& ,,c>s ,,tools ( ,section ,numb],condition,numb],condition ,p] ,c5t ( ,p] ,c5t ,sets ,,bridge ,,tools ,,assign$ ,,regul> ,,crews ,,note3- ,9 ,space ,bel[1 ,li/ ,k9d & ,numb] ( ,tools 9 use by ,av]age ,section & ,bridge ,crew1 ,cov]+ ,g5]al ,track & ,bridge ,"w ,,location ,,h& ,,c>s ,,tools ,numb],condition,numb],condition ,p] ,c5t ( ,p] ,c5t ,sets ,illu/ration3 ,,fig4 #ai4 ,"n ( ,op]at+ ,=m #aa ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,/ock ,,y>ds ,,& ,,appurt5ances ,,location ,,y>ds ,numb],dim5sions,numb],%$s & ,age,condition ( ( ,dim5sions ,p] ,c5t ,p5s ,gates ,,wat] ,,supply ,,& ,,p[] ,,pav+ ,,wells ,o!r ,means,pumps ,,w9d ,,mills ( ,supply & ,description ,k9d,squ>e,diamet],dep? ,size ,t[]1 ,feet ,:eel ,k9d & ,height ,,/ock ,,scales ,o!r ,p[],cond4,k9d,capacity,dim5sions,cond4 ,us$1 & ,p] ,tons ( ,p] ,description,c5t ,plat=m ,c5t ,"n ( ,op]at+ ,=m #ab ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,wat] ,,/ations ,,location ,s\rce ,,pump ,,h\se ,supply ,if ,well1 ,give ,diamet] & ,dep? ,mat]ial,dim5sions ,age ,condition ,ye>s,p] ,c5t ,,p[] ,,boil]s ,,gas ,,eng9es ,,w9d ,,mills ,horizontal,dim5sions,cond4,k9d,h4,p4,co nd4,k9d,t[]1,diam4,cond4 ,v]tical ,p] ,p] ,k9d ,:eel ,p] ,ct4 ,ct4 & ,ct4 ,height ,,pumps ,k9d,diamet],condition,,suction ,,pipe ,,dis*>ge ,,pipe ( ,p] ,c5t ,cyl9d] ,diam4,l5g?,diam4,l5g?,cond4 ,p] ,ct4 ,,wat] ,,tanks ,diamet],capacity,t[]1,condition ,gal4 ,k9d ,p] ,c5t & ,height ,,wat] ,,cranes ,k9d,diam4 ,condition ,,supply ,,pipe ,column,p] ,c5t ,diam4,l5g?,cond4 ,p] ,ct4 ,"n ( ,op]at+ ,=m #ac ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,coal ,,/ations ,,location,type ,,g5]al ,,description ,,( ,,build+ ,*ute or ,crane ,k9d ( ,dim5sions,numb] ,total ,age ( ,f\ndation ( ( ,capacity,build+ ,build+ ,pockets ,tons ,,approa* ,,special ,,appliances ,,= ,,hoi/+ ,,& ,,convey+ ,condition,design,l5g?,condition ,g5]al ,condition ,p] ,c5t ,p] ,c5t ,description,p] ,c5t ,illu/ration3 ,,fig4 #bj4 ,"n ( ,op]at+ ,=m #a;,a ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,railway ,,t]m9al ,,prop]ty ,,t]m9al,,section,,description,,total ,av]age ,av]age ,"r,,total ,,map ,,no4 ,,( ,,prop]ty,,acres,m>ket ,value( ,way ,value ,,value ,,own$ ,,own$ ,p] ,acre ,p] ,acre ,"n ( ,op]at+ ,=m #b ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,roadway ,,report ,9 ,record+ ,in=mation1 ,%[ ,ma9 ,tracks ,sep>ate f ,pass+1 ,side1 & ,indu/ry ,tracks3 ,%[ ,jo9t ,tracks ,sep>ately1 & ,indicate ,division ( ,own]%ip4 ,! above does n apply to ,grad+ or ,protection except = ,jo9t ,tracks4 ,,location ,acres ,,grad+--,,cubic ,,y>ds--,,pay ,,protection ,cle>+ ,,quantities & ,grubb+ ,,excavation ,,embankm5t ,rip ,,reta9+ ,rap ,cu4 ,yds4 ,e>?,loose,solid,e>?,loose ,dry ,mort> ,rock ,rock ,rock ,wall ,wall ,cu4 ,cu4 ,yds4 ,yds4 ,,cross ,,ties ,,walls ,dim5sions ,oak ,c$> ,hemlock,o!r ,cond4 ,k9ds ,p] ,c5t ,concrete ,numb],numb],numb] ,numb] ,wall ,cu4 ,yds4 ,,swit* ,,ties 7,includ+ ,head ,blocks7 ,b4,m4 ,numb] ( ,sets ,cond4 ,feet ,p] ,p] ,c5t ,set ,oak,p9e,hemlock,o!r ,k9ds ,"n ( ,op]at+ ,=m #c ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,roadway ,,report ,9 ,record+ ,in=mation1 ,%[ ,ma9 ,tracks ,sep>ate f ,pass+1 ,side1 & ,indu/ry ,tracks4 ,%[ ,jo9t ,tracks ,sep>ately1 & ,indicate ,division ( ,own]%ip ,,balla/ ,,location,miles,k9d ( ,wid?,av]age,condition ,mat]ial at ,dep? p] ,c5t ,cr[n ,p] ,"u ,tie ,,rails 7,ins]t ,weight ( ,rail p] ,y>d7 ,,location,"t to ,new ,relay+ ,wt4 ,cond4 ,wt4 ,cond4 ,replace,:5 ,rails ,track ,p] ,track ,p] ,ye>s ,laid ,miles ,miles,c5t ,miles,c5t ,miles ,illu/ration3 ,,fig4 #ba4 ,"n ( ,op]at+ ,=m #d ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,l5g? ( ,ma9 ,l9e ,,roadway ,,report ,roadway ,miles ,l5g? ( ,pass+ ,side1 & ,indu/ry ,tracks ,miles ,9 ,record+ ,in=mation1 ,%[ ,ma9 ,tracks ,sep>ate f ,pass+1 ,side1 & ,indu/ry ,tracks2 ,%[ ,jo9t ,tracks ,sep>ately1 & ,indicate ,division ( ,own]%ip4 ,,location,weight ,( ,rail ,,angle ,,b>s ,weight ,,fi% ,,plates ,( ,rail ,no4 ,weight ,no ,cond4 ,no4 ,weight ,no ,( ,p] ,bolts ,p] ,( ,p] ,bolts ,pairs ,pair ,p] ,c5t ,pairs ,pair ,p] ,jo9t ,jo9t ,,track ,,fa/5+s ,,bolts ,,nut ,,locks ,,spikes ,cond4,size,no4 ,cond4,k9d,size,no4,weight,cond4,size,no 4 ,cond4 ,p] ,kegs ,p] ,p] ,p] ,kegs ,p] ,c5t #bjj ,c5t #ajjj ,c5t #bjj ,c5t ,lbs4 ,lbs4 ,us$ ,us$ ,,tie ,,plates ,,rail ,,braces ,k9d,no4,weight,cond4,k9d,no4,weight,con d4 ,ea* ,p] ,ea* ,p] ,c5t ,c5t ,"n ( ,op]at+ ,=m #e ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,l5g? ( ,ma9 ,l9e ,,roadway ,,report ,roadway ,miles ,l5g? ( ,pass+ ,side1 & ,indu/ry ,tracks ,miles ,9 ,record+ ,in=mation1 ,%[ ,ma9 ,tracks ,sep>ate f ,pass+1 ,side1 & ,indu/ry ,tracks2 ,%[ ,jo9t ,tracks ,sep>ately1 & ,indicate ,division ( ,own]%ip4 ,,location,,split ,,swit*es,,/ub ,,swit*es ,,swit* ,,/&s ,,swit* ,complete ,complete ,k9d,no4,cond4,k9d,no4 ,includ+ ,includ+ ,p] ,connect+ ,rod,connect+ ,rod ,c5t ,wt4 ,no4,cond4,wt4 ,no4,cond4 ,rail ,p] ,rail ,p] ,c5t ,c5t ,,lamps ,,rigid ,,frogs ,,spr+ ,,rail ,,frogs ,cond4,wt4 ,l5g? ,total,condition,wt4 ,l5g? ,total,condition ,p] ,rail9 ,feet ,no4 ,p] ,c5t ,rail9 ,feet ,no4 ,p] ,c5t ,c5t ( ( ,ea* ,ea* ,k9d ,k9d ,,gu>d ,,rails ,,railroad ,,cross+s ,wt4 ,l5g?,total,condition,wt4 ,"n (,p] ,p] ,condition ,rail 9 ,no4 ,p] ,c5t ,rail,railway,c5t ,c5t ,p] ,c5t ,feet ( ,cross$,co/,ma9t4 ,pairs ,paid ,paid by by ,?is ,?is ,co4 ,co4 ,"n ( ,op]at+ ,=m #e ,company ,field ,inspector ,section ,numb] ,,m9nesota ,,railroad ,f ,to ,,w>eh\se ,,commission ,(fice ,compil] ,,railroad ,,appraisal ,,( #aijf ,,bridges ,truss1 ,plate ,gird]1 ,i ,beam & ,draw ,span4 ,indicate ,p[] ,us$ ,= ,op]at+ ,draw ,spans4 ,,location,bridge ,,sub-,,/ructure ,numb] ,,piles ,,fram$ ,,masonry ,,concrete ,,timb] ,k9d ,total ,k9d ,b4,m4,cubic,cubic,cubic,cubic ( ,l9eal ( ,feet,y>ds,y>ds,y>ds,y>ds ,timb] ,feet ,timb] ,av]age ,age,av]age ,no4 ,total ,design,specifications ,total ,age ,height ( ,cond4 ( ,l5g? ( ,= ,live ,load ,weight ,pi]s & ,p] ,spans ( ,bridge ( ,abutm5ts ,c5t ,bridge ,/eel 9 ,bridge ,,sup]/ructure ,cond4 ,,bridge ,,ties ,,gu>d ,,rails ,av]age ,p] ,cond4 ,c5t ,p] ,c5t ,k9d ,no4 ,dim5sions ,k9d ,dim5sions,l9eal ( ( ( ,feet ,timb],ties ,timb] ,f ,mr4 ,gillette's report1#aa supplem5t$ by in=mation furni%$ by ,h5ry ,l4 ,gray1 ,assoc4 ,m4 ,am4 ,soc4 ,c4 ,e41 ,eng9e] ( ! ,railroad ,commission ( ,wa%+ton1 ! foll[+ g5]al /atem5t z to me?ods is glean$3 ,! plan involv$1 n only a det]m9ation ( co/ ( reproduction & pres5t value1 b also orig9al co/4 ,! apprais] 0 unable to adopt ! me?ods foll[$ 9 ,wiscons9 & ,m9nesota1 9 s f> z !y accept$ ! inv5tory ( ! railroads1 b made 8 own exam9ations ( records4 ,! railroads ( ! ,/ate d5i$ t !y _h any in=mation :atev] t w\ld be ( value to ! ,commission4 ,! records ( ! ,eng9e]+ ,dep>tm5t 7 exam9$4 ,! records ( ! ,acc\nt+ ,dep>tm5t 7 analyz$1 v>i\s annual reports 7 exam9$ & a corporate hi/ory ( ! road prep>$4 ,special =ms = secur+ in=mation 7 n prep>$1 & no rules1 or def9ite ord] ( proc$ure to be us$ = all roads alike1 7 adopt$4 ,x is some:at difficult to det]m9e f ! apprais]'s report j :at "p ( x cov]s actual "w done1 & :at "p is !ory develop$ f ! "w1 b presumably maps 7 prep>$ & pr(iles secur$ :i* repres5t$ ! orig9al conditions ( con/ruction4 ,! field inspection 0 made on h&-c>s or on foot1 ea* field inspector be+ furni%$ ) ! plans1 pr(iles1 etc4 ,! same conditions exi/$ 9 ,wa%+ton z else:]e1 t is1 c]ta9 records 7 n kept up1 & 7 f\nd to be inaccurate & unreliable1 &1 z a result1 ! apprais] report$ ! condition to be su* z to cause mu* unnecess>y "w subsequ5tly 9 *eck+4 ,a p]c5tage ( depreciation 0 n plac$ 9 ! field1 b 0 det]m9$ by mortality tables1 or by asc]ta9+ ! probable ye>s ( /ructure life1 !n det]m9+ f ! age ( ! p>ticul> /ructure "u consid]ation its p]c5tage ( depreciation1 a me?od by no means new4 ,x is n /at$ t any attempt 0 made to comp>e ^! tables ) ! rules ( ! ,ma/] ,c> ,build]s ,association = valu+ equipm5t1 & no field inspection ( equipm5t 0 made4 ,! prevail+ prices ( mat]ials =m$ ! basis = e/imat+ ! co/ ( reproduction4 ,! value ( motive p[] & roll+ /ock 0 apportion$ among ! ,/ates on ! basis ( eng9e- & c>-mileage4 ,! l& values 7 fix$ by ! ,railroad ,commission sitt+ z a c\rt2 real e/ate m5 f ! l>ge cities1 real e/ate exp]ts br\ght by ! railway companies1 & o!rs te/ifi$2 &1 bas$ on ?is te/imony1 ! value 0 det]m9$ by ! ,commission 9 ! same mann] z 9 a condemnation case4 ,?ree "r-(-way exp]ts1 all ( :om _h _h exp]i5ce 9 pur*as+ "r ( way = roads1 7 9 ! regul> employ ( ! ,commission1 & details z to pres5t values 7 ref]r$ to !m4 ,! *ief po9t ( diff]5ce betwe5 ?is "w & t ( ! o!r ,/ates app>5tly 0 ! ef=t to asc]ta9 fir/ co/ ( ! prop]ties plus additions4 ,?is 0 done by an exam9ation ( ! acc\nts ( ! railway companies4 ,! result ( ! ,wa%+ton "w1 z f> z rate-mak+ is conc]n$1 is indet]m9ate1 z ! ,unit$ ,/ates ,c\rts h held t ! ,commission may n fix freight rates4 ,! ,supreme ,c\rt ( ! ,/ate has held t !y c\ld4 ,! ,supreme ,c\rt has also held t ! ,tax ,commission %\ld accept ! f9d+s ( ! ,railroad ,commission = ! purpose ( taxation1 ) ! result1 z /at$ by ,mr4 ,gray1 t m ?an #a1bej1jjj m 0 receiv$ la/ ye> ?an dur+ any prior ye> f railroad taxes4 ,! report ( ! ,wa%+ton apprais] diff]s widely f t = o!r ,/ates 9 t x is diffuse & does n pres5t ! me?ods cle>ly & sy/ematically2 x is difficult1 inde$1 to trace :at 0 actually done4 ,! writ] is loa? to criticize1 b ?is report is su* z to sugge/ comm5t on a numb] ( po9ts4 #a4--,?r\gh\t ! report v great /ress is laid on ! co/ ( mak+ ! appraisal4 ,su* an und]tak+ z an appraisal ( corporation prop]ty %\ld be done ?or\ghly or left alone4 ,x matt]s n :e!r ! "w ( ,pr(essor ,cooley or ,pr(essor ,taylor co/ #e a mile or #ej a mile1 if a dep5dable result 0 secur$4 ,x does n appe> to be good ta/e ei!r to criticize co/s ( "w 9 o!r ,/ates1 or comp>e ! co/s 9 ,wiscons9 & ,mi*igan ) ! co/s 9 ,wa%+ton4 #b4--;,a numb] ( criticisms1 am\nt+ almo/ to reflections1 are made on ! me?ods else:]e4 ,! apprais] says3 ,speak+ = myself1 ,i f\nd ! prec$5ts e/abli%$ by ,texas1 ,mi*igan1 & ,wiscons9 ( little value ei!r 9 decid+ ! me?ods to be pursu$ 9 mak+ ! appraisals or 9 e/imat+ ! probable co/ ( appraisal4444 ,9 e/imat+ pres5t or depreciat$ values ( /ructures1 roll+ /ock1 etc41 bo? ,mi*igan & ,wiscons9 _h s5t exp]ts into ! field to e/imate ! p]c5tage ( pres5t value to ea* unit4 ,9 ?is mann] #dj1jjj freight c>s 7 inspect$ 9 ,mi*igan & _! 'pres5t value' e/imat$4 ,to me ?is seem$ to be n only a useless proc$ure b v errone\s4444 ,! appraisals h]et(ore made 9 o!r /ates h be5 bas$ almo/ entirely ^u field surveys & inspection1 no attempt hav+ be5 made to secure ! necess>y data f ! eng9e]+ & acc\nt+ records ( ! railways4 ,:y8 ,! answ] is f\nd 9 ! purpose ( ! appraisal4 ,su* s5t5ces1 & o!rs :i*1 by inf]5ce if n by "n1 reflect on "w execut$ by m5 ( high pr(essional /&+1 are h>dly 9 good ta/e1 ev5 if true1 9 a report to a railroad commission ( ano!r ,/ate4 ,:e!r or n he f\nd little ( value1 ! apprais]'s g5]al l9e ( proc$ure 0 n radically diff]5t f t foll[$ 9 ,mi*igan & ,wiscons9 9 gett+ all available data fir/ f ! companies1 !n 9 mak+ a field inspection be=e fix+ values4 ,if misl$ by errone\s pr(iles1 he w5t into an error ne$lessly1 z x 0 fully kn[n 9 ,mi*igan t records 7 9 ! condition describ$ be=e any field "w 0 begun4 ,! inspection ( freight c>s 9 ,mi*igan 0 n to e/imate pres5t value b to det]m9e at fir/ h& :e!r ! ,ma/] ,c> ,build]s rules = valuation 7 safe to use1 & to back up _! use 9 ,c\rt4 ,! ?ird p>agraph quot$ is a mis/atem5t1 due cle>ly to a misappreh5sion ( :at really 0 done4 #c4--,! _s ( suspicion ( railroad m5's motives is an un=tunate "o to c>ry into a railroad appraisal1 mu* less into a report4 #d4--,! writ] fully realizes ! magnitude ( ! task be=e ! apprais] :o is ask$ to det]m9e fir/ co/ plus improvem5ts or bett]m5ts4 ,h>dly a trunk l9e road exi/s to-day t has n gr[n up f a small beg9n+1 *ang$ its l9e1 r$uc$ its grades1 add$ safety devices1 *ang$ ! type ( its bridges & build+s1 increas$ ! weight ( its rails1 put 9 s]vice mu* heavi] equipm5t1 9 fact1 completely *ang$ ev]y?+1 except1 p]haps1 ! orig9al "r ( way4 ,! task ( secur+ f old acc\nt+ dep>tm5t records an accurate /atem5t ( co/ is--& ! writ] says x ) ! confid5ce born ( exp]i5ce--an impossibility4 ,x is a job ( su* magnitude z to be practically prohibitive4 ,! diff]5t sy/ems ( acc\nt+1 ! diff]5t policies ( ! managem5t1 z to *>g+ bett]m5ts to capital or op]at+ exp5se1 to say no?+ ( ! c\ntless errors t creep into ! di/ribution ( acc\nts1 place su* an und]tak+ among ! labors ( a mod]n ,h]cules1 &1 to "o :o has be5 engag$ ev5 9 ! task ( try+ to asc]ta9 :at "o ye>'s acc\nt+ on a l>ge road may d 9 conceal+ bett]m5ts "u ! guise ( op]at+ exp5se1 x w\ld appe> t a result t c\ld be sworn to z correct 0 impossible ( atta9m5t along ! l9es sugge/$ 9 ?is report4 ,! g5]al "q ( ! propriety ( ! use ( mortality tables is discuss$ else:]e 9 ?is pap]4 ,?is docum5t1 z an addition to ! lit]ature ( ! subject ( valuation ( prop]ties1 is disappo9t+1 = if !re 7 orig9al & valuable me?ods !y are n explicitly describ$4 ,! co/ ( mak+ ! appraisal 0 ab\t #ac p] mile ( l9e4 ----- ,footnote #aa3 ,eng9e]+-,contract+4 ,,! ,,valuation ,,( ,,traction ,,prop]ties ,,9 ,,*icago4 ,dur+ #aijf a complete valuation ( ! prop]ty & fran*ises ( ! surface roads ( ,*icago 0 made "u ! direction ( a ,commission consi/+ ( ,bion ,j4 ,arnold1 ,m4 ,am4 ,soc4 ,c4 ,e41 & ,messrs4 ,mortim] ,e4 ,cooley1 & ,a4 ,b4 du ,pont4 ,! report ( ?is valuation 0 publi%$ 9 ! =m ( a pamphlet :i* is n[ practically out ( pr9t1 z all extra copies 7 long ago exhau/$4 ,! in/ructions ( ?is ,commission f ! ,*icago ,city ,c\ncil 73 ,to consid] ! detail$ inv5tories & e/imates ( value to be submitt$ by ! ,/reet ,railway ,companies1 to inve/igate ! same & to asc]ta9 :e!r ! values ?us li/$ 7 reasonable1 fair & j4 ,detail$ inv5tories & e/imates ( value 7 submitt$ by ! roads1 &1 f "t to "t dur+ ! progress ( ! "w1 additions or corrections to ^! s*$ules 7 made4 ,reports %[+ income1 op]at+ exp5se1 & traffic /ati/ics 7 made1 & su* detail$ /atem5ts z 7 call$ = f "t to "t 7 furni%$4 ,! ,commission organiz$ its =ce = valuation "w by us+ ! (fice & field organization ( ! ,arnold ,company "u ! direct *>ge ( ,george ,we/on1 ,m4 ,am4 ,soc4 ,c4 ,e41 = ! major "p ( ! "w1 & reta9$ ,messrs4 ,!odore ,h4 ,h9*man1 ,jr41 ,c4 ,v4 ,conov]1 & ! writ] to give special /udy to c]ta9 features ( ! appraisal4 ,9 ! det]m9ation ( fran*ise values1 ,pr(essor ,h5ry ,c4 ,adams 0 reta9$ 9 consultation by ! ,commission4 ,9 arriv+ at ! value ( ! physical prop]ties1 a complete field exam9ation 0 made1 depreciation det]m9$1 co/ ( reproduction e/imat$1 & 9 g5]al1 ! "w 0 c>ri$ on along l9es q simil> to ^? ( ! railway appraisals h]et(ore describ$ 9 detail4 ,sev]al v int]e/+ & unique problems 7 pres5t$1 "s ( :i* 7 z foll[s3 ,^u :at basis %all ! cable prop]ties ( ! companies be e/imat$--7a7 z op]at+ cable sy/ems1 or 7b7 z obsolete sy/ems hav+ no value except s f> z ! physical prop]ty c be utiliz$ 9 ! conv]sion ( ! cable l9es into electric8 ,9 ! f9al conclusions ( ! ,commission1 "p ( ! cable l9es 7 treat$ 9 "o way1 & "p 9 ! o!r4 ,:at all[ance1 if any1 %all be made = ! pavem5ts laid by ! companies on _! "r ( way8 ,! discussion ( ?is topic1 toge!r ) ! op9ions ( c\nsel z to ! legal /atus1 is ( int]e/4 ,! ,commission did n consid] ! value ( pav+ z con/itut+ any "p ( ! physical prop]ty1 ! value ( :i* mu/ be support$ out ( e>n+s4 ,! pres5t value ( ! pavem5t 0 e/imat$ & report$ )\t specific recomm5dation z to :e!r an all[ance %\ld be made4 ,! valuation ( real e/ate 0 left 9 ! h&s ( real e/ate exp]ts famili> ) values 9 ,*icago1 ea* piece ( prop]ty be+ p]sonally exam9$ & valu$1 & ! repres5tatives ( ! roads giv5 su* he>+s z !y desir$4 ,9 comput+ ! value ( physical prop]ties1 an all[ance ( #aj 0 made to cov] ! foll[+ items3 #a4--,legal ,exp5ses--includ+ ^? incurr$ 9 secur+ "r ( way & frontage cons5ts4 #b4--;,int]e/ or c>ry+ *>ge = ! money exp5d$ dur+ ! con/ruction p]iod & up to ! "t ! prop]ty goes into op]ation4 #c4--;,brok]age--or ! exp5se ( secur+ ! necess>y moneys4 #d4--;,cont+5cies--to cov] incomplete inv5tories1 un=ese5 difficulties ( con/ruction1 & any & all o!r items ( exp5se :i* _c be =ese54 ,! only novel feature 9 ?is li/ is ,item #c1 :i* 0 n includ$ specifically 9 any ( ! railroad valuations made by ,/ates & h]et(ore describ$4 ,! fran*ise & intangible prop]ty valuation1 am\nt+ to "s #i1jjj1jjj1 or ab\t "o-fif? ( ! total1 0 a v important phase ( ! "w1 & ! ,commission gave up a l>ge "p ( ! report to its discussion4 ,! difficulties 9 ?is "p ( ! "w are describ$ z ?reefold3 ,fir/4--,! difficulty ( det]m9+ :at are ! exact legal rights ( ! companies 9 any giv5 /reet or "p ( /reet1 9 abs5ce ( a direct & f9al judicial decision z to ^! rights2 ,second4--,! difficulty 9 e/imat+ ! value ( a l9e ( /reet railways1 consi/+ ( sev]al p>ts1 :]e ea* ( ^! p>ts is op]at$ "u a diff]5t t5ure due to ! "* ( ! ord9ances or fran*ises1 respectively2 & ,?ird4--,! difficulties aris+ f ! abs5ce ( exact in=mation z to ! receipts & exp5ditures on ! sev]al p>ts ( a s+le l9e cov]$ by fran*ises ( diff]5t l5g? & "*4 ,! ,commission1 hav+ arriv$ at su* an adju/m5t ( ! difficulties z appe>$ j1 det]m9$ ! value ( fran*ises 9 ! foll[+ mann]3 ,x 0 assum$ t ! gross e>n+s on ! diff]5t p>ts or r\tes ( ea* sy/em 7 9 proportion to ! c>-mileage4 ,! sy/em 0 divid$ into r\tes1 & ! c>-mileage 0 det]m9$ = ea* r\te2 !n ?is in=mation 0 compil$ s z to %[ ! c>-mileage1 & consequ5tly ! gross e>n+s1 apportionable to ea* fran*ise4 ,! next /ep 0 to det]m9e1 9 ! same mann]1 ! proportion ( op]at+ exp5ses assignable to ea* fran*ise1 ! op]at+ exp5se be+ assum$ to be uni=m ) gross e>n+s4 ,a /udy ( ! conditions 9 ,*icago result$ 9 a det]m9ation ^u #gj z a fair proportion = op]at+ exp5ses1 taxes1 & ma9t5ance4 ,next1 ! am\nt ( capital inve/m5t to be support$ out ( e>n+s 0 comput$ by e/imat+ ! co/ ( reproduction ( track & ov]head l9es "u ea* fran*ise & apportion+ ! co/ ( l&1 p[]-h\ses1 b>ns1 c>s1 tools1 & /ores 9 proportion to c>-mileage4 ,9 det]m9+ e>n+s = ! unexpir$ ye>s ( fran*ise life1 x 0 assum$ t ! e>n+s w\ld increase 9 accordance ) ! law laid d[n by ,mr4 ,arnold 9 #aijb4 ,! la/ /ep 0 to f9d ! value ( ! net e>n+s ( future ye>s1 aft] d$uct+ ! sum requir$ to support ! inve/$ capital4 ,! rate *os5 0 #e comp\nd int]e/4 ,! sum ( ! diff]5t pres5t values ?us f\nd 0 ! value ( ! fran*ise s\ght4 ,two o!r po9ts aris+ 9 connection ) fran*ise values 73 ,:]e1 on a /reet1 fran*ises cov]+ "p ( ! /reet h expir$1 & o!rs rema9 9 =ce1 ! cont5tion ( ! city is t ! expir$ fran*ise is valueless because traffic "u x c be /opp$2 t ( ! company is t x /ill has value1 z traffic c be r\t$ ov] o!r /reets :]e fran*ises h n expir$4 ,?is 0 set aside on ! gr\nd t ! value ( any p>ticul> portion ( a /reet1 or ( a fran*ise1 rema9s ! same z long z ! sy/em is consid]$ z an entirety4 ,! second po9t 0 z to ! value ( traffic agreem5ts2 b ?is complicat$ problem 0 also dismiss$ on ! !ory t :5 two sy/ems are consid]$ z co-op]at+1 ! value ( individual p>ts ( ei!r sy/em rema9s ! same reg>dless ( _! own]%ip4 ,! values ( _! prop]ties1 fix$ by ! companies1 includ$ pav+4 ,! total figures rea*$ 9 ?is valuation 73 ,companies' valuation1 includ+ pav+1 #gc1eee1fge ,commission's #ej1iid1ghb ,commission's exclud+ #df1feb1gdg ,?is "w af=ds _m int]e/+ problems1 & is p]haps ! l>ge/ valuation = det]m9+ a price = ! pur*ase ( prop]ty t _h be5 made to date4 ,,! ,,comm]cial ,,valuation ,,( ,,railway ,,op]at+ ,,prop]ty ,,( ,,! ,,dep>tm5t ,,( ,,comm]ce ,,& ,,labor4 ,9 #aijb ! p]man5t ,c5sus ,(fice 0 e/abli%$1 & ! ,director 0 au?oriz$ to collect /ati/ics relative to public indebt$ness1 valuation1 taxation1 & exp5ditures4 ,! ,bureau ( ! ,c5sus co-op]at$ ) ! ,dep>tm5t ( ,comm]ce & ,labor 9 ! prep>ation ( ! appraisal ( ! comm]cial valuation ( railway prop]ties ( ! c\ntry4 ,! report ( ?is "w1 issu$ z ,bullet9 #ba ( ! ,bureau ( ! ,c5sus1 is ! mo/ int]e/+ & valuable exposition ( ! subject ( railway valuations yet publi%$1 z x includes n only ! report ( ?is p>ticul> "w1 toge!r ) ! results1 tabulat$ by ,/ates1 b app5dices describ+ & discuss+ ! "w 9 ,/ates & =eign c\ntries1 & ! "w ( valuation by railway m54 ,! results are ( prime int]e/1 z !y %[ ! valuation ( all railway prop]ty 9 all ! ,/ates1 bas$ on uni=m me?ods ( appraisal & di/ribution1 :i* enables a comp>ison to be made ) "w done by ! ,/ates4 ,! me?od adopt$ 9 ?is "w 0 s radically diff]5t f t ( ! v>i\s ,/ate appraisals z to make a detail$ description a matt] ( int]e/1 & x is to be regrett$ t x _c be includ$4 ,! me?od is really a capitalization ( net e>n+s4 ,ow+ to ! nature ( ! inquiry1 namely1 to det]m9e :at "p ( ! weal? ( ! nation is devot$ to railway transportation1 x 0 obligatory on ! apprais]s to adopt a me?od :i* w\ld disclose z ne>ly z possible ! true m>ket value4 ,c]ta9 re/rictions & limitations on ! t]m1 value1 & on ! use ( ! resultant figures ( ! appraisal1 are sugge/$ by ,pr(essor ,adams1 z foll[s3 ,! valuation submitt$ 9 ?is report may be prop]ly def9$ z ! comm]cial value ( prop]ty us$ by railways 9 connection ) ! bus9ess ( transportation4 ,by 'comm]cial value' is meant ! e/imate plac$ ^u ! wor? ( prop]ty reg>d$ z a bus9ess proposition4 ,?is mu/1 ( c\rse1 be ! m>ket e/imate & n ! arbitr>y e/imate ( a public (ficial4 ,! two fundam5tal consid]ations by :i* ! m>ket is influ5c$ 9 plac+ a value ^u prop]ty :5 b\ght or sold1 are ! expectation ( income aris+ f ! use ( ! prop]ty1 & ! /rategic significance ( ! prop]ty4 ,^! two consid]ations are made ! basis ( ! valuation ( railway prop]ty submitt$ 9 ?is report4 ,! mat]ial made use ( 9 ?is valuation is1 fir/1 ! op]at+ & f9ancial acc\nts ( ! railways2 second1 int]-railway contracts & agreem5ts2 &1 ?ird1 ! publi%$ records ( ! /ock m>ket4 ,?is is no place to ent] ^u a discussion ( ! nature & classification ( diff]5t k9ds ( value1 b a ^w ( caution may be all[$ 9 ord] to gu>d aga9/ an unw>rant$ use ( ! figures "h submitt$4 ,! comm]cial valuation ( railway prop]ty1 9 s f> z x dep5ds on income aris+ f ! sale ( transportation1 is ! result1 among o!r ?+s1 ( an e/abli%$ s*$ule ( freight & pass5g] rates1 f :i* x foll[s t su* a valuation _c be us$ = det]m9+ ! reasonabl5ess or unreasonabl5ess ( ! rates 9 "q4 ,! solution ( ! rate problem dem&s a sep>ate valuation ( ! physical prop]ty4 ,aga91 9 s f> z ! ,gov]nm5t is preclud$ by its political "* f foll[+ comm]cial rules 9 ! sale ( any s]vice :i* x r5d]s1 a comm]cial valuation :i* assumes t prop]ty is adm9i/]$ "u ! rules ( private r ?an public f9anci]+1 might diff] f ! valuation ( ! same prop]ty reg>d$ z a public prop]ty4 ,! purpose ( ?is rem>k is to preclude a discussion ( ! problem ( ! ,gov]nm5t pur*ase ( railways on ! basis ( ! values submitt$ 9 ?is report4 ,x w\ld ( c\rse be necess>y to modify ^! values by consid]ations ( public utility1 9 ord] to det]m9e a public pur*ase price4 ,:e!r or n ! comm]cial valuation "h submitt$ c be us$ z ! basis ( assess+ railway prop]ties = ! purpose ( taxation dep5ds entirely ^u ! tax+ laws ( ! /ate = :i* ! "q is ask$4 ,if ^! laws conf9e ! appraisal ( railway prop]ty to its physical elem5ts1 ! values "h submitt$ w\ld1 9 ! case ( prosp]\s roads1 exce$ an appraisal = ! purpose ( taxation4 ,if1 on ! o!r h&1 x is ! purpose ( ! tax+ law to appraise railway prop]ty at its true ca% value1 unusual or abnormal conditions be+ exclud$1 x may be t ! comm]cial valuation ( op]at+ prop]ty submitt$ 9 ?is report fairly measures its appraisal = ! purpose ( taxation4 ,! me?ods are expla9$ 9 ! mo/ m9ute detail by a s]ies ( pap]s 9 ! ,bullet94 ,! "w ( ,pr(essor ,adams & 8 associates is ( great practical value 9 t x %[s ! discrepancy 9 ! taxation laws ( ! diff]5t ,/ates z relat+ to railroad prop]ties1 & 9 t x gives a set ( values det]m9$ by a uni=m me?od1 :i*1 )9 reasonable limits1 furni%es a *eck on ! "w ( ! ,/ate appraisals4 ,?is me?od1 ( c\rse1 _c be us$ = purposes ( rate-mak+1 or ( bond or /ock re/rictive legislation1 b ! g5]al uni=mity ( its results ) ^? ( ,/ate appraisals1 & ! radical diff]5ces not$ 9 ! case ( values = taxation 9 o!r ,/ates1 lead v prop]ly to ! inf]5ce t a value det]m9$ by ?is me?od is v close to ! tru?4 ,,! ,,ext5t ,,( ,,appraisal ,,practice4 ,!re h be5 _m appraisals ( prop]ty besides ^? review$ 9 ! =ego+ pages4 ,sev]al excell5t contributions to valuation lit]ature1 z a result ( ! num]\s wat]-works appraisals1 are m5tion$ 9 ! ,app5dix4 ,new ,j]sey & ,nebraska h _h railway appraisals 9 progress dur+ #aiji-aj4 ,at ! "t ( writ+1 nei!r appraisal has gone f> en\gh to add any po9ts ( int]e/ to ! subject1 except z ! apprais]s 9 ^! two ,/ates discuss ! subject & br+ out new po9ts4 ,valuations ( /reet railway prop]ty h be5 made 9 sev]al cities1 ,clevel&1 ,ohio1 ,detroit1 & ,milwaukee be+ ! mo/ rec5t4 ,! ,clevel& & ,milwaukee he>+s h produc$ l>ge records1 & h t5d$ to det]m9e f9ally c]ta9 pr9ciples ( valuation4 ,sev]al valuations h also be5 made = corporations1 among :i* may be m5tion$ t ( ,! ,tol$o ,railways & ,light ,company1 by ,messrs4 ,=d1 ,bacon1 & ,davis1 & t = ! ,new ,york1 ,new ,hav51 & ,h>t=d ,railway1 "u ! direction ( ,john ,f4 ,/ev5s1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,?is latt] valuation (f]s "s v int]e/+ po9ts1 &1 9 view ( ,mr4 ,/ev5s' /&+ z a railroad eng9e]1 ! adoption by him ( me?ods ( inv5tory & field inspection w\ld g f> t[>d fix+ a prec$5t :i* w\ld be acceptable to ! railroads4 ,x is to be regrett$ t ! int]e/s ( ! road are su* t x is n deem$ wise by its ,presid5t to discuss ev5 ! pr9ciples ( ?is "w at pres5t4 ,9 connection ) ! rec5t appraisal made by ! ,city ( ,detroit1 ,! ,detroit ,unit$ ,railway made an indep5d5t exam9ation & appraisal ( its own prop]ty1 ) ! d\ble purpose ( furni%+ an inv5tory to ! city & ( *eck+ ! "w ( ! /aff employ$ by ! city4 ,?is "w = ! railroad 0 done by (ficials & employees ( ! company1 "u ! p]sonal direction ( ,mr4 ,r4 ,b4 ,rif5b]ick4 ,x is notewor?y = ! complet5ess ( its inv5tory1 :i* goes into ! mo/ m9ute detail1 & = ! excell5ce ( ! maps & draw+s :i* accompany x & %[1 n only e /&>d type ( track1 rail1 & all build+s & ma*9]y1 b e piece ( track & ov]head special "w on ! entire sy/em4 ,?is appraisal includes a mo/ complete & exhau/ive /udy ( av]age unit co/s4 ,inasmu* z ?is "w is likely to be fully review$ 9 ! ,c\rts 9 ! ne> future1 any fur!r description w\ld h>dly be prop]4 ,x is n too mu* to say1 h[ev]1 t x probably /&s z ! mo/ complete 9 e detail1 z to inv5tory & records1 ( all ,am]ican appraisals up to ?is date4 ,dur+ ! summ] ( #aiaj ! ,railway ,commission ( ,mi*igan ord]$ an appraisal ( c]ta9 l>ge electric-p[] prop]ties ( ! ,/ate4 ,?is "w 0 done by ,pr(essor ,mortim] ,e4 ,cooley1 assi/$ by ,mr4 ,h5ry ,c4 ,&]son & ! writ]4 ,?is appraisal1 involv+ c]ta9 comp>atively new corporations1 made x possible to obta9 a fairly def9ite solution ( "s ( ! problems relative to ov]head *>ges4 ,x is evid5t t ! dem& = valuation "w ( a high "* w increase1 & t x w come1 n only f ,/ates & cities1 b f corporations4 ,mu* ( ! "w done 9 ! pa/ has n be5 describ$ 9 ! publications ( sci5tific societies2 mu* v valuable "w has secur$ only p>tial notice ?r\gh reports ( litigation2 & x is und\bt$ly true t ! mo/ complete & full discussions ( ! pr9ciples ( valuation h be5 9 ! =m ( exp]t evid5ce be=e ! ,c\rts1 & are buri$ 9 ! mass ( unpr9t$ records ( te/imony4 ,,review ,,( ,,"s ,,me?ods ,,( ,,valuation1 ,,& ,,"s ,,( ,,! ,,criticisms ,,on ,,! ,,mi*igan ,,appraisal4 ,mu* ( ! available lit]ature on ! subject ( valuations is 9 ! =m ( pap]s descriptive ( wat]-works appraisals & arbitrations1 _m ( :i* h be5 made1 & a few ( :i* h be5 ! subject ( valuable pap]s & discussions be=e le>n$ societies4 ,be=e ! ,am]ican ,wat]-,works ,association1 ,d4 ,w4 ,mead & ,j4 ,w4 ,alvord1 ,memb]s1 ,am4 ,soc4 ,c4 ,e41 h pres5t$ pap]s#ab :i* h be5 q fully discuss$4 ,! *ief po9t ( int]e/ 9 ^! pap]s is ! treatm5t ( ! intangible elem5t t]m$ go+ value4 ,mr4 ,alvord advances ! argum5t t1 aft] ! det]m9ation ( physical pres5t value1 !re %\ld be add$1 to det]m9e ! fair value1 two non-physical elem5ts3 ! go+ or bus9ess value1 & ! fran*ise value4 ,! fir/ elem5t is def9$ z t special value :i* is3 ,built up 444 by ! en]gy1 p]sev]ance & solicitation ( ! (fic]s 9 *>ge1 z di/9ct f ! in]t plant itself1 444 99 99 99 99 99 ,! elem5t ( 'go+ value' has be5 be=e describ$ z ! elem5t ( gr[? 9 ! plant irrespective ( its physical condition4 ,x is comp>able some:at to t indef9able quality kn[n 9 o!r l9es ( bus9ess z ',good ,w'4 ,nev]!less x is some?+ m ?an good w 9 wat] works bus9ess1 z x repres5ts :at might be m aptly describ$ z 'connect$ good w'1 t is to say1 ! acquisition ( cu/om]s :o h inve/$ consid]able sums 9 actually connect+ _! premises ) ! plant ( ! company1 & provid$ appliances = ! use ( ! wat] :i* x c deliv]4 ,! me?od advocat$ by ,mr4 ,alvord z ! mo/ rational "o = comput+ ?is value is describ$ z foll[s3 ,x is assum$ t a new plant w be con/ruct$1 ! inception ( :i* is co9cid5t ) ! data ( arbitration4 ,su* new plant is to be ( an equal capacity ) ! old] plant "u consid]ation1 & a due all[ance ( "t 9 :i* to con/ruct ?is new plant1 & ! necess>y capital to be inve/$ 9 x f "t to "t is e/imat$4 ,at ! completion ( ?is new imag9>y plant1 x is assum$ t x comm5ces to obta9 bus9ess 9 t community f ^? :o are n previ\sly accu/om$ to ! free use ( public wat]1 except 9 a g5]al way2 t x is to require ! bus9ess ability & consequ5t increase 9 numb] ( cu/om]s :i* ! e>li] & old] plant w5t ?r\gh )9 ! e>ly ye>s ( its exi/5ce4 ,an assumption ( ! am\nt ( bus9ess ?us creat$ = ea* ye> = a p]iod ( ye>s 9 advance is c>efully comput$ & e/imat$ by ! bo>d ( arbitration4 ,! losses ( int]e/ ^u capital inve/$ are duly fix$1 z well z ! fir/ abs5ce & lat] addition ( rev5ue f hydrant r5tals1 & a table is prep>$ %[+ ea* ye>1 ! total bus9ess develop$ & ! total losses1 if any4 ,aft] ?is is complet$ a =eca/ is made ( ! bus9ess ( ! old] works = ! same p]iod ( "t 9 ! future t x takes ! bus9ess ( ! new works to equal ! bus9ess ( ! old works4 ,if ! bus9ess ( ! old works is f\nd to be a gr[+ "o x w be a long] p]iod t ! new works w require to ov]take x ?an w be ! case if ! bus9ess ( ! old] works is /ation>y or decreas+4 ,9 g5]al1 ! diff]5ces :i* might be call$ ! debits & cr$its ( ?is new imag9>y plant & ! debits & cr$its ( ! old] work+ plant are r$uc$ to _! pres5t wor? at ! "t ( appraisem5t1 & an e/imate is made up :i* w adequately repres5t ! f9ancial advantage :i* ! old works 7already fully equipp$ & 9 runn+ ord] & hav+ a l>ge numb] ( pr(itable cu/om]s7 w h ov] ! new works1 :]e ev]y?+ mu/ be built & cu/om]s secur$4 ,x is necess>y 9 mak+ ?is supposititi\s e/imate ( ! new plant to consid] x 9 no way a competitor ( ! old] works2 !re is n suppos$ to be competition betwe5 ! new & ! old1 b x is left to ! exp]i5ce ( ! bo>d ( arbitration to consid] h[ long x w\ld take ! new company to build new works1 & build up bus9ess = ! new works1 until !y h ov]tak5 ! bus9ess ( ! old company %\ld x cont9ue to occupy ! same t]ritory4 ,mr4 ,alvord's description ( 8 me?od has be5 quot$ fully1 z x is an int]e/+ "o & has be5 (t5 us$4 ,x is op5 to ! v decid$ objection t x is purely !oretical1 a rational me?od ( computation1 p]haps1 b bas$ on assumption ?r\gh\t4 ,x may be said to be a me?od :i* is )9 ! field ( pure speculation4 ,mr4 ,alvord1 himself1 says t :]e exp]i5ce 9 f9ancial matt]s & ! f9ancial managem5t ( wat]-works is n br\ght into ! valuation1 !re is usually to be f\nd guesses ( ! wilde/ "*4 ,pr(essor ,mead1 9 discuss+ ,mr4 ,alvord's me?od & agree+ t x is consi/5t & logical1 says3 ,! me?od is by no means an exact "o1 & mu/ necess>ily lead to a v great div]g5ce 9 op9ions z to ! 'go+ value1' 9 accordance ) ! assumptions on :i* x is bas$4444 ,its v logic is an elem5t ( dang]1 = if cle>ly pres5t$ f a bias$ /&po9t to "o previ\sly unacqua9t$ ) its application1 & if accept$ )\t c>eful analyses x may lead to v unju/ conclusions4 ,if us$1 h[ev]1 c>efully & consci5ti\sly ) ! desire to d ju/ice to all conc]n$1 x is a valuable me?od ( e/imat+ go+ value1 & ! only logical "o ) :i* ! speak] is famili>4 ,9 addition to ! elem5t ( go+ or bus9ess value1 ,mr4 ,alvord consid]s ! fran*ise value1 & pres5ts two me?ods = its det]m9ation3 ,fir/4--,! physical value1 depreciation1 & go+ value are entirely neglect$1 & ! entire valuation is fix$ on ! basis ( its e>n+ p[] ?r\gh\t ! rema9+ life ( ! fran*ise & its probable sale value4 ,! probable net rev5ue = ea* ye> ( fran*ise life mu/ be e/imat$ & capitaliz$ at a sum1 :i*1 if put at int]e/1 w\ld pay su* ye>ly rev5ue & ext+ui% itself at ! end ( ! fran*ise p]iod4 ,to ?is mu/ be add$ ! physical value ( ! plant at ! end ( ! fran*ise p]iod4 ,second4--,! co/ ( reproduction1 depreciation1 & pres5t physical value are asc]ta9$1 & ! go+ value comput$4 ,!n x is det]m9$ :e!r or n ! net rev5ue is pay+ int]e/ on a capitaliz$ value great] ?an t indicat$ by ! sum ( ! physical & bus9ess values4 ,if su* capitaliz$ figure is less ?an ?is comb9$ value1 !re is1 ( c\rse1 no fran*ise value2 if x is m1 !re is a fran*ise value :i* %\ld be det]m9$ by e/imat+1 = ! rema9+ ye>s ( ! fran*ise1 ! excess income ov] & above t necess>y to cancel all obligations 7includ+ int]e/ on ! physical & bus9ess values71 & ! r$uction ( ^! sev]al sums to a basis ( pres5t wor?4 ,a numb] ( o!r articles & pap]s are li/$ 9 ! ,app5dix4 ,_m ( ^! are ( great value & are well wor? c>eful p]usal1 b !y (f] no def9ite plan ( valuation4 ,inasmu* z ! g5]al pr9ciples involv$ 9 ! valuation ( a wat]-works plant & a railroad plant are simil>1 x is advisable1 9 any exhau/ive /udy ( ! subject1 to review ! articles descriptive ( wat]-works valuation1 & x is a matt] ( regret t great] consid]ation _c be "h giv5 to "s ( ! po9ts rais$ by su* eng9e]s z ,george ,h4 ,b5z5b]g1 ,pa/-,presid5t1 ,am4 ,soc4 ,c4 ,e41 ,k5ne? ,all51 ,ar?ur ,l4 ,adams1 ,emil ,kui*l+1 ,memb]s1 ,am4 ,soc4 ,c4 ,e41 & o!rs 9 _! v>i\s pap]s & discussions ( ?is subject4 ,! ,railway ,age1 ! ,railroad ,gazette1 ! ,railroad ,age ,gazette1 & ! ,railway ,age ,gazette conta9 _m editorials & articles on ! valuation ( railroad prop]ties4 ,^! are writt5 ma9ly f ! /&po9t ( ! railway (ficial1 & pres5t _m matt]s ( int]e/ :i* are wor?y ( /udy prior to und]tak+ a l>ge appraisal4 ,"o s]ies ( articles 9 ! ,railway ,age ,gazette#ac is a mo/ ma/]ly argum5t1 & x is to be regrett$ t ! au?or has n disclos$ 8 id5tity4 ,! ,mi*igan valuation has be5 discuss$ 9 two pap]s by ,mr4 ,*>les ,hansel1 ^: connection ) ! "w1 z a memb] ( ! ,bo>d ( ,review1 gave him probably a m intimate k ( x ?an any "o else1 n connect$ ) ! actual work+ organization1 :o has und]tak5 to review ! "w4 ,8 fir/ pap]1 publi%$ 9 #aija1ad entitl$1 ,:at is ! ,value ( a ,railroad = ,purposes ( ,taxation8 is a discussion ( ! "w ( ,pr(essors ,cooley & ,adams1 writt5 :ile ! subject 0 fre% 9 8 m9d4 ,8 second pap]1 an able argum5t = a ,gov]nm5t valuation1 appe>$ 9 ! ,nor? ,am]ican ,review 9 #aijg4 ,! "o po9t to :i* special att5tion is drawn is ,mr4 ,hansel's a/oni%+ misconception ( ,pr(essor ,adams' plan ( "w4 ,?is mislead+ /atem5t appe>s 9 ! fir/ pap] & is reit]at$ 9 ! second4 ,x is ( su* a "* t to pass x un*all5g$ w\ld be do+ great inju/ice to ,pr(essor ,adams4 ,he /ates ,pr(essor ,adams' plan z foll[s3 ,capitalize net e>n+s & add to ! pres5t value ( ! physical appraisal z f\nd by ,pr(essor ,cooley4 ,! result w\ld be t 9 case ! pres5t value p] mile z det]m9$ by ,pr(essor ,cooley is f\nd to be #ae1jjj1 & ! net e>n+s by ,pr(essor ,adams are f\nd to be #a1jjj1 ?is capitaliz$ at #e p] c5t4 w\ld equal #bj1jjj1 & add$ to ! pres5t value w\ld make #ce1jjj1 :i* w\ld be ! sum ^u :i* taxes 7 to be levi$4 ,9 o!r words1 if ! company actually e>ns #a1jjj x increases its value = purposes ( taxation #bj times t am\nt4 ,if1 h[ev]1 in/ead ( hav+ a net e>n+ ( #a1jjj x sp5ds t sum 9 improv+ ! prop]ty1 x has only increas$ its taxable prop]ty by #a1jjj4 ,?is /atem5t is n only inaccurate1 b involves ! o!r error ( assum+ t ! appraisal figure 0 to be us$ = taxation4 ,x 0 n4 ,x 0 m]ely in=mation to aid ! legislature 9 fram+ new taxation laws4 ,! *ief error1 h[ev]1 is 9 assum+ t ,pr(essor ,adams add$ ! value ( ! prop]ty1 z det]m9$ by a capitalization ( net e>n+s 7:i* p] se is a well-recogniz$ me?od ( valuation71 to ! value ( ! physical prop]ty4 ,?is error probably is due to ! flood ( criticism :i* at ! "t 0 aim$ at any =m ( non-physical valuation4 ,pr(essor ,adams f9ds ! net e>n+ 9 ,mr4 ,hansel's example to be #a1jjj p] mile4 ,f ?is1 9 ! me?od actually us$1 he d$ucts an annuity = ! support ( inve/$ capital1 :i* he assumes to be ! pres5t value f\nd by ,pr(essor ,cooley4 ,9 ! example giv5 by ,mr4 ,hansel he w\ld d$uct #d on #ae1jjj1 or #fjj p] mile1 leav+ #djj p] mile z surplus1 or ! e>n+s due to non-physical elem5ts ( value4 ,?is1 capitaliz$ at #e1 w\ld give #h1jjj p] mile1 :i*1 add$ to ,pr(essor ,cooley's figure ( ,pres5t ,value1 w\ld make #bc1jjj p] mile1 in/ead ( #ce1jjj1 z /at$ by ,mr4 ,hansel4 ,! mo/ rec5t criticism ( ! ,mi*igan valuation "w 0 9 an address#ae be=e ! ,new ,york ,traffic ,club 9 ,janu>y1 #aiji1 by ,mr4 ,w4 ,h4 ,williams1 ,?ird ,vice-,presid5t ( ! ,delaw>e & ,hudson ,company4 ,?is address is devot$ to an attack1 n only on ! "w ( ! ,mi*igan appraisal1 b on ,pr(essor ,adams' "w & on ! propriety ( valuation "w be+ und]tak5 = any reason4 ,! argum5ts advanc$ 9 ?is address are su* t a discussion ( !m becomes almo/ necess>y 9 any complete review ( ! ,mi*igan "w1 & x conta9s s _m /atem5ts :i* are errone\s t x w\ld h>dly be p]missible to pass !m )\t comm5t4 ,! manife/ impati5ce ) all =ms ( gov]nm5tal int]f]5ce ) corporations1 :i* s (t5 *>act]izes ! utt]ances ( prom95t railway (ficials1 appe>s 9 ?is pap] to a m>k$ degree4 ,aft] /at+ t ! pres5t agitation = a physical valuation appe>s to be ! result ( a misconception1 on ! "p ( ! ,int]/ate ,comm]ce ,commission1 ( ,section #bj ( ! ,act to ,regulate ,comm]ce1 & quot+ ,pr(essor ,adams' sugge/ion ( an inquiry1 he says3 ,subsequ5tly1 ! desire ( ,gov]nor ,p+ree to f9d a means ( increas+ railway taxation 9 ,mi*igan gave ,pr(essor ,adams an opportunity to exp]im5t ) 8 project )9 ! limits ( t ,/ate4 ,?is is a direct imputation ( an improp] motive1 n only to ,gov]nor ,p+ree1 b to ,pr(essor ,adams4 ,z /at$ else:]e1 ! inve/igation 0 to det]m9e :e!r ! railroads 7 pay+ taxes on ! same basis ( valuation z o!r prop]ty 9 ! ,/ate--an absolutely prop] proce$+4 ,pr(essor ,adams 0 associat$ ) ! ,mi*igan appraisal1 b _h no connection :atev] ) ! physical valuation1 to :i* su* objection is tak51 & 8 appo9tm5t 0 made aft] ! "w ( physical valuation _h be5 fully outl9$ & 0 well "u way4 ,! op5+ /atem5t is foll[$ by a brief rsum ( ! recomm5dations ( ! ,int]/ate ,comm]ce ,commission & ,presid5t ,roosevelt1 & ( bills introduc$ 9 ,congress1 also by quotations f ,bullet9 #ba1 describ+ ! me?ods ( valuation us$ 9 ,mi*igan & a %[+ t practically a simil> basis 0 us$ 9 o!r ,/ates4 ,mr4 ,williams !n summ>izes 8 objections to ! ,mi*igan "w3 7#a7 ,no all[ance is made = disc\nt on securities sold4 ,disc\nt is a p>tial capitalization ( ! comm]cial risk _h 9 mak+ ! inve/m5t1 & x increases or decreases 9 proportion to ! probability ( ! e>n+ p[] ( money "u exi/+ conditions4 ,n only is ?is practice ju/ifi$ by long-e/abli%$ comm]cial usage1 b also by judicial det]m9ation4 ,! correctness ( ?is position _c be conc$$ on any gr\nds ( economics or acc\ntancy4 ,x is answ]$ conclusively 9 an article1#af else:]e ref]r$ to1 z foll[s3 ,!re is consid]able div]sity ( op9ion z reg>ds ! prop] treatm5t ( disc\nt on securities sold4 ,!re is a di/9ction betwe5 bonds1 repres5t+ corporate indebt$ness & hav+ a def9ite limitation z to ! "t ( _! r$emption1 & %>e capital1 repres5t+ own]%ip & :i* z a rule is irr$eemable4 ,9 relation to ! =m] !re c be b "o t5able view4 ,if a company c m>ket its #ej-ye> #d p] c5t4 bonds at #ij p] c5t4 ( p>1 x means t ! company's cr$it is on a #d p] c5t4 basis2 t x c\ld m>ket a l security pay+ #d p] c5t4 at p>4 ,if x elects to issue at ! l[] rate x is m]ely sacrific+ pr9cipal = ! sake ( a r$uction 9 ! annual int]e/ *>ge2 9 o!r words1 x is pre-pay+ int]e/ :i* w\ld accrue dur+ ! life ( ! issue4 ,if #aj1jjj1jjj p> value 7 issu$ at #ij p] c5t41 ! disc\nt w\ld am\nt to #a1jjj1jjj1 & ! sav+ 9 int]e/ to #ej1jjj p] ye>1 or #b1ejj1jjj 9 #ej ye>s4 ,obvi\sly ! company _c claim ! privilege ( capitaliz+ ! disc\nt1 :ile !reby avail+ itself ( ! r$uction 9 int]e/4 ,if su* a c\rse 7 legitimate 9 ! case ( a #e or #aj p] c5t4 disc\nt1 x w\ld be equally s if ! disc\nt 7 #ej or #ge p] c5t41 :5 ! absurdity ( ! proposition w\ld be p]fectly app>5t4 ,! some:at g5]al practice ( prorat+ ! disc\nt1 z a *>ge aga9/ rev5ues1 ov] ! t]m ( ! obligation's exi/5ce is s\nd2 b ?is %\ld be done1 n 9 equal in/allm5ts1 b on ! basis ( ! appreciat$ value ( ! bond z x approa*es p> at maturity4 ,!re is no app>5t objection to *>g+ disc\nt ( ?is nature 9 a lump sum aga9/ an accumulat$ surplus4 ,! capitalization ( disc\nt on /ocks1 involv+ z x does ! introduction ( fictiti\s values 9 capital assets1 is :olly indef5sible4 ,! writ] has fail$ to note any p>ticul> judicial det]m9ation :i* approves ( ! *>ge ( any su* item to capital acc\nt4 7#b7 ,! int]e/ dur+ con/ruction 7#c p] c5t47 is less ?an a fair & reasonable return on ! inve/m5t4 ,! am\nt actually paid out = int]e/ on money us$ dur+ ! p]iod ( con/ruction w v>y1 ( c\rse1 dep5d+ on ! "t ( con/ruction & ! way 9 :i* paym5ts on con/ruction mat]ials are made4 ,on ! basis ( a rate ( #f p] annum & con/ruction la/+ "o ye>1 only a v small portion ( ! con/ruction co/ w pay #f1 :ile ! great items ( rails1 build+s1 motive p[]1 & equipm5t w be put into ! "w f #ij days to #aj mon?s aft] ! comm5cem5t ( "w1 & w actually be> b little int]e/4 ,9 ! ,mi*igan appraisal ! assumption 0 made t all "w mu/ be replac$ 9 "o ye>1 & t on long roads p>tial op]ation w\ld comm5ce z v>i\s sections ( ! l9e 7 complet$2 & #c 0 agre$ on z a fair av]age1 p]haps hav+ 9 m9d ,gov]nor ,p+ree's desire to increase railway taxation4 ,"s assumption mu/ be made4 ,?is "o1 t long roads1 cov]+ sev]al ye>s ( con/ruction "w1 are 9 ,mi*igan put 9 p>tial op]ation z soon z built1 is n unreasonable4 ,su* an assumption cle>ly w\ld n be prop] 9 ! case ( long l9es cross+ m\nta9s1 or involv+ su* a class ( con/ruction z to make x impossible to complete ! prop]ty %ort ( two or ?ree ye>s2 &1 9 any su* cases1 ! int]e/ *>ge %\ld be made suffici5t to cov]4 7#c7 ,no all[ance is made = work+ capital ) :i* to c>ry on ! bus9ess4 ,all ! appraisals ( physical prop]ty h be5 made on ! basis ( secur+ a figure repres5t+ ! co/ ( recon/ruct+ ! prop]ty 9 ! condition 9 :i* x exi/$ on ! date ( ! appraisal1 includ+ only items prop]ly *>geable to capital1 co/ ( road1 & equipm5t4 ,?is is n su* an item4 ,! writ] is ( ! op9ion1 h[ev]1 t x is a prop] "o to det]m9e & include 9 any report4 7#d7 ,no all[ance is made = we> & te> ( mat]ial dur+ ! p]iod ( con/ruction4 ,assum+ eight ye>s to be ! life ( a tie1 & ?ree ye>s ! p]iod ( con/ruction1 a sub/antial p]c5tage ( ! p]iod ( usefulness is ov] be=e ! road is 9 op]ation4 ,! use ( ! rails be=e ! track is put 9 prop] l9e & surface ha/5s ! "t :5 !y mu/ be remov$4 ,?is det]ioration is a necess>y incid5t to any con/ruction "w4 ,x has n be5 cu/om>y or usual to take acc\nt ( x4 ,to add to ! am\nt capitaliz$ on acc\nt ( ?is item w\ld be manife/ly improp]4 ,! only way 9 :i* ?is c\ld be c>$ = w\ld be 9 an adju/m5t ( ! depreciation res]ve :5 rais$ to cov] t :i* takes place dur+ ! con/ruction p]iod4 ,?is res]ve1 lat] 9 ! address1 is object$ to by ,mr4 ,williams z improp] acc\nt+3 7#e7 ,no all[ance has be5 made = impact & adaptation4 ,aft] ! l9e is plac$ 9 op]ation1 ea* fill w s9k #a ft4 = e #aj ft4 ( height4 ,! slope ( cuts mu/ be increas$ to prev5t l&slides & wa%\ts4 ,! balla/ w p\nd into ! roadb$1 necessitat+ additional balla/ to secure a /&>d cross-section4 ,"p ( ?is objection is cov]$ by ! item1 ,appreciation ( ,roadb$1 discuss$ else:]e4 ,?is1 p]haps1 is a prop] item1 b a comp>atively small "o4 ,"o ( ! examples cit$ is cle>ly ma9t5ance4 ,?is objection is l>gely cov]$ 9 ! ,mi*igan "w by ! cont+5cy item4 7#f7 ,a uni=m price = e>?work 0 us$1 ?us ignor+ ! v>y+ "* ( soil & l5g? ( haul4 ,?is is errone\s4 ,on ! ,mi*igan appraisal prices 7 us$ = e>?1 loose rock1 & solid rock4 ,!re is practically no classification 9 ! ,s\!rn ,p59sula ( ,mi*igan1 or1 9 fact1 on #ij ( ! mileage ( ! ,/ate4 ,! price us$ 0 n mu* out ( ! way :5 consid]$ z a fair av]age = ! t]ritory4 ,! same 0 app>5tly true ( o!r appraisals4 ,x w\ld n be a prop] figure to use 9 an e/imate bas$ on #aiji prices1 :i* are mat]ially great] ?an ^? obta9+ 9 #ahij-aijj4 7#g7 ,a uni=m price li/ = all mat]ials 0 us$1 ?us ignor+ ! s\rce ( supply & co/ ( deliv]y to po9t ( use4 ,?is1 aga91 is n true4 ,diff]5ces 7 made betwe5 ! ,upp] & ,l[] ,p59sulas2 & an exhau/ive /udy 0 made ( rates to diff]5t sections4 ,x is believ$ t ! prices adopt$ took all ^! po9ts fully into consid]ation4 ,x is true t no ef=t 0 made to use diff]5t unit prices z betwe5 c\nties1 b1 9 a numb] ( cases1 diff]5ces 9 prices 7 made = diff]5t sections ( ! ,/ate1 :]e ei!r local conditions z to production ( mat]ials1 or traffic rates1 seem$ to w>rant4 7#h7 ,no all[ance 0 made = int]f]5ce ) "w on acc\nt ( labor tr\bles1 condition ( ! wea!r1 etc41 :i* w\ld v>y mat]ially 9 ! diff]5t c\nties ( ! same /ate4 ,true4 ,nor is su* all[ance ev] made 9 actual con/ruction1 beyond ! cont+5cy item4 ,su* items are a frequ5t s\rce ( annoyance1 delay1 & sometimes ( exp5se1 b an exp5se difficult to sep>ate & set up1 & cle>ly belong+ to cont+5cies4 7#i7 ,no all[ance is made = c>ry+ *>ges until su* "t z ! road 0 plac$ on a rev5ue basis4 ,true2 & su* item is n a "p ( a physical appraisal4 ,! =ego+ n9e po9ts are class$ z among o!r ?+s op5 to criticism4 ,! next two quot$ p>agraphs are introduc$ to indicate ! o!r ?+s z !y appe>4 ,^! are ma9ly non-physical or intangible elem5ts ( value1 :i*1 "u ! me?od ( ,pr(essor ,adams1 are treat$ en bloc1 & :i*1 f _! nature1 x w\ld be impossible to set out & value sep>ately2 !re=e1 no ef=t is made to answ] !m po9t by po9t1 fur!r ?an to say 9 g5]al t1 if !re is any value atta*+ to ^! items1 x 0 presum$ to h be5 disclos$ by ! me?od ( ,pr(essor ,adams1 & to sugge/ fur!r t _h ,pr(essors ,cooley & ,adams _h su* an advocate ( intangible values t5 ye>s ago1 _! labors w\ld h be5 light5$1 z all argum5ts by railway (ficials at t "t 7 aga9/ ! use ( any su* elem5ts ( value 9 an appraisal4 ,no consid]ation has be5 giv5 to ! leasehold int]e/s4444 ,!re=e x w be se5 !re rema9s to be det]m9$ _m que/ions vitally affect+ ! value ( ! prop]ty )\t reg>d to its value z a 'go+ conc]n4' ,!re %\ld be no diff]5ce 9 ! basis ( arriv+ at ! value1 z a 'go+ conc]n1' ( ! prop]ty ( a railway & any indu/rial e/abli%m5t1 nor %\ld !re be any diff]5ce 9 ! basis ( valuation = taxation exactly :at ,gov]nor ,p+ree ma9ta9$ or o!r purposes4 ,!re is common to bo? ! value due to location1 good w1 etc4 ,:ile ! rema9d] ( ! address 9 "q conta9s no specific criticisms ( me?ods ( valuation1 x does g into a discussion ( sundry legal decisions2 & conclusions are drawn q at v>iance ) ^? set =? else:]e 9 ?is pap]4 ,! ?+ mo/ noticeable 9 ! entire address is ! lack ( a prop] _s ( fairness1 an app>5t inability to /ate fully & fairly ! position ( ! m5 ^: views are be+ oppos$1 & an undue emphasis 9 quot+ "s public (ficial ^: views co9cide = ! "t be+ ) ! !ories :i* are be+ advocat$4 ,! fact t ,mr4 ,williams quotes f an address ( ,hon4 ,rob]t ,h4 ,%ields1 ,presid5t ( ! ,mi*igan ,tax ,commission1 a /atem5t criticis+ ! "w ( ,pr(essors ,cooley & ,adams1 illu/rates ! latt] po9t4 ,! /atem5t is made aga9 & aga9 t ! ,mi*igan "w 0 a physical valuation2 t no attempt 0 made to secure a fair value 7! language ( ! ,c\rts71 & t ! value z a go+ conc]n 0 n attempt$ to be giv54 ,9 no case is ! /atem5t made t ,pr(essor ,cooley _h *>ge ( ! physical valuation 9 ,mi*igan1 & t ,pr(essor ,adams took ?is physical valuation1 &1 "u 8 me?od1 treat$ x z "o elem5t1 & ) x & o!r data d]iv$ f a /udy ( ! reports & e>n+s ( ! company1 und]took to det]m9e a non-physical1 intangible1 fran*ise1 or go+ conc]n value1 :i* includ$ all tangible elem5ts1 & :i*1 add$ to ! physical value1 0 assum$ by ,pr(essor ,adams to give ! true value4 ,_h su* a /atem5t be5 fairly made1 no possible objection c\ld be rais$ to ! mak+ ( any numb] ( po9ts aga9/ ! correctness ( ! me?ods us$ by ,pr(essor ,adams4 ,c]ta9ly x _c be d5i$ t a road betwe5 ,new ,york & ,*icago1 #iej miles 9 l5g?1 pass+ ?r\gh a manufactur+ di/rict1 is ( great] value ?an a road #a1bjj miles 9 l5g?1 betwe5 ! same cities1 b pass+ ?r\gh a hilly & undevelop$ t]ritory a portion ( ! di/ance1 & ?r\gh a f>m+ section = a great] portion ( ! rema9+ di/ance2 yet ! advocates ( a physical valuation w\ld h u believe t !re is no diff]5ce 9 ! value ( ! two if !y c be reproduc$ to-day at ! same co/4 ,?is /atem5t is entirely unfair to e man :o has be5 9 responsible *>ge ( valuation "w 9 rec5t ye>s 9 ! ,unit$ ,/ates4 ,no !ory has ev] be5 favor$ by any hone/-?9k+ advocate ( a valuation4 ,9 ! fir/ place1 no int]/ate valuations h ev] be5 made1 & no p>allel case to ! "o assum$ is to be f\nd1 except = v %ort sections ( roads1 a v m>k$ in/ance hav+ be5 ref]r$ to else:]e 9 ?is pap]4 ,su* a condition z assum$ w\ld be reflect$ 9 ! e>n+s ( ! companies to su* an ext5t z to cause ! non-physical elem5t ( ,pr(essor ,adams z us$ 9 ,mi*igan to correct l>gely or :olly ! inequality & inaccuracy ( ! physical valuation2 su* at lea/ 0 ! !ory1 &1 if c>ri$ to its logical end by ! use ( negative non-physical values1 su* w\ld be ! result4 ,! f9al argum5ts ( ,mr4 ,williams' address are devot$ to an attack on ! plan outl9$ by ! ,int]/ate ,comm]ce ,commission = valuation1 & on "s ( ! acc\nt+ me?ods ( ! ,commission--po9ts n prop] to be discuss$ 9 ?is pap]--b x is difficult inde$ to read !m )\t not+ ! app>5tly /udi$ misrepres5tation ( ! real attitude ( ,pr(essor ,adams & ! ,commission1 & ! evid5t object ( ! entire address to create a wrong impression reg>d+ :at has be5 done1 & a prejudice aga9/ ! m5 :o h be5 engag$ on ,/ate appraisal "w & ^? :o advocate ! appraisal ( prop]ties z a prop] /ep 9 ! way ( secur+ su* in=mation z w enable an intellig5t consid]ation ( ! great corporation problems t mu/ be solv$4 ----- ,footnote #ab3 ,proce$+s1 ,am4 ,wat]-,works ,assoc41 #aijb4 ,footnote #ac3 ,comm5c+ ) ! issue ( ,janu>y #bb;d1 #aiji4 ,footnote #ad3 ,! ,railroad ,gazette1 ,april #ai?1 #aija1 ,vol4 ,,xxxiii4 ,no4 #af4 p4 #bga4 ,footnote #ae3 ,railroad ,age ,gazette1 ,april #b;d1 #aiji1 p4 #gfa4 ,footnote #af3 ,railroad ,age ,gazette1 ,janu>y #bi?1 #aiji1 p4 #bai4 ,,! ,,det]m9ation ,,( ,,elem5ts ,,( ,,value ,,& ,,me?ods ,,( ,,valuation ,,by ,,! ,,c\rts4 ,! prec$+ n>rative ( me?ods ( appraisal "w logically leads up to ! "q3 ,w ^! me?ods t h be5 adopt$ 9 v>i\s appraisal und]tak+s /& ! te/ ( ! ,c\rts8 ,aft] all1 ! f9al seal ( approval mu/ be /amp$ on a me?od by ! highe/ ,c\rts be=e x c be said to be a def9itely fix$ & det]m9$ pr9ciple = g5]al use 9 valuation4 ,9 a c>eful p]usal ( _m pap]s on ?is subject1 quotations f judicial decisions w be not$ :i* are lit]ally correct z f> z !y g1 b :i* are incomplete & (t5 v mislead+2 & (t5 su* incomplete quotations are pres5t$ z to convey an entirely wrong impression ( ! full decision4 ,9 ord] t no su* *>ge may lie aga9/ ?is pap]1 ! quotations giv5 are full en\gh to indicate cle>ly ! int5t ( ! ,c\rt1 ev5 at ! exp5se ( undue l5g?4 ,an exam9ation ( all ,f$]al & ,supreme ,c\rt cases :i* be> on ! subject ( prop]ty valuation has be5 made1 & quotations at l5g? f "s ( ! old] cases1 e/abli%+ prec$5t1 toge!r ) citations to m rec5t decisions1 are submitt$4 ,x is believ$ t ! po9ts ( pr9ciple & me?od1 9 s f> z !y h be5 det]m9$ by ! highe/ ,c\rts1 are q fully set =?4 ,a /udy ( ! complete me?ods ( ! railroad valuation 9 ,mi*igan1 9 connection ) ^! decisions1 discloses ! fact t !y comply ) ! requirem5ts ( ! e>li] cases1 t all matt]s affect+ value be tak5 into consid]ation1 & t 9 ! m rec5t decisions ! detail$ me?ods adopt$ 9 ! ,cooley physical appraisal h be5 su/a9$ z to v _m po9ts4 ,9 no case h any ( su* me?ods be5 unfavorably criticiz$1 &1 :ile at ?is date ! ,supreme ,c\rt has n squ>ely pass$ on ! propriety ( any me?od = secur+ non-physical or intangible values1 x has fully su/a9$ ! g5]al position ( ,pr(essor ,adams 9 sev]al important po9ts4 ,9 addition to ! complete exam9ation ( ,f$]al cases1 c]ta9 v int]e/+ & valuable ,/ate cases h be5 exam9$1 & "s ( !m are quot$4 ,^! cases involve bo? matt]s ( taxation & rate-mak+4 ,!y cov] railroads1 wat]-works1 gas-works1 & o!r classes ( public s]vice corporations1 & cle>ly demon/rate ! fact t any analysis ( ! subject ( prop]ty valuations mu/ include all classes ( corporations4 ,rate-mak+ & taxation 9 !mselves are entirely sep>ate & di/9ct f valuation1 :i* is a necess>y prelim9>y /ep 9 ei!r und]tak+4 ,= ?is reason all ref]5ces :i* are n ( special int]e/ 9 ! valuation "p ( ! problem are omitt$4 ,! case ( ,smy? vs4 ,ames 7#afi ,u4 ,s41 #dff7 0 an action to "q ! con/itutionality ( a /atute ( ,nebraska e/abli%+ rates4 ,x is ( great int]e/1 &1 bas$ on ! rul+ ( ! ,c\rt 9 ?is case1 ! apprais] 9 ,wa%+ton & ! apprais]s 9 ,nebraska h und]tak5 to secure fir/ co/ z an elem5t ( value4 ,! decision holds t3 7#a7 ,a railroad corporation is a p]son )9 ! mean+ ( ! f\rte5? am5dm5t4 7#b7 ,a ,/ate enactm5t e/abli%+ rates t w n admit ! c>ri] to e>n su* comp5sation z w\ld be j to x & to ! public1 w\ld deprive su* c>ri] ( its prop]ty & w\ld be repugnant to ! f\rte5? am5dm5t4 7#c7 ,rates e/abli%$ by a ,/ate _c be s conclusively det]m9$ by ! legislature t !y _c become ! subject ( judicial inquiry4 ,! reasonabl5ess ( rates prescrib$ by a ,/ate = intra-/ate bus9ess mu/ be det]m9$ )\t ref]5ce to ! int]/ate bus9ess done by ! c>ri] or ! pr(its d]iv$ f t bus9ess4 ,?is pap] is n conc]n$ ) ! "q ( rates1 :i* is discuss$ at l5g? 9 ?is decision4 ,x is1 h[ev]1 ( special int]e/ to note :at ! ,c\rt says 9 reg>d to ! relation ( ! corporations to ! p1 & to elem5ts ( value4 ,a railroad is a public highway1 & none ! less s because con/ruct$ & ma9ta9$ ?r\gh ! ag5cy ( a corporation d]iv+ its exi/5ce & p[]s f ! ,/ate4 ,su* a corporation 0 creat$ = public purposes4 ,x p]=ms a function ( ! ,/ate4 ,its au?ority to ex]cise ! "r ( em95t doma9 & to *>ge tolls 0 giv5 prim>ily = ! b5efit ( ! public4 ,x is "u gov]nm5tal control1 ?\gh su* control mu/ be ex]cis$ ) due reg>d to ! con/itutional gu>anties = ! protection ( its prop]ty4444 ,x _c !re=e be admitt$ t a railroad corporation ma9ta9+ a highway "u ! au?ority ( ! ,/ate may fix its rates ) a view solely to its own int]e/s & ignore ! rights ( ! public4 ,b ! rights ( ! public w\ld be ignor$ if rates = ! transportation ( p]sons or prop]ty on a railroad are exact$ )\t ref]5ce to ! fair value ( ! prop]ty us$ = ! public1 or ! fair value ( ! s]vices r5d]$1 b 9 ord] simply t ! corporation may meet op]at+ exp5ses1 pay ! int]e/ on its obligations1 & decl>e a divid5d to /ockhold]s4 ,if a railroad corporation has bond$ its prop]ty = an am\nt t exce$s its fair value1 or if its capitalization is l>gely fictiti\s1 x may n impose ^u ! public ! burd5 ( su* increas$ rates z may be requir$ = ! purpose ( realiz+ pr(its ^u su* excessive valuation or fictiti\s capitalization1 & ! app>5t value ( ! prop]ty & fran*ises us$ by a corporation1 z repres5t$ by its /ocks1 bonds1 & obligations1 is n alone to be consid]$ :5 det]m9+ ! rates t may reasonably be *>g$4 7,! ,c\rt "h quotes #afd ,u4 ,s41 #egh1 ,cov+ton & ,lex+ton ,turnpike vs4 ,san=d47 ,a corporation ma9ta9+ a public highway1 al?\gh x owns ! prop]ty x employs = accompli%+ public objects1 mu/ be held to h accept$ its rights1 privileges1 & fran*ises subject to ! condition t ! gov]nm5t creat+ x1 or ! gov]nm5t )9 ^: limits x conducts its bus9ess1 may by legislation protect ! p aga9/ unreasonable *>ges = ! s]vices r5d]$ by x4 ,x _c be assum$ t any railroad corporation1 accept+ fran*ises1 rights1 & privileges at ! h&s ( ! public1 ev] suppos$ t x acquir$1 or t x 0 int5d$ to grant to x1 ! p[] to con/ruct & ma9ta9 a public highway simply = its b5efit1 )\t reg>d to ! rights ( ! public4 ,b x is equally true t ! corporation p]=m+ su* public s]vices1 & ! p int]e/$ 9 its f9ancial affairs h rights t may n be invad$ by legislative enactm5t 9 disreg>d ( ! fundam5tal gu>anty = ! protection ( prop]ty4 ,! corporation may n be requir$ to use its prop]ty = ! b5efit ( ! public )\t receiv+ j comp5sation = ! s]vices r5d]$ by x4 ,h[ su* comp5sation may be asc]ta9$1 & :at are ! necess>y elem5ts 9 su* inquiry1 w always be an emb>rass+ "q4 ,we hold1 h[ev]1 t ! basis ( all calculations z to ! reasonabl5ess ( rates to be *>g$ by a corporation ma9ta9+ a highway "u legislative sanction mu/ be ! fair value ( ! prop]ty be+ us$ by x = ! conv5i5ce ( ! public4 ,& 9 ord] to asc]ta9 t value ! orig9al co/ ( con/ruction1 ! am\nt exp5d$ 9 p]man5t improvem5ts1 ! am\nt & m>ket value ( its bonds & /ocks1 ! pres5t z comp>$ ) ! orig9al co/ ( con/ruction1 ! probable e>n+ capacity ( ! prop]ty "u p>ticul> rates e/abli%$ by ! /atute1 ! sum requir$ to meet op]at+ exp5ses1 are all matt]s = consid]ation1 & are to be giv5 su* weight z may be j & "r 9 ea* case4 ,we d n say t !re may n be o!r matt]s to be reg>d$ 9 e/imat+ ! value ( ! prop]ty4 ,:at ! company is entitl$ to ask is a fair return ^u ! value ( t :i* x employs = ! public conv5i5ce4 ,on ! o!r h&1 :at ! public is entitl$ to dem& is t no m be exact$ f x = ! use ( a public highway ?an ! s]vices r5d]$ by x are reasonably wor?4 ,! body ( ?is decision is quot$ at l5g? to %[3 ,fir/4 ,t ! ,c\rt reit]ates ! relation ( ! p to ! corporation1 z def9$ by ,cov+ton & ,lex+ton ,turnpike ,road vs4 ,san=d 7#afd ,u4 ,s41 #egh7 & by ,/one vs4 ,f>m]s' ,loan & ,tru/ ,company 7#aaf ,u4 ,s41 #cjg74 ,second4 ,t ! basis = comput+ a fair rate is ! fair value ( ! prop]ty1 :i* mu/ be arriv$ at by a computation or s]ies ( computations tak+ into acc\nt _m diff]5t factors4 ,?ird4 ,t :ile ! ,c\rt m5tions c]ta9 ?+s t may s]ve z indices ( value1 :i* are to be tak5 into acc\nt & giv5 due weight1 ! ,c\rt does n outl9e or def9e any me?od ( arriv+ at a value1 b does recognize x z an emb>rass+ "q4 ,f\r?4 ,t no su* /ress has be5 laid by ! ,c\rt on orig9al co/ z has be5 con/ru$ by "s apprais]s4 ,! pr9ciples enunciat$ 9 ,smy? vs4 ,ames are reit]at$ by ! ,c\rt 9 ,san ,diego ,l& ,company vs4 ,national ,city 7#agd ,u4 ,s41 #gci71 ) ! fur!r rul+3 ,! cont5tion ( ! appellant 9 ! pres5t case is t1 9 asc]ta9+ :at are j rates1 ! ,c\rt %\ld take into consid]ation ! co/ ( its plant2 ! co/ p] annum ( op]at+ ! plant1 includ+ int]e/ paid on money borr[$ & reasonably necess>y to be us$ 9 con/ruct+ ! same2 ! annual depreciation ( ! plant f natural causes result+ f its use2 & a fair pr(it to ! ,company ov] & above su* *>ges = its s]vices 9 supply+ ! wat] to consum]s1 ei!r by way ( int]e/ on ! money x has exp5d$ = ! public use1 or ^u "s o!r fair & equitable basis4 ,und\bt$ly1 all ^! matt]s ought to be tak5 into consid]ation & su* weight giv5 !m1 :5 rates are be+ fix$1 z "u all ! circum/ances w be j to ! company & to ! public4 ,! basis ( calculation sugge/$ by ! appellant is1 h[ev]1 defective 9 n requir+ ! real value ( ! prop]ty & ! fair value 9 !mselves ( ! s]vices r5d]$ to be tak5 into consid]ation4 ,:at ! company is entitl$ to dem&1 9 ord] t x may h j comp5sation1 is a fair return ^u ! reasonable value ( ! prop]ty at ! "t x is be+ us$ = ! public4 ,! prop]ty may h co/ m ?an x ought to h co/1 & its out/&+ bonds = money borr[$1 & :i* w5t into ! plant1 may be 9 excess ( ! real value ( ! prop]ty4 ,s t x _c be said t ! am\nt ( su* bonds %\ld 9 e case control ! "q ( rates1 al?\gh x may be an elem5t 9 ! inquiry z to :at is1 all ! circum/ances consid]$1 j to bo? ! company & ! public4 ,9 ! case ( ,columbus ,s\!rn ,railway vs4 ,wright 7#aea ,u4 ,s41 #dgi71 ! ,c\rt quotes approv+ly f ,frankl9 ,company vs4 ,railroad 7#ab ,lea 7,t5n471 #eba-ecg-ech-eci71 & %[s t ! doctr9e quot$ _h already be5 enunciat$ by ! ,supreme ,c\rt 9 ! ,/ate ,railroad ,tax ,cases 7#ib ,u4 ,s41 #ege-fjg74 ,! ,c\rt quotes z foll[s3 ,! prop]ty ( a railroad company = purposes ( taxation consi/s ( its realty1 its local p]sonalty1 its roll+ /ock1 its *oses 9 action1 & its fran*ises4 ,! fran*ise is a privilege conf]r$ by ! *>t] ( incorporation1 namely ! "r to ex]cise all ! p[]s grant$ 9 ! mode prescrib$ = ! purpose ( pr(it4 ,x is a unit n conf9$ to any "o c\nty 9 :i* x may be ex]cis$4 99 99 99 99 99 ,obvi\sly1 aft] asc]ta9+ ! value ( ! entire fran*ise 9 ! ,/ate z a unit1 no m approximate or j division ( ?is value c be made = purposes ( taxation ?an to allot x among ! c\nties ?r\gh :i* ! track runs 9 proportion ( ! entire l5g? ( track 9 ! c\nty to ! entire l5g? ( track 9 ! ,/ate4444 ,! roadway itself ( a railroad dep5ds = its value ^u ! traffic ( ! company & n m]ely ^u ! n>r[ /rip ( l& appropriat$ = ! use ( ! road1 & ! b>s & cross-ties !reon4 ,! value ( a roadway at any giv5 "t is n ! orig9al co/1 nor1 a =tiori1 its ultimate co/ aft] ye>s ( exp5diture 9 repairs & improvem5ts4 ,on ! o!r h&1 its value _c be det]m9$ by asc]ta9+ ! value ( ! l& includ$ 9 ! roadway assess$ at ! m>ket price ( adjac5t l&s1 & add+ ! value ( ! cross-ties1 rails1 & spikes4 ,! value ( l& dep5ds l>gely ^u ! use to :i* x is put & ! "* ( ! improvem5ts ^u x4 ,! mileage basis ( apportionm5t is su/a9$ 9 ! foll[+ & o!r cases3 ,/ate ,railroad ,tax ,cases #ib ,u4 ,s41 #fjh ,delaw>e ,railroad ,tax ,case #ah ,wall41 #bjf ,erie ,railway vs4 ,p5nsylvania #ba ,wall41 #dib ,we/]n ,union ,telegraph ,company vs4 ,mass #abe ,u4 ,s41 #ecj ,pullman ,palace ,c> ,company vs4 ,p5nsylvania #ada ,u4 ,s41 #ah ,ma9e vs4 ,gr& ,trunk ,railway #adb ,u4 ,s41 #bag ,pittsburg1 ,c9c9nati1 ,*icago1 & ,/4 ,l\is ,railway #aed ,u4 ,s41 #dcj vs4 ,backus ,!re=e ?is basis ( division ( values betwe5 t]ritorial units appe>s to be well e/abli%$ by prec$5t4 ,?is is 9 a measure un=tunate1 z c]ta9 classes ( prop]ty _c be apportion$ equitably 9 ?is way1 unless ! value ( a railroad be det]m9$1 & !n t value allocat$ betwe5 diff]5t t]ritorial units 9 proportion to mileage1 )\t any reg>d to ! location ( any /ructure or s]ies ( /ructures 9 any ,/ate or c\nty1 ! track-mileage basis mu/ be look$ ^u z a me?od ( apportionm5t :i* is subject to modification or :i* w lead to error4 ,9 an ,indiana tax case1 ,clevel&1 ,c9c9nati1 ,*icago1 & ,/4 ,l\is ,railway vs4 ,backus 7#aed ,u4 ,s41 #ddd71 ! late ,ju/ice ,brew]1 ( ! ,supreme ,c\rt1 9 h&+ d[n ! judgm5t1 said3 ,! true value ( a l9e ( railroad is some?+ m ?an an aggregation ( ! values ( ! sep>ate p>ts ( x1 op]at$ sep>ately4 ,x is ! aggregate ( ^? values plus t aris+ f a connect$ op]ation ( ! :ole1 & ea* "p ( ! road contributes n m]ely ! value aris+ f its indep5d5t op]ation1 b its mileage proportion ( t fl[+ f a cont9u\s & connect$ op]ation ( ! :ole4444 ,! value ( prop]ty results f ! use to :i* x is put1 & v>ies ) ! pr(itabl5ess ( t use1 pa/1 pres5t & prospective1 actual & anticipat$4 ,!re is no pecuni>y value outside t :i* results f su* use4444 ,9 ! nature ( ?+s x is practically impossible1 at lea/ 9 respect to railroad prop]ty1 to divide its value & det]m9e h[ mu* is caus$ by "o use to :i* x is put & h[ mu* by ano!r4 ,take ! case be=e u1 x is impossible to dis9tegrate ! value ( t portion ( ! road )9 ! ,/ate ( ,indiana & det]m9e h[ mu* ( t value spr+s f its use 9 do+ int]/ate bus9ess & h[ mu* f its use 9 do+ bus9ess :olly )9 ! ,/ate4 ,an attempt to d s w\ld be ent]+ ^u a m]e field ( unc]ta9ty & speculation4 ,9 ! ,mi*igan cases1 ! pr9cipal "o be+ ,mi*igan ,c5tral ,railroad vs4 ,p[]s 7#bja ,u4 ,s41 #bde71 ! "q ( me?od ( valuation 0 n pass$ on by ! ,c\rts = ! reason t1 aft] ! evid5ce 0 91 & dur+ ! argum5t1 c\nsel = ! railroad admitt$ t ! ,cooley valuation 0 z correct a figure z x 0 possible to secure "u !n exi/+ conditions1 me?ods & rates ( taxation be+ ! issue4 ,x is ?us se5 t ! ,supreme ,c\rt ( ! ,unit$ ,/ates 0 n1 9 any ( ! e>li] cases1 requir$ to pass squ>ely on ! propriety ( any me?od ( arriv+ at a fair value1 & consequ5tly _h n1 prior to #aiji1 def9$ any h>d-&-fa/ rules ( proc$ure 9 det]m9+ su* value4 ,! ,circuit ,c\rts h pass$ on k9dr$ que/ions 9 a few cases1 among :i* ,san ,diego ,l& & ,t[n ,company vs4 ,national ,city 7#gd ,f$41 #hc71 & ,san ,diego ,l& & ,t[n ,company vs4 ,jasp] 7#aaj ,f$41 #gad7 hold z above1 & cite mo/ ( ! cases ref]r$ to4 ,9 ! latt] case ! ,c\rt says3 ,! actual value ( su* prop]ty obvi\sly dep5ds ^u a v>iety ( consid]ations--among !m ! actual & prospective numb] ( consum]s--& is no m un*angeable ?an ! value ( any o!r k9d ( prop]ty4 ,z an illu/ration1 !re is cit$ ! effect ( a ye>'s dr\? on an irrigation plant z tempor>ily affect+ ! value ( prop]ty4 ,9 ! case ( ,cott+ vs4 ,kansas ,city ,/ock ,y>ds 7#hb ,f$41 #hci7 ! ,circuit ,c\rt t\*es on "o v int]e/+ argum5t1 9 ! light ( "s ( ! me?ods ( valuation advocat$ by railway manag]s & "s ( ! criticisms ( rec5t valuation "w4 ,diff]5t me?ods ( e/imat+ ! value ( prop]ty may prop]ly be employ$ :5 x is valu$ = diff]5t purposes4 ,:5 a valuation is plac$ on prop]ty :i* has become affect$ by a public use1 = ! purpose ( asc]ta9+ :e!r ! maximum rate ( comp5sation fix$ by law = its use is reasonable or o!rwise1 x is obvi\s t ! income d]iv$ !refrom by ! own] be=e x 0 subject$ to legislative control _c always be accept$ z a prop] te/ ( value because ! comp5sation :i* ! own] *>g$ = its use may h be5 excessive & unreasonable4 ,aga91 :5 prop]ty has be5 capitaliz$ by issu+ /ock1 nei!r ! m>ket value nor ! p> value ( ! /ock c be accept$ 9 all cases z a prop] crit]ion ( value1 because ! /ock may n repres5t ! money actually inve/$1 & fur!rmore because ! prop]ty may h be5 capitaliz$ ma9ly ) ref]5ce to its income produc+ capacity1 on ! assumption t x is ord9>y private prop]ty :i* ! own] may use z he ?9ks prop] )\t be+ subject to legislative control4 ,on ! o!r h&1 h[ev]1 :5 prop]ty is valu$ = ! purpose la/ /at$1 x is cle> t ! own] !re( is entitl$ to ! b5efit ( any appreciation 9 value above ! orig9al co/ & ! co/ ( improvem5ts1 :i* is due to :at may be t]m$ natural causes4 ,if improvem5ts made 9 ! vic9ity ( ! prop]ty1 ! gr[? ( city or t[n :]e x is locat$1 ! build+ ( railroads1 ! developm5t ( ! surr\nd+ c\ntry & o!r l causes1 give prop]ty an increas$ value1 ! own] _c be depriv$ ( su* income by legislative action :i* prev5ts him f realiz+ an income comm5surate ) ! enhanc$ value ( 8 prop]ty4 ,! language ( ! late ,judge ,brew]1 sitt+ z "o ( ! circuit judges 9 ! case ( ,national ,wat]-,works ,company vs4 ,kansas ,city 7#fb ,f$41 #hec71 is def9ite z to ! necessity ( tak+ into acc\nt "s elem5ts ( intangible value1 & is "h quot$ z giv+ ! views ( ?is em95t juri/3 ,! difficult "q1 h[ev]1 /ill rema9s2 & t is1 :at is ! 'fair & equitable value1' :i* by ! /atute & ord9ance ! city is to pay = ! wat]-works8 99 99 99 ,we are n satisfi$ t ei!r me?od1 by itself1 w %[ t :i* "u all ! circum/ances c be adjudg$ ! 'fair & equitable value4' ,capitalization ( e>n+s w n1 because t implies cont9uance ( e>n+s1 & a cont9uance ( e>n+s re/s ^u a fran*ise to op]ate ! wat]-works4 ,! orig9al co/ ( con/ruction _c control1 = orig9al co/ & pres5t value are n equival5t t]ms4 ,nor w\ld ! m]e co/ ( reproduc+ ! wat]-works plant be a fair te/1 because t does n take into acc\nt ! value :i* fl[s f ! e/abli%$ connections betwe5 ! pipes & build+s ( ! city4 99 99 99 ,a complete sy/em ( wat]-works1 su* z ! company has1 )\t a s+le connection betwe5 ! pipes 9 ! /reets & ! build+s ( ! city w\ld be a prop]ty ( mu* less value ?an ! sy/em connect$ z x is ) s _m build+s & e>n+1 9 consequ5ce !re(1 ! money :i* x does e>n4 ,! fact t x is a sy/em 9 op]ation1 n only ) a capacity to supply ! city b actually supply+ _m build+s1 9 ! city--n only ) a capacity to e>n b actually e>n+--make x true t ! 'fair & equitable value' is some?+ 9 excess ( ! co/ ( reproduction4 ,! =ego+ au?orities cov] practically all ! old] cases 9 ! ,f$]al ,c\rts4 ,^! cases h be5 exam9$1 & su* ( ! subject matt] has be5 quot$ z w\ld %[ ! conclusions ( ! ,c\rts z to :at con/itute ! v>i\s elem5ts ( true value4 ,! late/ ,f$]al decision be>+ on ! subject1 & 9 _m ways ! mo/ replete ) argum5t1 is ! case ( ,consolidat$ ,gas ,company vs4 ,city ( ,new ,york 7#aeg ,f$41 p4 #hdi71 :i* 0 decid$ 9 ,decemb]1 #aijg4 ,9 ?is case ! valuation 0 det]m9$ by ! ma/]3 #a4--;,a valuation ( tangible assets1 consi/+ ( real e/ate1 plant1 ma9s1 s]vices1 met]s & miscellane\s equipm5t1 & ! prop]ty ( subsidi>y companies1 ! :ole aggregat+ #fc1ceg1jjj4 ,( ?is an all[ance ( #c1faf1jjj 0 made by ! ma/] = work+ capital1 & ?is entire am\nt 0 treat$ z tangible prop]ty4 #b4--;,f9ally1 an intangible value ( #j1jjj1jjj 0 assign$ by him to ! fran*ise & good w4 ,objections 7 rais$1 z foll[s3 7,a7 ,l& values repres5t no orig9al inve/m5t by ! ,company1 d n indicate l& especially appropriate = ! manufacture ( gas1 & increase ! app>5t assets )\t increas+ ! e>n+ p[]4 7,b7 ,! values ( physical prop]ty are n orig9al co/1 b are co/ ( reproduction less depreciation4 7,c7 ,"s ( ! prop]ty co/ m ?an new articles ( ! same k9d at ! "t ( inquiry4 ,"s are ( designs n n[ favor$ by ! sci5tific & manufactur+ _w4 ,! disput$ que/ions involv$1 z f> z tangible prop]ty is conc]n$1 73 #a4--,:e!r ! values ascrib$ to ! sev]al enum]at$ items are bas$ on compet5t & p]suasive evid5ce4 #b4--,:e!r ! me?od ( valuation pursu$ by ! ma/] is 9 accordance ) law4 #c4--,:e!r ! items ( prop]ty are employ$ 79 ! legal signification ( ! ^w7 9 ! production ( gas4 ,! fir/1 a "q ( fact1 is f\nd affirmatively1 & ! evid5ce 0 f\nd to be compet5t4 ,! second "q is "o ( law1 &1 quot+ f ! cases cit$ 9 ?is pap]1 ! ,c\rt holds z foll[s3 ,?is me?od ( valuation correct 99 99 99 ^u reason x seems cle> t 9 solv+ ?is equation ! plus & m9us quantities %\ld be equally consid]$ & appreciation & depreciation treat$ alike4444 ,! value ( ! inve/m5t ( any manufactur]1 9 plant1 factory1 or goods1 or all ?ree1 is :at 8 possessions w\ld sell = ^u a fair transf] f a will+ v5dor to a will+ buy]1 & x c make no diff]5ce t su* a value is affect$ by ! ef=ts ( himself or o!rs1 by :im or fa%ion1 or 7:at is really ! same ?+7 by ! advance ( l& values 9 ! op9ion ( ! buy+ public4 ,x is equally immat]ial t su* value is affect$ by difficulties ( reproduction4 ,if x be true t a pipe l9e "u ! ,new ,york ( #aijg is wor? m ?an 0 a pipe l9e "u ! city ( #ahbg1 !n ! own] !re( owns t value1 & t su* advance arose :olly or p>tly f difficulties ( duplication creat$ by ! city itself is a matt] ( no mom5t4 ,inde$1 ! causes ( ei!r appreciation or depreciation are alike unimportant if ! fact ( value be conc$$ or prov$2 b t ultimate inquiry is (t5times s difficult t orig9al co/1 & reasons = *anges 9 value1 become legitimate subjects ( inve/igation z *ecks ^u exp]t e/imates1 or bookkeep+1 inaccurate & p]haps int5tionally mislead+4 99 99 99 ,! s-call$ money value ( real or p]sonal prop]ty is b a conv5i5tly %ort me?od ( express+ pres5t pot5tial usefulness1 & 'inve/m5t' becomes mean+less if con/ru$ to mean :at ! ?+ inve/$ 9 co/ g5]ations ago4 ,prop]ty1 :e!r real or p]sonal1 is only valuable :5 useful4 ,its usefulness commonly dep5ds on ! bus9ess purposes to :i* x is or may be appli$4 ,su* bus9ess is a liv+ ?+1 & may fl\ri% or )]1 appreciate or depreciate2 b1 :atev] happ5s1 its pres5t usefulness1 express$ 9 f9ancial t]ms1 mu/ be its value4 99 99 99 ,x is n to be inf]r$ t any ,am]ican gov]nm5t int5d$ :5 grant+ a fran*ise1 n only to regulate ! bus9ess transact$ !reund]1 & reasonably to limit ! pr(its !re(1 b to prev5t ! valuation ( purely private prop]ty 9 ! ord9>y economic mann]1 & ! prop]ty n[ "u consid]ation is z mu* private prop]ty z are ! belong+s ( any private citiz54 ,nor c x be inf]r$ t su* gov]nm5t int5d$ to d5y ! application ( economic laws to valuation ( increm5ts e>n$ or une>n$1 :ile insi/+ on ! usual results !re( 9 ! case ( equally une>n$ & possibly unm]it$ depreciation4 ,i ?9k ! me?od ( valuation appli$ by ! report to l&1 plant1 ma9s1 s]vices1 & met]s lawful4 ,to 'work+ capital1 ,coke & ,coal ,company1 & ,a/oria' ! above consid]ations are n applicable1 & ^! items w be treat$ sep>ately4 ,! ,c\rt's review ( ! ?ird "q raises no po9ts ( special int]e/ z to valuation4 ,! "q z to am\nt ( work+ capital is tak5 up1 & t t]m is def9$ z3 ,! am\nt ( ca% necess>y = ! safe & conv5i5t transaction ( a bus9ess1 hav+ reg>d to ! own]'s ord9>y out/&+s bo? payable & receivable1 ! ord9>y condition ( 8 /ock1 or supplies 9 h&1 ! natural risk ( 8 bus9ess1 & ! condition ( 8 cr$it2 & unless ^! matt]s1 & p]haps o!rs1 be look$ into1 no comp>ison c be drawn betwe5 "o bus9ess & ano!r1 or ev5 betwe5 ^? ( ! same g5]al nature4 ,9 ?is in/ance x is ( int]e/ to note t ! ,c\rt r$uc$ ! work+ capital f #c1faf1jjj to #a1faf1jjj4 ,p]haps ! mo/ novel & int]e/+ "p ( ?is decision is t deal+ ) ! intangible elem5ts ( value4 ,! ma/] 0 unable to sep>ate ! two elem5ts1 good w & fran*ise value1 b gave _! comb9$ value4 ,f ! te/imony ,i ?9k x app>5t t :at is "h meant by good w is ! organization ( compla9ant1 long e/abli%$1 & d\btless well mann$ & equipp$4 ,su* organization is cle>ly ( value1 because )\t x nei!r tangible nor intangible prop]ty c be pr(itably manag$4 ,yet ! organization itself is b a me?od ( utiliz+ t :i* is inve/$1 x is really dep5d5t = its exi/5ce & cont9uance ^u ! fran*ise1 )\t :i* !re c be no useful organization4 ,tangible prop]ty has a c]ta9 value entirely ap>t f fran*ise or "r to cont9ue bus9ess1 b good w 9 ! s5se ( ! organization = ! bus9ess ( furni%+ gas1 c h no exi/5ce :atev] ap>t or deta*$ f ! fran*ise conf]r+ ! necess>y privilege4 ,w\ld any "o ?9k ( capitaliz+ good w ( ?is k9d & di/ribut+ its assum$ value 9 ! %ape ( new %>es among /ockhold]s new or old8 ,i ?9k ! mo/ +5i\s f9anci] c\ld n imag9e su* a proce$+1 &1 if ?is good w be n prop]ty capable ( su* capitalization & di/ribution1 ,i d n ?9k x prop]ty capable ( capitalization z aga9/ ! ,/ate4 ,f9ally1 ?is claim ( good w seems to =get t = _m ye>s ! price & di/ribution ( compla9ant's gas has be5 regulat$ by law4 ,a citiz5 is entitl$ to h a clean /reet be=e 8 h\se because he pays taxes1 int] alia1 = t purpose4 ,he is mu* m pla9ly entitl$ to h compla9ant's gas 9 8 h\se because ! company mu/ give x to him if he pays = x4 ,i ?9k x app>5t t ! conceivable good w ( a gas company 9 ?is city is ab\t equal to t ( ! /reet-clean+ dep>tm5t ( ! municipal gov]nm5t4 ,is a public s]vice corporation entitl$ to add ! value ( its fran*ise to ! assets f :i* a fair return may lawfully be dem&$8 ,?is "q is tak5 up & discuss$ exhau/ively by ! ,c\rt 7#aeg ,f$41 #hgb to #hgi71 & :ile x is cle> 9 read+ 8 judgm5t t he does n believe x s\nd doctr9e to inve/ a fran*ise ) value1 yet1 aft] cit+ a l>ge numb] ( cases1 he rea*es ! conclusion t he is compell$ to consid] fran*ises1 n only z prop]ty1 b z productive & inh]5tly valuable prop]ty1 & to add _! value1 if asc]ta9able1 to compla9ant's capital acc\nt be=e decl>+ ! rate ( return4 ,?is case w5t to ! ,supreme ,c\rt ( ! ,unit$ ,/ates1 :]e1 "u ! title ,willcox vs4 ,consolidat$ ,gas ,company 7#bab ,u4 ,s41 #ai71 citation is made to _m cases 9 connection ) ! matt] ( fran*ise value4 ,! decision ( ! ,c\rt is3 ,! value ( real e/ate & plant is to a consid]able ext5t a matt] ( op9ion1 & ! same may be said ( p]sonal e/ate :5 n bas$ ^u ! actual co/ ( mat]ial & con/ruction4 ,det]ioration ( ! value ( ! plant1 ma9s1 & pipes is also to "s ext5t bas$ ^u op9ion4 ,all ^! matt]s make que/ions ( value some:at unc]ta94 ,! ,supreme ,c\rt p]mitt$ ! tangible values f\nd by ! l[] ,c\rt to /&4 ,x concurr$ ) ! l[] ,c\rt 9 t x 0 n a case = a valuation ( good w4 ,x concurr$ ) ! l[] ,c\rt 9 hold+ t ! company 0 entitl$ to ! b5efit ( any increase 9 tangible values1 & t su* increases %\ld appe> 9 ! appraisal4 ,x did n agree ) ! ,c\rt 9 ! increase ( fran*ise value above t :i* 0 capitaliz$ 9 #ahhd1 ) ! cons5t ( ! ,/ate ( ,new ,york1 & r$uc$ ! fran*ise value figure to #g1gha1jjj4 ,on ?is basis1 ! e/imat$ return1 "u ! new rate on ! valuation ( #ee1fab1dce1 0 #e1 :i* rate1 9 view ( all ! circum/ances1 is held to be n confiscatory & to be a n unreasonable return on ! inve/m5t4 ,! fran*ise value1 z comm5t$ on 9 ^! cases1 is ref]r$ to at consid]able l5g? 9 ! foll[+ pages4 ,on ,janu>y #d?1 #aiji1 ! case ( ,knoxville vs4 ,wat] ,company 7#bab ,u4 ,s41 #a7 0 decid$4 ,?is1 9 "s respects1 is ( great] value to ! eng9e] ?an any o!rs cit$1 9 its det]m9ation ( me?ods4 ,9 ?is ! appraisem5t ( ! tangible prop]ty 0 made 9 m9ute detail1 ! sum ( #aj1jjj 0 add$ = organization1 promotion1 etc41 & #fj1jjj = go+ conc]n4 ,! latt] sum we und]/& to be an expression ( ! add$ value ( ! plant z a :ole ov] ! sum ( ! values ( its compon5t p>ts1 :i* is atta*$ to x because x is 9 active & successful op]ation & e>n+ a return4 ,we express no op9ion z to ! propriety ( ^! two items 9 ! valuation ( ! plant = ! purpose = :i* x 0 valu$ 9 ?is case1 b leave t "q to be consid]$ :5 x necess>ily arises4 ,we assume )\t decid+1 t ^! items 7 prop]ly add$ 9 ?is case4 ,?is valuation 0 det]m9$ by ! ma/] by asc]ta9+ :at x w\ld co/ to reproduce ! exi/+ plant z a new plant4 ,! co/ ( reproduction is "o way ( asc]ta9+ ! pres5t value ( a plant l t ( a wat] company1 b t te/ w\ld lead to obvi\sly incorrect results if ! co/ ( reproduction is n dim9i%$ by ! depreciation :i* has come f age & use4444 ,! co/ ( reproduction is n always a fair measure ( ! pres5t value ( a plant :i* has be5 9 use = _m ye>s4 ,! items compos+ ! plant depreciate 9 value f ye> to ye> 9 a v>y+ degree4 ,"s pieces ( prop]ty1 l real e/ate = in/ance1 depreciate n at all1 & sometimes1 on ! o!r h&1 appreciate4 ,b ! res]voirs1 ! ma9s1 ! s]vice pipes1 /ructures ^u real e/ate1 /&-pipes1 pumps1 boil]s1 met]s1 tools1 & appliances ( e k9d beg9 to depreciate ) m or less rapidity f ! mom5t ( _! fir/ use4 ,x is n easy to fix at any giv5 "t ! am\nt ( depreciation ( a plant ^: compon5t p>ts are ( diff]5t ages ) diff]5t expectations ( life4 ,b x is cle> t "s sub/antial all[ance = depreciation ought to h be5 made 9 ?is case4 ,! company's orig9al case 0 bas$ ^u an elaborate analysis ( ! co/ ( con/ruction4 ,to arrive at ! pres5t value ( ! plant l>ge d$uctions 7 made on acc\nt ( ! depreciation4 ,?is depreciation 0 divid$ into complete depreciation & incomplete depreciation4 ,! complete depreciation repres5t$ t "p ( ! orig9al plant :i* ?r\gh de/ruction or obsolesc5ce _h actually p]i%$ z useful prop]ty4 ,! incomplete depreciation repres5t$ ! impairm5t 9 value ( ! p>ts ( ! plant :i* rema9$ 9 exi/5ce & 7 cont9u$ 9 use4 ,x 0 urg5tly cont5d$ t 9 fix+ ^u ! value ( ! plant ^u :i* ! company 0 entitl$ to e>n a reasonable return1 ! am\nts ( complete & incomplete depreciation %\ld be add$ to ! pres5t value ( ! surviv+ p>ts4 ,! ,c\rt refus$ to approve ?is me?od1 & we ?9k prop]ly refus$4 ,a wat] plant ) all its additions beg9s to depreciate 9 value f ! mom5t ( its use4 ,be=e com+ to ! "q ( pr(it at all ! company is entitl$ to e>n a suffici5t sum annually to provide n only = curr5t repairs b = mak+ good ! depreciation & replac+ ! p>ts ( ! prop]ty :5 !y come to ! end ( _! life4 ,! company is n b\nd to see its prop]ty gradually wa/e1 )\t mak+ provision out ( e>n+s = its replacem5t4 ,x is entitl$ to see t f e>n+s ! value ( ! prop]ty inve/$ is kept unimpair$1 s t at ! end ( any giv5 t]m ( ye>s ! orig9al inve/m5t rema9s z x 0 at ! beg9n+4 ,x is n only ! "r ( ! company to make su* a provision b x is its duty to its bond & /ockhold]s1 &1 9 ! case ( a public s]vice corporation at lea/1 its pla9 duty to ! public4 ,if a diff]5t c\rse 7 pursu$ ! only me?od ( provid+ = replacem5t ( prop]ty :i* has ceas$ to be useful w\ld be ! inve/m5t ( new capital & ! issue ( new bonds or /ock4444 ,if1 h[ev]1 a company fails to p]=m ?is pla9 duty & to exact suffici5t returns to keep ! inve/m5t unimpair$1 :e!r ?is is ! result ( unw>rant$ divid5ds ^u ov] issues ( securities1 or ( omission to exact prop] prices = ! output1 ! fault is its own4 ,:51 !re=e1 a public regulation ( its prices comes "u "q1 ! true value ( ! prop]ty !n employ$ = ! purpose ( e>n+ a return _c be enhanc$ by a consid]ation ( ! errors ( ! managem5t :i* h be5 committ$ 9 ! pa/4 ,! ,c\rt holds t !re 0 error 9 only consid]+ ! op]ations ( ! company = a p]iod ( "o ye>1 & t ?is %\ld h ext5d$ to en\gh "t to remove dang] ( abnormal bus9ess conditions & obs]ve ! effects ( c]ta9 ord9ances4 ,! decision ( ! ,supreme ,c\rt1 9 ! ,omaha ,wat]-,works case1 decid$ on ,may #ca/1 #aiaj 7,supreme ,c\rt ,report]1 ,july #a/1 #aiaj71 is ( g5]al int]e/ 9 its discussion ( ! proc$ure ( apprais]s 9 mak+ a wat]-works appraisal1 & 9 ! di/9ction drawn betwe5 appraisals & arbitrations2 b x does n t\* on appraisal me?ods or elem5ts ( value1 except to discuss go+ values4 ,! language ( ,judge ,lurton on ?is po9t is z foll[s3 ,! option to pur*ase exclud$ any value on acc\nt ( unexpir$ fran*ise1 b x did n limit ! value to ! b>e bones ( ! plant1 its physical prop]ties1 su* z its l&s1 its ma*9]y1 its wat]-pipes or settl+ res]voirs1 nor to :at x w\ld take to reproduce ea* ( its physical features4 ,! value1 9 equity & ju/ice1 mu/ include :atev] is contribut$ by ! fact ( ! connection ( ! items mak+ a complete & op]at+ plant4 ,! diff]5ce betwe5 a dead plant & a live "o is a real value1 & is indep5d5t ( any fran*ise to g on1 or any m]e good w z betwe5 su* a plant & its cu/om]s4 ,t k9d ( good w1 z sugge/$ 9 ,willcox vs4 ,consolidat$ ,gas ,company 7#bab ,u4 ,s41 #ai71 is ( little or no comm]cial value :5 ! bus9ess is1 z "h1 a natural monopoly1 ) :i* ! cu/om] mu/ deal1 :e!r he w or n4 ,t !re is a diff]5ce betwe5 ev5 ! co/ ( duplication1 less depreciation1 ( ! elem5ts mak+ up ! wat] company plant & ! comm]cial value ( ! bus9ess z a go+ conc]n is evid5t4 ,su* an all[ance 0 upheld 9 ,national ,wat] ,works ,company vs4 ,kansas ,city 7#fb ,f$41 #hec71 :]e ! op9ion 0 by ,mr4 ,ju/ice ,brew]4 ,?is decision is quot$ 9 ! =ego+ pages4 ,we c add no?+ to ! reason+ ( ! le>n$ ,ju/ice1 & %all n try to4 ,t case has be5 approv$ & foll[$ 9 ,gl\ce/] ,wat] ,supply ,company vs4 ,gl\ce/] 7#agi ,mass41 #cfe1 & #fj ,n4 ,e41 #igg71 & ,norwi* ,gas & ,electric ,company vs4 ,norwi* 7#gf ,conn41 #efe74 ,no su* "q 0 consid]$ 9 ,knoxville ,wat] ,company 7#bab ,u4 ,s41 #a7 or 9 ,willcox vs4 ,consolidat$ ,gas ,company 7#bab ,u4 ,s41 #ai74 ,bo? cases 7 rate cases & did n conc]n ! asc]ta9m5t ( value "u contracts ( sale4 ,! writ] does n read into ! language ( ?is decision an approval ( a sep>ate elem5t ( value to be call$ go+ conc]n value or go+ value 9 addition to o!r non-physical values1 b r a recognition ( ! fact t c]ta9 non-physical elem5ts ( value1 by :atev] "n !y may be call$1 mu/ be tak5 into acc\nt 9 arriv+ at ! fair & equitable f9al figure ( value ( a live & op]at+ conc]n = ! purpose ( c>ry+ out a contract ( sale4 ,x appe>s to be d\btful :e!r ! ,c\rt c be con/ru$ z approv+ su* an elem5t ( value 9 rate cases4 ,x ?us appe>s t ! ,unit$ ,/ates ,c\rts h laid d[n a few rules1 :i* may be reg>d$ z fix$ & def9ite & mu/ be foll[$1 b t _m important que/ions h n yet be5 decid$4 ,! value to be det]m9$ mu/ be a fair value ( ! prop]ty be+ us$ = ! conv5i5ce ( ! public4 ,! p> value ( /ocks & bonds may n alone be consid]$ 7al?\gh x may be consid]$71 ! m>ket value ( /ocks & bonds1 orig9al co/ plus co/ ( additions1 ! probable e>n+ capacity1 ! co/ ( reproduction1 depreciation1 appreciation1 all ^!1 & any o!rs t w ?r[ light on ! fair value mu/ be tak5 into acc\nt & giv5 ! weight to :i* !y are entitl$4 ,any fictiti\s book values due to ov]-issues ( /ock & bonds are to be giv5 no weight1 b ! appraisal mu/ give ! fair value1 9 ! light ( all ! facts1 ( ! prop]ty 9 actual use at ! "t ( ! appraisal4 ,!re are sev]al decisions ( ! ,/ate ,supreme ,c\rts :i* discuss ^! subjects1 b an exam9ation ( a numb] ( ^! gives practically no?+ m1 9 ! way ( def9ite conclusions z to me?od1 ?an has be5 cit$4 ,p]haps ! mo/ complete & pa9/ak+ consid]ation ( appraisal problems by any ,c\rt 0 t giv5 by ,judge ,savage ( ! ,supreme ,c\rt ( ,ma9e 7#ig ,ma9e1 #ahe1 & #ii ,ma9e1 #cga74 ,^! 7 nei!r rate cases nor taxation cases1 b proce$+s "u /atute to require f ! ,c\rt in/ructions to a bo>d ( apprais]s appo9t$ to value ! plants4 ,9 ! lat] or ,brunswick case1 ,judge ,savage elucidates a numb] ( po9ts left n altoge!r cle> 9 ! ,wat]ville case4 ,! ,brunswick decision conta9s "s int]e/+ views on go+ value1 & ! ,c\rt's rem>ks on ! g5]al difficulties 9 mak+ rules = an appraisem5t are exactly to ! po9t3 ,!re are _m difficulties1 if n dang]s1 9 attempt+ to =mulate rules :i* are to be appli$ to facts n yet asc]ta9$4 ,:ile x may be easy en\gh to /ate rules 9 ! ab/ract1 x is mu* m satisfactory 9 an op9ion ( ! c\rt1 to express !m 9 t]ms :i* are applicable to ! facts 9 ! precise case 9 h&4444 ,x mu/ be always und]/ood t our answ]s to ^! que/ions are int5d$ to be giv5 only 9 ! mo/ g5]al & compreh5sive t]ms1 :i* may1 or may n1 be f\nd to be fitt$ to ! facts :i* may subsequ5tly be develop$4 ,no o!r c\rse w\ld be wise or safe4444 ,a public s]vice prop]ty may or may n h a value indep5d5t ( ! am\nt ( rates1 :i* = ! "t be+ may be *ang$4 ,a public s]vice company may1 "u "s circum/ances1 be requir$ to p]=m its s]vices at rates prohibitive ( a fair return to its /ockhold]s1 consid]+ _! prop]ty z an inve/m5t m]ely4444 ,n[1 :at is ! prop]ty :i* ! di/rict has tak5 by p[] ( em95t doma98 ,9 ! fir/ place x is a /ructure1 pure & simple1 consi/+ ( pipes1 pumps1 eng9es1 l& rights1 & wat] rights4 ,z a /ructure1 x has value indep5d5t ( any use1 or "r to use1 :]e x is1 a value probably mu* less ?an x co/1 unless x c be us$ :]e x is1 t is1 unless !re is a "r to use x4 ,nev]!less1 x has value z a /ructure4 ,b1 m ?an ?is1 x is a /ructure 9 actual use1 a use remun]ative to "s ext5t4 ,x has cu/om]s1 x is actually engag$ 9 bus9ess1 x is a go+ conc]n4 ,! value ( ! /ructure is enhanc$ by ! fact t x is us$ 91 & 9 fact is ess5tial to1 a go+ conc]n bus9ess4 ,we speak sometimes ( a go+ conc]n value z if x is1 or c\ld be1 sep>ate & di/9ct f /ructure value--s mu* = /ructure & s mu* = go+ conc]n4 ,b ?is is n an accurate /atem5t4 ,! go+ conc]n "p ( x has no exi/5ce except z a *>act]i/ic ( ! /ructure4 ,if no /ructure1 no go+ conc]n4 ,if a /ructure 9 use1 x is a /ructure ^: value is affect$ by ! fact t x is 9 use4 ,!re is only "o value4 ,x is ! value ( ! /ructure z be+ us$4 ,t is all !re is ( x4 ,! ,c\rt !n argues t1 z ! /ructure is be+ us$ "u au?ority & by virtue ( fran*ises1 x is m valuable4 ,! fran*ise1 h[ev]1 is limit$2 o!r & compet+ fran*ises may be grant$2 a fran*ise may exi/ entirely indep5d5t ( a /ructure4 ,he holds t ! /ructure is m valuable ) ! fran*ise4 ,x is a /ructure 9 actual use1 & ) a "r on ! "p ( ! own] to use x & to *>ge reasonable rates to cu/om]s = s]vices r5d]$4 ,x is ?reefold 9 discussion b x is s+le 9 sub/ance4 ,?is case is l>gely tak5 up ) a discussion ( ! reasonabl5ess ( rates :i* furni% a basis = ! e/imate ( value4 ,!re is no specific attempt to describe me?ods ( proc$ure4 ,t is left to ! apprais]s4 ,^! two ,ma9e ,cases1 toge!r ) a valuable pap]#ag !reon by ,leon>d ,metcalf1 ,m4 ,am4 ,soc4 ,c4 ,e41 con/itute an extremely valuable addition to ! lit]ature ( appraisem5ts4 ,x is cle>1 f a /udy ( all ! cases ref]r$ to 9 ?is pap]1 t ! ,c\rts h laid d[n a l9e ( prec$5t :i* is equitable & j1 t ! int]e/s ( bo? public & corporations w be safegu>d$1 & t ! likelihood ( any unfair or improp] valuations pass+ ! scrut9y ( ! ,supreme ,c\rt is b remote4 ----- ,footnote #ag3 ,transactions1 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lxiv1 p4 #a4 ,,physical ,,values ,,& ,,me?ods ,,= ,,_! ,,det]m9ation4 ,all ! =ego+ n>rative ( me?ods adopt$ 9 rec5t valuations1 review ( judicial op9ions1 & comm5t on ! express$ op9ions ( v>i\s eng9e]s & railway (ficials1 is pres5t$ z be+ prop] & necess>y to support ! cont5tion t ! ,mi*igan valuation1 :ile n ! fir/ appraisal "w1 0 ! fir/ valuation "w ( l>ge magnitude und]tak5 by any ,/ate2 t x 0 a "w :i* e/abli%$ _m prec$5ts2 & t ! complete discussion ( me?ods & pr9ciples 9 connection ) & foll[+ ?is appraisal has giv5 x probably a great] g5]al value ?an any simil> und]tak+4 ,! ,wiscons9 "w1 :i* imm$iately foll[$ t ( ,mi*igan1 0 along l9es simil> to ^? ( ! ,mi*igan physical valuation1 & c>ri$ ! "w =w>d1 add+ to & /r5g!n+ c]ta9 ( its features4 ,)\t any impropriety1 x may be claim$ t ^! two appraisals h laid d[n ! g5]al l9es on :i* ?is class ( eng9e]+ ef=t w be l>gely direct$ 9 ! future4 ,x is desirable1 9 clos+ ?is pap]1 to indicate su* g5]al me?ods ( proc$ure 9 valuation practice z may be said to h be5 ?or\ghly e/abli%$ by prec$5t1 & to pres5t su* argum5t z w support ! cont5tion t su* me?ods are prop]4 ,! fact has be5 emphasiz$1 aga9 & aga91 by e writ] on ! subject1 t problems ( ?is class are n capable ( exact ma!matical solution2 t1 no matt] h[ mu* c>e may be ex]cis$ 9 ! execution ( ! "w1 ! result is temp]$ by ! p]sonal judgm5t ( ! m5 engag$ on x1 & t only :5 x is execut$ by m5 ( exp]i5ce1 s\nd judgm5t1 & high moral wor? c x h a def9ite1 f9al1 & j result4 ,?is feature ( appraisal "w _c be too /rongly emphasiz$4 ,! value ( ! "w dep5ds on ! "* ( ! m5 do+ x1 _! exp]i5ce 9 design1 con/ruction1 & op]ation ( prop]ties1 & _! absolute fairness & fre$om f prejudice4 ,t !re w be _m l>ge valuations und]tak5 9 ! ne> future1 !re appe>s to be no d\bt4 ,^! valuations w be made z a necess>y prelim9>y to ?ree classes ( corporate control3 rate-mak+1 taxation1 & ! regulation ( capitalization4 ,! ,c\rts hold t ! value mu/ be ! fair value ( ! prop]ty us$ = ! public1 & t ! corporation3 may n impose ^u ! public ! burd5 ( su* increas$ rates z may be requir$ = ! purpose ( realiz+ pr(its ^u su* excessive valuation or fictiti\s capitalization4 7,smy? vs4 ,ames47 ,?is language is repeat$1 aga9 & aga91 s t x is cle> t any valuation1 to be su/a9$ by ! ,c\rts1 %\ld3 #a4--;,be bas$ on a c>eful /udy & analysis ( all ! in=mation applicable to ! case 9 h&2 & #b4--,t x mu/ sep>ate ! v>i\s elem5ts s t e /ep ( ! "w may be review$ & support$4 ,public int]e/ dem&s t1 9 any valuation1 c]ta9 figures %all appe> :i* %all %[ ! am\nt ( bona fide capital actually exi/+ 9 ! prop]ty at ! date ( appraisal4 ,! fact t a giv5 am\nt ( money 0 inve/$ 9 build+ a railroad 9 #ahhj1 & t c]ta9 o!r sums 7 sp5t = additions 9 subsequ5t ye>s1 does n necess>ily indicate t ^! am\nts ( capital w /ill be f\nd 9 ! prop]ty 9 #aiaj4 ,! removal ( timb] f surr\nd+ l&s1 ! de/ruction ( indu/ries & ! removal ( tracks lead+ !reto1 ! de/ruction ( equipm5t & facilities1 ! depreciation 9 value ( adjac5t prop]ty1 along ) we> & te>1 & obsolesc5ce1 h gone to effect ! de/ruction or loss ( capital on _m ,mi*igan railroads4 ,! case 9 #bab ,u4 ,s41 #a1 cle>ly directs t ! valuation mu/ n take into acc\nt ?is de/roy$ capital1 b mu/ return a fair value ( ! prop]ty z x is4 ,on ! o!r h&1 ! am\nt ( money actually sp5t 9 produc+ a giv5 prop]ty 9 ! pa/ may be f> bel[ ! pres5t value4 ,! appreciation ( value ( l&s by reason ( developm5t ( cities & gr[? ( indu/ries1 ! increase 9 co/ ( ! mat]ials ent]+ its con/ruction1 & _m o!r causes1 may lead to an appreciation ( ! value ( ! prop]ty1 & ?is appreciation %\ld appe> 9 ! valuation & ! company be entitl$ to ! b5efit ( x4 ,x is 9 ! nature ( an increase ( ! inve/m5t1 & %\ld appe> z capital4 ,x is cle> t !re are two classes ( elem5ts ( value 9 ! f9al value ( a public s]vice prop]ty3 ^? :i* are physical1 & ^? :i* are intangible4 ,!re are v>i\s ( ! physical elem5ts ( value :i* are n mat]ial or susceptible ( inv5tory1 b :i*1 nev]!less1 atta* !mselves to ! physical prop]ty1 are capable ( det]m9ation1 )9 reasonable limits ( c]ta9ty1 & %\ld be tak5 into acc\nt & comput$ z physical prop]ty4 ,9 ! subsequ5t discussion ( physical & intangible values1 x is attempt$ to diff]5tiate betwe5 su* elem5ts z %\ld atta* to ! physical value1 or capital rema9+ 9 ! plant1 & ! purely intangible or fran*ise values4 ,x is cont5d$ by ! writ]3 ,t ! ,physical ,value1 or pres5t value ( ! physical prop]ty1 %\ld fairly repres5t ! actual capital inve/$ 9 ! prop]ty at ! date ( appraisal2 t x %\ld be made up ( ! sum ( ! v>i\s elem5ts :i* con/itute ! co/ ( reproduc+ ! prop]ty toge!r ) any appreciation :i* may h be5 add$ to any ( !m1 less all depreciation4 ,t ! ,non-,physical ,value is ! diff]5ce betwe5 ! fair value z def9$ by ! ,c\rts1 or ! reasonable value ( ! prop]ty z a bus9ess or produc+ prop]ty1 & ! physical value1 or actual pres5t wor?2 & t ! only prop] me?od = det]m9+ su* values involves a /udy ( income acc\nts4 ,?is ,non-,physical ,value may be3 positive1 or a value 9 excess ( ! physical prop]ty1 or negative1 or less ?an ! physical value4 ,9 ! case ( a prop]ty hav+ a negative intangible value1 a d$uction %\ld be made f ! physical value4 ,x is fur!r cont5d$ t1 9 mak+ ! physical appraisal1 ! purpose ( ! appraisal %\ld n be p]mitt$ to modify ! figures4 ,! resultant figure %\ld be ! same1 :e!r x is to be us$ z a basis = assessm5t1 rate-mak+1 or limitation ( capitalization4 ,x %\ld be an eng9e]+ e/imate ( ! am\nt ( bona fide capital /ill rema9+ 9 ! prop]ty1 or ( ! complete co/ ( reproduction "u exi/+ conditions1 less depreciation4 ,?is figure is def9ite1 )9 reasonable limits1 & x _c be conc$$ t x is p]missible to v>y x1 submitt+ "o result z a physical value = taxation1 & ano!r & diff]5t result z a pres5t physical valuation = rate-mak+4 ,!re may be "s "q z to ! propriety ( us+ non-physical values = c]ta9 ultimate ends2 9 fact1 ! ,supreme ,c\rt1 9 ! ,omaha & ,knoxville wat] cases1 cle>ly indicates t !y mu/ n be us$ = c]ta9 purposes2 b1 9 any case1 to furni% in=mation1 ?is elem5t ( value %\ld be det]m9$1 &1 z 9 ! case ( physical values1 x %\ld be an un*angeable figure#ah & %\ld repres5t ! diff]5ce betwe5 ! wor? ( ! actual physical prop]ty & ! f9al bus9ess value ( ! prop]ty consid]$ z an e>n+ proposition4 ,x is n necess>y to g m9utely into detail z to ! v>i\s /eps to be tak5 9 mak+ ! appraisal ( physical prop]ty4 ,ea* appraisal w (f] "s problems peculi> to itself1 & no g5]al set ( rules c be laid d[n :i* w be applicable to all cases4 ,x is deem$ suffici5t to call att5tion to g5]al matt]s ( major importance & to ref] to "s po9ts :i* h n be5 m5tion$ 9 ! prec$+ n>rative1 omitt+ argum5t 9 ! case ( su* z h !re be5 fully discuss$4 ,! di/9ction %\ld be kept 9 m9d t any elem5t ( value :i* belongs to ! prop]ty by reason ( its physical exi/5ce is class$ z an elem5t ( physical value4 ,! prop]ty is consid]$ z an op]at+ prop]ty 9 ! s5se t x is reproduc$ complete1 ready to op]ate2 & any exp5se1 or any elem5t ( value ne$$ to complete x1 is an elem5t ( ! physical value1 b any value aris+ z a result ( surplus e>n+ p[]1 any good-w value1 go+-conc]n value1 or value due to e/abli%$ bus9ess1 /rategic location1 favorable traffic arrangem5ts1 etc41 %\ld be consid]$ z intangible values4 ,! valuation ( physical prop]ty is naturally divid$ into f\r p>ts3 ,i4 --,! prelim9>y /udy1 ,,ii4 --,! field inspection1 ,,iii4 --,! computation1 ,,iv4 --,! prep>ation ( ! f9al figure4 ,i4--,! ,prelim9>y ,/udy4 ,! prelim9>y /eps %\ld include a g5]al exam9ation ( ! prop]ty1 a /udy ( its corporate hi/ory1 an exam9ation ( its records1 maps & pr(iles1 & ! prep>ation ( an inv5tory ( its prop]ty4 ,! "w 9 ,wiscons9 & ,m9nesota 0 done 9 co-op]ation ) ! railroad companies1 :o prep>$ 7g5]ally1 b n 9 e case7 _! own inv5tories on =ms adopt$ by ! apprais]4 ,9 ,mi*igan1 all ?is in=mation 0 secur$ by ! apprais]4 ,!re c c]ta9ly be no valid objection to ! use ( in=mation compil$ by ! companies1 ^: famili>ity ) _! own records & prop]ty w\ld enable !m to supply li/s :i* "u all ord9>y conditions w\ld be m complete & up-to-date ?an if made up by m5 hav+ no special k ( ! prop]ty4 ,! *ief difficulty enc\nt]$ 9 mak+ an inv5tory f record$ data lies 9 ! fact t v few sets ( records are correct$ to date1 & _m additions & erasures w ( necessity h to be made 9 ! field4 ,9 mak+ a field inspection1 x is ( great assi/ance to be able to ref] to maps ( l>ge y>ds1 to pr(iles1 to /&>d plans1 & to draw+s ( ! pr9cipal /ructures1 s t ! inve/igation ( (fice records %\ld include a c>eful exam9ation ( ! maps ( pr9cipal t]m9als1 ) a view to secur+ su* z w simplify ! field inspection4 ,! inve/igation %\ld be ext5d$ to cov] a /udy1 n only ( ! eng9e]+ (fice data1 b also /ati/ical data to be d]iv$ f ! records ( ! auditor1 sup]9t5d5t1 & sup]9t5d5t ( motive p[]1 & %\ld cov] e>n+s1 op]at+ exp5ses1 c> & locomotive mileage1 & su* o!r data z w facilitate ! di/ribution ( su* elem5ts ( value z are n localiz$1 toge!r ) su* o!r /ati/ics z w furni% a ?or\gh k ( ! prop]ty & its op]ations4 ,x has be5 claim$ by ! apprais] 9 ,wa%+ton--& ! view is also held by ! ,commission] ( ,railroads 9 ,nebraska--t orig9al co/ is ess5tial1 9 view ( ! ,supreme ,c\rt's decision1 p>ticul>ly 9 ,smy? vs4 ,ames4 ,! writ] _c accept ! correctness ( ?is position4 ,x w\ld appe> t ! language ( ! ,c\rt %\ld be con/ru$ to mean t orig9al co/1 :]e asc]ta9able1 is a prop] matt] to take into acc\nt1 along ) _m o!r ?+s2 b x c h>dly be consid]$ m&atory4 ,9 ! case ( a prop]ty only rec5tly built1 9 :i* ! records are complete & ! eng9e]+ & con/ruction files are available1 x may n be specially difficult to det]m9e co/1 b 9 ! case ( any ( ! l>ge railway sy/ems ( ! ,unit$ ,/ates1 :i* are made up ( ! consolidation ( _m diff]5t roads1 "s ( !m built _m ye>s ago1 "s ( !m hav+ gone ?r\gh _m *anges ( managem5t1 reorganization1 & e>li] consolidation1 x is practically impossible to secure ei!r ! old f9ancial books or ! old con/ruction records1 & )\t ^! complete records x w\ld appe> to be an utt] impossibility to secure ! prim>y co/4 ,prim>y co/ is b ! fir/ /ep4 ,! "w ( build+ up1 by secur+ ! am\nt ( additions & bett]m5ts t h be5 made f ye> to ye>1 is "o ( appall+ magnitude & ( utt] unc]ta9ty & conjecture4 ,keep+ 9 m9d t1 prior to ,july #a/1 #aijg1 ! railroad companies ( ! c\ntry did n h a sy/em ( uni=m acc\nt+1 & t additions to prop]ty 7 *>g$ to op]at+ exp5ses to ! ext5t ( hundr$s ( millions ( doll>s2 t policies 7 diff]5t on diff]5t roads1 & "u diff]5t managem5ts ( ! same road1 & t ! acc\nt+ me?ods 7 det]m9$ by ! policy ( ! road or managem5t2 & ! fur!r fact t ! di/ribution ( ord9>y railroad acc\nts may be extremely reliable on "o road & ab\nd+ ) errors on ano!r2 x w be se5 t any attempt to dep5d on ! auditor's (fice = any?+ approximat+ a complete /atem5t ( co/ w\ld lead into a maze ( figures :i* w\ld be confus+1 unreliable1 & incapable ( pro(4 ,!re=e1 x is ! writ]'s conclusion t1 beyond su* figures on rec5t con/ruction1 or records ( co/ ( su* special /ructures z are matt]s ( p>ticul> record1 x is n advisable to attempt to secure complete data z to ! co/ to date ( a railroad4 ,9 ! ,mi*igan appraisal1 orig9al co/ 0 secur$ 9 ! case ( _m /ructures1 notably ! ,port ,huron ,tunnel1 & x is by no means argu$ t orig9al co/ %\ld n be consid]$1 or inve/igat$1 b x is held t su* an und]tak+ z to secure1 f ! f9ancial books ( ! company1 an accurate or reliable /atem5t ( con/ruction co/1 plus additions & bett]m5ts1 less prop]ty de/roy$1 ( ! ,mi*igan ,c5tral ,railroad1 = example1 w\ld be absolutely an impossibility1 p>ticul>ly if ! "w 0 to be und]tak51 z 9 ! ,wa%+ton appraisal1 by m5 :o 7 utt] /rang]s to ! prop]ty4 ,! admission ( ! apprais] ( ,wa%+ton1 t1 except = a few gaps1 ! in=mation 0 complete1 is fatal1 z ! gaps mu/ ne$s be fill$ by e/imates1 & x w\ld appe> to be bett] to dep5d on e/imat$ figures ?r\gh\t ?an to use :at purport$ to be actual co/s on "p & e/imates on ! rema9d]4 ,if orig9al co/ is ess5tial1 x is h>d to get away f accept+ ! book values ( ! companies1 z ^!1 objectionable z !y may be1 f ! viewpo9t ( ! public1 are j z apt to be z ne> ! actual tru? z any /atem5t made up by /rang]s f an exam9ation ( old records cov]+ _m ye>s ( op]ation4 ,,ii4--,! ,field ,inspection4 ,! field inspection1 to be ( ! greate/ value1 %\ld be made by civil or me*anical eng9e]s ( long exp]i5ce1 pref]ably by m5 :o h _h *>ge ( _! respective dep>tm5ts on railroads ( consid]able ext5t1 or ( prop]ties simil> to t "u inve/igation4 ,! writ] is ( ! op9ion t 9 ?is p>ticul> phase ( ! "w1 ! practice adopt$ 9 ! ,mi*igan appraisal 0 consid]ably 9 advance ( m rec5t valuations4 ,ea* p>ticul> /ructure or piece ( equipm5t %\ld be exam9$ & its condition not$2 special features %\ld be fully describ$ & c>eful record made ( ev]y?+ t w\ld t5d to affect ! value4 ,! argum5t has be5 (t5 made t ! fix+ ( a p]c5tage ( depreciation by a man 9 ! field is purely arbitr>y & am\nts to no?+ b a guess4 ,9 ! comput+ (fice x is (t5 necess>y to *eck ! field figure ( depreciation by ! use ( tables ( fix$ annual depreciation1 b x mu/ be borne 9 m9d t mortality tables ( any =m are bas$ on a sy/em ( av]ages4 ,! actual depreciation on rail1 = in/ance1 v>ies greatly2 ! conditions ( traffic1 curvature1 gradi5t1 roll+ /ock1 & v>i\s local conditions t5d to %ort5 or l5g!n ! life1 s t ! p]sonal op9ion ( an exp]i5c$ man on ! gr\nd is likely to be mu* m ne>ly correct ?an ! arbitr>y application ( a rule ( av]ages4 ,! writ] has inspect$ /ation build+s m ?an #ej ye>s old1 & _! condition & adaptability = ! s]vice requir$ ( !m w\ld give !m a v high p]c5tage2 he is also famili> ) build+s less ?an #aj ye>s old1 :i*1 by reason ( *ang$ traffic conditions & consequ5t %ift+ ( bus9ess1 h become obsolete & h be5 p]mitt$ to depreciate s rapidly t any table av]age w\ld give too high a result4 ,9 ! case ( a wat]-works inspection1 s mu* ( ! value is includ$ 9 ! sy/em ( di/ribution ma9s1 a =m ( prop]ty :i* is inaccessible1 t mu* m dep5d5ce mu/ be plac$ on a figure bas$ on age2 b !re1 also1 z full inve/igation z possible %\ld be made1 9 ord] to det]m9e to :at ext5t tub]culation or electrolysis has affect$ ! pipes4 ,a g5]al inspection 7made 9 ,m9nesota by ! apprais] ) two assi/ants7 w\ld appe> to be an excell5t ?+ z a review ( ! :ole "w1 b :e!r su* an inspection w\ld be suffici5tly ?or\gh to base !reon a set ( f9al values1 w\ld appe> to be d\btful4 ,! inspection 9 ! field1 9 addition to ! plac+ ( a p]c5tage = depreciation1 %\ld involve a complete *eck ( ! inv5tory1 a correction ( all errors1 due to ! con/ruction ( new prop]ty or ! de/ruction or removal ( old1 & a compilation ( all in=mation requir$ = a complete1 correct1 & intellig5t appraisal ( ! physical prop]ty by ! comput+ (fice4 ,e appraisal is diff]5t1 & e prop]ty (f]s new problems & div]se conditions4 ,^! mu/ be met1 & !re=e ! field inspector mu/ call p>ticul> att5tion to all matt]s specially affect+ ! values ( ! prop]ty he is inspect+4 ,x is impossible to anticipate all ^! conditions 9 advance1 al?\gh ! use ( c>efully prep>$ blanks & ! /&>diz+ ( ! =m 9 :i* ! data are ga!r$ greatly simplify ! "w1 n only 9 ! (fice1 b 9 ! field4 ,,iii4 ,! ,computation4 ,on ! completion ( ! field "w1 ) all ! prelim9>y data 9 ! (fice1 ! computation mu/ proce$1 & ) ?is "p ( ! "w !re are _m que/ions :i* mu/ be tak5 up1 consid]$1 & def9itely answ]$4 ,! classification & arrangem5t ( ! in=mation z to ! prop]ty to be valu$1 ! co/s & prices ( ! v>i\s mat]ials ent]+ into con/ruction1 ! mak+ & *eck+ ( su* tables z may be requir$ = e/imat+1 ! comput+1 *eck+1 fil+1 index+1 & ! v>i\s o!r r\t9e details ( "w ne$ n be ref]r$ to specially1 z !y mu/ be work$ out = ea* appraisal4 ,! matt]s ( pr9ciple t w be met are m important1 &1 :ile x w\ld be impossible to m5tion all t may come up1 x may n be amiss to ref] to a few4 7a7 ,9 mak+ an appraisal ( sev]al prop]ties1 to :at ext5t %all ^! prop]ties be gr\p$ or classifi$8 7b7 ,:at unit prices %all be assign$ 9 ! e/imates ( co/ ( reproduction1 & h[ %all !y be det]m9$8 7c7 ,h[ %all "r-(-way & real e/ate values be asc]ta9$8 ,%all su* elem5ts z appreciation1 or any increm5ts due to ! purpose = :i* ! l& is us$1 be treat$ z physical or non-physical values8 7d7 ,:at me?od %all be f9ally adopt$ 9 det]m9+ depreciation8 ,:at elem5ts %all depreciation be made to cov]8 7e7 ,:at elem5ts ( co/ or appreciation %all be treat$ z p>ts ( ! physical prop]ty al?\gh n capable ( inv5tory1 & :at %all be treat$ z non-physical8 7f7 ,is an all[ance = cont+5cies a prop] item to include 9 an appraisal8 7g7 ,:at weight %all be giv5 ! matt]s ( adaptability1 prop] or improp] design1 & ! economics ( location8 7h7 ,h[ %all ! values ( su* prop]ty z locomotives1 c>s1 etc41 be geographically assign$8 7i7 ,:at is ! effect ^u values ( l>ge t]m9als8 7j7 ,%\ld an all[ance be made by reason ( rapid developm5t ( ! art8 ,^! are n by any means all ! p]plex+ que/ions t arise2 ea* valuation (f]s "s t are special1 b ^! cov] ! m important po9ts4 7a7 ,classification ( ,prop]ties4--,9 mak+ an appraisal involv+ ! prop]ties ( a l>ge numb] ( companies1 su* = in/ance z any ( ! ,/ate railroad appraisals1 x becomes evid5t t !re are c]ta9 prop]ties :i* are small1 badly run d[n1 & ei!r built to s]ve a v limit$ trade or locat$ 9 a t]ritory :i* has n develop$1 & t su* prop]ties _c be comp>$ equitably ) ! l>ge trunk-l9e roads1 or ev5 ) small] roads 9 a good t]ritory & do+ a good bus9ess4 ,sev]al su* prop]ties exi/ 9 ,mi*igan 9 a di/rict :i* 0 orig9ally a lumb]-produc+ c\ntry1 & at ! "t !y 7 built local conditions 7 su* t prices ( timb] & labor 7 f> bel[ any co/ t x w\ld be reasonable to assume to-day4 ,:e!r taxation or rate-mak+ be ! ultimate end ( ! "w1 x is c]ta9 t ^! c>ri]s are entitl$ to "s classification :i* w sep>ate !m f ! m prosp]\s roads4 ,_m ( ^! roads w\ld n be built to-day "u any circum/ances1 yet _! ma9t5ance & cont9u$ op]ation is absolutely ess5tial to ! p ( ! di/rict s]v$ by !m4 ,:e!r ?is classification %\ld be und]tak5 at ! "t ( mak+ ! appraisal ( physical prop]ty1 & an attempt be made to classify unit prices1 or :e!r ?is %\ld be tak5 up 9 connection ) ! intangible values1 & solv$1 z f> z ! valuation is conc]n$1 by ! adoption ( su* a me?od z w affect ^! physical values by a subtractive or negative non-physical value1 or :e!r ! entire matt] %\ld be left = ! subsequ5t "w ( rate-mak+ or assessm5t1 is "o :i* mu/ be det]m9$ at ! outset ( ! physical valuation4 ,x may n be left )\t det]m9ation1 z ! "q w be rais$ 9 all probability 9 ! =m ( an attack on ! valuation1 if x is n consid]$ & a conclusion rea*$4 ,x is ! writ]'s op9ion t ! application ( an intangible subtractive value is ! prop] solution1 except 9 ! case ( roads :i* w\ld n to-day be rebuilt4 ,9 fix+ a uni=m price = id5tically ! same labor or mat]ial1 :e!r on a small pov]ty-/rick5 road or a ma9 trunk l9e1 no s]i\s inju/ice is done1 provid$ ! price fix$ is "o :i*1 f a /rictly eng9e]+ /&po9t1 is a reasonable figure = co/ ( reproduction4 ,! diff]5ces 9 class are due1 n to special diff]5ces 9 co/ ( physical prop]ty1 b r to diff]5ces 9 e>n+ ability on acc\nt ( good or poor t]ritory s]v$1 effici5t or ineffici5t managem5t1 or o!r reasons n connect$ ) ! physical /ructure2 h5ce su* diff]5ces are reflect$ 9 ! e>n+s1 & are cle>ly elem5ts to be adju/$ 9 ! non-physical valuation4 7b7 ,unit ,values4--,! g5]al reliability ( ! appraisal re/s v l>gely on ! reasonabl5ess & fairness ( ! v>i\s prices :i* are appli$ to ! diff]5t p>ts ( ! prop]ty 9 mak+ ! e/imate ( co/ ( reproduction4 ,^! unit prices %\ld be det]m9$ be=e any actual figures are made4 ,!y %\ld be made up f ! mo/ complete data available1 &1 be=e be+ tabulat$1 %\ld be c>efully review$ by all ! exp]i5c$ m5 engag$ on ! appraisal1 9 ord] t no figure :i* is ei!r too high or too l[ may be us$4 ,z a basis1 ! av]age ( ei!r #e or #aj ye>s %\ld be us$ 9 pref]5ce to curr5t prices on all su* mat]ial & equipm5t z is fairly /able4 ,rail1 & all =ms ( rail /ructures1 ma*9]y1 locomotives1 c>s1 etc41 c be r$uc$ to su* a unit t av]ages c be secur$ :i* w elim9ate ! error due to a p]iod ( extreme high or l[ prices4 ,9 ! case ( su* mat]ials z lumb] & ties1 ! price ( :i* has be5 /eadily ris+1 due to ! gr[+ sc>city ( ! mat]ial1 a price bas$ ^u a long av]age is unfair to ! corporation1 & x w\ld appe> to be prop] to use curr5t prices4 ,!re c be no h>d-&-fa/ rule :i* w be applicable to all appraisals4 ,! unit prices mu/ be su* reasonable figures z c be su/a9$ 9 ,c\rt4 ,_! adoption %\ld n be f9al until e possible te/ ( _! accuracy & reasonabl5ess has be5 made4 ,:5 !y h be5 adopt$1 & su* modification made z may be fair = c]ta9 t]ritory1 on acc\nt ( local conditions1 transportation facilities1 or o!r consid]ation :i* may affect !m1 ! adopt$ figures %\ld be appli$ to all prop]ty alike4 ,! use ( diff]5t unit figures = diff]5t roads 9 ! same t]ritory is highly undesirable1 & %\ld be avoid$4 7c7 ,"r ( ,way & ,real ,e/ate4--,! valuation "w :i* has be5 accompli%$ dur+ ! pa/ decade1 & ! /udy ( values = taxation & rate-mak+1 h br\ght into prom95ce ! p]plex+ features ( l& values z appli$ to corporation prop]ty4 ,x is comp>atively simple to fix )9 v close limits ! reproduction co/ ( tracks1 bridges1 locomotives1 or any ( ! o!r elem5ts ( physical /ructure4 ,n s ) ! l&4 ,a few ye>s' developm5t may *ange f>m l& "r ( way into city "r ( way1 surr\nd$ by factories1 or x may *ange desirable resid5tial prop]ty adjac5t to a road into slums4 ,9 view ( ! cle> language ( ! ,c\rt 9 #hb ,f$41 #hci1 & #aeg ,f$41 #hdi1 x is evid5t t any valuation :i* does n take into acc\nt ! appreciation or depreciation ( l& values _c be su/a9$4 ,!re c be no s]i\s objection to ! doctr9e t ! prop]ty ( a corporation g5]ally increases or decreases 9 value 9 ! same proportion z adjac5t prop]ty1 & x mu/ !re=e be admitt$ t a value bas$ on ! sale value ( adjac5t l&s is a reasonable "o & mu/ /&4 ,?is reason+1 ( c\rse1 w be subject to exceptions1 9 ! case ( t]m9al prop]ties1 docks & wat]-front prop]ties1 & "r ( way 9 l>ge cities1 b x is believ$ to be s\nd :5 appli$ to "r ( way 9 ! c\ntry & 9 small t[ns & cities4 ,! next "q to be det]m9$ is :e!r ! increm5t ( value due to ! use ( ! l& is a prop] "o4 ,x w\ld appe> t 9 ! use ( l& = wat]-works1 gas-works1 /reet-c> b>ns1 or o!r isolat$ tracts ( l& us$ = corporation purposes1 ?is increm5t w\ld be mu* less ?an 9 ! case ( a /eam or int]urban railroad1 ! hold+s ( :i* =m a cont9u\s & unbrok5 /rip2 &1 9 ! case ( /reet railroads1 wat]-works1 & l prop]ties1 x w\ld be inde$ difficult to compute & aft]w>d su/a9 any consid]able increm5t4 ,9 ! case ( railway prop]ties1 h[ev]1 x is q evid5t t ! foll[+ facts c be su/a9$3 ,! actual co/ ( prop]ty pur*as$ = railway purposes w range f two & "o-half to five times ! sell+ price ( simil> & adjac5t prop]ty us$ = o!r purposes4 ,:ile ! actual p]c5tage w v>y some:at1 z betwe5 l& 9 cities & 9 ! c\ntry1 & z betwe5 fully settl$ di/ricts well s]v$ by roads & sp>sely populat$ regions1 yet ! diff]5ce is v m>k$1 & is capable ( det]m9ation by an exam9ation ( ! public records4 ,?is diff]5ce c be det]m9$ ei!r by a comp>ison ( railway pur*ases & o!r transf]s1 z 0 done 9 ! lat] /udies 9 ,mi*igan & 9 ,wiscons91 or by ext5d+ ! inve/igation to include assess$ valuations1 & us+ ! av]ages1 z 0 done 9 ! "w ( ,mr4 ,morgan 9 ,m9nesota4 ,9 e/abli%+ figures = use 9 a valuation1 x w\ld appe> to be bett] to base !m on an analysis ( actual transf]s ?an to und]take to fix values by any me?ods ( exam9ation & p]sonal appraisal4 ,en\gh in/ances ( ! wide div]g5ce ( exp]t op9ion h be5 cit$ to %[ conclusively t su* a me?od1 appli$ to ! ?\s&s ( acres ( a l>ge corporation1 may lead to s]i\s error4 ,a s+le attorney or real e/ate man :o has _h exp]i5ce 9 ab/ract+ & conveyanc+1 & :o has b\ght "s "r ( way1 c exam9e ! records ( an av]age c\nty ! l>ge/ city 9 :i* has a population ( #bj1jjj or less1 ab/ract all railway transf]s = #e ye>s1 locate !m on ! maps1 secure data z to actual sell+ prices ( ne>-by l&s1 &1 9 a comp>atively %ort "t1 be 9 position to furni% figures :i* w e/abli% ! relation betwe5 sales = railway & o!r purposes 9 t c\nty4 ,! "w t half a doz5 su* m5 c\ld d 9 #ij days w\ld g v f> t[>d e/abli%+ ) a fair degree ( def9it5ess ! value ( ! railway purpose increm5t = ! majority ( c\nties 9 any av]age ,/ate4 ,( c\rse1 su* an inve/igation 9 ! l>ge cities is a matt] ( mu* great] labor1 & w\ld require suffici5t "t to make complete exam9ations1 probably necessitat+ a special =ce = su* city "w4 ,on e appraisal1 ! "q has be5 ask$1 %\ld ?is railway purpose increm5t be add$ to ! value ( ! prop]ty8 ,cle>ly1 yes4 ,! ,supreme ,c\rt quotes approv+ly f ! ,t5nessee ,c\rt1 z foll[s 7#aea ,u4 ,s41 #dgi73 ,! value ( ! l& dep5ds l>gely ^u ! use to :i* x is put & ! "* ( ! improvem5ts ^u x4 ,?is is /at$ aga9 & aga94 ,x mu/ be rememb]$ t1 = railroad uses1 ! /rip mu/ be cont9u\s2 t x mu/ be locat$ s z to p]mit curves & grades :i* con=m to ! requirem5ts ( ! road2 t1 no matt] :at damages may accrue to adjac5t prop]ty1 ! road mu/ take its /rip2 t its use is entirely *ang$ & is a /ructure plac$ on x :i* is capable ( va/ly great] e>n+s ?an ! prop]ty produc$ be=e--all ^! elem5ts add to ! co/ ( ! prop]ty :5 x is acquir$ = railway purposes1 & 9 ! same measure to its value "u its new use4 ,9 a new c\ntry1 :]e transportation facilities are limit$ & l& *eap1 ?is add$ increm5t may be little or no?+1 b 9 a ?ickly settl$ ,/ate1 ) _m railroads1 ?is elem5t w increase ) a good degree ( uni=mity2 :ile1 9 t]m9als1 ! price rises to almo/ inconceivable figures4 ,x is capable ( be+ det]m9$1 & is cle>ly an elem5t 9 ! co/ ( reproduction4 ,! writ] holds to ! view t x is prop]ly to be plac$ ) ! physical values1 & t x %\ld n be consid]$ z an intangible elem5t ( value4 7d7 ,depreciation4--,?us f>1 ?is discussion has n dealt at l5g? ) ! subject ( depreciation1 & x is n consid]$ ess5tial to ! purposes ( ?is pap] t x be done4 ,! ,/ate appraisals h rais$ a "q z to ! propriety ( us+ mortality or life tables z comp>$ ) p]sonal inspection & ! plac+ ( a p]c5tage bas$ on individual judgm5t4 ,ei!r me?od is subject to error4 ,x is c]ta9ly desirable to secure ! op9ion ( ! man :o inspects a bridge1 or build+1 or locomotive1 z to its physical condition4 ,x may be desirable to use ! *eck secur$ by ! fact t ! age ( ! build+ is kn[n & also ! av]age life ( /ructures ( its class4 ,! result ( ! ,mi*igan inspection ( roll+ /ock 0 to su/a9 fully ! rules = valuation issu$ by ! ,ma/] ,c> ,build]s ,association2 & cle>ly1 x is n only prop]1 b extremely desirable1 to apply tables to su* equipm5t z freight c>s1 :i* are scatt]$ all ov] ! ,unit$ ,/ates1 = x w\ld be absolutely impossible to inspect completely ^? ( any road or sy/em4 ,on ! o!r h&1 ! life ( /eel rails _c be det]m9$ by any simple table1 because ! numb] ( c> movem5ts1 ! weight ( motive p[]1 ! spe$ ( tra9s1 ! location 7on curves or on heavy grades71 & _m o!r conditions affect _! life4 ,?is also p]ta9s to build+s1 locomotives1 & o!r equipm5t4 ,! "* ( s]vice r5d]$1 ! nature & ext5t ( repairs1 & ! way 9 :i* !y h be5 ma9ta9$1 add to or take away f any life assign$ by tables1 s z to r5d] !m valueless 9 _m individual in/ances4 ,9 plac+ depreciation1 all[ance %\ld be made1 n only = we> & te> due to use1 & decay due to ! elem5ts1 b also to cov] t :i* is due to obsolesc5ce1 or ! fact t ! facility is ( an antiquat$ or ineffici5t type1 & has be5 sup]s$$ 9 g5]al use by m effici5t & economical devices2 ?is may be call$ comm]cial depreciation1 z di/+ui%$ f physical depreciation4 ,! me?od to be us$ 9 plac+ depreciation is cle>ly "o ( ! important ?+s t mu/ be det]m9$ by ea* set ( apprais]s1 &1 :ile ! writ] believes t ! use ( expectancy tables w\ld greatly facilitate ! "w 9 _m cases1 ! data on :i* to f\nd a complete set ( tables & to support !m & ju/ify _! use are (t5 lack+2 !re=e1 any use ( tables %\ld be safegu>d$ 9 e possible mann]1 & p]sonal inspection ( fix$ prop]ty %\ld always be made4 7e7 ,immat]ial ,elem5ts ( ,physical ,prop]ty4--,!re are c]ta9 exp5ses1 insep>able f ! con/ruction ( any public works1 :i* are a necess>y & prop] "p ( ! co/1 & are arrang$ = 9 ! orig9al f9anc+1 b are n capable ( id5tification aft] ! completion ( con/ruction "w4 ,^! exp5ses are3 7#a7 ,organization1 7#b7 ,legal exp5ses1 7#c7 ,eng9e]+1 7#d7 ,adm9i/ration1 7#e7 ,g5]al exp5se4 7#a7 ,organization4--,?is includes ! co/ ( ! orig9al organization ( ! company1 ! co/ ( secur+ ! *>t] & fran*ises1 arrang+ ! f9ancial plan1 & secur+ ! funds = con/ruction4 ,! latt] item is int5d$ to include all sal>ies & exp5ses ( (ficials 9 solicit+ & negotiat+ = funds1 ! s]vices ( tru/ees1 & all o!r prop] exp5ses :i* are usual & unavoidable 9 ! process ( exploit+ a project$ ent]prise & int]e/+ capital !re94 ,disc\nt on bonds is n includ$1 & any all[ances = premium1 or bonus1 or o!r ca% paym5t to any p>ty = s]vices 9 secur+ funds1 :i* are 9 excess ( legitimate exp5ses1 %\ld receive scant consid]ation at ! h&s ( apprais]s4 7#b7 ,legal ,exp5se4--,?is is = attorneys & all legal exp5ses1 co/s1 & fees 9 ! organization & dur+ ! con/ruction ( ! prop]ty4 7#c7 ,eng9e]+4--,?is includes reconnaissance1 prelim9>y & location surveys1 sup]vision ( con/ruction1 & design & sup]9t5d5ce ( special /ructures4 ,! co/ ( eng9e]+ on "s ( ! m difficult prop]ties becomes a v l>ge sum2 on c]ta9 small l9es x may be comp>atively small2 & 9 "s cases no eng9e]s h be5 employ$ at all2 b ! items ( co/ cov]$ by ?is *>ge h 9 e case be5 exp5d$1 ev5 if done "u ! direction ( "s sup]9t5d5t4 7#d7 ,adm9i/ration4--,?is comprises ! co/ ( ! managem5t dur+ con/ruction--! direction ( ! ent]prise4 7#e7 ,g5]al ,exp5se4--,?is is ! co/ ( ! g5]al (fice organization dur+ ! con/ruction p]iod1 also num]\s m9or exp5ses1 n di/ributable4 ,x is n possible to build any public s]vice plant )\t incurr+ all ^! exp5ses to a great] or less degree4 ,!y are ess5tial elem5ts ( co/1 & mu/ g into ! value ( ! plant :5 complet$4 ,x c h>dly be argu$ t co/1 :i* 9 a l>ge prop]ty runs into ?\s&s or hundr$s ( ?\s&s ( doll>s1 has no value at ! comm5cem5t ( op]ation1 nor does x appe> t ! value is subject to depreciation z long z ! prop]ty is an op]at+ plant4 ,! writ] holds ! view t ! l9e betwe5 physical & non-physical elem5ts ( value %\ld be drawn z foll[s3 ,any value :i* atta*es to ! prop]ty by reason ( any money exp5d$ dur+ ! con/ruction is "p ( ! physical prop]ty values2 :ile any value due to ! op]ation ( ! prop]ty :i* is 9 excess ( ! physical value is a non-physical or intangible elem5t4 ,if ! correctness ( ?is position be conc$$1 !n all ! =ego+ items are *>ges aga9/ ! physical prop]ty1 &1 z long z x is an op]at+ prop]ty1 ^! items ( value rema9 "p ( ! physical prop]ty1 & ! writ] cont5ds t !y %\ld n be consid]$ z affect$ by depreciation1 z long z ! prop]ty is a go+ conc]n4 ,diff]5t eng9e]s h includ$ 9 ! appraisal o!r items :i* are ( a some:at diff]5t nature1 & "s ( :i* are op5 to argum5t2 among ^! are int]e/ dur+ con/ruction4 ,?is item is cle>ly an all[able "o1 b s]i\s diff]5ces ( op9ion develop z to a prop] am\nt to all[ 9 mak+ an appraisal4 ,! corporate hi/ory ( ! ,ann ,arbor ,railroad1 9 ,mi*igan1 %[s t x 0 built 9 sections ( f #be to #cj miles1 & t ea* section 0 put into op]ation z soon z built1 s t1 :ile ! actual p]iod ( con/ruction ( ! complete prop]ty ext5d$ ov] #ae ye>s1 no section 0 "u con/ruction mu* m ?an "o ye>4 ,?is is typical ( mu* ( ! railroad build+ ( ! pa/1 & on su* a prop]ty ! int]e/ *>ge w\ld be comp>atively small4 ,a prop] *>ge 9 su* a case w\ld cle>ly n be suffici5t 9 ! case ( a road sev]al hundr$ miles 9 l5g?1 ?r\gh m\nta9s1 ) tunnels1 heavy bridges1 & o!r /ructures :i* w\ld ext5d ! actual con/ruction ov] p]iods ( f #c to #e or #f ye>s1 & ?is is p>ticul>ly true :]e ! road is a ma9 l9e or art]y1 & :]e local traffic is ( m9or importance4 ,! computation ( ! int]e/ *>ge is complicat$ by ! fact t int]e/ beg9s to run z ! bonds are tak5 up1 & b a small "p ( ! con/ruction money draws int]e/ dur+ ! :ole p]iod4 ,! practice 9 ! ,/ate appraisals has be5 to fix a uni=m p]c5tage = all prop]ties4 ,?is has _h 9 its favor ! argum5t t x 0 cons]vative valuation :]e taxation is ! ultimate end1 z ! am\nt 0 less ?an "o ye>'s int]e/ 9 e case4 ,x w\ld appe> to be m correct to use ! corporate hi/ory ( ea* company1 det]m9e ! actual con/ruction p]iods1 & use a rate bas$ on ! actual "t 9 ea* case4 ,?is c be fix$ ) a fair degree ( accuracy1 & a reasonable p]c5tage det]m9$1 to equalize ! v>y+ p]iods ( "t on :i* ! int]e/ runs on diff]5t p>ts ( con/ruction4 ,disc\nt4--,disc\nt on bonds is claim$ by c]ta9 railroad m5 z a prop] item = consid]ation4 ,z has be5 argu$ else:]e1 ?is is n a prop] *>ge aga9/ capital4 ,x is an adju/m5t ( ! int]e/ rate to ! m>ket1 or an advance paym5t ( int]e/2 &1 9 ! writ]'s op9ion1 %\ld "u no consid]ation be all[$4 ,work+ ,capital4--,work+ capital is ano!r item claim$ & conc$$ 9 "s valuations4 ,x is n a "p ( ! co/ ( con/ruction4 ,! money provid$ = work+ capital at ! outset is n a p]man5t inve/m5t1 b is r a tempor>y loan paid back out ( e>n+s4 ,! writ] fails to p]ceive any possible argum5t 9 favor ( add+ su* an item to ! p]man5t value ( ! prop]ty4 ,9 mak+ an appraisal1 aft] ! physical value is det]m9$1 x is usual to set up a /atem5t ( /ores1 supplies1 fuel1 & ca% on h&1 & work+ capital is c]ta9ly %[n by ! curr5t balance %eet1 9 ! =m ( ca% or acc\nts receivable4 ,x w\ld appe> to h no place 9 a physical appraisal4 ,al?\gh ! items ( ca%1 /ores1 & supplies 7 %[n 9 ! ,mi*igan appraisal1 !y did n appe> z "p ( ! physical value1 nor 7 !y tak5 into acc\nt 9 comput+ intangible value1 b1 be+ taxable prop]ty1 !y 7 report$ sep>ately4 7f7 ,cont+5cies4--,! use ( a p]c5tage = cont+5cies 9 ! appraisal 9 ,mi*igan 0 bitt]ly conte/$ by ! railroads z improp] & excessive4 ,9 ,mi*igan #aj 0 us$1 9 ,wiscons9 #e1 & 9 ,m9nesota #e p] c5t4 ,subsequ5t "w 9 ,mi*igan has demon/rat$ t ! use ( z high a figure z #aj 0 fully ju/ifi$2 & ! probability is t ! late/ ,mi*igan appraisal did n elim9ate omissions1 inaccuracies ( description1 & excess co/ ( con/ruction due to difficulties1 to su* an ext5t z to ju/ify mu* r$uction 9 ! p]c5tage4 ,9 mak+ an appraisal1 ! p]c5tage to be appli$ to cov] cont+5cies is a prop] matt] = consid]ation1 & 9 "s cases conditions might well be su* t ev5 a small] all[ance ?an t fix$ 9 ,m9nesota w\ld be prop]1 b su* cases w\ld d\btless be ! exception4 ,! writ] believes x to be prop] practice to add lib]ally = ! cont+5cy item4 ,! /ronge/ argum5t aga9/ x is t x is incapable ( be+ describ$ & locat$ def9itely1 & is difficult ( exact pro(4 ,!re=e x has be5 claim$ t x p>takes ( ! nature ( a non-physical elem5t1 & t if !re be any value ov] & above ! physical prop]ty value1 x w appe> ) o!r non-physical elem5ts reflect$ 9 ! e>n+s1 & may be prop]ly includ$ 9 ! intangible value if su* exi/s4 ,?is argum5t does n appeal to ! writ] z be+ f9al1 & he w\ld advocate ! use ( su* a p]c5tage ( physical values z appe>s prop] 9 ea* appraisal to cov] ! error due to ! extreme difficulty ( secur+ an exact inv5tory & con/ruction hi/ory ( ! prop]ties4 7g7 ,design4--,among ! matt]s :i* 7 consid]$ 9 ! ,mi*igan "w 0 t ( adaptability1 or ! economical que/ions ( location1 design1 & con/ruction4 ,x is possible t 9 "s prop]ties1 su* z wat]1 gas or electric companies1 ! effici5cy ( ! plant may be v greatly affect$ by faulty design1 uneconomical arrangem5t1 improp] con/ruction1 & to su* an ext5t t any co/ ( reproduction1 less any ord9>y depreciation1 w\ld be greatly 9 error )\t fur!r all[ance4 ,?is may also be true ( railroads4 ,excessive curvature & gradi5ts greatly decrease ! tonnage haul$ by a giv5 p[]1 )\t decreas+ ! co/ p] tra9-mile4 ,x is extremely difficult to treat ?is z a physical elem5t4 ,x is impossible to r$uce x to t]ms ( doll>s & c5ts by any usual or cu/om>y me?ods4 ,x is impossible to sep>ate x f any "o ( half a doz5 o!r items t may be br\ght up4 ,x op5s ! door to endless speculation z to :at might or might n take place "u some:at diff]5t conditions4 ,= ^! reasons1 x 0 treat$ 9 ! ,mi*igan appraisal z a non-physical elem5t ( value & dismiss$ f all consid]ation 9 ! physical appraisal4 ,?is 0 cle>ly prop]1 & ! subject is only ref]r$ to "h = ! purpose ( mak+ cle> t x 0 fully /udi$ & a def9ite conclusion rea*$4 ,adaptation4--,9 ! s5se t ?is t]m is us$ by ,mr4 ,williams & ,mr4 ,morgan1 ! appreciation or solidification ( roadb$ 0 consid]$ 9 ! ,mi*igan "w1 b giv5 no place 9 ! appraisal4 ,?is is a v prop] item to consid]1 b x w\ld appe> to be bett] to include x directly ) ! roadb$ item 9 ! physical appraisal z appreciation or solidification4 ,!re c be no reasonable objection to add+ to ! contract prices = grad+1 balla/+1 etc41 a reasonable am\nt to cov]1 n s mu* ! season+ & settl+ ( ! new roadb$1 z ! actual money disburs$ 9 "w on ?is new roadb$ dur+ ! fir/ #c or #d ye>s ( op]ation 9 ord] to br+ x up to ! prop] op]at+ condition4 ,a v consid]able "p ( ! money sp5t on ma9t5ance ( track = ! fir/ few ye>s aft] a new l9e is built is 9 reality def]r$ con/ruction co/4 7h7 ,apportionm5t ( ,values4--,! apportionm5t ( values ( locomotives1 c>s1 miscellane\s equipm5t1 %ops1 & ^? o!r p>ts ( ! co/ :i* are n susceptible ( sep>ation f ! op]ation ( ! prop]ty z a :ole1 is an int]e/+ & at times a p]plex+ problem4 ,:ile ! ,c\rts h view$ z equitable ! di/ribution ( values betwe5 t]ritorial units :5 made on a track-mileage basis1 x is h>dly likely t a ,c\rt w\ld look ) favor on an apprais] appo9t$ by ,mi*igan giv+ any consid]ation to values ( bridges1 track1 or build+s 9 ,ohio4 ,?us f>1 e ,/ate apprais] has conc]n$ himself only ) ! fix$ physical prop]ty 9 8 own ,/ate1 toge!r ) 8 proportionate %>e ( ! float+ prop]ty4 ,! me?ods t may be consid]$ are track-mileage1 c>-mileage1 locomotive-mileage1 & tra9-mileage4 ,! me?od f9ally us$ mu/ be su* z w give ! faire/ result = ! prop]ty "u consid]ation4 ,9 "s cases "o or m ( ^! me?ods w give a fair value1 :ile 9 o!r cases ! same sy/em w\ld be mo/ unju/4 7i7 ,t]m9als4--,!re is no "o feature ( ! entire problem s big ) possibilities1 & s f> f solution1 z t ( t]m9al prop]ty values & _! prop] assignm5t4 ,! prop]ty mu/ be consid]$ z an op]at+ unit4 ,its value mu/ be made up ( ! values ( ! p>ts or elem5ts plus an add$ value t comes f ! op]ation ( ! :ole4 ,! problem w\ld be simplifi$ if :at 7 s\ght 7 ! value ( a c]ta9 railroad1 b1 z x has be5 pres5t$ up to ?is "t1 ! problem is3 :at is ! value ( t "p ( ?is railroad 9 ,mi*igan8 or ,wiscons98 or ,m9nesota8 ,a fairly satisfactory solution ( _m ( ! value que/ions has be5 obta9$1 b no?+ 9 ! way ( a solution ( ! t]m9al "q4 ,a road owns #cjj miles ( l9e 9 ,mi*igan & #g miles 9 ,ohio4 ,t #g miles includes its l>ge/ t]m9al2 its pr9cipal connections are !re2 x has a f9e prop]ty1 & is 9 ! capacity ( l&lord to sev]al o!r roads4 ,:at "p ( t t]m9al value1 if any1 is assignable to ! ,/ate ( ,mi*igan8 ,decid$ly1 x w\ld n be prop] to appraise ! entire prop]ty z a unit & assign to ,ohio only ! proportion t #g miles be>s to ! :ole l5g?2 x is equally unfair to appraise x z a ,mi*igan prop]ty d[n to ! ,/ate l9e1 & add no?+ to ! value by reason ( ! t]m9al4 ,! influ5ce on ! value ( ! prop]ty1 ( ! own]%ip ( t]m9als 9 su* cities z ,*icago1 ,new ,york1 ,j]sey ,city1 ,hobok51 ,pittsburg1 ,detroit1 ,/4 ,l\is1 ,kansas ,city1 & o!r l>ge c5t]s ( population is trem5d\s1 yet a v l>ge "p ( ! railroad mileage ent]+ ^? cities belongs to roads :i* h _! l>ge/ mileage outside ! ,/ate 9 :i* ! t]m9al is locat$4 ,!re c be no d\bt t ! influ5ce ( a l>ge t]m9al affects 9 a measure ! value ( e mile ( l9e own$ by ! company2 t ?is influ5ce is greate/ on ! pr9cipal & direct l9es1 & less z m remote p>ts ( ! sy/em are rea*$4 ,z yet1 no plan has be5 sugge/$ = det]m9+ :at ?is value is or = apportion+ x4 ,! f9al solution 9 ,mi*igan 0 to treat t]m9al prop]ties )9 ! ,/ate exactly z o!r prop]ty 0 treat$1 & to assume t1 if !re 0 any value assignable to ,mi*igan by reason ( outside t]m9als1 x w\ld appe> z a non-physical value ?r\gh ! e>n+s4 ,:5 all ! phases ( ?is "q are consid]$--! enorm\s l& values1 ! value due to possession ( deep-wat] t]m9als1 ! effect on ! bus9ess ( ! entire prop]ty by reason ( ! own]%ip ( su* prop]ties z ^?1 = in/ance1 9 ,new ,york ,city1 ,j]sey ,city1 & ,hobok5--x is evid5t t no appraisal :i* has yet be5 made has e/abli%$ any rule ( valuation :i* may be consid]$ prop] = t]m9als4 ,x is to be hop$ t ! "w n[ 9 progress 9 ,new ,j]sey may be s well support$ by ! ,/ate t x w be possible = ! appraisal bo>d to make an exhau/ive /udy ( ?is subject & rea* def9ite conclusions z to ! real ext5t1 mann] ( computation1 & prop] me?od ( di/ribution ( ^! values4 7j7 ,developm5t ( ! ,art4--,is any value assignable to prop]ty on acc\nt ( exp5ditures by reason ( ! rapid developm5t ( ! art8 ,?is "q seems n to h be5 squ>ely ask$ or answ]$ 9 connection ) any ( ! pa/ appraisals4 ,e piece ( mat]ial & e facility pur*as$ by a company is b\ght ) a def9ite expectation t x w h a c]ta9 life1 t dur+ t t]m ( life x w add suffici5tly to ! e>n+s to provide a fund = its replacem5t & e>n a pr(it4 ,no matt] :e!r or n su* a res]ve is creat$ on ! books1 ?is is ! !ory1 &1 "u x1 accid5t may wipe out c]ta9 new prop]ty1 o!r prop]ty w outlive its expectation & ma9ta9 ! av]age life ( ! entire gr\p ( facilities4 ,!re are c\ntless cases :]e ?is w n hold4 ,! rapid developm5t ( l>ge cities has compell$ electric l9es to ext5d l>gely4 ,! dem&s ( ! p = m frequ5t & m rapid s]vice1 & m mod]n & l>g] equipm5t1 h greatly %ort5$ ! t]m ( life ( p[]-plant equipm5t & c>s4 ,! rapid developm5t 9 ! art ( electricity1 ! conge/ion ( traffic 9 /reets ( cities1 ! enorm\s increase ( tra9 movem5ts1 & ! use else:]e ( new] types ( c>s1 h compell$ ! ab&onm5t ( millions ( doll>s' wor? ( prop]ty & ! inve/m5t ( o!r millions 9 new & improv$ facilities to provide = ! increas$ movem5ts ( traffic & increas$ safety to ! public4 ,^! *anges are n due to ! fact t ! orig9al in/allation 0 defective1 b to ! dem&s ( ! public = frequ5t1 safe1 & spe$y s]vice1 dem&s :i* are p]fectly reasonable4 ,! qu]y is3 %\ld a corporation :i* complies ) public dem&s be compell$ to lose capital inve/$ 9 facilities :i* h n yet paid = !mselves2 & :i*1 "u a cont9uance ( conditions :i* exi/$ :5 !y 7 in/all$1 or any t might !n h be5 anticipat$1 w\ld normally h a useful life ( sev]al m ye>s1 & :i* 7 ab&on$1 n by reason ( be+ worn out or unfit = s]vice1 b purely because facilities ( a m mod]n type 7 call$ =8 ,to answ] ?is affirmatively increases ! haz>d ( inve/m5t greatly 9 ! l>ge c5t]s ( population4 ,to answ] x affirmatively 9 "s cases might am\nt to confiscation ( prop]ty4 ,! writ] incl9es to ! view t1 z f> z appraisal is conc]n$1 ! value due to ! rema9+ life ( ! ab&on$ facility1 :]e su* ab&onm5t 0 9 response to legal requirem5t1 & :]e no elem5t ( corporate necessity due to increas$ effici5cy or economy ( ! new facility ent]s into ! computation1 %\ld be add$ to ! value ( ! facility replac+ x4 ,any consid]ation t is giv5 su* claims by an apprais] mu/ be mo/ c>eful1 z ! inf]5ce to be drawn f ! decision ( ! ,c\rt 9 ! ,knoxville ,wat] ,case 7#bab ,u4 ,s41 #a7 is t su* elem5ts ( value w receive scant consid]ation unless mo/ fully support$4 ,if ! policy ( ! managem5t ( any public s]vice company is to keep up ) ! dem&s ( mod]n civilization1 x w\ld appe> t su* policy %\ld n be disc\rag$1 &1 9 comput+ ! value ( ! prop]ty1 "s provision ought to be devis$ = cov]+ su* values z rema9 9 s]viceable prop]ty at ! "t ( its ab&onm5t 9 response to public dem&2 or else ! rates = s]vice %\ld be increas$ suffici5tly to comp5sate ! corporation = losses ( ?is nature on ! gr\nd t x con/itutes an elem5t ( extra haz>d4 ,^! & l subjects 9 connection ) ! appraisal mu/ be tak5 up dur+ ! p]iod ( computation & settl$4 ,! comput+ (fice organization & me?ods call = no special comm5t1 except to emphasize ! ne$ ( exp]i5c$ m51 ! use ( e possible *eck on ! accuracy ( ! "w1 & ! prime necessity ( keep+ all notes 9 su* mann] t !y c be id5tifi$ & us$ to re-e/abli% e /ep tak5 9 ! c\rse ( ! appraisal4 ,,iv4--,! ,prep>ation ( ! ,f9al ,figure4 ,! f9al =m ( ! "w is1 ( c\rse1 s mu* a matt] ( p]sonal judgm5t t ev5 a sugge/ion may appe> to be useless4 ,! use ( su* a classification z w con=m approximately1 if n exactly1 ) t adopt$ by ! ,int]/ate ,comm]ce ,commission is m desirable n[ ?an x 0 #aj ye>s ago1 z all ! roads 9 ! c\ntry are us+ ?is classification 9 _! acc\nts1 & ! m ne>ly uni=m ! "w ( v>i\s ,/ate appraisals1 ! bett] ! results w be4 ----- ,footnote #ah3 ,un*angeable only = ! p]iod "u consid]ation & z reg>ds ! purpose ( ! appraisal4 ,?is value v>ies f ye> to ye>1 dep5d+ on bus9ess conditions & on e>n+s ( ! company4 ,,non-,,physical ,,values ,,& ,,me?ods ,,= ,,_! ,,det]m9ation4 ,9 ! publi%$ articles treat+ on ! subject ( valuation1 mu* /ress is laid on ! intangible or non-physical elem5ts ( value4 ,!y h be5 t]m$ go+ conc]n values1 bus9ess values1 good w values1 fran*ise values1 z well z non-physical & intangible values4 ,s mu* ( ! argum5t ( _m writ]s has be5 tak5 up ) ?is phase ( ! "q t x is impracticable to recapitulate ! v>i\s argum5ts 9 support ( giv+ ^! elem5ts a place 9 ! appraisal4 ,! writ] _c agree ) ^? :o w\ld place any ( ^! elem5ts ( value 9 ! physical appraisal4 ,value is giv5 to a prop]ty1 ei!r by reason ( ! fact t x is an in/rum5t = e>n+ pr(it1 or t x does e>n pr(it or gives promise ( pr(it4 ,! actual inve/m5t ( capital 9 a new plant is made ) ! expectation ( e>n+s4 ,x is n reasonable to atta* z physical value1 to su* a plant1 any value 9 excess ( ! actual inve/m5t4 ,nor does x appe> to be any m reasonable1 9 ! case ( an old plant1 to assign arbitr>y & fictiti\s values ov] & above ! actual inve/m5t rema9+ 9 ! plant1 unless su* values are ju/ifi$ & support$ by actual e>n+s 9 excess ( su* a rate ( int]e/ on ! money inve/$1 z x w\ld e>n if inve/$ 9 "s non-haz>d\s security1 &--c>ry+ out ! cle>ly-express$ idea ( ! ,c\rts--su* intangible value c only accrue :5 ! rates *>g$ = ! s]vice are fair & prop]4 ,! capitali/ seek+ inve/m5t bases 8 ideas ( value on3 7a7 ,! m>ket price ( /ocks & bonds1 an e/imate ( wor? bas$ prim>ily on actual e>n+s ( ! prop]ty1 b affect$ to "s ext5t by outside conditions2 or 7b7 ,on ! capitaliz$ net income1 or actual e>n+s1 ( ! prop]ty2 or1 7c7 ,9 ! case ( a new prop]ty1 on an e/imate ( :at ! probable e>n+ capacity ( ! prop]ty w be1 :]e ! bus9ess is m fully develop$4 ,me?ods 7a7 & 7b7 ignore co/ ( con/ruction1 or pres5t inve/m5t 9 physical prop]ty1 & base a value on pa/ p]=mances4 ,me?od 7c7 is bas$ purely on hypo!tical e>n+s1 b ! only real measure ( value 9 ?is in/ance is ! actual am\nt ( capital t has be5 inve/$4 ,no apprais] w\ld be ju/ifi$ 9 plac+ a go+ conc]n value1 9 excess ( orig9al co/1 on a new prop]ty1 nor w\ld he be ju/ifi$ 9 plac+ su* a value on a prop]ty #c ye>s old1 or #aj ye>s old1 unless ! net e>n+s 7 su* z to indicate t ! prop]ty _h a bus9ess or comm]cial value 9 excess ( ! physical prop]ty value4 ,x w\ld seem reasonable to say t ?is diff]5ce betwe5 ! physical value & ! value bas$ on e>n+s repres5ts ! good w1 e/abli%$ bus9ess1 or go+ value1 & all ! o!r non-physical elem5ts ( value4 ,to take a specific example3 x w\ld be impossible to sep>ate ! diff]5t elem5ts ( intangible value ( ! ,mi*igan ,c5tral ,railroad1 & say t a c]ta9 sum ( money repres5t$ good w1 ano!r sum e/abli%$ bus9ess1 /ill ano!r sum ! fran*ise value1 & /ill ano!r sum ! go+ conc]n4 ,! go+ conc]n value ( ! ,mi*igan ,c5tral ,railroad is exactly analog\s to ! go+ conc]n value ( ! hypo!tical wat]-works cit$ by ,mr4 ,alvord4 ,in/ead ( hav+ wat] pipes connect$ ) build+s along ! ma9s1 & consid]able sums inve/$ 9 appliances = us+ ! wat]1 !re are manufactur+ plants locat$ along ! railroad1 connect$ ) x by side-tracks built by ! indu/ry1 & dep5d+ on ! transportation facilities ( ! road = _! connections ) _! cu/om]s1 ! v life ( ! manufactur+ plant dep5d5t on its connection ) ! road4 ,?is is connect$ good w ( ! same k9d z describ$ by ,mr4 ,alvord4 ,yet1 to fix a value on x by ! me?od describ$ by him involves go+ into ! realm ( conjecture & speculation to a degree t c\ld nev] be su/a9$4 ,difficulties z great w\ld be enc\nt]$ 9 an ef=t to sep>ate & set up any o!r elem5ts :i* g to make up ! intangible value1 & any figure ?us det]m9$ w\ld be absolutely incapable ( pro(4 ,! ,c\rts say t ! value mu/ be ! fair value ( ! prop]ty be+ us$1 all ! conditions be+ tak5 into acc\nt 7#afi ,u4 ,s41 #dff74 ,x c be readily se5 t ! physical pres5t value is n always--inde$1 is n (t5--! fair value4 ,! fair value may be m1 or less1 ?an ! pres5t value ( ! physical prop]ty4 ,x w\ld seem to be reasonable to int]pret ! ,c\rt's mean+ ( ! t]m fair value to be ! value z a bus9ess or comm]cial prop]ty1 tak+ into acc\nt ! actual inve/m5t exi/+ 9 ! prop]ty1 toge!r ) any favorable conditions :i* w\ld enable x to e>n1 on rates :i* 7 fair & reasonable to ! consum]1 an income 9 excess ( a usual rate ( int]e/ on ! actual inve/m5t1 or any unfavorable ones :i* "u ! same rates w\ld r$uce its e>n+s to less ?an usual int]e/4 ,if su* an int]pretation be all[able1 x w\ld appe> to be correct practice to use a fair value made up ( two elem5ts3 a physical value1 repres5t+ ! inve/m5t1 & a non-physical value1 repres5t+ all ! elem5ts :i* affect t inve/m5t to give x favorable or unfavorable f9ancial returns4 ,is x n1 !n1 prop] to conclude t ! non-physical or intangible value1 compos$ ( all ^! v>i\s elem5ts ( value1 c only be det]m9$ absolutely by a /udy ( ! e>n+s & op]at+ exp5ses8 ,is n ?is cle>ly :at ! ,c\rt _h 9 m9d 9 ! ,nebraska ,rate ,case8 ,mu* ( ! argum5t on ! subject ( go+ values & o!r k9dr$ elem5ts ( value consi/s ( /atem5ts ( !ory & g5]alities1 & may be said to be m]ely argum5t to support ! !ory t !re is an intangible elem5t ( value4 ,if "w ( valuation is to be ( any real b5efit1 mu/ x n give a def9ite result8 ,mu/ n ?is result be bas$ on absolute facts8 ,9 secur+ ! pres5t value ( any physical prop]ty ! fix$ & c]ta9 facts are3 ,! inv5tory ( prop]ty own$4--,?is is absolute4 ,! co/ ( reproduction ( ! diff]5t elem5ts4--,?is is capable ( det]m9ation )9 v close limits4 ,! depreciation4--,?is is 9 a measure a matt] ( judgm5t1 bas$ on ! exp]i5ce1 n only ( ! eng9e]s mak+ ! appraisal1 b ( ! entire sci5tific _w2 &1 if prop]ly made & prop]ly *eck$1 !re %\ld be no v wide div]g5cies 9 results4 ,! items ( g5]al exp5se4--,^!1 bas$ on available /ati/ics1 mu/ be e/imat$4 ,! exact det]m9ation ( ^! items w be made comp>atively easy z /ati/ics bas$ on ! uni=m classification ( acc\nts become available4 ,x is believ$ t ! physical values1 :5 secur$ along ! l9es sugge/$1 are def9ite en\gh to be accept$ z a fair e/imate ( ! am\nt ( capital actually inve/$ 9 ! prop]ty1 & t1 if a suffici5tly l>ge =ce ( m5 exp]i5c$ 9 ! con/ruction1 op]ation1 & f9ancial managem5t ( ! k9d ( prop]ty "u inve/igation is engag$ on ! "w1 ! elem5t ( unc]ta9ty due to errors ( p]sonal judgm5t c be l>gely elim9at$4 ,! next "q to be det]m9$ is :e!r !re is1 at ! "t ( ! appraisal1 any non-physical value1 &1 if s1 to select a me?od = comput+ x t w give a result t c be def9itely support$ z to ! p>ticul> prop]ty "u inve/igation4 ,a /udy ( ! income acc\nts ( ! prop]ty be+ valu$ %\ld be made4 ,if ! prop]ty is n e>n+ a suffici5t sum to pay its op]at+ exp5ses1 & taxes1 & to set aside a fund to cov] depreciation & obsolesc5ce1 !re is cle>ly no intangible value ( any sort to be add$ to ! physical value4 ,if1 h[ev]1 aft] all ^! *>ges are tak5 c>e (1 !re is a net e>n+ :i* is l>ge en\gh to pay #d or #e on ! physical prop]ty & /ill leave a surplus1 is x n p]fectly reasonable & prop] to hold t ?is surplus repres5ts e>n+s on all intangible elem5ts ( value8 ,! cont5tion t all ! diff]5t elem5ts ( non-physical value m]ge into "o intangible value1 n capable ( sep>ation1 w d\btless be object$ to by _m eng9e]s & corporation manag]s4 ,among ! elem5ts add+ value to prop]ty h be5 describ$3 #a4--;,go+ ,conc]n ,value4--,pr(essor ,mead def9es ?is z ! value due to ! fact t a plant has consum]s actually utiliz+ its product1 & t x is 9 actual & successful op]ation & has its bus9ess develop$4 ,?is value is ! wor? ( ! plant 9 excess ( a simil> plant )\t connections1 & con/itutes an asset 9 ! consid]ation ( its physical value4 ,mr4 ,alvord has us$ ! t]m connect$ good w z applicable to ?is elem5t ( value4 ,! writ] does n conc$e t go+ conc]n is a prop] elem5t to consid] 9 ! physical value1 z x does n repres5t any "p ( ! co/ *>geable to capital1 & ! physical valuation %\ld be conf9$ to ! det]m9ation ( capital inve/$4 ,x has already be5 argu$ t to ! physical prop]ty z inv5tori$ %\ld be add$ prop] figures to cov] organization1 legal exp5se1 adm9i/ration1 eng9e]+1 & cont+5cies4 ,all ^! items are 9 ! nature ( additions on acc\nt ( ! fact t ! prop]ty is a go+ conc]n4 ,x is ma9ta9$ t ^! co/s %\ld c>ry to ! pres5t value column z values1 = ! reason t all ^! s]vices r5d]$ 9 connection ) ! creation ( ! prop]ty rema91 unimpair$ 9 value1 z long z ! prop]ty is op]at$4 ,:51 h[ev]1 a prop]ty ceases to be op]at$1 & is ab&on$ & dismantl$1 n only d all ^! elem5ts absolutely disappe>1 b also all increm5ts ( value by reason ( ! special use ( ! prop]ty are wip$ out1 & !re exi/ only a lot ( p>tly worn out & p>tly obsolete ma*9]y & equipm5t1 salable at scrap values1 build+s con/ruct$ = a purpose :i* r5d]s !m unfit = o!r use1 & l& p>tly salable at go+ prices & mu* t w n sell at all4 ,z long z a gas-works1 a wat]-works1 or a railroad is 9 op]ation & e>n+1 x is a go+ conc]n1 & all increm5ts :i* atta* to its physical prop]ty z a :ole cont9ue to exi/1 ev5 if ! physical value ( ! prop]ty is great] ?an a fair value4 ,t fair value c be det]m9$ & rea*$ by means ( a negative non-physical value4 ,9 view ( ^! ?+s1 x w\ld seem to be highly improp] to add to physical value any?+ m = go+ conc]n4 ,9 ! f9al report ( ,u4 ,s4 ,judge ,r4 ,w4 ,tayl]1 ,arbitrator 9 ! ,clevel& ,/reet ,railway matt]1 9 ,decemb]1 #aiji1 ! foll[+ language supports ! above cont5tion3 ,i all[ no?+ = go+ value1 except 9 s f> z t is ! result ( ! necess>y exp5diture ( money 9 build+ ! road1 acquir+ its l&1 p[]-h\ses1 & equipm5t1 & putt+ !m into successful op]ation4 ,! exp5ditures = ^! purposes are1 & necess>ily mu/ be1 includ$ 9 ! valuation ( ! physical prop]ty4 #b4--;,develop$ ,bus9ess4--,x is p]fectly cle> t ! fair value ( a prop]ty mu/ take into acc\nt ! e/abli%$ bus9ess ( ! conc]n4 ,?is really is cov]$ by ! go+ conc]n values1 z def9$ by ,messrs4 ,mead & ,alvord4 ,! only mann] 9 :i* ?is c be det]m9$ intellig5tly is by an analysis ( income acc\nts4 #c4--;,co/ ( ,h&l+ ,bus9ess4--,a railroad ) heavy grades1 bad curves1 poor equipm5t1 or unskilful managem5t is n ne>ly z valuable a prop]ty z "o hav+ good l9e & grades1 & f>-sight$1 economical1 & skilful managem5t1 & :i* h&les its bus9ess at a l[] co/ p] unit4 ,9 su* cases ! diff]5ces 9 location & managem5t are b\nd to %[ 9 ! e>n+s1 add+ to ! physical value ( "o prop]ty & possibly tak+ f ! value z %[n by ! physical appraisal 9 ! case ( ano!r4 #d4--;,good ,w & ,e/abli%$ ,organization4--,^! are valuable assets4 ,x is difficult1 inde$1 to atta* exact weight to ^! elem5ts ( value1 except z !y are %[n 9 ! intangible value indicat$ by ! e>n+s4 ,9 mo/ cases ( public s]vice companies1 z is argu$ else:]e1 x is d\btful if su* elem5ts are entitl$ to any place 9 a public valuation4 #e4--;,fran*ise ,values4--,^! cov] v>i\s specific items aris+ out ( ! own]%ip ( special fran*ises1 or1 out ( ! g5]al rights grant$ by law to corporations4 ,all ^! elem5ts ( value h be5 pres5t$1 & h be5 support$ by able argum5ts4 ,no "o has (f]$ a me?od ( sep>at+ !m4 ,:ile !re is univ]sal recognition ( _! exi/5ce1 9 ! case ( _m prop]ties1 !y are support$ by no?+ visible or tangible4 ,!y are practically insep>able1 "o f ano!r4 ,!y are n always pres5t1 & ! application ( any su* arbitr>y rule z t sugge/$ by ,mr4 ,alvord w\ld make x possible to place values :i* 7 purely fictiti\s4 ,!re=e1 x foll[s t1 if !y are to be consid]$ at all1 !y mu/ be treat$ z p>ts ( "o intangible value1 & t value mu/ be d]iv$ f a /udy ( ! income acc\nt ( ! prop]ty4 ,!re are o!r po9ts to be not$ z reasons :y no su* elem5ts ( value may atta* to ! physical prop]ty4 ,any value ( an old & well-e/abli%$ prop]ty 9 excess ( a fair return on its physical prop]ty 79 o!r words1 any intangible value7 mu/ be limit$ & re/rict$1 :5 us$ = rate-mak+ purposes1 by ! value to ! consum] ( ! s]vices r5d]$4 ,! ,c\rts hold s squ>ely t ! rates *>g$ = s]vices mu/ n be m ?an ! p>ticul> s]vice is wor?1 & t ! ,company may exact a fair return on prop]ty actually be+ us$1 t x is n conceivable t any valuation :i* attempts to atta* fictiti\s elem5ts ( value to physical prop]ty c be su/a9$4 ,?is argum5t is n int5d$ z an attempt to %[ t intangible values are improp] & t :]e !y exi/ rates %\ld be l[]$4 ,x is cont5d$ t ! det]m9ation ( rates t w be j & fair to all compet+ companies involves o!r consid]ation ?an ! valuation ( ei!r physical or intangible prop]ties1 & t :5 all ^! rate-mak+ problems are prop]ly solv$1 !re w rema9 l>ge intangible values on ! well-design$ plants4 ,x is fur!r cont5d$ t ! "w ( valuation %\ld sep>ate ! tangible & intangible elem5ts1 s t ! fur!r "w ( rate-mak+ or assessm5t may n be complicat$ by improp] elem5ts :i* are includ$ among ! items ( ! physical prop]ties4 ,9 consid]ation ( fran*ise value1 ! hi/ory ( ! corporation %\ld be inve/igat$ ) a view to det]m9e :at "p ! public play$ 9 ! creation ( ! prop]ty4 ,! grant+ ( aid bonds1 ( public l&s1 & ( aid money to railroads1 ! giv+ ( enc\ragem5t to wat]-works companies by ! paym5t ( excessive hydrant r5tals1 are illu/rations ( ! fo/]+ & developm5t ( public s]vice utilities by ! public to su* an ext5t z to ju/ify 9 a l>ge measure ! claim t 9 _m cases ! all[ance ( an intangible value is improp] z aga9/ ! public4 ,a fur!r consid]ation 9 ! matt] ( intangible values is ! fact t !y all p>take m or less ( ! nature ( good w1 & ! "q v prop]ly arises1 9 ! case ( a pur*ase by ! public1 or ( a rate-mak+ valuation3 ,%\ld ! public be compell$ to pay = its own good w8 ,9 ! case ( su* a corporation z a /reet-railway company 9 a l>ge city1 any value aris+ f a surplus ( e>n+s is due to ! fran*ise1 e/abli%$ bus9ess1 or go+ value1 or good w ( ! citiz5s ( t city4 ,?is elem5t ( value frequ5tly su/a9s an excessive bond indebt$ness4 ,at ! expiration ( ! fran*ise p]iod ! citiz5s ( t city consid] a pur*ase1 & are ask$ to pay1 among o!r ?+s1 = _! own good w4 ,9 view ( ! attitude ( ! ,f$]al ,c\rts 9 ! ,consolidat$ ,gas ,case1 & ! language ( ! l[] ,c\rt 9 disall[+ ! item ( good w1 :i* judgm5t 0 su/a9$ by ! ,supreme ,c\rt1 x is v evid5t t any attempt to fix arbitr>ily a value on su* an item 9 an appraisal is n likely to be support$ successfully4 ,! gr\nds nam$ by ! ,c\rt are3 ,tangible prop]ty has a value ap>t f any fran*ise or good w value4 ,! fran*ise1 conf]r+ ! privilege to be a corporation1 to use public prop]ty1 to be free f competition1 & to enjoy _m o!r privileges1 has "s value ap>t f tangible prop]ty4 ,good w c h no exi/5ce z ap>t f or deta*$ f ! fran*ise conf]r+ ! necess>y privilege4 ,su* good w 7by itself7 is n capable ( be+ capitaliz$ & di/ribut$ among /ockhold]s4 ,citiz5s are entitl$ to h gas 7or wat]7 because !y pay = x1 exactly z !y are entitl$ to h clean /reets 7&1 9 ! same way1 police protection or fire protection71 because !y pay taxes among o!r ?+s = t4 ,! ,c\rt1 !re=e1 f9ds t !re is no good w value 9 connection ) ! gas bus9ess 9 ! ,city ( ,new ,york1 al?\gh x is said1 else:]e 9 ! f9d+1 t x is ! be/1 mo/ favorably locat$1 & mo/ prosp]\s bus9ess ( its k9d 9 ! c\ntry4 ,judge ,tayl]1 9 ! ,clevel& ,railway arbitration1 says3 ,i all[ no?+ = good w4 ,a /reet railway company :i* has a monopoly1 & especially if x has a fran*ise value rema9+1 c h no good w value4 ,judge ,lurton1 9 ! ,omaha ,wat]-,works ,case1 says3 ,t k9d ( good w1 z sugge/$ 9 ,willcox vs4 ,consolidat$ ,gas ,co41 is ( little or no comm]cial value :5 ! bus9ess is1 z "h1 a natural monopoly ) :i* he mu/ deal1 :e!r he w or no4 ,9 connection ) a consid]ation ( fran*ise values1 ! foll[+ po9ts are rais$ by ! ,f$]al ,c\rt 9 ! ,consolidat$ ,gas ,cases 7#aeg ,f$41 #hgb-hgi73 ,%\ld a corporation h a "r to dem& an income return1 sep>able f any return ^u its tangible prop]ty1 f its "r to place gas ma9s 9 ! public /reets & ma9ta9 !m = its private pr(it1 a "r :i* x did n buy f city or /ate or pay !re= any legal valuable consid]ation8 ,! ,c\rt ?9ks n1 because ',return c be expect$ only f inve/m5t1 & he t inve/s mu/ "p ) some?+ 9 ! act ( inve/+4' ,does any company inve/ its fran*ise 9 its bus9ess8 ,x does n "p ) its fran*ise 9 ! same way x p>t$ ) money or money's wor? 9 acquir+ or creat+ ma9s or plants4 ,! inve/m5t ( prop]ty 0 made1 n 9 ! fran*ise1 b "u ! fran*ise1 & on ! fai? !re(4 ,! fran*ise is b a "p ( ! p[] or sov]eignty1 allott$ to a private p]son = ! b5efit ( all1 & only incid5tally giv5 = private emolum5ts4 ,:at is ! value ( a fran*ise to p]=m a c]ta9 s]vice1 "u :i* no money is inve/$ & no s]vice yet p]=m$8 ,:at is x wor? ap>t f p]=mance "u x8 ,unless x c be se5 to possess inh]5t value entirely ap>t f ! e>n+ capacity ( ! subsequ5t inve/m5t or f ! actual e>n+s result+ f su* inve/m5t1 ! value ass]t$ or claim$ is b a duplication ( t d]iv$ f ! use ( ! tangible prop]ty :5 s inve/$4 ,! concepts ( ! nature & value ( fran*ises are se5 dimly & confus$ly because ( ! failure to di/+ui% betwe5 productive & non-productive prop]ty4 ,l&1 money1 *attels may by indu/ry & intellig5ce be made productive )\t a fran*ise2 b no excell5ce 9 ^! desirable qualities c ultimately r5d] a fran*ise productive )\t ! use ( money1 *attels1 & l& 9 connection !re)1 & :5 ! juncture is made ! e>n+ capacity ( ! real & p]sonal prop]ty1 plus ! fran*ise & plus intellig5ce & indu/ry1 is really no great] ?an x w\ld be )\t ! fran*ise1 = ! fran*ise has add$ no produc+ p[] to ! realty or p]sonalty2 x has b au?oriz$ _! employm5t 9 a p>ticul> way & protect$ ! own]s :ile s employ+ !m4 ,! ,c\rt emphasiz$ ! fact t ! p>ticul> way 9 :i* !y are us$ is 9 p]=m+ a function ( ! ,/ate--9 do+ a s]vice = ! public :i* ! public might d equally well = itself1 9 ! foll[+ language3 ,i c imag9e no m ?an ?ree ways 9 :i* ! value ( a fran*ise c be /at$4 ,x is valuable3 7#a7 because x au?orizes ! ga9ful use ( private prop]ty 9 a p>ticul> mann]2 7#b7 because once obta9$ x is (t5 difficult or impossible to get ano!r l x2 7#c7 because x may be us$ to injure or h9d] ano!r ent]prise1 al?\gh itself conf]r+ or secur+ no?+ ( value4 ,! ?ird me?od ( /atem5t has be5 accurately1 ?\gh colloquially1 describ$ z a 'nuisance value1' & is s obvi\sly illegitimate z to require no discussion4 ,! second me?od ( /atem5t1 :5 c>efully consid]$1 ass]ts t because ! sov]eign has deem$ x advisable to entru/ a public "w to "o citiz5 or a body ( citiz5s su* quasi monopoli/ic grant conf]s ! "r to *>ge = ! s]vice m ?an w\ld be j or lawful 7 ! occupation op5 to all4 ,nor does x *ange ! tru? ( ! la/ /atem5t t ! difficulty ( procur+ fran*ises produces1 & long has produc$1 a traffic 9 !m4 ,on e private sale ( fran*ise prop]ty1 ! price paid is s mu* money lo/ to ! public by (ficial incompet5ce or worse1 & su* sale c conf] on ! v5dee no "r to compel ! consum] to repay him a price t %\ld h be5 paid to ! ,/ate4 ,= ^! reasons1 ,i believe t on pr9ciple a fran*ise %\ld be held to h no value except t aris+ f its use z a %ield to protect ^? inve/+ _! prop]ty on ! fai? !re(1 & t1 x r5d]s fruitful1 x possesses no m economic value = ! inve/or ?an does an actual %ield possess fight+ value1 ap>t f ! soldi] :o be>s x4 ,x w n d to leave ?is decision )\t call+ att5tion to ! fact t ! =ego+ quotations are b argum5t advanc$ by ! ,c\rt1 & t he f\nd a fran*ise value1 foll[+ ! reason+ ( ! ,supreme ,c\rt 9 cases cit$ h]et(ore1 & o!r cases1 & ^u ! doctr9e t3 ,private citiz5s may acquire ve/$ prop]ty rights ?r\gh a s]ies ( ev5 errone\s decisions2 rights s firmly ve/$ t x becomes uncon/itutional = ! c\rt :i* p]si/$ 9 error sudd5ly to rectify its mi/akes to ! detrim5t ( ^? :o _h securely re/$ ^u ! decisions s\ght to be invalidat$4 ,aft] cit+ num]\s cases1 & consid]+ me?ods ( valu+ fran*ises1 ! ,c\rt says3 ,i ?9k x obvi\s1 z ,i h endeavor$ h]et(ore to po9t out1 t ei!r = ! purpose ( condemnation or regulation ! value ( a fran*ise dep5ds :olly ^u :at is e>n$ "u x & ,i believe ! be/ way ( f9d+ out h[ mu* a fran*ise1 sep>ately consid]$1 is wor?1 is to asc]ta9 :at ^? p]sons desir\s ( cont9u+ op]ation "u x consid] x to be wor?4 ,9 a corporation ^: /ock is freely b\ght & sold1 su* value is measur$ by ! success att5d+ ! sale ( /ock bas$ entirely ^u capitalization ( ! fran*ise2 yet ! value ( /ock issu$ only 9 consid]ation ( ! fran*ise is obvi\sly dep5d5t on e>n+s aft] ! /ock bas$ on tangible prop]ty has receiv$ a satisfactory divid5d 99 99 99 yet x w always be true t1 unless ! :ole net return1 comp>$ ) ! value ( tangibles1 is above a satisfactory return on tangible inve/m5t alone1 ! addition ( /ock issu$ = fran*ise w be reg>d$ z 'wat]1' & detract f ! value ( ! entire issue1 & ,i ?9k ?is conclusive pro( t value on a fran*ise dep5ds :olly on :at actual inve/m5t c e>n4 ,9 ?is p>ticul> in/ance /ock to ! am\nt ( #g1gha1jjj _h be5 issu$ 9 #ahhd & divid$ among /ockhold]s )\t any consid]ation1 :i* /ock repres5t$ ! company's own valuation ( its fran*ise at t date4 ,! ,c\rt1 9 fix+ a value1 held t x w\ld be prop] to increase x proportionately to ! increase 9 tangible prop]ty2 ?is he did1 fix+ ! fran*ise value at m ?an #ab1jjj1jjj4 ,! ,supreme ,c\rt ( ! ,unit$ ,/ates1 9 dispos+ ( ?is1 says 7#bab ,u4 ,s41 #dg73 ,b al?\gh ! /ate ought = ^! reasons applicable to ?is case--n g5]al1 to be b\nd to recognize ! value agre$ ^u 9 #ahhd z "p ( ! prop]ty ^u :i* a reasonable return c be dem&$1 we d n ?9k an increase 9 t valuation ought to be all[$ ^u ! !ory sugge/$ by ! ,c\rt bel[4 ,because ! am\nt ( gas suppli$ has increas$ to ! ext5t /at$1 & ! o!r & tangible prop]ty ( ! corporations has increas$ s l>gely 9 value1 is n1 z x seems to u1 any reason = attribut+ a l proportional increase 9 ! value ( ! fran*ises4 ,real e/ate may h increas$ 9 value v l>gely1 z also ! p]sonal prop]ty1 )\t any necess>y increase 9 ! value ( ! fran*ises4 ,its pa/ value 0 f\nd$ ^u ! opportunity ( obta9+ ^! enorm\s & excessive returns ^u ! prop]ty ( ! company1 )\t legislative int]f]5ce ) ! price = ! supply ( gas1 b t immunity = ! future 01 ( c\rse1 unc]ta91 & ! mom5t x ceas$ & ! legislature r$uc$ ! e>n+s to a reasonable sum1 ! great value ( ! fran*ises w\ld be at once & unfavorably affect$1 b h[ mu* s x is n possible = u to see4 ,! value w\ld mo/ c]ta9ly n increase4 ,! ,c\rt did n concur 9 ! increase ( ! fran*ise value1 &1 9 dismiss+ ?is subject1 says3 ,:at has be5 said h]e9 reg>d+ ! value ( ! fran*ises 9 ?is case has be5 necess>ily f\nd$ ^u its own peculi> facts1 & ! decision c =m no prec$5t 9 reg>d to ! valuation ( fran*ises g5]ally :]e ! facts are n simil> to ^? 9 ! case be=e u4 ,x appe>s1 !n1 f ?is1 ! late/ case1 t3 #a4--,! view ( ! l[] ,c\rt t a fran*ise or intangible value is n sep>able1 & t if !re be a value x mu/ be det]m9$ f ! e>n+s1 is concurr$ 9 by ! ,supreme ,c\rt4 #b4--,t ! arbitr>y increase ( fran*ise value1 by ! l[] ,c\rt1 proportional to ! normal increase ( ! physical prop]ty1 is n concurr$ 94 #c4--;,inf]5tially1 x appe>s t ! acquiesc5ce ( ! ,/ate 9 ! fran*ise value ( #ahhd is ! ma9 reason = p]mitt+ t value to /&1 & x w\ld seem to foll[1 f ! reason+ ( ! ,c\rt1 t x is v que/ionable :e!r any fran*ise or intangible value bas$ on excessive rates %\ld be all[$ to /&4 ,ano!r view ( fran*ise values1 z /at$ by ,george ,h4 ,b5z5b]g1 ,pa/-,presid5t1 ,am4 ,soc4 ,c4 ,e41 9 discuss+ wat]-works fran*ises1 is z foll[s3 ,"s cont5d t a fran*ise is simply & purely a privilege giv5 by ! municipality to a wat] company to utilize ! /reets = ! purpose ( lay+ a sy/em ( pipes ?r\gh :i* x may di/ribute & deliv] wat]4 ,x is n a lic5se to d bus9ess1 b a privilege to use public /reets1 alleys1 & gr\nds4 99 99 99 ,if t int]pretation is ! prop] "o1 ! value ( ! fran*ise1 if ! prop]ty is to be pur*as$ by a municipality1 is comp>atively no?+4 ,if ! prop]ty is to be pur*as$ by ano!r company1 x repres5ts all ( ! great value t su* fran*ise possesses to ! orig9al hold]1 toge!r ) all ! privilege x conf]s2 b 9 ! ev5t x is pur*as$ by ! city1 x is dispossess$ ( t c]ta9 elem5t ( value1 & ,i ?9k = t reason x is /ipulat$ 9 _m ( ! ord9ances t no value %all be plac$ on ! fran*ise by apprais]s4 ,9 ! p>agraph j quot$1 x is evid5t t ! t]m fran*ise is us$ 9 a re/rict$ s5se1 & ref]s to ! ord9ance or contract f a municipal corporation grant+ ! "r to op]ate on specific t]ms1 r ?an ! broad use ( ! ^w z indicat+ all rights d]iv$ f g5]al laws or special contracts or grants4 ,! po9t1 h[ev]1 is applicable to ! case ( any corporation occupy+ public gr\nd4 ,x is believ$ t en\gh argum5t has be5 adduc$ to %[ t any attempt to give sep>ate value to ! diff]5t elem5ts t ent] into ! intangible value ( a prop]ty is a v risky proce$+ on ! "p ( apprais]s1 & to support fur!r ! cont5tion t1 z a bus9ess proposition1 ! value ( any prop]ty dep5ds on its e>n+s2 t ! fran*ise simply protects ! own]s ( ! prop]ty 9 _! enjoym5t ( ^? e>n+s2 t ! value ( ! fran*ise m]ges 9 ! fair value ( ! prop]ty1 & t ! fran*ise c h no special value ( itself unless ! e>n+s ( ! prop]ty are 9 excess ( a usual & fair rate on ! actual inve/m5t4 ,9 case !re are surplus e>n+s1 !y measure & det]m9e n only ! value ( ! fran*ise1 b also ! value ( all o!r non-physical elem5ts4 ,if ?is be true1 any readju/m5t ( rates1 any re/riction ( op]ations1 or o!r =m ( legislative control :i* w\ld unfavorably & viol5tly affect e>n+s1 is b\nd to hold d[n fran*ise or non-physical values2 z x w\ld n seem possible to read into ! v>i\s decisions any int5tion on ! "p ( ! ,c\rt to base ! "r to dem& fair return on any?+ b ! fair value ( ! prop]ty be+ us$4 ,! writ]1 !re=e1 rea*es ! foll[+ conclusions reg>d+ non-physical values3 #a4--,t all ! diff]5t non-physical elem5ts ( value are insep>able4 #b4--,t 9 ! case ( v _m prop]ties1 no non-physical value c atta*1 & 9 _m cases ?is value w be a negative or subtractive quantity4 #c4--,t 9 ! case ( prop]ties locat$ s z to secure ei!r a monopoly ( bus9ess 9 a conge/$ t]ritory1 or 9 :i* ! con/ruction1 location1 /rategic position1 or economic excell5ce ( design1 is su* t1 on a s*$ule ( rates :i* is fair & reasonable = competitors less advantage\sly situat$1 an e>n+ is secur$ :i* is 9 excess ( usual returns1 a non-physical value ( consid]able magnitude may v prop]ly be assign$4 #d4--,t1 = ! computation ( non-physical values1 ! income acc\nt ( ! prop]ty "u consid]ation af=ds ! only legitimate basis1 b ev5 !n consid]ation mu/ be giv5 to duration ( fran*ise1 reasonabl5ess ( rates1 & o!r modify+ conditions1 & also1 possibly1 ! purpose = :i* ! appraisal is made may det]m9e :e!r or n a non-physical value may be us$4 ,! language ( ! ,c\rt 9 ! ,knoxville & ,omaha cases app>5tly leaves ?is a v op5 "q4 ,?is br+s u sub/antially to ! conclusion rea*$ by ,pr(essor ,adams 9 #aijj1 & a c>eful /udy ( ! me?od laid d[n by him %[s no?+ t _c be accept$ z fair & reasonable4 ,8 plan %\ld be ext5d$ s z to cov] subtractive values or ! case ( prop]ties %[+ a deficit4 ,?is me?od has ! m]it ( be+ bas$ on ! actual e>n+s & exp5ses ( ! company "u inve/igation & on ! value ( ! physical prop]ty z already comput$4 ,x does n introduce a mass ( purely supposititi\s figures1 nor dep5d on hypo!sis4 ,! proposition is simply ?is3 ,if a prop]ty e>ns only its op]at+ exp5ses1 includ+ !re9 prop] depreciation res]ves1 taxes1 & su* a p]c5tage on its actual inve/$ capital z c\ld be e>n$ by t capital if inve/$ 9 good non-taxable bonds or o!r l security1 x is wor? no m ?an its physical prop]ty is wor?4 ,if x e>ns m ?an t1 x is due to ! fran*ise1 go+ conc]n1 or o!r intangible elem5ts ( value1 &1 to det]m9e t value1 capitalize ! surplus4 ,x takes sev]al ye>s = a prop]ty to rea* its normal e>n+ capacity aft] con/ruction is complet$1 &1 9 ! inve/igation ( a prop]ty ( comp>atively rec5t con/ruction1 :]e ! gross & net e>n+s %[ a /eady annual increase1 ! application ( a negative or subtractive value %\ld be made ) great caution2 b :]e ! e>n+s h be5 fairly uni=m & /ation>y = a p]iod ( ye>s1 & ! prop]ty does n e>n a suffici5t sum to c>e = depreciation & annuity1 x is cle> t ! value z an e>n+ inve/m5t is less ?an ! det]m9$ physical value1 & t ! physical valuation %\ld be r$uc$ by "s am\nt to arrive at ! fair value4 ,! ,c\rts hold t public s]vice corporations are entitl$ to e>n3 7a7 ,op]at+ exp5ses1 7b7 ,exp5ses ( ma9t5ance & runn+ repair1 7c7 ,taxes1 7d7 ,a s9k+ fund f e>n+s to cov] depreciation & obsolesc5ce1 & 7e7 ,a reasonable pr(it on ! fair value ( ! prop]ty4 ,an inve/igation ( non-physical values %\ld !n include an analysis ( op]at+ exp5ses1 to det]m9e t additions & bett]m5ts to prop]ty are n includ$ !re94 ,! g5]al practice ( corporations 9 ! pa/ has be5 to ignore any res]ve to cov] depreciation & obsolesc5ce4 ,if1 at ! beg9n+ ( op]ations ( any prop]ty1 su* a sum %\ld be annually set aside out ( e>n+s z %\ld1 :5 inve/$ z a s9k+ fund1 ma9ta9 ! integrity ( ! inve/m5t1 !n ?is amortization fund at any p]iod1 plus ! depreciat$ value ( ! physical prop]ty1 %\ld equal ! am\nt ( ! total capital actually inve/$ 9 ! prop]ty4 ,9 mo/ cases ?is has n be5 done1 & ! ,supreme ,c\rt 9 ! ,knoxville ,wat] ,case holds t1 by reason ( ! failure to create su* a fund1 :e!r due to c>elessness1 excessive divid5ds1 or o!r cause1 ! company mu/ lose ! am\nt ( capital repres5t$ by ! depreciation t has tak5 place4 ,9 mak+ a computation ( intangible values1 x is c]ta9ly prop] to consid] ! income acc\nt z av]ag$ ov] a p]iod ( ye>s1 to avoid viol5t fluctuations ( gross or net e>n+s1 & a depreciation res]ve %\ld be det]m9$ = su* ye>s1 z x _c be claim$ t1 unless su* an amortization fund is e>n$1 9 addition to o!r op]at+ exp5ses & taxes1 !re is any non-physical value4 ,pr(essor ,adams cov]$ ! depreciation 9 ! ,mi*igan "w 9 ! #d annuity :i* 0 d$uct$ be=e non-physical values 7 comput$4 ,! writ] is incl9$ to g a /ep f>!r ?an ,pr(essor ,adams1 & hold t1 be=e any intangible values c be atta*$ to ! prop]ty1 x %\ld e>n n only all op]at+ exp5ses1 taxes1 & res]ve = depreciation1 b also int]e/ on ! actual inve/m5t equival5t to ! return t w\ld be _h 7 ! money inve/$ 9 a non-taxable bond1 say #d1 & t any e>n+s 9 excess ( su* a sum might be t]m$ prop]ly e>n+s on fran*ise1 or intangible values4 ,on ?is basis1 !n1 a rule w\ld be =mulat$1 be+ t ( ,pr(essor ,adams1 ) "s modifications3 #a4--;,d$uct f gross e>n+s f op]ation ! aggregate ( op]at+ exp5ses1 includ+ 9 op]at+ exp5ses an annual s9k+ fund to amortize ! depreciation & obsolesc5ce1 & ! rema9d] may be t]m$ income f op]ation4 #b4--,to ?is income f op]ation add income f inve/m5t1 giv+ total income1 :i* repres5ts ! am\nt at ! disposal ( ! corporation = ! support ( its capital & = ! det]m9ation ( its annual surplus4 #c4--;,f total income1 d$uct taxes1 r5ts paid = lease ( op]at$ prop]ty 7provid$ su* prop]ty is n includ$ 9 ! appraisal71 & improvem5ts *>geable to income4 ,! rema9d] repres5ts ! income aft] all *>ges aga9/ op]ation ( prop]ty1 & ma9t5ance ( ! integrity ( ! capital inve/m5t h be5 c>$ =4 #d4--;,f ?is rema9d] 7#c7 d$uct su* a p]c5tage ( ! value ( ! physical prop]ty 7repres5t+ inve/$ capital7 z w\ld equal ! income ( t capital if inve/$ 9 gov]nm5t or o!r non-taxable bonds4 ,! rema9d] w\ld repres5t surplus1 :i*1 capitaliz$ at a prop] rate1 w\ld equal ! value ( intangible or non-physical prop]ties1 :i* is to be add$ to ! apprais$ value ( ! physical prop]ty4 #e4--;,if1 in/ead ( a surplus1 a deficit occurs1 a c>eful /udy ( all ! conditions surr\nd+ ! op]ations ( ! prop]ty %\ld be made1 &1 if !re be no reasonable expectation ( increase ( e>n+s1 or o!r modify+ conditions1 a prop] figure1 bas$ on ! av]age deficit1 %\ld be det]m9$1 &1 z a negative intangible value1 d$uct$ f ! value ( ! physical prop]ty4 #f4--;,9 ! det]m9ation ( rates1 to be us$ 9 comput+ income & = capitaliz+ surplus or deficit1 ! greate/ ( c>e mu/ be ex]cis$ to adopt su* figures z w be prop] & absolutely j4 ,,conclusion4 ,! subject ( valuation is s appall+ly great t1 not)/&+ ! l5g? ?is pap] has rea*$1 _m po9ts h n be5 cov]$4 ,no discussion ( ! me?od ( valuation by capitalization ( net e>n+s1 :i* is practically t adopt$ by ,pr(essor ,adams 9 8 comm]cial valuation1 has be5 attempt$2 nor has any attempt be5 made to describe ! /ock & bond me?od4 ,nei!r me?od is adaptable to ! requirem5ts ( any public appraisal4 ,! s-call$ ca% inve/m5t 9 prop]ty1 or ! actual co/ ( con/ruction ?r\gh ! entire hi/ory ( ! prop]ty1 _c be su/a9$ by any process ( argum5t z a prop] me?od ( valuation1 nor c ! me?od ( comput+ ! co/ ( con/ruction ( an adequate mod]n prop]ty assum$ to replace ! exi/+ prop]ty4 ,! scope ( a valuation mu/ be limit$ to ! prop]ty z x exi/s on ! date ( ! appraisal1 & x w\ld be equally fallaci\s to include non-exi/5t & long-p]i%$ facilities1 or to assume a hypo!tical & nev]-exi/+ prop]ty4 ,!re are _m intricate problems 9 connection ) a valuation = rate-mak+ or taxation :i* really belong to ^! und]tak+s1 n to valuation4 ,!y are usually br\ght into ! discussion ( valuation1 b h be5 "h exclud$4 ,among ^! are ! sep>ation ( int]/ate f intra-/ate bus9ess1 & o!rs1 ( great int]e/1 x is true1 b =eign to ! subject ( valuation4 ,! "q ( ! fair return on money inve/$ is n ref]r$ to1 = ! reason t x has no direct be>+ on valuation1 & = ! fur!r reason t x has be5 q exhau/ively discuss$ 9 ! pap]s li/$ 9 ! ,app5dix4 ,! writ] desires to make cle> ! fact t he is n advocat+ l[ rates p] se4 ,! rate mu/ be det]m9$ to meet ! special requirem5ts ( ea* inve/igation4 ,! ,supreme ,c\rt ( ,ma9e says 7#ig ,ma9e73 ,! reasonabl5ess ( ! rate may = a "t be affect$ by ! degree ( haz>d to :i* ! orig9al ent]prise 0 naturally subject$4 ,t is su* haz>d only z may h be5 ju/ly contemplat$ by ^? :o made ! orig9al inve/m5t1 & n un=ese5 & em]g5t risks1 & su* all[ances may be made z is dem&$ by ample & fair public policy4 ,:ile ! ,supreme ,c\rt ( ! ,unit$ ,/ates1 9 ,willcox vs4 ,consolidat$ ,gas 7#bab ,u4 ,s41 #ab71 fix$ a rate ( #e z reasonable 9 t in/ance1 !y said3 ,no p>ticul> rate ( comp5sation mu/ 9 all cases be reg>d$ z suffici5t = capital inve/$ 9 bus9ess ent]prises4 ,su* comp5sation mu/ dep5d greatly on circum/ances & locality4 ,among o!r ?+s ! am\nt ( risk 9 ! bus9ess is an important factor1 z well z ! locality :]e ! bus9ess is conduct$ & ! rate expect$ & usually realiz$ !re ^u inve/m5ts ( a some:at simil> nature ) reg>d to ! risk att5d+ !m4 ,!re may be o!r matt]s :i* 9 "s cases might also be prop]ly tak5 into acc\nt 9 det]m9+ ! rate :i* an inve/or might prop]ly expect or hope to receive & :i* he w\ld be entitl$ to )\t legislative int]f]5ce4 ,! less risk1 ! less "r to any unusual return ^u ! inve/m5ts4 ,9 view ( ^! dicta1 x is ne$less to argue :e!r a rate ( #f or #aj1 or #ae1 or m1 be reasonable4 ,! writ] has h]e9 endeavor$ to n>rate ! /ory ( ! ,mi*igan appraisal 9 "s detail1 to review briefly subsequ5t simil> "w1 to pres5t ! ma9 po9ts 9 ! legal decisions be>+ on appraisal practice1 & to pres5t 8 own views z to prop] & legitimate me?ods ( valuation 9 ! light ( judicial op9ions4 ,he has attempt$ to d ?is 9 ! _s ( absolute fairness1 )\t p]mitt+ ei!r e>ly ye>s ( tra9+ 9 corporation s]vice1 or m rec5t inve/igations = ,/ate & city1 to bias ! pres5tation ( tru?s4 ,! subject is "o :i* has n attract$ ! av]age citiz5 suffici5tly to compel him to give x deep /udy4 ,^? :o are famili> ) x all too frequ5tly h views bias$ by int]e/1 & x is h>dly conceivable t any f9al conclusion w be rea*$ until ea* & all ( ! ma9 issues are det]m9$ by ! ,c\rts4 ,:5 ?us det]m9$1 x w be done ) wisdom & ) ju/ice4 ,x is impossible to /udy ! cases ref]r$ to )\t be+ impress$ ) ! absolute fairness ( ?is great tribunal4 ,quotations f decisions h be5 includ$ at consid]able l5g? 9 ord] to obviate ! criticism t ! ref]5ces d n convey ! exact mean+ ( ! ,c\rts4 ,! writ] ackn[l$ges ! valuable sugge/ions1 criticisms1 & in=mation furni%$ him by ,pr(essors ,h5ry ,c4 ,adams1 ,mortim] ,e4 ,cooley & ,w4 ,d4 ,p5ce2 ,mr4 ,h5ry ,l4 ,gray1 ,eng9e] ( ! ,railroad ,commission1 ,wa%+ton2 ,mr4 ,d4 ,f4 ,jurg5s51 ,eng9e]1 ,railroad & ,w>eh\se ,commission1 ,m9nesota2 ,mr4 ,bion ,j4 ,arnold1 & o!rs :o h made possible ! pres5tation ( data reg>d+ ,/ate & o!r appraisals4 ,bibliography4--,accompany+ ?is pap] w be f\nd a bibliography ( ! pr9cipal articles on ! subject ( prop]ty valuation4 ,,app5dix ,,bibliography4 ,railroad ,valuation4-- ,! ,appraisal ( ,plants = ,public ,s]vices4 ,ni*olas ,s4 ,hill1 ,jr4 ,! ,eng9e]+ ,record1 ,june #h?1 #aija4 ,a review ( ! pr9ciples on :i* a prop]ty is valu$ :5 pur*as$ by private p>ties or by municipalities4 ,! ,value ( ,railways & ,_! ,capitalization4 ,h4 ,t4 ,newcomb4 ,railroad ,gazette1 ,augu/ #bi?1 #aijb4 ,ab/ract f ,yale ,review1 ,augu/1 #aijb4 ,! ,c5sus ,(fice ,railroad ,valuation4 7,editorial47 ,railroad ,gazette1 ,septemb] #a/1 #aije4 ,a discussion ( ! "w ( ,pr(essor ,h5ry ,c4 ,adams1 ,/ati/ician ( ! ,int]/ate ,comm]ce ,commission1 & 8 assi/ants4 ,railroad ,taxes & ,plans = ,asc]ta9+ ! ,fair ,valuation ( ,railroad ,prop]ty4 ,! ,railway ,age1 ,septemb] #h?1 #aije4 ,report pres5t$ at ! meet+ ( ! ,national ,association ( ,railroad ,commission]s1 at ,deadwood1 ,s4 ,dak4 ,railroad ,valuations 9 ,/ate ,reports4 ,pr(essor ,h>old ,m4 ,b[man4 ,railroad ,gazette1 ,septemb] #h?1 #aije4 ,ab/ract ( a report1 :i* expla9s briefly ! sy/ems ( valuation provid$ = by ! laws ( ! sev]al ,/ates1 ) a critical review ( ! sy/ems & adm9i/rative reports4 ,! ,det]m9ation ( ,physical ,values4 ,cl9ton ,s4 ,burns1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,! ,eng9e]+ ,record1 ,septemb] #af?1 #aije4 ,pres5ts a ma!matical =mula = fix+ depreciation on articles1 bas$ on age1 ) q a complete demon/ration ( ! !ory pres5t$4 ,valuation ( ,railroad ,prop]ty1 ,h5ry ,f9k4 7,s]ial47 ,railway ,age ,gazette1 ,july #bd?1 #aijh1 et seq4 ,a brief review ( sev]al me?ods4 ,! ,valuation ( ,railways4 7,s]ial47 ,railway ,age ,gazette1 ,janu>y #bb;d1 #aiji1 et seq4 ,a ?or\gh discussion ( ! subject1 & "o ( ! be/ pres5tations ( x f a rational corporation /&po9t4 ,"s ,neglect$ ,factors ( ,fair ,valuation4 7,editorial47 ,railway ,age ,gazette1 ,m>* #e?1 #aiji4 ,railway ,capital & ,values4 ,w4 ,h4 ,williams4 7,s]ial47 ,railway ,age ,gazette1 ,april #b;d1 #aiji1 et seq4 ,an address sett+ =? at l5g? ! views ( ! railway manag]s :o oppose valuation ( prop]ty = any purpose4 ,valuation ( ,/reet ,railway ,prop]ties4 ,electric ,railway ,j\rnal1 ,june #ai?1 #aiji4 ,a g5]al discussion ( ! subject4 ,comm]cial ,valuation ( ,railway ,op]at+ ,prop]ty 9 ! ,unit$ ,/ates3 #aijd4 ,bullet9 #ba1 ,unit$ ,/ates ,bureau ( ! ,c5sus4 ,conta9s an exhau/ive discussion ( sundry me?ods ( valuation4 ,! mo/ complete s]ies ( pap]s on valuation yet publi%$4 ,! ,*icago ,appraisal4-- ,report to ! ,common ,c\ncil on ,railroad ,valuation4 ,b4 ,j4 ,arnold1 ,m4 ,am4 ,soc4 ,c4 ,e41 ,m4 ,e4 ,cooley1 & ,a4 ,b4 ,du ,pont4 ,! ,mi*igan ,appraisal4-- ,exp]t ,valuation ( ,railway & ,o!r ,corporate ,prop]ty 9 ,mi*igan4 ,e4 ,e4 ,r4 ,tratman1 ,assoc4 ,m4 ,am4 ,soc4 ,c4 ,e4 ,eng9e]+ ,news1 ,decemb] #bj?1 #aijj4 ,a descriptive pap]4 ,:at is ! ,value ( a ,railroad = ! ,purpose ( ,taxation8 ,*>les ,hansel1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,railroad ,gazette1 ,april #ai?1 #aija4 ,discussion ( ! "w done by ,pr(essor ,m4 ,e4 ,cooley1 & on valuation 9 g5]al4 ,mi*igan ,railroad ,appraisal--,valuation ( ,physical ,prop]ties4 ,pr(essor ,mortim] ,e4 ,cooley4 ,bullet9 #ba1 ,u4 ,s4 ,bureau ( ! ,c5sus1 p4 #gf4 ,mi*igan ,railroad ,appraisal--,valuation ( ,non-,physical ,elem5ts ( ,railway ,prop]ty4 ,pr(essor ,h5ry ,c4 ,adams4 ,bullet9 #ba1 ,u4 ,s4 ,bureau ( ! ,c5sus1 p4 #gh4 ,! ,m9nesota ,appraisal4-- ,valuation ( ,railway ,prop]ty4 ,a4 ,s4 ,cutl]4 ,ye> ,book1 ,univ]sity ( ,m9nesota1 #aijh4 ,an acc\nt ( ! me?ods us$ = obta9+ & *eck+ ! in=mation4 ,report on ! ,valuation ( ,railways 9 ,m9nesota1 ,janu>y1 #aiji4 ,m9nesota ,/ate ,railroad ,commission4 ,valuation ( ,railways 9 ,m9nesota4 ,railway ,age ,gazette1 ,febru>y #e?1 #aiji4 ,a descriptive article4 ,! ,texas ,appraisal4-- ,railroad ,fran*ise ,values 9 ,texas4 ,w4 ,h4 ,cov]dale1 ,assoc4 ,m4 ,am4 ,soc4 ,c4 ,e4 ,railroad ,gazette1 ,febru>y #ab?1 #aijd4 ,discussion ( me?ods us$ 9 ,texas4 ,me?ods ,us$ by ! ,railroad ,commission ( ,texas ,"u ! ,/ock & ,bond ,law1 9 ,valu+ ,railroad ,prop]ties4 ,r4 ,a4 ,?ompson1 ,assoc4 ,m4 ,am4 ,soc4 ,c4 ,e41 ) discussion by ,messrs4 ,e4 ,l4 ,cor!ll1 ,f4 ,lavis1 ,w4 ,h4 ,cov]dale1 & ,w4 ,d4 ,taylor4 ,transactions1 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lii1 p4 #cbh1 et seq4 ,! ,wa%+ton ,appraisal4-- ,report to ! ,wa%+ton ,railroad ,commission on ! ,valuation ( ,railways 9 ,wa%+ton4 ,halb]t ,p4 ,gillette1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,eng9e]+-,contract+1 ,april #g?1 #aiji4 ,! ,wiscons9 ,appraisal4-- ,wiscons9 ,railroad ,valuation4 ,w4 ,d4 ,taylor1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,bullet9 #ba1 ,u4 ,s4 ,bureau ( ! ,c5sus1 p4 #hb4 ,! ,appraisem5t ( ! ,physical ,value ( ,wiscons9 ,railways = ! ,purpose ( ,taxation4 ,w4 ,d4 ,taylor1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,eng9e]+ ,news1 ,m>* #ca/1 #aijd4 ,discussion on ,valuation ( ,railroad ,prop]ties4 ,w4 ,d4 ,taylor1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,transactions1 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lii1 p4 #cec4 ,report to ! ,tax ,commission4 ,w4 ,d4 ,taylor1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,report ( ! ,wiscons9 ,tax ,commission1 #aijg1 p4 #bfi4 ,! ,"w ( ! ,jo9t ,eng9e]+ ,/aff ( ! ,wiscons9 ,tax & ,railroad ,commissions4 ,w4 ,d4 ,p5ce1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,j\rnal1 ,we/]n ,society ( ,eng9e]s1 ,vol4 ,,xiv1 p4 #gc4 7,ab/ract47 ,eng9e]+ ,news1 ,m>* #d?1 #aiji4 ,wat]-,works ,valuation4-- ,wat]-,works ,valuation & ,fair ,rates1 9 ! ,light ( ! ,ma9e ,supreme ,c\rt ,decisions1 9 ! ,wat]ville & ,brunswick ,cases4 ,leon>d ,metcalf1 ,m4 ,am4 ,soc4 ,c4 ,e4 ,transactions1 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lxiv1 p4 #a4 7,a complete bibliography ( ! subject ( wat]-works valuation may be f\nd on p4 #fi ( ,mr4 ,metcalf's pap]47 ,,table ,,( ,,cont5ts4 ,,page ,,introductory #a ,reasons = ,valuation #b ,z a ,matt] ( ,public ,int]e/ #b ,z a ,matt] ( ,corporation ,necessity or ,exp$i5cy #c ,difficulties ( ,accurate ,valuation ,enc\nt]$ #d ,,! ,,relation ,,( ,,public ,,s]vice1 ,,or ,,quasi-,,public ,,corporations1 ,,to #f ,,! ,,p ,supreme ,c\rts #h ,regulation & ,legislation #aj ,,explanation ,,( ,,t]ms #af ,appraisal or ,valuation #af ,co/ ( ,reproduction #af ,co/1 or ,orig9al ,co/ #af ,pres5t ,value1 or ,pres5t ,physical ,value #af ,non-,physical1 or ,intangible1 ,value #ag ,elem5ts ( ,f9al ,value #ah ,! ,physical ,prop]ty ,elem5t ( ,value #ah ,! ,non-,physical or ,intangible ,elem5ts ( ,value #ah ,true ,me?od ( ,valuation #ai ,,! ,,mi*igan ,,/ate ,,appraisals #bj ,organization #bj ,adm9i/ration #bj ,civil ,eng9e]+ #bj ,me*anical ,eng9e]+ #bj ,telegraphs #bj ,telephones #ba ,vessel ,prop]ties #ba ,me?ods ( ,proc$ure #ba ,difficulties #bb ,lack ( ,complete ,und]/&+ on ! ,"p ( ! ,/ate #bb ,(ficials ,! ,attitude ( ! ,railroad ,corporation ,manag]s #bb ,! ,confus$ ,condition ( ! ,records #bb ,=ms ,us$ #bc ,bo>d ( ,review #cf ,(fice & ,field ,me?ods #cg ,mak+ ! ,inv5tories #ch ,(fice ,inspection z a ,*eck on ,field ,"w #ci ,field ,inspection #dj ,special ,"w on ! ,*icago & ,nor?we/]n ,railway #dj ,special ,valuations #da ,computation #db ,fil+ 9 ,(fice #db ,computation ,tables #dc ,unit ,prices #dc ,classification #de ,compilation #df ,special ,problems ( ! ,me*anical ,dep>tm5t #df ,assignm5t ( ,value to ,/ates #df ,freight ,c> ,inspection #dg ,locomotives #dh ,vessels #dh ,ov]head ,*>ges #di ,eng9e]+ #di ,legal ,exp5se #di ,organization ,exp5se #di ,int]e/ #di ,disc\nt on ,bonds #di ,! ,*>ge ( ,t5 ,p] ,c5t4 = ,cont+5cies #ej ,"r-(-,way ,values #eb ,comp>ison ( ,c\ntry ,l& ,values #ei ,av]age ,price p] ,acre = ,village ,l& #fc ,comp>ison ( ,valuation ,figures ) ,actual ,consid]ations #fd ,non-,physical ,values #fd ,hi/ory & ,results ( ! ,mi*igan ,appraisal #fg ,m>ket ,value ( ,/ocks & ,bonds #fg ,error 9 ,publi%$ ,reports z to ,mi*igan ,"w #fg ,! ,co/ ( ! ,"w #fi ,gr& ,summ>y ( ,railroad ,appraisal ( #aijj z to #gj ,sev5ty-eight ,incorporat$ ,railroads ,! ,result ( ! ,mi*igan ,appraisal #gj ,,railroad ,,appraisal ,,( ,,! ,,/ate ,,( ,,texas #ga ,au?ority = ! ,"w #ga ,me?od ( ,physical ,appraisal #gb ,! ,result ( ! ,texas ,"w #gc ,,railroad ,,appraisal ,,( ,,! ,,/ate ,,( ,,wiscons9 #ge ,,! ,,m9nesota ,,/ate ,,railway ,,appraisal #gg ,l& ,valuation #gh ,=ms ,us$ 9 ! ,compilation ( ,in=mation #gi ,,! ,,wa%+ton ,,/ate ,,appraisal #gi ,,! ,,valuation ,,( ,,traction ,,prop]ties ,,9 ,,*icago #id ,,! ,,comm]cial ,,valuation ,,( ,,railway ,,op]at+ ,,prop]ty ,,( ,,! #ig ,,dep>tm5t ,,( ,,comm]ce ,,& ,,labor ,,! ,,ext5t ,,( ,,appraisal ,,practice #ii ,,review ,,( ,,"s ,,me?ods ,,( ,,valuation1 ,,& ,,"s ,,( ,,! ,,criticisms ,,on #aja ,,! ,,mi*igan ,,appraisal ,,! ,,det]m9ation ,,( ,,elem5ts ,,( ,,value ,,& ,,me?ods ,,( ,,valuation ,,by #aab ,,! ,,c\rts ,,physical ,,values ,,& ,,me?ods ,,= ,,_! ,,det]m9ation #abh ,! ,prelim9>y ,/udy #acb ,! ,field ,inspection #ace ,! ,computation #acf ,classification ( ,prop]ties #acg ,unit ,values #ach ,"r ( ,way & ,real ,e/ate #aci ,depreciation #ada ,immat]ial ,elem5ts ( ,physical ,prop]ty #adb ,organization #adc ,legal ,exp5se #adc ,eng9e]+ #adc ,adm9i/ration #adc ,g5]al ,exp5se #adc ,disc\nt #ade ,work+ ,capital #ade ,cont+5cies #ade ,design #adf ,adaptation #adf ,apportionm5t ( ,values #adg ,t]m9als #adg ,developm5t ( ! ,art #adh ,! ,prep>ation ( ! ,f9al ,figure #aej ,,non-,,physical ,,values ,,& ,,me?ods ,,= ,,_! ,,det]m9ation #aej ,go+ ,conc]n ,value #aed ,develop$ ,bus9ess #aee ,co/ ( ,h&l+ ,bus9ess #aee ,good ,w & ,e/abli%$ ,organization #aee ,fran*ise ,values #aef ,conclusions ,reg>d+ ,non-,physical ,rules = ,det]m9ation #afe ,,conclusion #afe ,,bibliography #afh ,railroad ,valuation #afh ,! ,*icago ,appraisal #afi ,! ,mi*igan ,appraisal #afi ,! ,m9nesota ,appraisal #afi ,! ,texas ,appraisal #afi ,! ,wa%+ton ,appraisal #agj ,! ,wiscons9 ,appraisal #agj ,wat]-,works ,valuation #agj ,,discussion ,,fr$ ,,lavis1 ,m4 ,,am4 ,,soc4 ,c4 ,e4--,! au?or /ates t 8 pap] is conf9$ to a discussion ( ! me?ods :i* %\ld be us$ 9 arriv+ at a correct figure ( co/ ( reproduction & depreciation1 & t x does n take up que/ions involv+ ! propriety ( ^? figures :5 rea*$4 ,9 s f> z ?is is conc]n$1 x is probably ! mo/ complete compilation ( ! available in=mation on ?is phase ( ! subject :i* has yet appe>$ 9 pr9t4 ,! au?or refuses to recognize t ! consid]ation ( ! s-call$ intangible values has any place 9 a physical valuation4 ,z1 h[ev]1 !re exi/s su* a widespread feel+1 especially among ^? int]e/$ 9 railroads1 t physical valuations1 = any purpose :atev]1 are absolutely useless1 because ^! intangible values are n or _c be includ$1 x does n seem out ( place to ref] to ?is phase ( ! subject at ?is "t1 & m especially 9 view ( ! fact t _m p]sons1 ! prom95ce ( ^: position entitles !m to consid]ation1 h tak5 ?is po9t ( view v rec5tly1 & _! rem>ks h receiv$ consid]able publicity4 ,n m ?an two weeks ago1 ,judge ,lovett1 ! head ( ! ,h>riman ,sy/em1 express$ ! op9ion t ! !ory ( valu+ railroad prop]ty by try+ to det]m9e ! co/ ( reproduction 0 utt]ly impractical4 ,x seems important1 !re=e1 t we1 z eng9e]s1 int]e/$ 9 hav+ ! "q prop]ly und]/ood1 %\ld be c>eful1 9 ref]r+ to valuation1 to make x pla9 t o!r features besides ! value ( ! physical prop]ty are to receive due consid]ation4 ,! speak]1 !re=e1 proposes to exam9e "s ( ! argum5ts advanc$ by ! oppon5ts ( valuation to see if ! objections mo/ g5]ally br\ght =w>d are insup]able4 ,"s critics ( valuation g s f> z to say t eng9e]s _c make a close valuation ( ev5 ! purely physical prop]ty4 ,= in/ance1 ,mr4 ,w4 ,h4 ,williams1 ,vice-,presid5t ( ! ,delaw>e & ,hudson ,company1 9 a pap] on ?is subject1#ai /ates t3 ,no eng9e] 9 e/imat+ on ! sev]al important items ( con/ruction "w = ! ye> w come )9 #aj p] c5t4 ( ! total aggregate co/4 ,_m ( ! m important items are frequ5tly und]e/imat$ #be to #ej p] c5t4 ,he cites1 z an especially good illu/ration1 ! ,panama ,canal1 ! orig9al e/imate ( ! co/ ( :i* 0 #adj1jjj1jjj1 ?\gh ! pres5t e/imate is #cjj1jjj1jjj4 ,almo/ e "o :o has kept 9 t\* ) t subject kn[s :y ! ,panama ,canal has co/ m ?an ! orig9al e/imates1 & t ! great] co/ is no reflection on ! judgm5t ( ! eng9e]s :o made su* e/imates4 ,"o _c always =esee :at *anges 9 plans may be made be=e con/ruction is complet$1 & w\ld h>dly expect ! e/imates ( ! co/ ( a railroad to be adequate if !y 7 made = a s+le-track road & a d\ble-track 0 built4 ,9 any ev5t1 !re is a va/ diff]5ce 9 e/imat+ ! co/ ( an eng9e]+ "w already complet$ & "o :i* has yet to be />t$1 ! diff]5ce be+ l>gely 9 favor ( a clos] e/imate ( ! complet$ "w4 ,limitations are (t5 plac$ on eng9e]s1 9 connection ) "w !y d1 :i* are aft]w>d =gott54 ,! speak] 0 ask$ n long ago to prep>e a report 9 connection ) ! valuation ( a l>ge railroad prop]ty4 ,! "t )9 :i* ! results 7 requir$ 0 v limit$1 & ! me?ods us$ 9 ! valuation necess>ily _h to be a comb9ation ( ! inv5tory me?od & reliance1 9 a great _m matt]s1 on ! judgm5t ( ^? mak+ ! appraisal4 ,und\bt$ly ! result obta9$ 0 entirely adequate = ! purpose = :i* x 0 requir$1 b w\ld h>dly /& if an attempt 7 made to use x z a basis = an argum5t be=e a ,c\rt ( law or a public s]vice commission1 ?\gh x w\ld n be beyond ! range ( ! exp]i5ce ( _m eng9e]s to h a matt] ( ?is k9d br\ght =w>d "s "t 9 ! future z an absolute /atem5t ( fact1 ) no ref]5ce to ! way 9 :i* ! "w 0 done4 ,x is inevitable1 ( c\rse1 t eng9e]s w diff] 9 _! op9ions z to "s details ( me?ods ( mak+ an inv5tory ( ! prop]ty ( a railroad or o!r public s]vice corporation1 & also z to exactly :at unit prices %\ld be appli$1 b 9 g5]al x is safe to say t any eng9e] ( prop] exp]i5ce & tra9+ c make a satisfactory appraisal ( ! value ( ! physical prop]ty ( a railroad1 & t if two or m su* compet5t fair-m9d$ eng9e]s1 unhamp]$ by any consid]ation ( ! purpose = :i* x is to be made1 %\ld make su* an appraisal1 ! v>iation 9 ! result w\ld be s small z to be negligible4 ,! speak]1 h[ev]1 does n entirely agree ) ! au?or1 t ! purpose = :i* ! appraisal is to be us$ %\ld be entirely ignor$ by ^? :o are mak+ x4 ,!re c be little d\bt z to ! propriety ( us+ a prop]ly made physical valuation z a basis = taxation1 or z in=mation = ! own]s1 al?\gh !re may be "s z to ! me?ods :]eby ! s-call$ intangible values are to be det]m9$ 9 ^! cases1 or ev5 :e!r !y %\ld be consid]$ at all4 ,! greate/ diff]5ce ( op9ion arises :5 an attempt is made to regulate ! issue ( /ocks & bonds1 or to fix ! rates :i* %\ld be *>g$ = transportation1 on ! basis ( a physical valuation4 ,argum5ts = & aga9/ rate regulation revolve 9 a circle1 &1 app>5tly1 !re is no />t+ po9t :i* w satisfy e "o4 ,! ,c\rts h rul$ t ! railroads are entitl$ to su* rates z w enable !m to e>n a fair return on ! value ( _! prop]ty2 ! railroads claim t ! only way to det]m9e ?is value is on ! basis ( ! e>n+ capacity2 t is1 "o side claims t ! rates mu/ be bas$ on ! value & ! o!r t ! value %\ld be bas$ on ! rates4 ,x is evid5t1 h[ev]1 by ?is "t1 t ! railroads mu/ submit to regulation1 !re=e a way mu/ be f\nd to break into ! circle1 & x w\ld seem to be incumb5t on !m to direct _! en]gies along l9es :i* w t5d to make su* regulation fair & j r ?an to oppose x entirely4 ,!re is little claim t unduly l>ge divid5ds are paid1 b !re is a feel+ 9 ! m9d ( ! public t ! railroads are ov]-capitaliz$4 ,is x n possible1 !re=e1 to break into ! circle at ?is po9t1 & decide1 by means ( a prop] valuation1 z to ! fairness or o!rwise ( ! capitalization8 ,! objection to ?is1 on ! "p ( ! railroads1 is t ! value ( ! purely physical elem5ts is by no means ! :ole value ( _! prop]ty1 b t some?+ %\ld be add$ = ! s-call$ intangible values4 ,to emphasize ! difficulties ( apprais+ ! intangible values 9 any way :i* w p]mit ! application ( su* value to ! det]m9ation ( rates = transportation1 ! oppon5ts ( physical valuation cite :at is n[ ! famili> in/ance ( two my?ical roads betwe5 ! same t]m9i1 ! fir/ ) good alignm5t & easy grades foll[+ a valley1 & ! second =c$ into ! m\nta9s1 hav+ n only heavi] grades & m curvature1 ) consequ5tly a high] co/ ( op]ation1 b also m exp5sive con/ruction4 ,! value ( ! purely physical features ( ! =m]1 ( c\rse1 w\ld be mu* less ?an ^? ( ! latt]1 b its actual value z a prop]ty w\ld be great]4 ,h[ !n %\ld ! rates on ! two roads be fix$8 ,! fallacy ( us+ ?is example z an argum5t aga9/ physical valuation z a basis = rate-mak+ is 9 assum+ t !re w\ld be two railroads built "u su* circum/ances1 ) no o!r features ?an ! two t]m9i & ! l9e betwe54 ,"o has only to call to m9d su* examples ( compet+ l9es z ^? ( ! ,d5v] & ,rio ,gr&e betwe5 ,d5v] & ,salt ,lake1 ! ,union ,pacific betwe5 ,*ey5ne & ,ogd51 ! ,lackawanna & ,new ,york ,c5tral betwe5 ,new ,york & ,buffalo1 or _m o!rs1 to realize t !re are1 on all roads ( ?is nature1 _m o!r factors ?an ! actual co/ ( op]at+ ?r\gh tra9s betwe5 ! t]m9i1 :i* det]m9e ! ?r\gh rates4 ,"o w\ld h>dly suppose t at ?is late date any "o believes t x is propos$ to use only ! value ( ! purely physical prop]ty ( railroads z a basis = rate regulation1 yet ! ,new ,york ,sun1 a pap] ( national prom95ce & usually mo/ ably edit$1 devot$ a column ( its editorial page#bj to a discussion int5d$ to %[ t rate regulation1 bas$ on physical valuation alone1 0 an impossibility4 ,9 addition to cit+ ! example giv5 above1 ! foll[+ is put =w>d z ! r$uctio ad absurdum ( ! argum5t = rate regulation bas$ on physical valuation4 ,x is said3 ,suppose !re are two bridges ov] ! ,ohio1 ! co/ ( ! con/ruction ( ea* be+ ! same1 "o betwe5 ,c9c9nati & ,newport & ! o!r tw5ty miles bel[ :]e !re is no?+ b a village on ei!r %ore4444 ,on :at basis w\ld ! propon5ts ( physical valuation1 z ! det]m9+ value 9 rate mak+1 adju/ a toll *>ge on ^! respective bridges8 ,! example is f>-fet*$1 & 9 no way applicable to ! "q ( ! adju/m5t ( rates on railroads1 b inasmu* z x is s]i\sly put =w>d f a responsible s\rce1 x seems wor? :ile to consid] x4 ,assum+1 z app>5tly ! prop\nd] does1 t ! proposition is uncomplicat$ by any que/ions ( fran*ises1 public rights 9 ! l& on :i* ! bridge & its approa*es are built1 etc41 !n !re is no "q b t ! own]s ( ei!r bridge h a p]fect "r to *>ge :at toll !y please4 ,on ! o!r h&1 suppose ! p]mission ( ! ,w> ,dep>tm5t1 or "s o!r gov]n+ body1 _h to be obta9$ 9 ord] to build pi]s 9 ! riv]1 or ev5 to build ! bridge at all2 ! argum5t us$ 9 ask+ = ?is p]mission is t ! bridge is ne$$ z a public conv5i5ce2 or x is desir$ to occupy c]ta9 /reets = ! approa*es1 aga9 is us$ ! argum5t ( public conv5i5ce1 & s on4 ,^! privileges are grant$ on ! tacit und]/&+1 at lea/1 t ! public conv5i5ce is to be s]v$1 & ! ,c\rts rule t1 9 su* cases1 9 consid]ation ( ! equity :i* ! public has 9 ! prop]ty by reason ( ! rights grant$1 a fair return on ! value ( ! prop]ty1 b no m1 %\ld be ! basis = e/abli%+ ! rates ( toll4 ,w\ld ! ,sun claim t ! value ( ! rights & fran*ises giv5 by ! public 9 su* a case1 be includ$ 9 ! value ( ^! bridges1 & t a high] total income %\ld be d]iv$ f "o bridge ?an ! o!r because ! value ( ! /reets on :i* ! approa*es _h be5 built is great] 9 "o case ?an ! o!r2 or t a great] income %\ld be d]iv$ 9 "o case ?an ano!r because ! cities furni% m p ?an ! villages8 ,is !re any p>ticul> reason1 except = ! slightly l>g] depreciation & co/ ( ma9t5ance1 &1 be>+ 9 m9d ! fact t bo? bridges co/ ! same1 :y1 if !re is t5 times z mu* traffic on "o bridge z on ! o!r1 ! toll %\ld n be proportion$ accord+ly1 to provide ! same income on ea*8 ,if ! ,sun _h imag9$ a bridge built by private individuals1 ) _! own money1 betwe5 two villages1 ! inhabitants ( :i*1 at ! "t ! bridge 0 built1 hav+ be5 will+ to grant almo/ any fran*ises or privileges 9 ord] to get ! bridge1 ! villages 9 c\rse ( "t gr[+ to l>ge cities1 & ! old bridge hav+ be5 replac$ by a heavi] mod]n /ructure1 ! example might h be5 m ne>ly comp>able to ! railroad situation4 ,9 ?is case1 ! orig9al toll1 ( say #aj c5ts a head1 may h1 9 ! e>ly days1 only b>ely return$ a meag] rate ( int]e/ on ! inve/m5t1 or ev5 = "s ye>s result$ 9 a deficit4 ,w\ld ! ,sun uphold ! own]s ( ! bridge if1 s9ce ! villages h gr[n to cities1 !y /ill insi/$ on collect+ ! orig9al toll1 if x c\ld be %[n t a new bridge c\ld be built & w\ld be a pay+ inve/m5t ) a toll (1 say1 #b c5ts1 except = ! fact t ! orig9al bridge 0 built 9 ! only location :]e x 0 practical to build a bridge at all8 ,or is x reasonable to say t ! =esight & en]gy ( ! own]s ( ! bridge1 ev5 ?\gh x may h be5 "o ( ! pr9cipal factors 9 enabl+ ! villages to gr[ into cities1 entitle !m to capitalize _! ent]prise on ! basis ( a #aj-;c5t toll8 ,x _c be d5i$ t ! en]gy & =esight ( ! orig9al build]s %\ld be recogniz$ 9 fix+ ! rate ( toll1 b !re is a limit to ! value ( ?is1 & x is because ( ! feel+ on ! "p ( ! g5]al public t ! capitalization ( simil> intangible values on ! "p ( ! railroads & o!r public s]vice corporations is too l>ge1 :i*1 :e!r true or n1 has caus$ ! pres5t agitation aga9/ !m4 ,if ! capitalization is reasonable1 !re mu/ be "s way to demon/rate ! fact1 & x seems z if a prop]ly made physical valuation1 ) due all[ance = ! intangible values1 is at lea/ a /ep 9 ! "r direction4 ,! ,sun /ates 9 its editorial t3 ,! s*eme ( physical valuation1 z a basis = rate mak+1 is flatly reject$ z unworkable by practically all ! able/ railway au?orities ( ! c\ntry1 & t ! only true measure ( value is ! e>n+ capacity4 ,to quote only "o1 namely3 ,dr4 ,emory ,r4 ,johnson1 :o is g5]ally reg>d$ z an au?ority & n by any means pr$ispos$ 9 favor ( ! public z aga9/ ! railroads1 x is f\nd t he /ates 9 8 ,am]ican ,railway ,transportation t3 ,! e>n+ capacity ( ! railroad _c be equitably or logically made ! sole crit]ion ( value1 because ! rates1 & h5ce ! e>n+s1 %\ld dep5d to "s ext5t1 at lea/1 ^u ! am\nt ( capital ju/ly entitl$ to pr(it4 ,x w\ld seem to be self-evid5t t ! e>n+s alone1 ei!r gross or net1 are n necess>ily an indication ( ! value ( ! road4 ,gross e>n+s are n1 because1 if a m9imum proportion ( !m is us$ = ma9t5ance & bett]m5t1 ! value ( ! prop]ty w /eadily decrease2 :]eas1 if ! opposite policy be foll[$1 x w increase4 ,on ! same pr9ciple1 ! net e>n+s (f] no crit]ion z to ! mann] 9 :i* ! prop]ty has be5 kept up1 & alone are1 !re=e1 no measure ( its true value4 ,z an example ( ! argum5ts us$ by "s ( ! oppon5ts ( physical valuation1 ! foll[+ quotations are made f an article by ,mr4 ,h5ry ,f9k1 ,*airman ( ! ,bo>d ( ! ,norfolk & ,we/]n ,railway4#ba ,ref]r+ to ! fluctuation 9 ! co/s ( con/ruction1 he says3 ,z ! co/ ( mat]ials & labor fluctuates 444 x foll[s t :at may be a fair valuation ( a railroad "o ye> may n be s "o or two ye>s lat]4 ,h5ce1 x w\ld be necess>y to make new valuations f "t to "t4 ,fur!r1 9 ! same article1 ref]r+ to a valuation bas$ on ! m>ket value ( bonds & /ocks1 he says3 ,unlike ! physical valuation1 ?is me?od has a rational basis4444 ,x is true t prices ( /ock fluctuate--at times viol5tly--b ?is difficulty c be ov]come 9 a measure by us+ ! av]age prices = long p]iods4 ,x is /range t x did n occur to s able a man z ,mr4 ,f9k t ! value ( ! physical prop]ty might also be bas$ on av]age prices = long p]iods2 ! co/ ( railroad con/ruction & equipm5t z a :ole does n fluctuate ne>ly s viol5tly z ! /ock m>ket4 ,! report on ,! ,basis ( ,unit ,prices1#bb by ,w4 ,d4 ,p5ce1 ,m4 ,am4 ,soc4 ,c4 ,e41 ! ,eng9e] ( ! ,wiscons9 ,railroad ,commission1 9 connection ) ! ,appleton ,wat]-works case1 is an excell5t example ( a fair & imp>tial /udy ( ?is phase ( ! subject1 & ! conclusion ( ! ,commission 9 ?is matt] c only be reg>d$ z reasonable by any "o :o is dispos$ to be at all fair-m9d$4 ,x says3 ,if ! /&>d by :i* ! reasonabl5ess ( *>ges is to be det]m9$ %\ld fluctuate ) ! m>ket prices ( mat]ial1 labor & l&1 no s*$ule ( rates c\ld be e/abli%$ = any l5g? ( "t1 =1 "u ! circum/ances1 a rate t w\ld be reasonable to-day might be v unreasonable to-morr[4 ,! pr9ciples ( ! law applicable to ! subject c]ta9ly involve no su* absurd consequ5ces4 ,ano!r in/ance ( an argum5t bas$ on te*nicalities is f\nd 9 ! ,railway ,age ,gazette4#bc ,9 an editorial on ,valuation & ,rate ,regulation1 x is said3 ,x has be5 suppos$ 9 ! pa/ t rate-mak+ is an ex]cise ( judgm5t4 ,x seems to be assum$ by _m t aft] a valuation has be5 made x w be m]ely an ex]cise 9 ma!matics4 ,suppose ! value ( a railway = /ate purposes is #ej1jjj1jjj4 ,!n1 on ?is !ory1 all t w h to be done w be to multiply ?is am\nt by #f p] c5t4--or :atev] may be reg>d$ z a fair return--& s adju/ ! rates z to enable ! road to e>n1 say1 #c1jjj1jjj a ye>1 b1 ! writ] goes on to ask1 h[ are ! specific rates to be fix$8 ,a great majority ( ^? :o advocate valuation say t !y %\ld be bas$ on ! co/ ( ! s]vice4 ,! prop] me?od1 !n1 w\ld be to asc]ta9 ! exact co/ ( haul+ ea* commodity & !n base rates on ^! asc]ta9$ co/s1 mak+ !m j high en\gh to all[ ! road a fair return4 ,!n ! article goes on to po9t out ! difficulties ( do+ ?is1 :i* ( c\rse we all "k1 & f9ally concludes t3 ,! !ory ( bas+ rates absolutely on ! co/ ( s]vice is unju/ & impracticable4 ,9 ! pres5t /ate ( ! art ?is is probably true1 b :y is x necess>y to *ange ! pres5t !ory ( rate-mak+ because ! rates are to be l[]$ or rais$8 ,if1 = in/ance1 x is %[n t x is necess>y to r$uce ! rates suffici5tly s t ! net e>n+s w be r$uc$1 say1 approximately #aj1 is x beyond ! capacity ( ! traffic (ficials ( a railroad to adju/ _! rates accord+ly8 ,9 an editorial 9 ano!r "p ( ?is same issue ! ,gazette advocates ! rais+ ( rates to meet high] prices ( supplies & high] wages2 x is surely z feasible to l[] rates z x is to raise !m1 &1 ev5 ?\gh x 7 necess>y to base rates on ! co/ ( s]vice1 x does n seem z if t w\ld be entirely impractical1 inasmu* z x is ! :ole argum5t advanc$ = rais+ ! commutation rates on ! railroads ent]+ ,new ,york ,city4 ,w ! ,gazette say t ! argum5ts put =w>d by ^! railroads are all wrong8 ,mr4 ,f9k1 9 ! article#bd already ref]r$ to1 /ates3 ,x _c be said t 444 railroads make t>iffs2 !y c only adju/ !m to v>y+ conditions4 99 99 99 99 99 ,adju/+ freight rates is practical "w ( m5 :o h special tra9+ = x & l>ge exp]i5ce4 ,!y may n all be able to expla9 und]ly+ pr9ciples1 su* z ! value ( s]vice1 b !y h us$ ?is pr9ciple = ye>s1 & apply x1 intuitively 9 e case :i* comes be=e !m4 ,surely ?is body ( m5 is equal to :atev] adju/m5t may be necess>y4 ,rates w probably nev] be arrang$ to suit e individual %ipp]2 b if ! p1 z a :ole1 believe t ! railroads are fairly capitaliz$ on a reasonable basis ( value1 & ! rates1 9 ! aggregate1 are adju/$ s t unduly high pr(its are n made1 individual compla9ts ( inju/ice may easily be tak5 c>e (4 ,! mo/ important consid]ations affect+ ! regulation ( railroad rates arise 9 attempt+ to fix ! am\nt :i* %all be consid]$ a fair return on ! inve/m5t4 ,if a c]ta9 rate ( int]e/ is fix$ z ! maximum :i* may be e>n$1 all inc5tive t[>d improvem5t or progress is remov$4 ,! effect ( ?is w\ld be1 ( c\rse1 to ret>d all developm5t4 ,once a railroad 0 e>n+ its legal rate ( int]e/1 !re w\ld be no necessity ( cutt+ d[n grades1 build+ l>g] locomotives to h&le l>g] tra9s1 inve/igat+ ! economics ( op]ation & location1 9 ord] to introduce ! ?\s& & "o economies :i* are be+ develop$ day by day1 or = our railroad presid5ts to lie awake nights ?9k+ h[ !y are to save t million doll>s a day = ! b5efit ( ! always ungrateful %ipp]4 ,?is objection aga9/ rate regulation1 & incid5tally aga9/ physical valuation1 c und\bt$ly be ov]come4 ,"o proposal :i* has be5 made is some:at along ! l9es on :i* x is propos$ to f9ance ! ,new ,york ,subways1 ! pr(its to be divid$ betwe5 ! railroads & ! ,/ate1 aft] a c]ta9 rate ( int]e/ _h be5 e>n$4 ,!re is no?+ novel ab\t ?is1 z sev]al railroad *>t]s h be5 grant$ ) a provision t all e>n+s1 ov] an am\nt necess>y to provide a c]ta9 rate ( int]e/1 %\ld be paid to ! ,/ate4 ,ano!r sugge/ion#be is t ! reasonable rate ( return be fix$ z a p]c5tage ( ! gross income1 irrespective ( ! am\nt ( capital requir$ to produce x4 ,!re are probably o!r ways 9 :i* ?is might be work$ out & adju/$1 & ?is phase ( ! subject surely does n pres5t any insup]able objections4 ,t ! railroads h little to fe>1 9 reg>d to capitalization1 f a prop]ly made valuation1 is %[n by ! results 9 ! ,/ate ( ,wa%+ton1 :]e ! valuation 0 und]tak5 solely = ! purpose ( fix+ rates1 ! result be+ a det]m9ation ( ! m>ket value ( ! ?ree pr9cipal railroads ( ! ,/ate--! ,nor!rn ,pacific1 ,great ,nor!rn1 & ,oregon ,railroad & ,navigation ,company--at an am\nt consid]ably 9 excess ( _! capitalization4#bf ,x is true t rates 7 l[]$ 9 ?is case on "s commodities1 b x does n necess>ily foll[ t e *ange ( rates on ! basis ( valuation mu/ be t[>d a l[] scale4 ,railroad rates are l[ & h /ay$ l[ :ile ! co/ ( ev]y?+ else has be5 rais$1 & yet1 :ile ?is fact is well kn[n to ! g5]al public1 !y /ill believe t1 9 "s way or ano!r1 ! railroads are gett+ or h be5 gett+ m ?an _! prop] %>e ( pr(its4 ,evid5tly !re is some?+ wrong some:]e1 & x is n go+ to be set "r by call+ ! public fools & ridicul+ _! presumption = m$dl+ 9 any way ) railroad affairs4 ,mr4 ,f4 ,w4 ,:itridge1 ! ,receiv] ( ! ,?ird ,av5ue ,railroad1 ( ,new ,york1 :ile /at+#bg t he _h only j discov]$ t !re 0 su* a ?+ z valuation1 at ! same "t held up ! :ole s*eme to ridicule1 ?\gh he admitt$ t3 ,! p ( ?is c\ntry h1 ,i ?9k wisely1 made up _! m9ds1 9 consequ5ce ( great corporate abuses1 t public s]vice corporations %\ld be subject to regulation1 etc4 ,he nev]!less ridicules ! ef=ts ( ! au?orities1 p>ticul>ly _! endeavors 9 ! matt] ( valuation1 ) its irrev]5ce = facts4 ,!y seem1 he says1 to be s++ ! song ( ! ,b&]log :o dream$ ( ',some?+ noble1 gr&1 & good ,won by simply wi%+ we c\ld4' ,valuation1 h[ev]1 has gone f> beyond ! po9t :]e x c be consid]$ a vision>y s*eme1 or c be held up to ridicule2 & x has be5 work$ out f> en\gh to %[1 at lea/1 t !re is a rational basis1 on :i* a det]m9ation ( values c be made1 :i* w d ju/ice to bo? sides2 fur!rmore1 ! ,supreme ,c\rt ( ! ,unit$ ,/ates has n only rul$ t valuation mu/ necess>ily be prec$5t to rate regulation1 b has gone s f> z to specify at lea/ "s ( ! elem5ts :i* mu/ be tak5 into acc\nt1 & x may be wor? :ile not+ t1 9 spite ( ! au?or's criticisms ( ! ,wa%+ton ,/ate ,valuation1 x is ! only "o1 ?us f>1 9 :i* an attempt has be5 made to comply ) ! rules laid d[n by ?is ,c\rt4 ,! results 9 ,wa%+ton1 h[ev]1 indicate cle>ly ! ne$ ( regulation ( ! railroads1 z a :ole1 & n v>i$ regulation by individual ,/ates ( ! p>ts ( sy/ems )9 ! bord]s ( ea*4 ,argum5ts on ei!r side c be prolong$ indef9itely1 & _m good reasons = & aga9/ physical valuation are advanc$ f "t to "t1 j z !y may be on any proposition4 ,"s ( ! pr9cipal objections h be5 ref]r$ to "h 9 an endeavor to %[ t !y are n insup]able2 ! po9t :i* conc]ns u n[ is t to-day we are confront$ ) a fact & n a !ory1 & t fact is t ! railroads are go+ to be regulat$1 & t _! prop] developm5t is held back & g5]al bus9ess is hamp]$ by ! feel+ ( unc]ta9ty z to ! outcome4 ,physical valuation is n a panacea = all evils1 b a prop]ly made valuation ( ! physical elem5ts1 ) a due all[ance = ! intangible values1 bas$ possibly on "s su* me?od z t develop$ by ! ,wa%+ton ,/ate ,commission or by ,pr(essor ,adams 9 ,mi*igan1 is surely z good a way ( break+ into ! circle ( argum5t z any t has be5 propos$ ?us f>4 ,! equipm5t ( freight tra9s ) air brakes & safety c\pl]s 0 practically =c$ on ! railroads by ! pressure ( public op9ion l$ by laym51 yet "o w h>dly f9d a railroad man n[ :o w n admit t ?is is good practice1 n only f ! /&po9t ( safe op]ation1 b f t ( economy z well4 ,! e>ly attitude ( ! railroads 9 ?is matt] is already be+ quot$ by ! advocates ( valuation1 & inasmu* z we h to admit1 z we surely d1 t a />t is go+ to be made some:]e along ! l9e ( obta9+ "s m def9ite in=mation 9 reg>d to ! true relation ( ! value1 capital1 & pr(its1 ( railroad prop]ties1 ?an ! m]e /atem5t by ! railroads !mselves t !y are all t is good & fair1 w\ld x n be wise on _! "p to d all !y c to h ! />t made prop]ly r ?an oppose x8 ,"s ( ! mo/ prom95t & progressive railroad m5 ( ! c\ntry h already arriv$ at ! po9t ( believ+ & say+ t regulation prop]ly c>ri$ out may n be an unmix$ evil1 9 fact1 w\ld probably be b5eficial1 b !y /ill balk at valuation1 )\t1 h[ev]1 sugge/+ any o!r means :]eby ! g5]al public is to obta9 ! in=mation on :i* to base an intellig5t op9ion z to h[ su* regulation is to be c>ri$ out4 ,! speak] does n = a mom5t und]e/imate ! difficulties incid5t to ! det]m9ation ( ! intangible values1 or =get ! diff]5ce betwe5 ! problem pres5t$ by ! comp>atively new l9es 9 ! ,/ate ( ,wa%+ton & a valuation (1 say1 ! ,p5nsylvania ,railroad or ! ,new ,york ,c5tral4 ,no "o :o gives any real ?\ght to ! problem pret5ds t ! value ( a railroad is ! value ( its purely physical prop]ty2 b1 because ! matt] ( det]m9+ ! intangible values is difficult & complicat$1 is x necess>y t we %\ld sit back & fold our h&s & say x c't be done2 t 9 ! :ole c\ntry !re is no man or body ( m51 or eng9e]s1 if y please1 ) bra9s & ability en\gh to solve ! problem8 ,z = co/1 is x n wor? #aj1jjj1jjj1 :i* is m ?an #dj p] mile = all ! railroads 9 ! c\ntry1 or ab\t ?ree times z mu* z ! co/ ( ! mo/ c>eful appraisals yet made1 to h ! "q put once & = all on a /able basis1 satisfactory to all1 if ! problem be approa*$ 9 a fair1 broad-m9d$1 common-s5se way1 by eng9e]s big en\gh to comm& ! respect ( bo? sides8 ,aside f ! "q ( rate regulation1 is x n wor? ?is mu* to ! railroads ( ! c\ntry to be able actually to prove t ! am\nts at :i* !y are capitaliz$ are reasonable1 z 9 ! great majority ( cases !y probably are8 ,!re are "o or two po9ts :i*1 x seems to ! speak]1 _c be too /rongly emphasiz$3 ,fir/1 t valuations prop]ly made may be ! means :]eby confid5ce may be re/or$1 n only 9 ! m9d ( ! g5]al public1 b 9 t ( ! inve/or2 b1 9 ord] to obta9 ?is result1 ! railroads %\ld urge1 ) all ! p[] !y possess1 ! necessity ( hav+ su* valuations made by a body ( m51 "s ( :om1 at lea/1 %\ld be eng9e]s1 big en\gh to entitle _! op9ions to ! respect ( bo? sides1 & ?or\ghly qualifi$ by tra9+ & exp]i5ce = ! "w4 ,second1 t1 z f> z possible1 regulation %\ld be g5]al or national1 s z to avoid ! complication ( divid+ all roads at ! ,/ate l9es1 & ( hav+ diff]5t regulations 9 diff]5t ,/ates4 ,?ird1 t !re ne$ n necess>ily be any relation betwe5 rate regulation & rate-mak+4 ,rate regulation c well be conf9$ to rates 9 ! aggregate1 rate-mak+ applies to ! adju/m5t ( individual rates1 & mu/ necess>ily be ! "w ( m5 well v]s$ 9 all ! v>i$ elem5ts :i* control x & ! p>ticul> conditions affect+ ! bus9ess ( ea* p>ticul> road4 ,! speak] believes t valuations made 9 ?is way & ) ^! objects 9 view w d no h>m to ! railroads1 & w d mu* to re/ore confid5ce & give u ! mu* ne$$ peace & quietness to c>ry out necess>y developm5t4 99 99 99 99 99 ,,*>les ,h4 ,,higg9s1 ,,assoc4 ,m4 ,,am4 ,,soc4 ,c4 ,e4--,mr4 ,riggs' able & timely pap] is ( great int]e/ & wor? to all conc]n$ ) ! matt] ( values1 :e!r ( public s]vice corporation prop]ty1 or o!r prop]ty2 & :at eng9e] is n conc]n$ ) values8 ,"o _c b wi% t an index accompani$ ! pap]1 z its usefulness w\ld be !reby greatly increas$1 p>ticul>ly z1 by its arrangem5t1 su* subjects z depreciation1 non-physical values1 etc41 are treat$ ( 9 _m diff]5t portions ( ! pap]4 ,! ,wisdom ( ,hav+ a ,physical ,valuation4--,x is h>d to und]/& h[ any ?\ghtful p]son c n[ d\bt ?is1 = we are 9 a p]iod ( regulation & taxation ( public s]vice corporations1 & ! only "q is :e!r !y %all be regulat$ & tax$ ) a full und]/&+ ( ! inve/m5t involv$1 or by arbitr>y me?ods1 su* z ! #b c5ts p] mile pass5g] rate1 :i* has be5 s popul> 9 _m ,/ates1 "u widely diff]5t conditions & irrespective ( ! co/ ( ! s]vice4 ,! "t w\ld seem to h arriv$ :5 ! ?\ghtful public s]vice corporation manag] w\ld welcome a fair valuation ( ! company's prop]ty1 z protection aga9/ legislation conceiv$ 9 ignorance ( ! capital inve/$4 ,relation ,betwe5 ,railroads & ,o!r ,prop]ties4--,! relation betwe5 appraisals ( railroad & ( wat]1 gas1 & traction companies is v close1 & ! same g5]al pr9ciples apply4 ,9 ! =m]1 h[ev]1 x is complicat$ m (t5 by ! fact t ! l9es ( a railroad ext5d ?r\gh _m ,/ates1 ) t]m9als 9 "o or two1 &1 fur!r1 t ! railroads h _m subsidi>y1 controll$1 or dep5d5t companies1 su* z coal1 light]age1 t]m9al1 c>1 w>eh\se1 contract+1 elevator1 /ock y>d1 & supply companies1 (t5 own$1 :olly or 9 "p1 by m5 9 ! railroad managem5t4 ,agreem5ts ) ^! companies may greatly affect ! non-physical values1 z det]m9$ by ! me?ods advocat$ 9 ?is pap]1 :i* may o!rwise be s\nd4 ,valuation ( ,all ,prop]ties4--,! au?or says t ! valuation ( all railroad prop]ties 9 ! c\ntry w\ld be ( int]e/4 ,x w\ld be m2 x w\ld be ( value inf9itely great] ?an ! co/4 ,! m]e pres5ce ( light prev5ts _m vices1 & ?is is z true 9 corporation practices z 9 ! /reets4 ,x is 9 accord ) ,dr4 ,woodr[ ,wilson's pitiless publicity2 &1 :i* is1 p]haps1 m important1 x is ! basis1 or %\ld be1 ( all legislation conc]n+ ! regulation ( ^! great highways4 ,"o & ,only ,"o ,fair ,value4--,no?+ 9 ,mr4 ,riggs' pap] is ( m value ?an 8 insi/5ce t !re is "o & only "o fair value ( ! physical prop]ty ( a railroad1 no matt] = :at purpose x is to be us$4 ,h[ futile are ! misdirect$ ef=ts ( ^? :o w\ld h x o!rwise1 =1 no matt] :at ! purpose ( ! appraisal may be1 :o c =esee ! use t may be made ( x :5 x becomes public prop]ty8 ,co/ ( ,reproduction4--,co/ ( reproduction less depreciation seems to be ! e/abli%$ me?od--t recogniz$ by ! ,c\rts--= arriv+ at ! value ( ! physical prop]ty4 ,co/1 z ! au?or cont5ds1 c only be an elem5t 9 det]m9+ ! pres5t value1 = ! own] ( a /one bridge has z mu* "r to any appreciation 9 ! value ( masonry z ! own] ( l& has 9 ! increas$ value ( 8 prop]ty2 &1 ?\gh ! co/ e>ly 9 ! life ( ! /ructure is usually ne> its value1 x may lose t position4 ,:at relation exi/s betwe5 ! value ( ! ,pyramid ( ,*eops & its co/8 ,n[1 z !n1 our unit measure ( value is *ang+4 ,co/ is c]ta9ly ( hi/oric int]e/1 b pres5t value is ! subject = pres5t uses4 ,! po9ts 9 favor ( inspection to det]m9e ! physical condition ( ! object to be valu$ are conv9c+1 :]e ! /ructure may be readily inspect$4 ,mortality tables mean little )\t a hi/ory ( ma9t5ance4 ,) p]fect ma9t5ance !re w\ld be no physical depreciation4 ,ma9t5ance v]sus ,depreciation4--,depreciation & ma9t5ance are int]dep5d5t1 s mu* s t "s eng9e]s h advocat$ dropp+ ! t]m1 depreciation1 & sub/itut+ def]r$ ma9t5ance4 ,a little ?\ght w make ?is cle>4 ,:ile ?is t]m w\ld n apply 9 ! case ( a s+le rail or c>1 x is n illogical :5 appli$ to a sy/em1 built & r5ew$ piecemeal & ma9ta9$ at a c]ta9 /&>d ( usefulness1 t is1 on all well-manag$ und]tak+s ( magnitude1 units are con/antly be+ replac$1 ?us ma9ta9+ a /&>d ( effici5cy4 ,?is /&>d1 on ! entire sy/em1 is usually f\nd to be betwe5 #gj & #ij ( ! co/ ( reproduction4 ,"s items are ev5 improv$1 & ! co/ is *>g$ to ! ma9t5ance acc\nt1 su* z t ref]r$ to 9 ! pap] z consolidation & adaptation ( roadb$2 & only a few1 su* z /eel rails1 /eadily & progressively become less useful1 & ev5 ^! h a bottom value1 t ( scrap /eel4 ,nor are examples num]\s :]e all ! rails are laid at "o "t1 & !y are extremely r>e :]e all are replac$ at approximately ! same "t4 ,:5 ! rails on a /reet or section are r5ew$1 ! co/ _c prop]ly be *>g$ to capital acc\nt1 except 9 s f> z ! new rails are ( a m valuable type ?an ! old ones2 =1 if ?is 7 done1 !re w\ld be no limit to ! capitalization z "t goes on4 ,fur!rmore1 ! mom5t x is admitt$ t1 by reason ( a *ange 9 ! art1 we may h depreciation ?r\gh obsolesc5ce1 we admit t ?r\gh a *ange 9 ! art we may h appreciation ?r\gh ! opposite ( obsolesc5ce4 ,?is be+ ! case1 ! use ( mortality tables to det]m9e pres5t value is mislead+1 unless x is done ) ! full itemiz$ acc\nts ( ma9t5ance1 :i* are seldom1 if ev]1 available4 ,! au?or's position 9 reg>d to ! ne$ ( inspection ( ea* item is well tak54 ,dead v]sus ,live ,prop]ties4--,^!1 p]haps1 are n happy expressions1 b !y s]ve to emphasize a vital di/9ction :i* mu/ be made 9 ! valuation ( prop]ties4 ,! diff]5ce may be z great z betwe5 a corpse & a man2 "h1 also1 ! di/9ction is h>d to def9e4 ,we say ! s\l has dep>t$1 or ! sp>k ( life is ext+ui%$1 b ^! expressions d n conta9 a satisfactory sci5tific def9ition4 ,s1 z ,mr4 ,riggs po9ts out1 ! physical prop]ty ( a go+ bus9ess may n be valu$ z s mu* junk1 ev5 if ! non-physical values are to be det]m9$ sep>ately4 ,! ,fran*ise a ,contract4--,! ,c\rts hold a fran*ise to be a contract1 some?+ (t5 =gott51 bo? by ! public & by corporations4 ,! speak]1 h[ev]1 und]/&s ?is only to mean1 ev5 :]e ! fran*ise is 9 p]petuity1 t ! prop]ty ( ! corporation _c be tak5 = public use )\t j comp5sation4 ,9 a s5se1 !n1 !re c be no su* ?+ z a p]petual fran*ise4 ,us+ ! ^w fran*ise ) its re/rict$ mean+1 ! unreasonabl5ess ( ! rates may be measur$ by ! value ( ! fran*ise4 ,physical v]sus ,non-,physical ,values4--,! foll[+ division has be5 made by ! au?or betwe5 physical & non-physical prop]ty1 = ! purpose ( valuation3 ,t ! ,physical ,value1 or pres5t value ( ! physical prop]ty1 %\ld fairly repres5t ! actual capital inve/$ 9 ! prop]ty at ! date ( appraisal2 t x %\ld be made up ( ! sum ( ! v>i\s elem5ts :i* con/itute ! co/ ( reproduc+ ! prop]ty toge!r ) any appreciation :i* may h be5 add$ to any ( !m1 less all depreciation4 ,t ! ,non-,physical ,value is ! diff]5ce betwe5 ! 'fair value' z def9$ by ! ,c\rts1 or ! reasonable value ( ! prop]ty z a bus9ess or produc+ prop]ty1 & ! physical value1 or actual pres5t wor?2 & t ! only prop] me?od = det]m9+ su* values involves a /udy ( income acc\nts4 ,?is ,non-,physical ,value may be3 positive1 or a value 9 excess ( ! physical prop]ty1 or negative1 or less ?an ! physical value4 ,9 ! case ( a prop]ty hav+ a negative intangible value1 a d$uction %\ld be made f ! physical value4 ,?is division is conv5i5t b arbitr>y4 ,x is ! division ( an eng9e] r ?an ( an economi/2 = ^! s-call$ non-physical values are l ! brea? ( a man's life2 )\t !m1 ! physical value is l ! disc>d$ body4 ,aga91 ! use ( negative non-physical values1 :ile conv5i5t1 may n be :olly logical4 ,^! rem>ks are n direct$ at ,mr4 ,riggs1 = he is c>eful to say t he is deal+ only ) active ent]prises1 & n ) ^? :i* are in]t1 & ! speak] realizes t he is n attempt+ prim>ily to build up a logical argum5t1 b to =mulate c]ta9 rules to ov]come practical difficulties met by all :o h attempt$ valuation "w4 ,z _m :o h n giv5 ?is matt] mu* ?\ght are apt to be misl$ by ! di/9ction made betwe5 physical & non-physical values1 !y %\ld be> 9 m9d t ! l9e betwe5 !m is l ! equator1 an imag9>y "o4 ,wat]4--,! wat] is z mu* a "p ( ! co/ ( putt+ t l9e !re z ! rails1 rem>k$ a corporation (ficial1 ( admirable "* & wide exp]i5ce1 po9t+ to a trolley l9e f ! w9d[ ( a ,pullman c>2 &1 be>+ 9 m9d :at he meant by wat]1 ?is is und\bt$ly s4 ,! co/ ( promot+ ! ent]prise1 ! disc\nt on ! haz>d1 ! loss ( int]e/ dur+ its infancy1 ! labor ( build+ up ! und]tak+--^! are all real elem5ts ( co/1 & may rema9 9 ! prop]ty z value1 b1 l all o!r items ( co/1 !y h _! reasonable limits1 :i*1 9 ea* individual case1 c be det]m9$ )9 n>r[ b\nds4 ,purpose ( a ,valuation4--,z ,mr4 ,riggs po9ts out1 !re are f\r reasons = a valuation3 ,taxation1 rate-mak+1 pur*ase1 & control ( ! issue ( securities1 "o ( :i* is usually ! prim>y cause = ! valuation be+ made2 & he argues t !re c be b "o fair value ( ! physical prop]ty1 :i*ev] ( ^! reasons may prompt ! appraisal4 ,?is is fundam5tal1 = fair value is us$ 9 ! s5se ( true value1 :i*1 to ! writ]1 seems to be a m apt expression4 ,x is r surpris+ t x does n appe> 9 ! pap]4 ,its use1 ( c\rse1 is old2 9 ! ,con/itution ( ,new ,j]sey1 #ahge1 we f9d3 ,prop]ty %all be assess$ = taxes "u g5]al laws1 & by uni=m rules1 accord+ to ! true value4 ,ea* ( ! ?ree matt]s1 taxes1 rates1 & au?oriz$ capitalization1 are int]dep5d5t &1 9 ! long run1 _c be consid]$ sep>ately4 ,?is c be emphasiz$ by a r$uctio ad absurdum3 ,mod]n civilization is s dep5d5t on transportation by rail t unque/ionably all taxes c\ld be rais$ by assessm5t on ! railroads1 if ^! roads 7 all[$ to fix _! rates & 7 protect$ 9 ! collection ( !m2 b h[ w\ld ?is me?od diff] f t ( ! ,romans1 ( f>m+ out ! collection ( taxes8 ,n mat]ially1 & no "o advocates a return to t me?od4 ,?is is absurd1 b x s]ves to emphasize ! relation betwe5 taxes & rates4 ,taxes c only come f ! rates4 ,ov]head ,*>ges v]sus ,unit ,values4--,!re is mu* 9 v>i\s p>ts ( ?is pap] conc]n+ ov]head *>ges1 b v little ab\t ! items consid]$ 9 det]m9+ ! unit values or unit prices us$2 & does n ! latt] greatly affect ! =m]8 ,= example1 9 discuss+ ! ,mi*igan appraisal1 ! au?or says3 ,= _m items1 su* z cle>+1 grubb+1 e>?work1 masonry1 etc41 ! price 0 fix$ by agreem5t dur+ ! discussion at a figure :i* repres5t$ ! fair av]age co/ ( ?is p>ticul> item dur+ ! #e-ye> p]iod prec$+ ! appraisal4 ,! fair av]age co/ "u :at conditions8 ,?is ^w co/ is und]/ood by diff]5t m5 9 z _m diff]5t ways z ! ^w value4 ,mr4 ,riggs v cle>ly gives ! items includ$ 9 fair value z f9ally arriv$ at by him1 b x w\ld seem to be z important to def9e fair co/ z us$ 9 arriv+ at ! unit prices1 = o!rwise ! *a9 has a weak l9k4 ,:at may be consid]$ a fair co/ p] unit ( measure = a p>ticul> item diff]s greatly3 ,fir/1 ) ! po9t ( view & bread? ( horizon ( ! man /at+ su* co/2 & second1 ) ! me?ods ( lett+ contracts & acc\nt+ ) :i* he may be famili>1 z appli$ to su* items ( "w4 ,because ( ! fir/1 a fair av]age unit co/ may mean "o ?+ to a contractor1 ano!r to a division eng9e]1 /ill ano!r to a *ief eng9e]1 & a f\r? to a manag] or consult+ eng9e]2 & because ( ! second1 ! und]/&+ ( ! t]m may diff] among m5 ( ! same class4 ,all ( ?is q aside f :at may be t]m$ ! p]sonal equation ( ! individual4 ,?us ! subject ( ov]head *>ges c only be discuss$ pr(itably 9 ! light ( k conc]n+ :at has already be5 includ$ 9 fix+ ! unit prices us$4 ,= example1 ! elem5t ( haz>d common to all con/ruction1 b diff]+ 9 degree on diff]5t classes ( "w1 may be includ$ 9 ! unit co/ us$1 or x may be add$ z a p]c5tage to result+ sums1 b x _c rightly be includ$ twice4 ,?is is equally true ( o!r elem5ts ( co/ ( a simil> "*4 ,! =ego+ is p]t95t1 = any valuation w probably be attack$ 9 ! ,c\rts1 & ! unit values w be "o ( ! mo/ tempt+ po9ts = assault1 = ! v reason t ?is wide diff]5ce ( und]/&+ 9 reg>d to co/1 & p>ticul>ly 9 reg>d to unit co/s1 exi/s4 ,?is same diff]5ce ( und]/&+ is usually ! reason = ! wide diff]5ce 9 unit co/s te/ifi$ to by able eng9e]s &1 consequ5tly1 = ! di/ru/ (t5 felt = su* te/imony4 ,! me?ods foll[$ 9 tak+ exp]t te/imony usually "w to make confusion worse conf\nd$4 ,! judge or layman1 he>+ two eng9e]s te/ify to widely diff]5t unit prices z a fair av]age co/ = c]ta9 "w1 =ms a l[ op9ion ( _! judgm5t1 or worse1 :]eas ! real difficulty may1 & usually does1 lie 9 a diff]5t und]/&+ ( ! mean+ ( ! t]m co/1 or unit co/4 ,to ! speak]1 ?is seems to be ! weake/ po9t 9 an admirable pap]4 ,pav+4--,:e!r ! value ( ! pav+ betwe5 & = a space outside ( ! tracks is an elem5t ( value 9 a /reet-c> l9e1 or :e!r ! co/ incid5tal to ! con/ruction & ma9t5ance is 9 ! nature ( a tax1 is a mu* disput$ po9t 9 all valuations ( /reet-railway prop]ties1 & an important "o1 = x may am\nt to #ae1jjj1 or m1 p] mile4 ,x is int]e/+ to rememb] t ! cu/om ( requir+ /reet-railway companies to ma9ta9 ! pavem5t betwe5 ! rails & = a space ( ab\t #b ft4 outside ( !m1 :i* has become almo/ univ]sal1 develop$ dur+ ! use ( horses to draw ! c>s1 ! animals caus+ great we> on t portion ( ! /reet4 ,?is "q ( values is a difficult "o4 ,x w\ld seem t ! mo/ t5able position is t3 ,if ! fee to ! pavem5t is n 9 ! company1 & if ! rule conc]n+ co/ ( reproduction less depreciation is to be foll[$1 ! co/ ( tak+ up & relay+ ! pavem5t is an elem5t ( value 9 ! physical wor? ( ! track1 = x w\ld be impossible to reproduce ! track )\t incurr+ ! co/ ( su* "w4 ,s4 ,d4 ,,newton1 ,,assoc4 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! g5]al scope ( ?is pap] is admirable4 ,! au?or's views & def9itions are unusually s\nd1 cle>1 & =cibly express$4 ,to "o m9or detail1 h[ev]1 ! writ] is unable to subscribe4 ,ref]r+ to ! physical prop]ty elem5t ( value1 he /ates t3 ,?is consi/$ ( ^? ?+s :i* are visible & tangible1 capable ( be+ inv5tori$1 _! co/ ( reproduction det]m9$1 _! depreciation measur$1 & )\t :i* ! prop]ty w\ld be unable to produce ! commodity on ! sale ( :i* income dep5ds4 ,take ! case ( an indu/rial spur = "s m9or indu/ry along a l9e ( railroad4 ,x is (t5 a "q 9 ! m9ds ( ! managem5t :e!r or n ! c>-load bus9ess done by su* an ent]prise is suffici5t 9 quantity to w>rant ! exp5se ( a spur track4 ,!re are probably o!r facilities 9 ! neighborhood :i* c\ld be us$ to take c>e ( ?is bus9ess at ! exp5se ( "s inconv5i5ce2 9 a l>ge proportion ( cases1 ! railroad w h&le ! bus9ess anyway1 & ! spur c 9 no s5se be call$ a necessity4 ,/ill1 x is visible1 tangible1 & capable ( be+ inv5tori$1 & %\ld be includ$ 9 an inv5tory ( ! prop]ty ! same z any track or section ( track belong+ to ! ,company4 ,?is may also be said ( an extra settl+ bas9 or filt] b$ 9 ! case ( a wat]-works plant4 ,if su* bas9 or b$ 7 n 9 exi/5ce1 & a leak %\ld occur 9 ! orig9al plant1 ! bus9ess ( supply+ wat] to its cu/om]s c\ld1 9 all probability1 be c>ri$ along 9 "s mann] until ! break c\ld be repair$2 nev]!less1 su* a tank or b$ is desirable1 & its value %\ld mo/ c]ta9ly be includ$ 9 an inv5tory4 ,take ! extreme case ( a piece ( ma*9]y :i* is utt]ly brok5 d[n or s f> out ( date z to be entirely wor?less = ! purposes = :i* x 0 design$4 ,yet su* ma*9]y has1 at lea/1 a scrap value1 & z su* x %\ld be includ$ 9 ! inv5tory z "p ( ! tangible assets ( ! conc]n at ! date 9 "q4 ,( c\rse1 9 _m in/ances1 c]ta9 int]e/s endeavor to h inv5tori$ items :i* %\ld ei!r be omitt$ altoge!r or includ$ at a mu* r$uc$ valuation f t s\ght to be plac$ on !m1 &1 9 su* cases1 ! v be/ judgm5t ( ! apprais+ eng9e] mu/ be call$ into play 9 ord] t inju/ice may n be done to ei!r p>ty2 b to say1 z ,mr4 ,riggs' def9ition virtually does1 t no?+ %\ld be inv5tori$ :i* c1 ei!r ) or )\t inconv5i5ce1 be disp5s$ )1 is absurd1 & ! writ] does n believe t su* is ! mean+ ! au?or int5d$ to convey4 ,probably1 if ! ^w economically 7 ins]t$ 9 ! def9ition1 x w\ld m ne>ly repres5t ! prop] idea4 ,,william ,v4 ,,polleys1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]71--,9 8 v ?or\gh & pa9/ak+ pap] ,mr4 ,riggs /ates t x is conf9$ to a discussion ( me?ods = arriv+ at a correct figure ( co/1 & disclaims any int5tion ( consid]+ ! propriety ( us+ said figure :5 rea*$4 ,inasmu*1 h[ev]1 z he devotes ! next eight or t5 pages to a diss]tation on law1 political economy1 rate-mak+1 f9ance1 & advice to railroad employees1 ) a ^w ( enc\ragem5t to ! good1 & firm repro( to ! bad ones1 x is fair to assume t he int5ds ?is disclaim] 9 a ,pickwickian s5se1 & t ! real int5t ( ! pap] is to %[ t ! physical valuation ( prop]ty is1 ) c]ta9 det]m9ative1 corrective factors1 a prop] /&>d = gaug+ taxation1 bond issues1 & k9dr$ evils4 ,is x n a fact1 h[ev]1 t taxation is bas$ on a mu* m intangible /ructure1 & t ! net e>n+s mu/ necess>ily h m to d ) x ?an ! physical valuation ( ! prop]ty--:e!r x be t ( a wick$ public s]vice corporation1 or t ( an hone/ haymak]--r on :at _! prop]ty c produce1 ?an on :at x w\ld co/ to produce ! prop]ty8 ,is x n r a battle ( bus9ess acum5 betwe5 ! tax] & taxee1 a battle :i*1 among o!r ?+s1 is regulat$ m or less by ! fact t an extreme 9 ei!r direction w br+ disa/] to "o or bo?1 foll[$ by ! inevitable reaction & readju/m5t8 ,take1 = in/ance1 an extreme case3 ,a manufactory is erect$ on comp>atively wor?less gr\nd4 ,a million doll>s or m is inve/$ 9 a plant1 ) ! result t surr\nd+ real e/ate values g up ) a b\nd4 ,suppos+ t ! manufactur] has n made any previ\s arrangem5ts = immunity1 & ! assessors are bo? acute & hone/1 ! prop]ty w be tax$ = a l>ge figure1 :i* tax1 if ! factory is mak+ money1 w be paid1 ) m or less grumbl+1 up to ! economical break+ po9t4 ,suppose t1 ow+ to a sudd5 p]man5t *ange 9 bus9ess conditions1 x becomes impossible to op]ate ?is plant1 & x is ab&on$4 ,a corps ( exp]ts may be ?r[n into ! mill1 be=e ! la/ employee has left ! build+1 & may c>efully scrut9ize & calip] ! ma*9]y1 c\nt ! bricks 9 ! wall1 tap ! /ay-bolts 9 ! boil]s1 & bore into ! furniture to see :e!r x is solid or v5e]1 & :5 !y are ?r\gh & _! figures are all 91 !y h n arriv$ at any?+ t is ( ! slighte/ use z a basis = a bond issue or taxation1 & v little t w\ld be ( use = sale4 ,9 su* an extreme 7b by no means unhe>d-(7 case physical value be>s no relation to real value4 ,?is is n to say t a physical valuation is )\t wor?1 & ev5 great wor? 9 "s cases2 x is m]ely (f]$ z an op9ion t ! physical value is 9 _m 7& probably mo/7 in/ances a v trea*]\s guide to ! real value--a f> poor] guide1 z a g5]al rule1 ?an ! acc\nt+ dep>tm5t2 a m9or quantity1 9 fact4 ,x seems d\btful :e!r !re is a sci5tific way ( arriv+ at ! true value ( a go+ prop]ty by ! physical-valuation r\te4 ,!re is too l>ge a p]c5tage ( values :i*1 be+ intangible1 are matt]s ( judgm5t4 ,at be/1 ! det]m9ation ( value mu/ be t ( op9ion1 & ! wor? ( t op9ion h+es pr9cipally on ! practical qualifications & dis9t]e/$ness ( ! p]son :o gives x4 ,un=tunately1 or =tunately1 z ! po9t ( view may be1 ! dis9t]e/$ p]son is n apt to be qualifi$1 nor ! qualifi$ p]son to be dis9t]e/$1 & x seems extremely probable to ! writ] t1 :ile weapons may be *ang$ & excuses v>y1 ! tax w> w be wag$ z ( yore1 & ! fool & 8 money w cont9ue along div]g+ pa?s until some?+ m +5i\s ?an physical valuation is inv5t$1 h[ev] well ! valuation may be made4 ,c4 ,p4 ,,h[>d1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,:ile !re may be no mat]ial diff]5ces ( op9ion z to ! pr9ciples on :i* a physical valuation %\ld dep5d1 su* a detail$ description ( organization & me?ods z t pres5t$ by ! au?or %\ld be ( great s]vice to o!rs und]tak+ simil> inve/igations4 ,x may n be amiss1 h[ev]1 to m5tion c]ta9 features affect+ ! non-tangible values :i* %\ld be m fully consid]$ 9 any g5]al discussion ( ! subject4 ,! au?or calls att5tion to "o or m p>ticul>s 9 :i* ! me?ods ( ! ,mi*igan appraisal may fail z a me?od ( det]m9+ a value = use z a basis ( rate-mak+4 ,lat]1 aft] quot+ v>i\s c\rt decisions1 he dismisses ?is phase ( ! subject ) ! words3 ,9 view ( ^! dicta1 x is ne$less to argue :e!r a rate ( #f or #aj1 or #ae1 or m1 be reasonable4 ,a value = purposes ( rate-mak+ might m prop]ly be call$ a p]missible value4 ,! writ] holds no brief = ! corporations1 & w\ld n l to fall "u ! imputation ( be+ app>5tly incit$ by1 ei!r ! direct int]e/ ( corporations1 99 99 99 or an ef=t to confuse ! subject ( valuations1 b w v5ture ! foll[+1 :i*1 :ile x does n exactly repres5t any p>ticul> case1 x is hop$ may be recogniz$ z an illu/ration drawn f life4 ,a1 ,b1 ,c1 & _! associates1 be+ famili> ) a c]ta9 t]ritory1 its res\rces1 transportation facilities1 & gr[+ developm5t1 believe t ! "t has come to build ano!r railroad ?r\gh _! ,/ate or ,/ates4 ,!y h made c>eful e/imates ( ! am\nt ( tonnage t may be expect$ f ! developm5t ( its m9es1 timb]1 f>ms1 etc41 & conclude z foll[s3 ,fir/4--,! road1 complet$ along ! mo/ approv$ l9es1 w co/1 ) equipm5t1 #ej1jjj1jjj4 ,second4--,x w take five ye>s to con/ruct & equip ! road & put x 9 fair runn+ ord]4 ,?ird4--,! traffic1 :5 fully develop$ accord+ to _! hopes & expectations1 w ev5tually af=d at usual t>iffs a h&some pr(it1 say1 f #h to #ab p] annum on ! capital inve/$4 ,?is condition1 !y believe1 9 all human probability1 w be atta9$ 9 f #e to #aj ye>s aft] completion4 ,f\r?4--,t half ! traffic anticipat$ w pay #e on ! inve/m5t4 ,fif?4--,!y are oblig$ to admit 7?\gh ! *ances ( ?is are s remote z to be 9 _! op9ion negligible7 t1 due to un=ese5 causes1 ob/ruction1 competition1 etc41 !re is a possibility t1 z has s (t5 happ5$ 9 ! pa/1 ! ent]prise may prove a f9ancial failure1 or t ! p]iod ( prosp]ity may be po/pon$ s f> into ! future z to am\nt to practically ! same ?+4 ,"h is a bold und]tak+2 b 7 x #e1jjj1jjj in/ead ( #ej1jjj1jjj1 ! conditions w\ld be ess5tially ! same4 ,nev]!less1 !y h ! c\rage ( _! convictions & g ahead4 ,n[1 ) all ! risks & unc]ta9ties att5d+ an ent]prise ( ?is sort1 if ! ultimate pr(its 7 limit$ 9 advance to #e or #f on ! capital inve/$1 less depreciation1 :o b ! ,gov]nm5t itself c\ld af=d to build a railroad8 ,evid5tly1 :5 an exi/+ railroad makes small additions f "t to "t to ext5d or take c>e ( its bus9ess1 ! risk is n s great4 ,su* ext5sions w cont9ue m or less "u any limitations4 ,= rate-mak+1 x is evid5t t an appraisal bas$ on e>n+s w utt]ly fail ( its purpose if made dur+ ! lean ye>s imm$iately foll[+ con/ruction4 ,if made "s ye>s lat]1 :5 ! prop]ty has begun to pay1 ! risk & necess>y f9ancial loss ( ! lean ye>s %\ld be rememb]$1 z any "o build+ a road 9 ! future w necess>ily h ! same problems to meet1 toge!r ) ! exp5ses ( int]e/1 depreciation1 loss f op]ation1 etc41 bo? dur+ ! con/ruction & ! lean ye>s foll[+1 all ( :i* mu/ prop]ly be consid]$ a "p ( ! real co/ ( con/ruct+ & develop+ a prop]ty4 ,j4 ,e4 ,,will\ghby1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! det]m9ation ( ! co/ ( reproduc+ ! prop]ty ( any /eam railway involves1 toge!r ) o!r items1 an e/imate ( ! pres5t co/ (3 ,fir/4--,! acquirem5t ( ! "r ( way1 to ! ext5t1 9 ! =m1 & on ! location ( t held 9 connection ) ! railway to be reproduc$2 ,second4--,! con/ruction !reon ( ! roadway1 to ! =m & dim5sions1 & ( ! mat]ials :i* ! roadway to be reproduc$ exhibits2 & ,?ird4--,! season+ & adaptation ( ! roadway to ! /ate ( p]fection :i* ! roadway to be reproduc$ exhibits at ! "t ! e/imate ( co/ ( reproduction is made4 ,! fir/ conception1 = fix+ ! co/ ( ! sev]al items1 is to consid] ! railway to be reproduc$ z be+ non-exi/5t at ! "t ! e/imate is made1 b hav+ ! environm5t :i* !n exi/s along ! op]at$ railway1 al?\gh t environm5t may be l>gely ( ! railway's own creat+4 ,! co/ ( ! "r ( way is to be fix$ z ungrad$ & unimprov$ prop]ty atta*$ & =m+ a "p ( ! adjo9+ improv$ prop]ty1 :i* adjo9+ prop]ty w be entitl$ to receive1 9 addition to ! m>ket value ( ! l& tak51 all consequ5tial damages due to ! tak+ (f ( ! "r ( way 9 ! =m & location t ! l& has actually be5 tak51 & = ! purpose ( railway con/ruction & op]ation4 ,?is adjo9+ prop]ty is to give cr$it on ! consequ5tial damages = ! incid5tal b5efits :i* x d]ives1 if any1 f ! con/ruction & op]ation ( ! railway4 ,9 fix+ ^! values1 ! drift ( public s5tim5t--! bias ( juries ( view & ( trial juries--at ! "t ! e/imate ( co/ ( reproduction is made mu/ be consid]$1 s9ce t s5tim5t may affect enorm\sly ! co/ ( ! "r ( way4 ,! am\nt to be paid = a "r ( way is 9 ! end t :i* a condemnation c\rt w aw>d4 ,! "q z to :e!r or n ! "r ( way 0 orig9ally donat$ c no m ent] into ! det]m9ation ( ! co/ ( reproduction1 = ! purpose ( less5+ ! e/imate ( co/ ( acquir+ ! "r ( way1 ?an ! fact t donations ( l&s or bonds 7or ( convict labor & slave labor1 z 9 ! ,s\? prior to #ahfj7 made by gov]nm5tal au?ority or private ent]prise1 at ! "t ( ! orig9al con/ruction1 c be us$ to r$uce ! reproduction co/ ( ! excavation made 9 ! =mation ( ! roadway4 ,no rule z to ! sale ( prop]ty = comm]cial purposes 9 ! vic9ity ( an op]at$ railway c be rightfully adapt$ z cov]+ ! l9e z a :ole4 ,:ile ! co/ ( "r ( way ?r\gh f>m or timb] l&s be>s a g5]al relation to ! value ( ^? = agricultural purposes1 :]e improvem5ts !reon be> b a small proportion to _! total value1 ?is relation is :olly want+ 9 ! co/ ( a "r ( way ?r\gh a village or city or at any po9t :]e ! improvem5ts on ! prop]ty be> a l>ge proportion to its total value4 ,! relation is also want+ :]e a "r ( way is obta9$ ?r\gh agricultural l&s devot$ to special purposes1 l t ( c\ntry homes = ! ri*4 ,x is also want+ :]e ! "r ( way is tak5 out ( ! n>r[ riv] l&s 9 ! ,appala*ian ,m\nta9s1 :]e ! total value ( ! :ole f>m is dep5d5t on ! small acreage ( flat l& along ! riv] bank4 ,! g5]al rule ( prefix+ a con/ant to ! curr5t sell+ price ( l&s1 9 ord] to det]m9e ! e/imat$ co/ ( "r ( way1 %\ld be limit$ to agricultural & timb] l&s1 & to ^? :i*1 ow+ to _! ext5t1 ! c>v+ out ( ! "r ( way does n :olly de/roy = ! cont9uation ( agricultural & timb] op]ations4 ,= villages & cities1 & = l&s devot$ or adapt$ to special purposes1 an accurate e/imate ( ! co/ ( reproduction ( ! "r ( way c be det]m9$ only by a specific inve/igation ( ! conditions 9 ea* community4 ,:ile x is difficult to conceive all ! activities & s5tim5ts :i* h gr[? 91 f1 & ( railway op]ation1 z be+ 9 exi/5ce )\t ! railway1 x is only ?r\gh su* an assumption t "o c e/imate correctly ! make-up ( ! items ( co/ ( reproduc+ a railway z su* railway may n[ exi/4 ,to assume t ! railway1 n exi/5t = ! purpose ( e/imat+ ! co/ ( reproduction1 w n[ receive ! donations ( l& & moneys t 7 made half a c5tury ago1 is m]ely go+ back to a det]m9ation ( :at ! road has actually co/2 & t is contr>y to ! int5t ( ! !ory ( ! co/ ( reproduction4 ,! conception ( a p>allel l9e is n correct1 = x imposes !reby a fur!r burd5 on prop]ties :i* h already contribut$ to ! public good1 probably to an extreme ext5t1 & gives an abnormal co/ = "r ( way1 z %[n :5 a railway seeks to enl>ge its t]m9als 9 a cr[d$ community1 or to f9d a new entrance into a popul\s city4 ,s1 too1 9 e/imat+ on ! =mation ( ! roadway1 "o mu/ consid] ! roadway to be reproduc$ z be+ oblit]at$--all cuts & borr[-pits refill$1 & all embankm5ts & spoil banks remov$ f ! "r ( way--b all o!r l9es ( transportation1 except ! railway to be reproduc$1 mu/ be consid]$ z be+ 9 exi/5ce z !y actually are at ! date :5 ! e/imate ( co/ ( reproduction is made1 & t su* o!r l9es ( transportation are available = br++ 9 ma*9]y1 tools1 teams1 mat]ials1 & supplies = ! con/ruction ( ! railway to be reproduc$4 ,x is only by su* an assumption t ! b5efit ( ! improv$ means & me?ods ( con/ruction n[ preval5t c be obta9$2 b x is n p]missible to e/imate = ! con/ruction ( a railway ) diff]5t grades1 alignm5t1 roadb$1 wid?s1 or ) diff]5t mat]ials ?an t ( ! railway to be reproduc$ m]ely because su* con/ruction at ?is day might be actually *eap] or bett] ?an to con/ruct x 9 exact duplication4 ,= example1 if ! rock cuts on ! roadway to be reproduc$ be only #ah ft4 wide1 ) 3#a slopes1 "o mu/ n figure on ! great] economy ( /eam-%ovel excavation1 because ! /eam %ovel _c be work$ 9 cuts ( t wid?2 nor c ! spoil f su* cuts be c>ri$ long di/ances to elim9ate a possible solid-rock borr[ orig9ally made else:]e1 because long hauls are practicable 9 /eam-%ovel "w1 b want+ 9 excavations :]e ! mule is ! transportation =ce4 ,s1 too1 x is n p]missible to e/imate on re9=c$ concrete bridges to take ! place ( m co/ly cut-/one ar*es1 if cut-/one ar*es are ! /ructures t h be5 actually built4 ,! idea ( co/ ( reproduction is n synonym\s ) ! idea ( ! co/ ( build+ a railway capable ( s]v+ ! same transportation purpose4 ,if all our railways 7 to be built anew1 9 ! light ( our pres5t k1 & ) our pres5t traffic (f]+s & f9ancial res\rces1 va/ *anges w\ld be made 9 ! "* ( con/ruction4 ,! physical fact ( exi/+ con/ruction prev5ts a !oretical sub/itution ( :at is ! be/ con/ruction = any community1 toge!r ) its co/s = ! con/ruction :i* 0 actually made ye>s ago4 ,9 ! ev5t t an e/imate ( reproduction co/s be made = a ,/ate z a :ole1 or = a great railway sy/em z a :ole1 ! conception ( reproduction is modifi$ s t ! con/ruction may take ! =m ( progressive con/ruction1 ! pr9cipal l9es be+ built fir/ & ! less important l9es aft]w>d4 ,?is me?od w require ! e/imate = int]e/ dur+ ! con/ruction p]iod to be great]4 ,! money co/ ( ! season+ & ! adaptation ( ! roadway to su* a condition z w p]mit heavy tra9s to be run at high spe$s1 is great1 b ! am\nt is n readily asc]ta9$4 ,an e/imate ( co/ ( reproduction1 to be true1 mu/ consid] ?is item2 & probably ! m usual me?od ( asc]ta9+ x is to assume x to be an am\nt 9 "s proportion to ! co/ ( ! excavation4 ,?is proportion w v>y ) ! "* ( ! mat]ial ?r\gh :i* & ( :i* ! cuts & fills are made1 & ) ! me?ods ( con/ruction necess>ily adopt$4 ,!re are _m railways on :i* ?is co/ w exce$ #be ( ! total co/ ( excavation4 ,aft] ! e/imate has be5 made1 includ+ ! item = season+ & adaptation1 !re %\ld be add$ a cont+5t fund to cov] ! omitt$ "w1 consi/+ ( small borr[-pits & dit*es1 undet]m9$ f\ndations1 unexpect$ conditions enc\nt]$1 unavoidable =ce acc\nt "w1 m9or *anges ( /reams & highways1 damages to adjo9+ l&s due to ! me?ods ( con/ruction & to div]sion ( wat]1 etc4 ,?is item w n exce$ #e ( ! co/ ( ! roadway if ! e/imate be accurately made4 ,! m conv5i5t =m into :i* an e/imate ( co/ ( reproduction ( a /eam railway is to be put is to foll[ ! sub-acc\nts1 z prescrib$ by ! ,int]/ate ,comm]ce ,commission = ,exp5diture = ,road4 ,ea* item giv5 9 t acc\nt+ has a place 9 ! e/imate4 ,^! comm5ts are conf9$ to ! items cov]+ ! roadway1 namely1 ,"r ( ,way & ,/ation ,gr\nds1 ,grad+1 ,tunnel+1 ,bridges1 ,tre/les1 & ,culv]ts4 ,,h5ry ,c4 ,,adams1 ,,esq4#bh 7by lett]74--,to ! writ] ?is pap] seems to be ! mo/ complete & compreh5sive discussion ( ! g5]al "q ( valuation ( prop]ty inve/$ 9 public s]vice indu/ries t has come "u 8 notice4 ,x is especially important 9 t x is a summ>y ( ! discussion on ?is mo/ difficult subject dur+ ! pa/ t5 ye>s1 & ! writ] ?or\ghly agrees ) ! g5]al conclusions rea*$ by ,mr4 ,riggs4 ,!re is "o po9t1 h[ev]1 :i* might possibly h be5 develop$ m completely1 & t is ! treatm5t ( disc\nts1 :i* pres5ts itself f "t to "t 9 ! g5]al discussion4 ,mr4 ,riggs quotes ) approval ! foll[+3 ,if a company c m>ket its #ej-ye>1 #d p] c5t1 bonds at #ij p] c5t4 ( p>1 x means t ! company's cr$it is on a #d p] c5t4 basis2 t x c\ld m>ket a l security pay+ #d p] c5t4 at p>4 ,?is is1 ( c\rse1 correct z f> z ! ma!matics ( ! proposition is conc]n$1 b x seems to ov]look t peculi> psy*ology ( ! m>ket :i* enables a corporation to secure a l>g] am\nt ( actual ca% = a giv5 int]e/ annuity :5 bonds are sold at a disc\nt ?an :5 !y are sold at p>4 ,aside1 h[ev]1 f ! accuracy ( ! above quotation & ( ,mr4 ,riggs' app>5t acceptance ( x z ! f9al ^w on disc\nts1 "o may ask if x recognizes all ! elem5ts necess>ily involv$ 9 a discussion ( ! problems rais$ by disc\nt f9anci]+4 ,f ! lit]ature ( ! subject "o may read ! foll[+ claims3 ,disc\nt is a measure ( ! risk involv$ 9 a new ent]prise2 disc\nt is a m>ket adju/m5t t reflects ! curr5t value ( money2 disc\nt is a sacrifice ( pr9cipal = a slightly r$uc$ int]e/ annuity2 disc\nt is a divid5d decl>$ be=e ! divid5d is e>n$2 & _m cases are cit$ 9 :i* a disc\nt is m]ely a promot]'s fee = s]vices r5d]$4 ,! writ] does n c>e to discuss at ?is "t ^! v>i\s po9ts ( view f :i* disc\nts may be reg>d$4 ,!y are m5tion$ m]ely to sugge/ t ! subject is n z simple z "s writ]s seem to ?9k4 ,any valuation ( public s]vice indu/ries1 f :atev] po9t ( view x may be reg>d$1 mu/1 f ! nature ( ! case1 t\* ! problem ( fundam5tal equities2 & "o ( ! elem5ts ( ?is problem :i* has n z yet be5 fully analyz$ is ?is elem5t ( disc\nts4 ,f ! po9t ( view ( taxation1 su* an analysis is n p]haps ess5tial2 b if ! valuation is to be us$ z a basis ( det]m9+ reasonable rates1 or z a measure ( reasonable capitalization1 x seems to be ess5tial4 ,! writ] is sure ?is discussion w n be con/ru$ z 9 any s5se a criticism on ,mr4 ,riggs' pap]2 x is r a sugge/ion ( an unwritt5 *apt] 9 ! lit]ature ( valuation4 ,! ,am]ican ,society ( ,civil ,eng9e]s is to be congratulat$ 9 secur+ f "o ( its memb]s s complete & satisfactory a discussion ( ! pr9ciples & me?ods = ! valuation ( public s]vice corporation prop]ty4 ,,c>l ,c4 ,,witt1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! appraisal ( ! railway prop]ty 9 ,mi*igan 0 a wond]ful p]=mance 9 a great _m ways1 n ! lea/ ( :i* 0 ! ?or\ghness ( ! "w1 consid]+ ! %ort "t available1 & ! writ] desires to express 8 appreciation ( ?is pap]1 z x is a valuable addition to ! meag] lit]ature on ?is subject4 ,m rec5t appraisals1 made by ,/ates trav]s$ by ! same railway sy/ems z ^? involv$ 9 ! ,mi*igan appraisal1 h be5 made ) a fre$om f opposition by railway companies due to ! educational effect ( ?is pione] "w4 ,p>ticul>ly is ?is true ( ! rec5tly complet$ appraisal1 by ! ,bo>d ( ,railroad ,commission]s ( ,s\? ,dakota1 ( ! physical prop]ty ( ! railways 9 t ,/ate1 ( :i* "w ! writ] 0 ! ,eng9e] 9 *>ge4 ,no opposition 0 met2 9 fact1 "s ( ! railway companies _h e/abli%$ regul> dep>tm5ts = furni%+ inv5tories & appraisals1 _h complet$ ! necess>y field "w 9 ,s\? ,dakota be=e ! inv5tory _h be5 reque/$ by ! ,/ate1 & 7 able to furni% a v complete appraisal 9 a %ort "t aft] ! reque/ = x 0 made4 ,?is appraisal 0 made 9 compliance ) an act ( ! ,legislature ( #aijg1 :i* requir$ ! ,bo>d ( ,railroad ,commission]s to asc]ta9 ! true ca% value ( all ! prop]ty ( e railroad company 9 ,s\? ,dakota us$ 9 ! op]ation & ma9t5ance ( _! respective roads4 ,no att5tion 0 paid to ! purpose ( ! appraisal1 b "o ( ! fir/ uses made ( ! in=mation ?us secur$ 0 9 ! litigation foll[+ ! passage ( an act by ! ,legislature ( #aiji1 prescrib+ a maximum pass5g] f>e ( #b c5ts p] mile on all railroads op]at+ )9 ! ,/ate4 ,9 connection ) a rate case ( ?is k9d1 "s que/ions h be5 rais$ reg>d+ prop] bases = l& values1 ! use ( an item = adaptation & solidification z an elem5t ( physical value1 ! value ( ! intangible assets1 etc4 ,! l&s ( all railway companies 7 apprais$ at a co/ to reproduce or re-pur*ase at ! "t ( appraisal1 reg>dless ( ! orig9al co/ ( ! prop]ty4 ,! sales me?od 0 us$ = det]m9+ ! m>ket value ( adjo9+ prop]ty4 ,!re has be5 a v l>ge l& movem5t 9 ,s\? ,dakota 9 ! la/ five ye>s1 & z mo/ ( ! c\ntry is prairie1 ) simil> soil ov] l>ge areas1 x 0 n difficult to det]m9e ! av]age m>ket value ( ! l& = f>m purposes1 at ! date ( ! appraisal1 & ! gradual tr5d ( values = five ye>s previ\s to t date4 ,an av]age multiple ( #bej 0 us$ to arrive at ! co/ ( reproduc+ or pur*as+ ! "r ( way4 ,?is multiple 0 bas$ on inve/igations made ( rec5t "r-(-way pur*ases1 & inasmu* z !re are no l>ge t]m9als 9 ,s\? ,dakota1 ! same av]age multiple 0 us$ ?r\gh\t ! ,/ate = bo? t[n & f>m prop]ty1 inve/igation %[+ t t[n prop]ty c\ld be secur$ = slightly less & f>m prop]ty = slightly m ?an ! av]age multiple us$4 ,9 ea* supplem5tal appraisal ! l& values w be correct$ to correspond to ! *anges 9 surr\nd+ values1 z ! railway company is entitl$ to any increase1 due to natural causes1 bas$ on ! co/ to reproduce at ! "t ( appraisal4 ,?is is a well-e/abli%$ !ory1 z %[n by ,mr4 ,riggs4 ,no all[ance 0 made = ! item commonly kn[n z adaptation & solidification1 except 9 ! item ( cont+5cies & 9 ! consid]ation ( ! pres5t value ( ! balla/4 ,9 "s rec5t appraisals1 l>ge sums1 bas$ on a p]c5tage ( ! co/ ( grad+1 h be5 all[$ = ?is item4 ,:ile !re is no "q t l>ge sums ( money are exp5d$ 9 ma9ta9+ a safe track on a new bank1 & t ?is exp5se gradually dim9i%es z ! roadb$ becomes solid1 due to ! p\nd+ ( ! tra9s & ! action ( ! elem5ts1 ?is exp5se is1 & prop]ly s1 *>g$ to ma9t5ance1 & is paid = out ( ! op]at+ rev5ues4 ,n[1 9 ! trial ( a rate case1 exhibits %[+ ! op]at+ exp5ses1 includ+ ma9t5ance *>ges1 are introduc$1 & to include ?is same item 9 ! appraisal ( ! physical prop]ty leads to a duplication1 = if ! pass5g] or %ipp] pays = ?is ma9t5ance *>ge1 x %\ld n be c\nt$ z an item ( physical value z a basis = det]m9+ :at is a reasonable rate4 ,! case is simil> to t ( a locomotive3 ,:5 new1 x is kept 9 ! vic9ity ( ! %ops1 because tr\ble f lack ( prop] adju/m5t & weak p>ts is likely to develop1 & ! ma9t5ance *>ges may be mu* high] ?an a few mon?s lat] :5 ! ma*9e has f\nd itself &1 z an op]at+ ma*9e1 is m effici5t ?an :5 new4 ,h[ev]1 no "o w insi/ t x has an add$ physical value 9 doll>s & c5ts1 or t ! excess co/ ( repairs & ma9t5ance dur+ its e>ly life %\ld be add$ to its co/ ( reproduction n[2 9 fact1 x is a second-h& ma*9e1 & ! ma9t5ance *>ges mu/ be paid = out ( its use4 ,g5]ally1 :5 a roadb$ is turn$ ov] to ! op]at+ dep>tm5t by ! con/ruction dep>tm5t1 x is 9 good l9e & surface1 & if an appraisal 7 made at t "t its condition w\ld be #ajj2 b z soon z x is plac$ "u traffic1 x beg9s to depreciate1 z %[n by ! fact t x requires con/ant att5tion to keep x up4 ,if ! roadb$ is cross-section$ at ea* /ation & actual quantities calculat$ f cross-section notes1 !re w\ld be no depreciation1 b if ! grad+ quantities are calculat$ f pr(iles ( ! l9e1 z con/ruct$ "s "t previ\sly1 & = a /&>d wid? ( sub-grade1 ) a p]c5tage add$ = %r9kage1 & all[ance made :]e banks h be5 wid5$1 etc41 x w probably be f\nd to exce$ ! actual measur$ quantities1 because ! action ( ! elem5ts 9 wa%+ ! slopes1 ! we>+ ( ! %\ld]s ( ! embankm5t due to foot traffic1 etc41 w %[ "s depreciation 9 quantities4 ,x is common practice to c>ry ! item = grad+ ov] to ! pres5t-value column at #ajj1 or1 ) no depreciation4 ,?is practice1 toge!r ) ! pres5t condition ( ! balla/ due to ma9t5ance1 & t "p ( cont+5cies :i* cov]s wa%+ ( slopes1 fill+ ( dit*es1 s9k holes1 etc41 c]ta9ly takes c>e ( all adaptation & solidification :i* %\ld ent] into a valuation ( physical prop]ty4 ,no appraisal 0 made ( ! intangible assets4 ,a great _m argum5ts h be5 advanc$ = & aga9/ su* an appraisal1 & 9 ,s\? ,dakota x 0 held t ! e>n+ ability ( any corporation due to its fran*ise1 /rategic location1 effici5t organization1 go+-conc]n value1 etc41 :ile p]haps an elem5t ( value to be consid]$ 9 a transf] ( ! prop]ty or if assess$ on an income basis1 %\ld n ent] into a valuation :i* w\ld be us$ = det]m9+ a j & reasonable return on ! inve/m5t1 because ! great] ! e>n+ p[] ! great] w\ld be ! return1 & t ?is condition w\ld produce a nev]-end+ increase 9 returns2 :]eas1 :5 ! returns rea* a po9t at :i* !y w n only pay a fair divid5d on ! inve/m5t1 b take c>e ( any depreciation 9 ! physical condition ( ! prop]ty & make all ne$$ improvem5ts 9 roadb$1 build+s1 & equipm5t1 dem&$ by ! travel+ public1 %ipp]s1 increas$ traffic1 or natural causes1 !y %\ld be kept to t po9t4 ,!re are sev]al hundr$ miles ( railway 9 ,s\? ,dakota :i* h be5 built out ( ! surplus e>n+s ( ! p>5t corporation--9 o!r words1 ) money suppli$ by ! travel+ & %ipp+ public--b :i* are own$ by ! railways & on :i* !y may e>n ano!r surplus = con/ruct+ m ext5sions1 etc41 etc4 ,! orig9al ,s\? ,dakota appraisal1 z ( ,june #cj?1 #aijh1 on =ms simil> to ^? us$ 9 ,m9nesota1 has be5 supplem5t$ by ye>ly appraisals correct$ = all additions & d$uctions made dur+ ! fiscal ye>4 ,= ?is purpose a new set ( =ms#bi 0 prep>$1 ) ! v>i\s items class$ 9 accordance ) ! ,classification ( ,exp5ditures = ,road & ,equipm5t1 z prescrib$ by ! ,int]/ate ,comm]ce ,commission1 & arrang$ s z to facilitate %[+ ! ye>ly *anges4 ,r4 ,a4 ,,?ompson1 ,,assoc4 ,m4 ,,am4 ,,soc4 ,c4 ,e4#cj 7by lett]74--,?is pap] is consid]$ by ! writ] to be ! mo/ complete treatise ev] writt5 on ! valuation ( public s]vice corporation prop]ty1 & ! au?or des]ves ! s9c]e ?anks ( ! entire ,eng9e]+ ,pr(ession & all o!rs int]e/$ 9 ?is mo/ important "q4 ,its pres5tation is mo/ timely1 9 view ( ! agitation1 p>ticul>ly on ! subject ( railroad valuation1 :i* is n[ engag+ ! att5tion ( ,congress & ! law-mak+ bodies ( ! sev]al ,/ates1 z x conta9s mu* valuable in=mation relative to decisions ( ,c\rts1 9 addition to cle> & concise expositions ( ! me?ods 9 vogue = ! appraisem5t ( corporate prop]ty1 etc4 ,x is a fact--rapidly com+ to be recogniz$ by legislative & judicial bodies--t ! prescription & regulation ( tolls1 *>ges1 & assessm5ts aga9/ public corporations _c be made sy/ematic & intellig5t unless !re is provid$ "s e/imate ( ! value ( ! prop]ty involv$1 bas$ on ! co/ ( its replacem5t or reproduction4 ,p>ticul>ly is ?is true ( railroads2 & su* regulation ( ! affairs ( ^! corporations z has h]et(ore be5 essay$ by ,/ate & ,national commissions1 has g5]ally be5 on illogical bases1 unsatisfactory alike to ! propon5ts & ! companies4 ,results h be5 _h1 x is true1 aft] a fa%ion1 b !re h be5 endless disputes & litigation1 ) ! prime que/ions involv$ no ne>] solution ?an be=e4 ,"o has b to contemplate ! v>i$ & (t5 antagoni/ic legislation promulgat$ by ! sev]al ,/ates1 relat+ to corporation managem5t1 & ! _m rul+s & decisions ( ! diff]5t c\rts & commissions on ! subject ( regulation1 assessm5t1 & adjudication ( corporate rates1 rev5ues1 taxes1 & tolls1 to become conv9c$ ( ! complicat$ & tangl$ condition ( ! situation1 & to realize ! necessity = ! e>ly e/abli%m5t ( "s logical basis on :i* to e/abli% ! fabric ( corporate control4 ,:ile x is n ma9ta9$ t an appraisem5t ( ! physical prop]ty ( public s]vice corporations w be ! panacea = all su* ills1 ! writ] firmly believes ) ! au?or t su* appraisal1 z a beg9n+1 is absolutely necess>y1 & :5 effect$ on "s fair & reasonable basis1 w contribute l>gely to ! successful solution ( _m ( ^! intricate problems4 ,) ! e/imate ( ! physical value ( a prop]ty be=e x--:i* repres5ts money actually inve/$1 toge!r ) su* accruals to co/s z x may be det]m9$ t ! own] is reasonably entitl$ to h consid]$--any ,c\rt1 tribunal1 or commission is 9 a bett] position to mete out imp>tial ju/ice1 :e!r x be ! regulation ( a rate1 ! assessm5t ( a tax1 or ! imposition ( a f9e4 ,al?\gh ! au?or's exp]i5ce 9 valu+ corporate prop]ty has be5 pr9cipally 9 connection ) ! ,mi*igan appraisal ( railroads1 & to him is l>gely due ! cr$it = devis+ me?ods =1 & c>ry+ =w>d to successful completion1 ?is ?or\gh & mo/ excell5t "w1 x is refre%+ to note 8 incl9ation to give cr$it to ! "w ( o!rs along ! same l9e 9 o!r ,/ates1 :i*1 x is to be regrett$1 has n always be5 ! case ) writ]s on ?is subject4 ,!re is no d\bt t ! "w ( ! ,mi*igan & ,wiscons9 ,bo>ds ( ,appraisal--conduct$ "u ! advice & direction ( "s ( ! mo/ em95t & tal5t$ eng9e]s & economi/s 9 ! ,unit$ ,/ates1 & practically )\t reg>d to exp5se--is ! mo/ complete & p]fect ( its k9d h]et(ore attempt$2 yet !re are _m features 9 reg>d to ! organization & execution ( its details ab\t :i* !re may be an hone/ diff]5ce ( op9ion1 z view$ by ^? :o h be5 simil>ly employ$4 ,x is b natural--z sugge/$ by ! au?or--to f9d ! individual "* ( ! apprais] 7:i* has be5 m\ld$ by 8 environm5t1 tra9+1 & =m] s]vice7 reflect$ 9 8 op9ion1 & ?is w\ld be mo/ probable 9 ! organization =1 & c>ry+ on ! "w (1 apprais+ a railroad prop]ty1 :i* involves consid]ation ( practically e phase ( eng9e]+ & economics4 ,! judgm5t ( any man is ess5tially w>p$ along ! l9es ( 8 exp]i5ce1 & he is necess>ily bias$ & prejudic$ 9 favor ( or aga9/ c]ta9 practice4 ,z a consequ5ce1 !re=e1 x is n reasonable to suppose t any "o man1 or set ( m51 c =mulate a sy/em = valu+ corporate prop]ty :i* w be p]fect 9 all its details1 & be free f objection & criticism4 ,! writ] 0 employ$ = a numb] ( ye>s z ,eng9e] = ! ,railroad ,commission ( ,texas1 & _h *>ge ( ! valuation ( railroad prop]ty "u ! ,railroad ,/ock & ,bond ,law ( t ,/ate4 ,a pap] on ! me?ods us$ by ?is ,commission 0 prep>$ by him & publi%$ by ! ,society4#ca ,?is ,/ock & ,bond ,law 0 enact$ 9 #ahic1 & ! railroads !n exi/+ 7 valu$ 9 #ahid & #ahie4 ,! av]age value ( #h1hfj miles 0 #ae1hdd p] mile4 ,?is valuation 0 made by ,*>les ,corn]1 ,m4 ,am4 ,soc4 ,c4 ,e41 n[ ,resid5t ,eng9e] ( ! ,rhodesia ,railways1 ,s\? ,africa1 & ,mr4 ,h4 ,j4 ,simmons1 n[ ,g5]al ,manag] ( ! ,el ,paso & ,s\?we/]n ,railway ,sy/em4 ,! actual co/ ( ?is "w is n available1 b is e/imat$ at ab\t #b p] mile4 ,! eng9e]s mak+ ! appraisal secur$ maps1 pr(iles1 & all available in=mation f ! (fices ( ! railroad companies1 includ+ all ! con/ruction records & e/imates ( quantities :i* 7 pres]v$4 ,appraisal 0 made only aft] "o ( ! eng9e]s _h made a p]sonal exam9ation on ! gr\nd1 accompani$ by assi/ants to aid 9 measur+ /ructures & e/imat+ quantities4 ,all valuations made s9ce #ahie h be5 ( new railroads mak+ application = issuance ( securities1 & 9 all cases ! de$s = "r ( way & depot gr\nds1 ! contracts = con/ruction1 ! actual quantities ( con/ruction ( all k9ds1 ! plans & specifications = all /ructures & con/ruction1 & all o!r in=mation :i* ! eng9e] desir$1 7 submitt$ by ! railroad companies to enable an accurate appraisal ( ! value ( ! prop]ty to be made4 ,x is n possible = valuations ( ?is "* to be made "u m favorable circum/ances4 ,up to ,octob]1 #aiji1 m ?an #c1ejj additional miles _h be5 valu$1 & 9 all cases ! e/imates limit$ ! securities :i* ! companies might issue4 ,writ]s on railroad valuation h g5]ally be5 incl9$ to discr$it ! "w ( ! ,texas ,railroad ,commission & ! sy/em ( appraisal us$ by x4 ,"o writ]1 ( m or less prom95ce1 has ref]r$ to x z ! *eap me?od4 ,:ile x may be true t o!r appraisals h be5 m exp5sive1 x is a fact t ^? ( ! ,texas ,commission h s]v$ _! purpose well1 & ! railroads1 z a rule1 h made little compla9t4 ,z a matt] ( fact1 x is highly probable t ! valuations ( railroad prop]ty made by ! ,texas ,commission h be5 ( great] utility1 z f> z ! public is conc]n$1 ?an ^? ( all o!r ,/ates comb9$1 &1 at ! same "t1 no inju/ice has be5 done ! railroads4 ,x appe>s t ^? :o h int]e/$ !mselves 9 inve/igat+ ! ,texas me?od ( railroad valuation--includ+ ! au?or--h fail$ to con/rue ! real mean+ & int5tion ( ! ,/ock & ,bond ,law4 ,app>5tly1 x 0 pass$ = ! purpose ( limit+ railroad indebt$ness--& is ref]r$ to by ,mr4 ,riggs z s]v+ only ?is purpose--b :ile its effect has be5 to accompli% ?is mo/ successfully1 its enactm5t c>ri$ ) x a deep] significance4 ,?is law 0 pass$ at ! same "t z ! ,g5]al ,railroad ,commission ,act ( ! ,/ate1 :i* gave to ?is ,bo>d absolute control ov] all freight rates & t>iffs1 & also o!r p[]s n possess$ at t "t by any o!r ,/ate commission4 ,! decisions ( ! highe/ ,c\rts at t "t laid /ress on ! "r ( c>ri]s to ma9ta9 rates :i* w\ld af=d a reasonable return on /ocks & bonds out/&+4 ,h5ce1 to delegate ! regulation ( rates to any tribunal by any law :i* did n c>ry ) x also ! "r to sup]vise & re/rict mortgage indebt$ness to "s reasonable ext5t1 appeal$ to ! legislators z be+ ess5tially ineffective4 ,! effect ( ! law has be5 to r$uce /eadily ! av]age out/&+ /ocks & bonds ( ! railroad companies ( ! ,/ate f an av]age ( #dj1hjb p] mile 9 #ahid to #ca1iaj 9 #aiji--;& ?is1 too1 9 ! face ( a recogniz$ increase 9 ! physical value ( ! prop]ties--?us depriv+ ! railroads ( "o ( _! mo/ pot5t weapons ( (f5se :5 cont5d+ aga9/ ! ,commission's ord]s4 ,x is a matt] ( common k t ! indebt$ness p] mile ( railroads ( o!r ,/ates has increas$ greatly dur+ ?is p]iod4 ,x is also a fact t ! railroads ( ,texas h1 except 9 r>e in/ances1 cont5d$ t inju/ice has be5 done !m 9 ! en=cem5t ( ?is law1 & ! m>ket value ( _! /ocks & bonds has /eadily ris54 ,also _! physical condition is on a p> ) t ( railroads 9 o!r ,s\!rn & ,we/]n ,/ates1 & _! incomes f op]ation are z sub/antial4 ,! practice ( wat]+ _! securities has be5 effectually /opp$1 z reg>ds local issuance1 & any int]e/ :i* might h accru$ on su* securities has be5 sav$ to ! public4 ,x has be5 cont5d$ t ! ,texas valuations ( #ahid-ie 7 too l[1 & did n1 ev5 at t "t1 repres5t ! fair value ( ! prop]ties4 ,?is is p]haps true to a c]ta9 ext5t1 b x mu/ be rememb]$ t ! co/s ( mat]ials & con/ruction !n 7 less ?an at any "t be=e or s9ce2 &1 view$ f ! pres5t-day /&po9t1 !y seem to h be5 inadequate4 ,x mu/ also be consid]$ t real e/ate values ?r\gh\t ! entire ,/ate 7 v l[1 comp>$ ) pres5t values & ) ^? ( l&s 9 o!r ,/ates4 ,al?\gh ! writ] admits t ! m>g9 0 v n>r[1 /ill he is ( ! op9ion t ! valuations z made repres5t$ closely ! co/ ( reproduction ( ! physical prop]ties at ! "t4 ,! valuations ( #ahid-ie /& to-day on ! ,commission's records z ! value ( ! prop]ty1 except 9 cases :]e !re has be5 application & necessity = re-valuation4 ,! ma*9]y ( ! law did n provide t ^! appraisals %\ld be kept up to date4 ,! mortgages on ^! railroads are /ill out/&+1 & !re has be5 no call = ano!r appraisal1 except 9 a few in/ances4 ,! ,commission has decid$ t 9 its op9ion ! pres5t value ( any ( ! railroads already apprais$ is repres5t$ by ! orig9al valuation plus ! value ( all p]man5t improvem5ts & bett]m5ts add$4 ,?is pr9ciple has be5 c>ri$ out ) ^? railroads :i* h appli$ = re-valuation = any purpose1 & ! ,commission has admitt$ ! same 9 te/imony :i* x has giv5 be=e ! ,c\rts4 ,s9ce ! appraisals :i* ! ,texas ,commission makes are prim>ily = ! purpose ( limit+ indebt$ness1 & ! c>ri]s are entitl$ to h ^! at lea/ equal ! co/ ( _! prop]ty--! inve/m5t ) c]ta9 additions to cov] promot]s' pr(its--no consid]ation c be giv5 to depreciation ( /ructures & equipm5t1 al?\gh ! application = valuation & process ( issu+ ( securities may be _h sev]al ye>s aft] completion4 ,! writ] holds t !re is /rong argum5t 9 favor ( n tak+ into acc\nt depreciation1 & ( e/imat+ ! value ( ! prop]ty z be+ entirely new1 :atev] purpose ! valuation is propos$ to s]ve4 ,?is is app>5t1 z already /at$1 :5 ! valuation is to s]ve z a basis = limit+ ! issue ( /ock & bonds4 ,is !re any logical reason :y a valuation = ?is purpose %\ld n also s]ve--z f> z x p]ta9s--z a basis = taxation or = regulat+ freight rates8 ,z f> z ! ,/ate is conc]n$--& to be consi/5t--%\ld n "o valuation s]ve all purposes8 ,suppose t a ,/ate %\ld create a bo>d clo!d ) p[]s ( rate regulation1 taxation1 & au?ority to re/rict indebt$ness1 & also prescribe t x %\ld appraise ! value ( ! prop]ty ( ! railroads1 & use t appraisal z ! basis = its acts4 ,w\ld x be logical = t bo>d to make & apply "o sy/em ( valuation = "o purpose & ano!r sy/em = ano!r purpose8 ,manife/ly1 x w\ld h decl>$ t a valuation 0 a valuation = all purposes1 at lea/ z f> z ! physical prop]ty 0 conc]n$2 &1 :5 devis+ a me?od = mak+ its appraisals1 x %\ld incorporate !re9 all ! elem5ts ( value :i* might apply logically to ei!r purpose4 ,! writ] believes t depreciation ( roadb$ & /ructures w\ld h no place 9 su* an appraisal1 on ! "o h&1 nor its negative1 b fully z intangible & difficult ( concrete e/imate1 adaptation & solidification ( roadb$1 on ! o!r4 ,x %\ld n be und]/ood t ! writ] ma9ta9s t taxation bo>ds %\ld n g beyond ! valuation ( physical prop]ty to arrive at a f9al basis = assessm5t4 ,!re are c]ta9 intangible elem5ts :i* %\ld be tak5 into consid]ation :5 tax+ prop]ty1 *ief ( :i* is ! net income4 ,x is only z f> z physical valuations apply 9 ei!r case t he consid]s t !re %\ld be uni=mity4 ,he does n approve at all ( incorporat+ 9 an e/imate ( ! physical value ( a railroad prop]ty su* an elem5t z adaptation & solidification ( roadb$1 :i* is cr$it$ ) s mu* importance 9 ! ,m9nesota valuation4 ,9 ! fir/ place1 su* an elem5t is incapable ( be+ measur$ 9 tangible t]ms & r$uc$ to a doll>s-&-c5ts basis2 second1 x _c be reproduc$ 9 ! s5se t o!r prop]ty is reproduc$1 & its value does n appe> 9 ! capital acc\nt ( ! railroad2 & ?ird1 x results f ! action ( ! seasons on ! "o h&1 & ! work+ ov] ( ! roadb$ by ! ma9t5ance =ces on ! o!r1 ! co/ ( :i* appe>s 9 op]at+ exp5ses4 ,"o is con/ra9$ to believe t ! eng9e] :o insi/s on incorporat+ su* an elem5t 9 an appraisal ( ! physical value ( a railroad is h>d put to f9d mat]ial ) :i* to swell 8 e/imate4 ,:5 not+ ! l>ge diff]5ce 9 value p] mile ( ! railroads ( ,m9nesota1 z comp>$ ) ^? ( ,mi*igan & ,wiscons9--adjo9+ ,/ates--x w\ld appe> t undue prom95ce _h be5 giv5 to ?is & simil> factors4 ,! writ]'s exp]i5ce z apprais+ eng9e] = m ?an #aj ye>s ) ! ,texas ,railroad ,commission1 & = ! pa/ #b ye>s z a con/ruction eng9e]--hav+ built ab\t #afj miles ( railroad 9 ,oklahoma & ,texas--confirms 8 belief t1 9 ! abs5ce ( actual figures ( co/1 "r ( way & o!r railroad real e/ate %\ld be apprais$ at b little 9 excess ( ! m>ket value ( abutt+ prop]ty4 ,! practice ( ! ,texas ,commission has be5 to add f #be to #ej p] c5t4 ,! conditions "u :i* railroads 7 built 9 ,mi*igan1 ,wiscons91 ,i[a1 & ,m9nesota _c h be5 radically diff]5t f ^? 9 ! ,s\!rn & ,we/]n ,/ates4 ,9 ,texas x has be5 a r>e in/ance :5 a railroad has _h to pur*ase all ( its "r ( way4 ,also1 contigu\s l&s h greatly increas$ 9 value s9ce ! adv5t ( ! railroads4 ,x w\ld appe> highly illogical to advocate t ^! increas$ values %\ld be multipli$ by #c--or ev5 #a--;& us$ z a basis = tax+ ! railroads on ! "o h&1 or tax+ ! public on ! o!r1 by p]mitt+ indebt$ness to be issu$ aga9/ x1 ! int]e/ on :i* ! latt] mu/ pay4 ,! railroad rec5tly con/ruct$ by ! writ] trav]s$ f]tile & ?ickly populat$ areas1 already q well s]v$ ) transportation facilities4 ,only a small fraction ( ! necess>y real e/ate 0 pur*as$ by ! railroad company1 & only 9 a few cases ( su* pur*ase did x pay l>gely 9 excess ( ! m>ket value ( ! l&--& ^! 7 :]e ! road int]f]$ ) h\ses & o!r f>m improvem5ts4 ,9 cities & t[ns1 l& 0 acquir$ at practically its fair m>ket value4 ,= rural prop]ty1 ! ratios us$ by ,pr(essor ,taylor 9 ! ,wiscons9 appraisal appe> to be q fair1 b 9 cities !y are too high--especially = ! ,s\?we/4 ,! ,m9nesota ratios appe> to be unreasonably high4 ,any appraisal ( ! physical value ( railroads--9 ! abs5ce ( figures z to _! actual co/--is necess>ily only approximate1 & is correct only )9 c]ta9 limits4 ,especially ) reg>d to ! old roads1 :]e orig9al co/ data _c be _h1 ! values appli$ to prop]ty & con/ruction mu/ be l>gely speculative4 ,x is impossible to build two railroads 9 ! same t]ritory1 on ! same specifications1 = ! same am\nt2 yet1 on ! basis ( co/ ( reproduction1 an appraisal bo>d mu/ apply ! same value to ea*4 ,! writ] believes t unless !re is m uni=mity z to me?ods ( valu+ corporation prop]ty1 z betwe5 ! ,/ates1 all valuations w be m or less discr$it$1 z !y %\ld be1 by ! ,c\rts4 ,x is to be hop$ t ?is pap] w be g5]ally discuss$ by ! ,pr(ession1 & w lead to ! adoption ( m uni=m me?ods4 ,,*>les ,h4 ,,l$lie1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! foll[+ is sugge/$ z a me?od ( proc$ure = det]m9+ ! fair & equitable value ( a prop]ty3 #a/4--,exam9e c>efully ! /atutes gov]n+ corporations ( ! class "u exam9ation4 #b;d4--,=m an op9ion z to :e!r or n ! locality c support su* a prop]ty1 by inquiry reg>d+ ! diff]5t bus9esses c>ri$ on1 bank cle>+s1 railroad facilities1 :at ! surr\nd+ c\ntry produces1 etc4 #c;d4--,f9d f ! ar*ives ( ! company a g5]al description ( ! prop]ty1 f its conception to ! date ( appraisem5t4 #d?4--,by close exam9ation ( ! m9ute books1 directors & executive committees1 !re c be asc]ta9$ all ! details ( organization1 issu+ ( /ock1 bonds1 & o!r =ms ( indebt$ness1 contracts = equipm5t1 supplies us$ 9 ! con/ruction1 etc4 #e?4--,obta9 f ! g5]al manag] or ! sup]9t5d5ts an explanation ( ! details ( op]at+ & ma9ta9+ ! prop]ty1 includ+ ! diff]5t classes ( s]vice1 rates1 etc4 #f?4--,g ov] ! prop]ty1 exam9e x c>efully1 & talk to any & all employees f :om x is ?\ght t any in=mation c be ga9$4 ,! =ego+ w give a g5]al k ( ! prop]ty "u exam9ation1 & w enable "o to beg9 ! real "w4 ,! exam9]'s assi/ants mu/ be compet5t & exp]i5c$ m54 #g?4--,exam9e all ! v\*]s1 f ! beg9n+ ( ! company d[n to ! date x began op]ation2 classify _! cont5ts "u ! respective heads = ! diff]5t classes ( mat]ial us$ 9 ! con/ruction1 = example1 pipe1 eng9es1 cable1 etc42 !n prep>e blank tables = ea* head+1 hav+ columns = size1 quantity1 prices1 & total2 & ab/ract ea* v\*]4 ,d ! same ) ! v\*]s = labor1 g5]al (fice sal>ies1 g5]al exp5ses1 int]e/1 taxes1 legal1 etc4 ,?is1 :5 complet$1 w give ! detail$ co/1 z %[n by ! v\*]s4 ,next *eck ! v\*]s back ?r\gh ! books1 & draw up a /atem5t1 :i* w %[ ! total book co/ &1 no d\bt1 w diff] f ! v\*] total4 ,x is likely t _m items w be f\nd = :i* no v\*]s exi/1 a li/ ( ^! is made & if ! (fic]s _c give a satisfactory explanation ( any ( !m !y are omitt$4 ,! total ( :at rema9s is add$ to ! v\*] total & repres5ts ! ca% exp5d$ = ! b5efit ( ! orig9al prop]ty1 z %[n by ! books & v\*]s4 #h?4--,take all ! rema9+ v\*]s ( ! company 7x is suppos$ t ! exam9] has already be5 in=m$ by ! (fic]s1 & by 8 inspection ( ! records1 ( ! ext5sions & bett]m5ts :i* h be5 made71 sep>ate ! v\*]s = mat]ials1 labor1 etc41 f ^? on op]at+1 etc4 ,next classify !m by ye>s1 & !n proce$ z set =? 9 #g?1 & add ! diff]5t ye>ly am\nts to ! total ( ! orig9al plant4 ,?is w %[ ! am\nt ( ca% exp5d$ 7accord+ to ! v\*]s & books7 on ! prop]ty1 = its physical plant1 organization1 etc41 f its beg9n+ to ! date ( appraisem5t4 ,e exam9+ eng9e] %\ld "k 7or c obta97 ! prices = mat]ials1 labor1 etc41 dur+ ^! p]iods ( orig9al con/ruction1 ext5sion1 etc4 ,if ! prices are ! same1 or ab\t ! same1 z at ! "t ( pur*ase1 ! above total /&s z ! ca% exp5d$2 if !re %\ld be mu* diff]5ce--& sometimes !re is--take ! detail ( ! mat]ials z f\nd 9 ! v\*]s1 affix ! prop] prices1 & d ! same ) labor1 etc41 & ?is total w be :at1 9 ! judgm5t ( ! exam9+ eng9e]1 ! plant %\ld h co/4 ,a mean betwe5 ?is latt] total & t 9 #h? is tak51 9 ord] to be fair & equitable4 ,?is am\nt1 9 place ( t giv5 by #h?1 is !n us$ z ! ca% exp5d$ on ! physical prop]ty4 ,if no diff]5ce is f\nd 9 prices1 !n ! total ca% z %[n by #h? is consid]$ z ! total to be h]eaft] us$4 #i?4--,a c>eful detail$ inv5tory is n[ made ( ! physical prop]ty z x exi/s at ! date ( exam9ation4 ,?is (t5 requires "s excavation 9 ord] to det]m9e sizes1 quantities1 & conditions4 ,! prices us$ to asc]ta9 ! total ( ! inv5tory are made by tak+ ! av]age ( all ^? paid = mat]ials1 labor1 etc41 ( ! same class1 dur+ ea* ye> ( ! prop]ty's exi/5ce4 7,! writ] consid]s x manife/ly unfair to use ! curr5t prices 9 ?is calculation1 = !y may be v mu* bel[ or above ^? actually paid1 & 9 ei!r ev5t an inju/ice w\ld be done1 :]eas1 if ! av]age prices are us$1 ! exam9] _c be accus$ ( unfairness47 ,to ?is total co/1 z %[n by ! inv5tory1 #e is add$ = eng9e]+ & sup]9t5d5ce2 #c = g5]al (fice sal>ies1 #b = g5]al exp5ses1 #a = legal & organization exp5ses1 & f #e to #aj = cont+5cies4 7,?is latt] p]c5tage dep5ds on ! judgm5t ( ! exam9]1 :o1 aft] /udy+ ! local conditions c>efully1 c det]m9e f 8 own exp]i5ce :at difficulties h be5 met 9 ! con/ruction4 ,x is n believ$ t a h>d-&-fa/ rule c1 9 equity1 be laid d[n = ?is latt] p]c5tage47 ,?is total repres5ts ! value ( ! tangible prop]ty1 bas$ on ! inv5tory4 ,! inv5tory co/ & t set =? 9 #h? 7or possibly z modifi$ by prices curr5t :5 ! plant 0 built7 are av]ag$1 & ?is result1 plus ! supplies on h&1 is ! fair & equitable am\nt ( ca% :i* has be5 exp5d$ on ! prop]ty4 ,?is is us$ 9 f9d+ ! ,fair & ,equitable ,value4 #aj?4--,next take ! inv5tory ( ! plant set =? 9 #i?1 affix ! curr5t prices at ! date ( appraisal1 & to ?is total add ! same p]c5tages = eng9e]+1 etc41 z set =? 9 #i?4 ,?is gives ! co/ ( reproduc+ ! prop]ty1 ) ! same classes ( mat]ials1 size & make ( eng9es1 etc41 z is n[ 9 x1 to :i* total add ! co/ ( mat]ials on h& = ! total ( ca% requir$ to be exp5d$ at curr5t prices to reproduce ! plant z x exi/s4 ,x is (t5 f\nd t ?is latt] total is great] ?an t set =? 9 #h?1 = ! reason t ! eng9es1 etc41 may be ( types :i* are n[ ab&on$ or obsolete1 & ! manufactur+ company1 hav+ to make patt]ns1 etc41 w\ld *>ge m = !m ?an ! orig9al price at ! date ( pur*ase4 ,?is reproduction co/ at curr5t prices is only to give ! exam9] in=mation he may or may n require lat] 9 ! inve/igation to det]m9e "s po9t t might arise 9 asc]ta9+ ! ,fair & ,equitable ,value4 ,! writ] consid]s x unfair to call ! reproduction value ! co/ ( a mod]n plant :i* w give ! same s]vice & output1 because "o is n deal+ ) ! value ( a mod]n plant1 b ) t ( an exi/+ prop]ty4 #aa?4--,f ?is co/ 7us+ ! detail$ inv5tory to f9d ! ext5t ( prop]ty /ill 9 exi/5ce71 calculate ! am\nt ( depreciation = ea* section ( ! plant1 ?is be+ bas$ on ! pres5t condition ( ! diff]5t p>ts & :at _! future life may be4 ,! total depreciation is !n d$uct$ f ! result f\nd 9 #i?1 & ?is rema9d] is us$ z ! ,fair & ,equitable ,value ( ! tangible prop]ty at ! date ( appraisal4 ,! intangible value 7call$ by _m names7 mu/ n[ be det]m9$4 ,x consi/s ( rights1 f ! ,/ate1 c\nty1 city1 or any "o or m comb9$1 :i* ! company mu/ h 9 ord] to c>ry on its bus9ess4 ,^! rights 9 ne>ly all ,/ates are taxable1 & taxes are collect$ on !m4 ,! ,supreme ,c\rt ( ! ,unit$ ,/ates has 9 ! pa/ held t !y are prop]ty1 not)/&+ :at ,/ate ,c\rts & ,commissions h set =? on ?is subject1 & 9 ! writ]'s exam9ations !y w be treat$ z prop]ty until ! ,supreme ,c\rt ( ! ,unit$ ,/ates decides o!rwise4 ,!re are 9 g5]al ?ree classes ( fran*ises1 namely3 ,i4--,^? grant$ by ! ,/ate to conduct a bus9ess1 :]e no c\nty or city fran*ise is necess>y1 only requir+ ! company to obey ! ord9ances = excavation1 etc4 ,! *>t] ( ! ,lacl$e ,gas ,company1 ( ,/4 ,l\is1 ,mo41 is an example ( ?is class4 ,,ii4--,^? grant$ by ! ,/ate to c>ry on a bus9ess subject to a c\nty or city fran*ise4 ,,iii4--,^? grant$ by a city to an individual1 s+ul> or plural1 or a company1 to d bus9ess )9 its limits or a section !re(4 ,9 ea* case ! "r may be a contract1 = x may require a paym5t = ! fran*ise grant$1 ei!r 9 a lump sum or 9 ye>ly in/allm5ts1 or 9 ! =m ( s]vices r5d]$1 su* z = light1 etc41 free s]vice ( "s k9d1 or a comb9ation ( any two or all ( !m4 ,! mann] ( det]m9+ ! value ( ,intangible ,prop]ty is z foll[s3 7a7 ,! gross collect$ e>n+s are audit$ = ea* ye> dur+ ! p]iod ! company has c>ri$ on its bus9ess4 ,! same is done = all v\*]s1 i4 e41 op]at+1 ma9t5ance1 sal>ies1 legal1 g5]al exp5ses1 int]e/1 insurance1 & taxes1 & includes e item disburs$4 ,:atev] ?is latt] am\nts to1 is d$uct$ f ea* ye>'s gross e>n+s z already f\nd1 & ! result is ! true net e>n+s or deficit = ea* ye>4 7b7 ,! true net e>n+s are add$ toge!r & ! mean tak52 if1 9 ! p]iod f ! beg9n+ to ! date ( appraisem5t1 any deficits are f\nd1 ^! are d$uct$ f ! total ( ! plus-e>n+s1 ! result is divid$ by ! total numb] ( ye>s1 & ?is gives ! true av]age net e>n+s4 ,?is is !n capitaliz$ at ! legal rate ( int]e/ ( ! ,/ate 9 :i* ! prop]ty is locat$4 ,! result is us$ z ! value ( ! ,intangible ,prop]ty4 #ab?4--,! am\nt giv5 by #aa? is add$ to ! result obta9$ by #i?1 & ?is total is ! ,tangible & ,intangible ,value ( ! prop]ty1 & ! ,fair & ,equitable ,value ( ! prop]ty at date ( appraisem5t4 ,if x is f\nd t grave mi/akes 9 design or judgm5t h be5 made by n employ+ compet5t p1 & money has be5 wa/$ 9 con/ruction1 ! plant is re-design$1 = ! orig9al plant1 & its co/ e/imat$4 ,! same is done = ea* ext5sion1 us+ ! prices paid at ! diff]5t p]iods1 & ?is result is us$ 9 place ( #i?1 z ! ca% co/ at ! date ( appraisem5t4 ,9 det]m9+ ! intangible value1 if x is f\nd t ! managem5t has be5 c>eless 9 ord] to make l>ge net e>n+s1 at ! exp5se ( ! physical prop]ty1 e/imates are made ( :at ! prop]ty c be op]at$ & c>$ = 7"h ! practical k ( op]ation1 etc41 is necess>y71 & ^! results1 plus taxes1 etc41 are subtract$ f ea* ye>'s collect$ e>n+s4 ,! mean or av]age ( ^! results is consid]$ z ! true net e>n+s1 :i* are capitaliz$ & add$ z set =? 9 #ab?4 ,! writ] holds t consum]s or pur*as]s %\ld n pay = avoidable error or ignorance1 & ! am\nt ( ! securities issu$ on ! prop]ty is n consid]$ z ent]+ into ! matt] ( ,fair & ,equitable ,value2 :5 !y d1 ! me?od is some:at diff]5t4 ,! mean true net e>n+s are us$ 9 det]m9+ ! intangible value1 because fran*ises h av]age values1 z e>n+s & exp5ses fluctuate 9 corporations1 &1 :5 intangible values are to be consid]$1 !y mu/ n be bas$ on ! la/ ye>'s net e>n+s1 = if !y are1 !y may give a v l>ge result 9 "o ye> & a small "o 9 ! next2 !re=e1 to be fair1 ! mean true net e>n+s %\ld be ! basis ( ! intangible value4 ,if ! company has be5 ov]-capitaliz$1 & no s9k+ fund or depreciation has be5 set aside1 x is ! pres5t own]'s mis=tune4 ,if ! company calls some?+ a bett]m5t1 & x is f\nd t ! bett]m5t has only replac$ some?+1 x is n all[$1 b is class$ z ma9t5ance2 on ! o!r h&1 if ! replacem5t is l>g]1 & capable ( r5d]+ great] results1 su* z a l>g] eng9e1 pipe1 cable1 etc41 ! co/1 less ! co/ ( :at x replaces1 is all[$ z a bett]m5t1 & if ! old "p is sold ! proce$s are d$uct$ f ! bett]m5t *>ge1 = if x is cr$it$ to ma9t5ance1 x increases ! true net e>n+s4 ,?is is (t5 done1 b is n ! correct way to treat ! matt]1 = x increases ! intangible value4 #ac?4--,:5 new rates are to be e/abli%$ = a p]iod ( future ye>s1 ! mann] ( det]m9+ ! ,fair & ,equitable ,value is ! same z has be5 h]et(ore set =?4 ,! new rates are bas$ on av]ages1 & ! fir/ /ep necess>y is to asc]ta9 :at gross rev5ue ! company mu/ h 9 ord] to pay all classes ( op]at+ exp5ses1 ma9t5ance1 depreciation1 taxes1 int]e/ on ! ,fair & ,equitable ,value ( ! prop]ty1 & a reasonable pr(it4 ,to obta9 ?is am\nt1 ! proc$ure is z foll[s3 7a7 ,f9d ! p]c5tage ( increase ( ! op]at+ exp5ses = ea* ye> ov] ! prior "o1 = a p]iod ( g5]ally five ye>s prec$+ ! date ( exam9ation 7a long] "t may be tak5 if1 9 ! op9ion ( ! exam9]1 x is necess>y71 & !n asc]ta9 ! av]age annual increase ( ! p]c5tages4 ,! result ?us obta9$ is tak5 z ! increase p]c5tage = ! op]at+ exp5ses = ! new p]iod ( "t4 7b7 ,9 ord] to det]m9e :at ! op]at+ exp5ses w av]age dur+ ! "t ! new contract is to run1 take ! am\nt ( ! la/ ye>'s op]at+ exp5ses z a basis & add to x ! p]c5tage f\nd by 7a74 ,?is total is ! op]at+ co/ = ! fir/ ye> ( ! new contract4 ,! am\nt = ! second ye> is f\nd by add+ to ! co/ ( ! fir/ ye> ! p]c5tage f\nd by 7a71 & s on = ea* ye> ( ! new p]iod4 ,^! results are add$ toge!r & _! av]age is !n us$ z ! mean co/ ( op]ation = ea* ye> dur+ ! full p]iod4 7c7 ,! same me?od is foll[$ = ma9t5ance & taxes1 9 ord] to f9d ! av]age ma9t5ance & taxes = ! new contract's life4 7d7 ,depreciation on ! plant beg9s f ! date ( appraisem5t1 & is e/imat$ on ! physical prop]ty by us+ = ea* section ! p]c5tages us$ 9 det]m9+ ! ,fair & ,equitable ,value4 7e7 ,int]e/ at ! rate ( #f is all[$ on ! ,fair & ,equitable ,value1 & #f pr(it4 ,! "q ( ext5sions & bett]m5ts to ! orig9al plant mu/ n[ be tak5 into consid]ation4 7f7 ,! am\nt ( ! bett]m5ts & ext5sions h already be5 f\nd = ea* ye> ( ! prop]ty's exi/5ce1 & an av]age ( !m is tak5 z ! am\nt ! company w sp5d on ext5sions1 etc41 dur+ ea* ye> ( ! new contract4 ,on ?is sum #f int]e/ & #f pr(it is all[$1 &1 = depreciation1 ! same p]c5tage z us$ 9 ! orig9al plant4 ,x w be se5 t all ! exp5ses ( op]ation1 etc41 ( ^! ext5sions h be5 all[$ 9 7b71 :]e ! increase has be5 add$ = ea* ye> = ^! ext5sions & bett]m5ts1 z !y are assum$ to increase ! co/ ( op]ation1 etc4 7g7 ,! am\nts f\nd by 7b71 7c71 7d71 7e71 & 7f7 are n[ add$ toge!r1 & to ! sum #e is add$ = int]e/1 taxes1 op]ation1 etc41 :i* may be caus$ by ! necess>y increase 9 capital exp5ditures1 = a great] gr[? ?an c\ld be =ese5 at ! "t ! new rates 7 e/abli%$1 = losses1 etc4 ,?is total is us$ z ! basis = e/abli%+ ! new s*$ule ( rates4 #ad?4--,! next /ep is to det]m9e :at "p ( ! am\nt f\nd by 7g7 mu/ be paid by ! diff]5t classes ( consum]s4 7,i7 ,fir/ asc]ta9 ! ye>ly p]c5tage ( increase 9 ! output ( ! plant = ! five ye>s be=e ! new contract is to g into effect 7or long] if1 9 ! op9ion ( ! exam9]1 x is necess>y72 !n f9d ! av]age increase ( p]c5tage dur+ ! be=e-m5tion$ five ye>s4 ,add to ! la/ ye>'s output ! p]c5tage f\nd above1 ?is result repres5t+ ! output = ! fir/ ye> ( ! new contract4 ,cont9ue ?is op]ation = ea* ye> 9 ! same way z ! op]at+ exp5ses 7 f\nd 9 #ac? 7b74 ,! av]age ( ^! results w be ! av]age e/imat$ output dur+ ! life ( ! new contract4 7,,ii7 ,next f9d ! am\nt ( ! total output ea* class ( consum]s us$ dur+ ea* ( ! five ye>s1 & !n f9d ! av]age ye>ly use dur+ ?is p]iod4 ,put ^! into p]c5tages ( ! am\nt ( ! av]age output = ! five ye>s1 & !n use ! p]c5tages z ! am\nt ea* class ( consum] w use ( ! av]age output f\nd 9 7,i7 dur+ ! p]iod ( ! new contract4 ,?is gives ! av]age am\nt ( ! output ea* class ( consum]s w use dur+ ! av]age life ( ! new contract4 7,,iii7 ,next f9d ! av]age p]c5tage ( ! total rev5ue ea* class ( cu/om]s paid dur+ ! five ye>s4 ,take ^! p]c5tages z ! av]age p]c5tage ea* class w pay ( ! av]age rev5ue necess>y dur+ ! "t ! new contract is to run4 7,,iv7 ,hav+ f\nd ! av]age am\nt ( ! requir$ rev5ue t ea* class mu/ pay1 & ! av]age am\nt ( ! total output ea* class w use1 divid+ ! =m] by ! latt] = ea* case w give ! rate ea* class is to pay dur+ ! new p]iod4 ,x is (t5 f\nd 9 plants t l>ge ext5sions h be5 made to supply a special contract = a long p]iod ( "t1 & ^! ext5sions are set aside = ! exclusive use ( ?is contract4 ,9 su* cases exclude ! co/1 etc41 ( ?is "p ( ! plant f ! ,fair & ,equitable ,value 9 ! matt] ( adju/m5t ( rates4 ,9 det]m9+ ! op]at+ exp5ses1 etc41 9 su* a case1 f9d ! p]c5tage ( ! total output ?is special output am\nts to2 !n1 us+ ?is p]c5tage1 f9d :at "p ( ! total p[]-h\se exp5ses ( all k9ds are caus$ by ?is special contract4 ,?is result is d$uct$ f ! total p[]-h\se exp5se1 & ! rema9d] is ! p[]-h\se co/ ( furni%+ ! consum]s ) _! %>e ( ! total output4 ,if x is f\nd t special employees are requir$ to deliv] ?is special output1 _! co/ is d$uct$1 & ! same = ! ma9t5ance mat]ial us$4 ,taxes & int]e/ on ! co/ ( ?is special equipm5t are f\nd by asc]ta9+ ! p]c5tage ?is co/ ( ! special equipm5t be>s to ! :ole plant4 ,! above results are d$uct$ f ! total op]at+1 ma9t5ance1 taxes1 & int]e/ disbursem5ts1 & ,fair & ,equitable ,value1 & ! rema9d]s are us$ z ! co/ ( ! la/ ye>'s exp5ses = furni%+ ! consum]s ) _! %>e ( ! product & ! ,fair & ,equitable ,value4 ,! same me?od is us$ 9 det]m9+ ! rev5ue paid by ! consum]4 ,! above result1 i4 e41 co/ ( op]at+1 etc41 is !n us$ z ! basis = e/imat+ ! exp5ses = ! p]iod ( ! new contract1 z h]et(ore set =?4 ,if ! *>t] comes "u ,class ,,ii or ,,iii1 ! city no d\bt has incorporat$ a clause = ! adju/m5t ( rates1 & ! me?od us$ above is foll[$4 #ae?4--,:]e ! fran*ise has expir$ & is go+ to be r5ew$1 ! same me?od holds4 #af?4--,:]e ! fran*ise has expir$ & ! city has paid a c]ta9 am\nt = s]vice1 & is to buy ! prop]ty1 ! same me?od is us$1 except 9 det]m9+ ! intangible value4 ,= det]m9+ ! latt]1 ! am\nt ! city pays = s]vice is d$uct$ f ! gross collect$ rev5ue4 ,f exp5ses is d$uct$ ! same p]c5tage z ! am\nt ( ! city's paym5t is ( ! gross rev5ue2 a net rev5ue is f\nd f ?is1 ! taxes paid are d$uct$1 ! rema9d] is capitaliz$ z h]et(ore set =?1 & is ! intangible value4 ,:atev] ! latt] am\nts to is add$ to 7or d$uct$ f1 9 case ( deficit7 ! ,fair & ,equitable ,physical ,value1 & ! result is ! price ! city %\ld pay4 ,cities g5]ally claim1 & s d _! exp]ts1 t !y %\ld only pay junk value1 or ! co/ ( a mod]n plant to give ! same results4 ,?is is em95tly unfair1 because ! city buys a prop]ty :i* is 9 full op]ation & x receives ! full rev5ue1 9 addition to obta9+ s]vice = itself at a less co/ ?an x h]et(ore paid4 ,! diff]5ce betwe5 ! co/ to ! city ( furni%+ ! s]vice itself1 & :at x paid ! company1 is pr(it1 b !re is a *>ge aga9/ ?is ( loss 9 taxes4 ,^! two latt] items1 namely1 pr(it & taxes1 g5]ally balance ea* o!r1 al?\gh ! writ] has kn[n ( cases :]e ! city 0 ! ga9]4 ,!re are _m po9ts :i* c be advanc$ to e/abli% ! fairness ( ! me?ods outl9$ h]e91 b !y w\ld take "s "t to expla91 & !re=e ! writ] has only set out ! plan he foll[s 9 8 exam9ations1 hop+ t x may be ( "s aid 9 e/abli%+ a uni=m me?od :i* w be upheld by ! ,c\rts4 ,x may be /at$ t rec5tly ?is me?od 0 us$ 9 an exam9ation1 go+ back ?irty-five ye>s1 & ! results 7 accept$ by bo? sides )\t "q4 ,! writ] has refus$ a numb] ( exam9ations :5 told 9 advance :at result mu/ be f\nd1 z well z 9 exp]t "w1 :]e ! exam9] is expect$ to help make a case1 reg>dless ( 8 hone/ judgm5t1 =1 by accept+ su* "w1 ! eng9e] hurts 8 reputation & lays ! ,pr(ession op5 to su* rem>ks z ,judge ,lacombe rec5tly made 9 ! case ( ! ,peoria ,wat]-,works ,company vs4 ,c5tral ,railway ,company4 ,! writ] is fa/ com+ to ! conclusion t a great deal ( legal tr\ble is caus$ by ! decisions ( commissions1 ! memb]s ( :i* h n _h exp]i5ce 9 ^! matt]s4 ,if a commission consi/$ ( an able lawy]1 a f9ancial man1 & an eng9e] :o has _h a broad op]at+ exp]i5ce1 its decisions w\ld c>ry weight1 & ! ,c\rts w\ld n be burd5$ ) s _m appeals4 ,,william ,g4 ,,raymond1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,?is is1 p]haps1 ! be/ pap] on ! valuation ( public s]vice prop]ty t has yet appe>$4 ,! au?or's analysis is v cle>1 & 8 argum5ts are conv9c+4 ,?ree po9ts ! writ] w\ld l to consid]2 two ( !m briefly4 ,! item1 go+ value1 ev5 if x is det]m9$ on logical reason+1 z sugge/$ by ,pr(essor ,mead1 w\ld seem to be a dang]\s item1 & "o :i* might result 9 absurdities :5 e/imat$ by an unscrupul\s1 ignorant p]son4 ,moreov]1 ! t]m has be5 diff]5tly def9$1 & !re is no c]ta9ty z to j :at x means4 ,! writ] sees no reason = ! exi/5ce ( su* a t]m1 or ( su* a sep>ate quantity z ?is t]m is suppos$ to repres5t4 ,! t]m1 fran*ise value1 or1 value ( ! fran*ise1 is us$ to repres5t ! diff]5ce betwe5 ! capitaliz$ net e>n+s & ! value ( ! physical prop]ty4 ,( c\rse1 !re is su* a diff]5ce1 ei!r positive or negative1 b !re seems to be "s objection by ! ,c\rts to call+ ?is fran*ise value4 ,! writ]1 !re=e1 w\ld sugge/ t1 s9ce fran*ise value is a v elusive item1 dep5d+ on ! life ( ! fran*ise1 ! attitude ( ! community t[>d ! corporation1 ! activity ( compet+ corporations1 & num]\s indet]m9ate items1 ! t]m1 bus9ess value1 or1 go+ conc]n value1 be us$ in/ead ( fran*ise value4 ,go+ conc]n value is n z good a t]m z bus9ess value or value ( ! bus9ess1 because x may be assum$ to include bo? ! value ( ! bus9ess & ! value ( ! prop]ty4 ,value ( ! bus9ess w\ld presumably include ! value ( ! fran*ise1 & p]haps w\ld n always be repres5t$ exactly by ! diff]5ce betwe5 ! capitaliz$ net e>n+s & ! value ( ! physical prop]ty1 b w\ld be ?is diff]5ce affect$ by "s judgm5t p]c5tage result+ f a consid]ation ( ! probable cont9uance ( ! fran*ise4 ,mr4 ,riggs has truly said t ! value ( ! physical prop]ty mu/ n be made to dep5d on ! purpose = :i* ! valuation is made2 t1 = ! bus9ess = :i* x is us$1 ! value ( ! physical prop]ty is ! same1 reg>dless ( ! purpose = :i* a valuation is desir$2 b valuations are made = diff]5t purposes1 &1 :ile !re is room = argum5t z to ! prop] valuation to be us$ = capitalization1 taxation1 or sale1 !re are p]fectly def9ite me?ods sugge/$ = valu+ prop]ty = ^! purposes4 ,! writ] has nev] se5 a /atem5t--t appeal$ to him z at all rational--( a prop] me?od ( valu+ prop]ty = rate-mak+4 ,inde$1 ! writ] has said#cb t prop] traffic rates h no relation to valuation except t ! m9imum net income %\ld be at lea/ suffici5t to pay int]e/ on ! physical valuation4 ,! writ] is n absolutely c]ta9 ( ! correctness ( ?is position1 = a /udy ( ! public "r to regulate a corporation :i* is p]=m+ a semi-public function seems to indicate t ! public has a "r to say1 n only t rates %all be non-discrim9atory1 b also t !y %all be reasonable4 ,n[1 ! writ] is famili> ) ?ree bases = ! det]m9ation ( :at con/itutes reasonabl5ess ( rates4 ,"o1 :i* applies to rates z a :ole1 is ?is3 ,t ! net income %\ld produce n m ?an a reasonable int]e/ rate on ! actually inve/$ capital4 ,ano!r is ! rate t ! traffic w be>1 & ! ?ird is a rate t repres5ts :at ! s]vice is wor? to ! pur*as]4 ,( c\rse1 a difficulty arises 9 det]m9+ reasonable rates on any "o ( ^! ?ree bases4 ,! only difficulty ) ! fir/ "o is 9 det]m9+ :at is a reasonable int]e/ rate on inve/$ capital1 &1 z f> z ! writ] has read1 no ,c\rt has yet det]m9$ :at ?is is1 al?\gh "s ,c\rts h held t #e is a n unreasonable return1 t #h is a n unreasonable return1 &1 if ! writ]'s memory s]ves him "r1 t ev5 #ae is a n unreasonable return4 ,!re is great difficulty 9 ! det]m9ation ( :at ! traffic w be>4 ,x is a matt] ( ! ex]cise ( judgm5t & ( exp]im5t1 & mu/ be appli$ to a consid]able ext5t to p>ticul> rates1 = p>ticul> commodities1 = p>ticul> places4 ,! ?ird basis w\ld seem to be ! mo/ difficult to use1 al?\gh x is "o :i* has rec5tly be5 e/abli%$ 9 important ,c\rt decisions1 & is m5tion$ by ,mr4 ,riggs4 ,:at is a monopoly-provid$ s]vice wor? to ! us] or pur*as]8 ,suppose t a gas company *>ges #a4fj p] #a1jjj cu4 ft4 = gas1 & a v consid]able "p ( ! populace liv+ 9 ! city s]v$ pur*ases gas at ?is price4 ,presumably ! pur*as]s pay :at ! s]vice is wor? to !m1 & :at !y are will+ to pay r ?an suff] ! inconv5i5ce ( tall[ c&les1 oil lamps1 or to pay a high price = electric lights4 ,suppose t ?r\gh a p]iod ( five ye>s1 by a s]ies ( r$uctions volunt>ily made1 ! price ( gas f9ally rea*es #a4ae p] #a1jjj cu4 ft4 ,is ?is gas wor? any less to ! consum] at ! end ( ! five-ye> p]iod ?an x 0 at ! beg9n+8 ,s f> z ! writ] c see1 x is1 = only "o reason1 namely1 t x c be _h = less2 b ?is has be5 a volunt>y r$uction on ! "p ( ! supply corporation1 & :o %all say t ! s]vice is n wor? less ?an #a4ae to ! consum]1 or :o %all say t x 0 n wor? less ?an #a4fj at ! beg9n+ ( ! p]iod sugge/$8 ,! figures "h giv5 repres5t an actual case :i* has occurr$ dur+ ! la/ five ye>s1 )9 ! writ]'s k4 ,!re seems to be a gr[+ feel+ among ! p t rates z a :ole mu/ be fix$ s z to yield only a reasonable return to ! corporation1 &1 app>5tly only = want ( ! sugge/ion ( a bett] me?od1 a reasonable return has be5 held to mean a reasonable return on ! capital inve/$4 ,believ+ t !re may be "s gr\nd = ! claim t rates z a :ole %\ld be ?us fix$1 & t ! return %\ld n be unreasonable1 let u consid] h[ :at is reasonable may be det]m9$4 ,9 ! fir/ place1 x appeals to ! writ] t ! inve/$ capital is n ! prop] basis = e/imat+ reasonable rates4 ,if x %all be f9ally e/abli%$ t a corporation is entitl$ to realize only a reasonable int]e/ rate on ! capital inve/$1 !re w be no m public s]vice corporations organiz$2 b1 if ! reasonabl5ess ( ! return may be bas$ on ! capital inve/$ & ! bus9ess done1 !re w /ill be good inducem5t to capable m5 to engage 9 public s]vice bus9ess4 ,x w\ld seem t ! rate ( return t is reasonable diff]s = ! capital inve/$ & = ! bus9ess done--t is to say1 if ! capital inve/$ is #a1jjj1jjj1 an ord9>y inve/m5t return ( f #d to #e may be suffici5t2 & if ! bus9ess done ) ?is million-doll> plant am\nts to #aj1jjj1jjj a ye>1 a reasonable return may be #aj or ev5 #ae ( ! :ole4 ,n[1 z has be5 sugge/$ by ,mr4 ,riggs1 x is manife/ly impossible to capitalize ! net e>n+s z a basis = det]m9+ reasonable rates1 because ^! net e>n+s are ! result ( c]ta9 rates already e/abli%$1 ! reasonabl5ess ( :i* may be 9 "q2 & if1 in/ead ( speak+ sep>ately ( int]e/ rate on capital actually inve/$ & pr(it rate on bus9ess done1 x is desir$ to obta9 a value on :i* to base reasonable rates1 ! foll[+ is sugge/$ z a me?od3 ,det]m9e ! physical value & ! annual int]e/ on ?is physical value at an assum$ reasonable rate1 say #e2 det]m9e ! annual exp5se ( conduct+ ! bus9ess1 & assume a bus9ess man's pr(it rate1 say #ae1 & f9d ! pr(it t %\ld be e>n$ on ! bus9ess done4 ,?is1 add$ to ! total int]e/ *>ge1 %\ld give ! net income1 ov] & above op]at+ exp5ses1 t may be consid]$ reasonable1 & ?is sum1 capitaliz$ at any giv5 assum$ reasonable int]e/ rate1 w\ld give a value :i* might ) reason be us$ z a basis = rate-mak+1 rates be+ deem$ to be reasonable z a :ole :i* furni% f ye> to ye> a simple reasonable int]e/ rate on ?is e/abli%$ value4 ,( c\rse1 !re is no necessity = e/abli%+ su* a value1 z ! reasonabl5ess ( ! rates w be det]m9$ :5 x is le>n$ t !y produce n m ?an a fair int]e/ rate on ! actual physical value ( ! prop]ty plus a fair pr(it rate on ! bus9ess done4 ,?is me?od is n free f ! objection t :at is a reasonable int]e/ rate & :at is a reasonable pr(it rate h nev] yet be5 fix$1 b x is mu* easi] to fix ^! sep>ately ?an to fix :at is a reasonable return on ! capital actually inve/$ or ! physical valuation ( ! prop]ty4 ,w4 ,h4 ,,williams1 ,,esq4 7by lett]74--,be=e ent]+ ^u ! discussion ( ! m ess5tial elem5ts ( ! problem pres5t$ by ?is pap]1 x seems wor? :ile to correct "o or two misappreh5sions "u :i* ,mr4 ,riggs seems to labor1 & to call att5tion to ! r extraord9>y temp] 9 :i* he approa*es ! grave que/ions ) :i* he deals4 ,mr4 ,riggs' fir/ s]i\s misappreh5sion is t railway (fic]s1 z a class1 are1 ) sub/antial unanimity1 oppos$ to any (ficial valuation ( railway prop]ties1 & t ?is opposition 0 voic$ ?r\gh ! writ]'s discussion ( ,pr(essor ,h5ry ,c4 ,adams' pap] 9 favor ( valuation1 at ! la/ annual 7,decemb]1 #aiji7 meet+ ( ! ,am]ican ,economic ,association4 ,( c\rse1 on t occasion1 ! writ] spoke1 z he n[ speaks1 only = himself1 b1 m ?an t1 he !n expressly disclaim$ any su* opposition1 und]took to make sugge/ions z to ! mann] 9 :i* a prop] valuation c\ld be obta9$1 & direct$ 8 criticisms pla9ly at a proposal :i* contemplat$1 z he !n obs]v$3 ,an incomplete & mislead+ valuation be>+ ! /amp & c>ry+ ! weight ( gov]nm5tal sanction1 :i* c be ( no practical advantage to ! ,gov]nm5t1 ! public1 or ! railways2 b may easily injure ! public & ! railways by di/urb+ ! confid5ce ( ! =m] & hamp]+ ! activities ( ! latt]4 ,! writ] !n add$3 ,x seems v cle> t su* a valuation z is propos$ w\ld be :olly useless to ! ,gov]nm5t = any practical purpose1 because x w\ld omit s _m factors ess5tial to any fair appraisem5t ( ! wor? ( ! ent]prises z go+ conc]ns4 ,be>+ 9 m9d t ! =ego+ 0 address$ to ! p>ticul> proposal made by ,pr(essor ,adams1 t be+ ! topic on :i* ! writ] 0 invit$ to speak1 a proposal expressly limit$ to ! asc]ta9m5t ( co/ ( reproduction less depreciation 7! equival5t ( co/ ( replacem5t ) second-h& mat]ials 9 a condition equival5t to t ( ! mat]ials 9 use & h]e9aft] ref]r$ to z co/ ( replacem5t7 "u ! pseudonym ( physical value 7or sometimes inv5tory value71 x w\ld seem z ?\gh ,mr4 ,riggs %\ld sympa?ize ) ! writ]'s view1 r ?an ) t ( ,pr(essor ,adams4 ,c]ta9ly1 ,mr4 ,riggs is fully aw>e ( ! inadequacy ( m]e co/ ( replacem5t to s]ve any useful purpose1 =1 aft] say+ t3 ,no acc\nt may be tak5 ( ! purpose = :i* ! resultant figure ( value is to be us$2 & ! result %\ld n v>y1 no matt] :at ! purpose may be4 ,he says1 9 ano!r place3 99 99 99 x is cle> t ! wor? ( ! physical prop]ty1 be+ ! co/ ( reproduction less depreciation1 is n necess>ily ! value ( ! prop]ty4 99 99 99 ,&1 def9+ :at he calls ! non-physical or intangible elem5ts ( value1 says3 ,^! are ^? ?+s :i*1 add$ to or tak5 f ! wor? ( ! physical prop]ty1 make up ! value1 & include :atev] accrues to ! prop]ty by reason ( its op]ation1 or by reason ( grants1 contract rights1 competition1 or location1 :i* at ! "t ( appraisal affect favorably or unfavorably ! wor? ( ! prop]ty4 ,! second misappreh5sion t is wor?y ( notice seems to h gr[n out ( a curi\s s5sitiv5ess1 on ! "p ( ,mr4 ,riggs1 z to any sugge/ion1 o!r ?an 8 own1 ( criticism ( any "w und]tak5 or !ories advanc$ by ,pr(essor ,adams4 ,z to e read]1 o!r ?an ,mr4 ,riggs1 x is surely q unnecess>y to say t no attack has be5 made ^u ,pr(essor ,adams by ! writ] at ! ,new ,york meet+ ( ! ,am]ican ,economic ,association or any:]e else4 ,c]ta9ly1 x w be conc$$ t "s difficulty w\ld att5d an ef=t to respond to an invitation to discuss be=e a sci5tific body a pap] writt5 by "o ( its memb]s )\t mak+ any allusion to ! au?or ( ! pap] or to 8 views or "w1 & ^? :o h any k ( ! hi/ory ( (ficial railway valuations 9 ! ,unit$ ,/ates1 & especially ( ! proposal to und]take a ,f$]al inve/igation ( co/ ( replacem5t1 are fully aw>e t ,pr(essor ,adams has be5 f ! beg9n+1 & n[ is1 ! ,hamlet ( ! drama1 )\t :om x w\ld become dull & lifeless4 ,/rangely en\gh1 ,mr4 ,riggs seems to wi% to d5y to ,pr(essor ,adams ?is prom95ce1 = he says3 ,pr(essor ,adams 0 associat$ ) ! ,mi*igan appraisal1 b _h no connection :atev] ) ! 'physical valuation1' to :i* su* objection is tak51 & 8 appo9tm5t 0 made aft] ! "w ( physical valuation _h be5 fully outl9$ & 0 well "u way4 ,x is true t ! s*eme devis$ by ,pr(essor ,adams1 & adopt$ at 8 sugge/ion by ,gov]nor ,p+ree1 requir$ ! employm5t ( civil eng9e]s = ! prelim9>y "w :i* necess>ily _h to prec$e ! f9al valuation by ,pr(essor ,adams1 b ! b>e /atem5t ( ?is fact is utt]ly mislead+4 ,pr(essor ,adams' own te/imony 9 "o ( ! ,mi*igan tax cases happily places 8 responsibility = ! :ole plan entirely beyond controv]sy4 ,he said3 ,9 #aijj ,i 0 call$ ^u by ! ,mi*igan ,/ate ,tax ,commission to det]m9e :e!r railroads 7 pay+ a tax rate on _! value equal to ! rate on o!r prop]ty4 ,) t problem 9 view1 ,i =mulat$ ?is inv5tory plan4 99 99 99#cc ,any discussion ( ! proposal = a ,national inquiry conc]n+ co/ ( replacem5t :i* omits to %[ t its mo/ p]si/5t advocate1 ,pr(essor ,adams1 has advocat$ & actually conduct$ or controll$ sev]al successive valuations1 9 ,mi*igan1 z ,/ati/ician to ! ,int]/ate ,comm]ce ,commission1 & z special employee ( ! ,bureau ( ! ,c5sus1 made 9 accordance ) o!r me?ods ?an ^? :i* he n[ proposes to apply1 is s]i\sly inadequate2 z s]i\sly inadequate z x w\ld be to omit to /ate t1 us+ :at purport$ to be ! same me?od1 ,pr(essor ,adams1 by *ang+ ! details ( its application & decreas+ ! rates ( int]e/ us$ 9 8 computations1 rais$ 8 valuation ( ,mi*igan railways f #aeb1ieh1bjb to #agg1fhi1bib or #af4ag1 ea* ( ! two calculations be+ pres5t$ to ! public1 ) assurances t x disclos$ ! actual taxable value1 & !re be+ b>ely eighte5 mon?s betwe5 !m4 ,! writ] is by no means alone z an object ( ,mr4 ,riggs' dissatisfaction because ( public criticisms ( ,pr(essor ,adams' plan = e/imat+ co/ ( replacem5t4 ,?us1 ( a /atem5t 9 :i* ,pr(essor ,taylor1 :o conduct$ ! ,wiscons9 inquiry1 que/ion$ ! validity ( "s ( ,pr(essor ,adams' me?ods1 he writes3 ,und\bt$ly ?is /atem5t 0 made 9 good fai?1 & has ga9$ curr5cy by n hav+ be5 correct$1 b x is n ! fact4 ,9 ano!r place1 ref]r+ to a /atem5t ( comp>ative co/s to ! respective ,/ates = valuation "w1 made by ! ,railroad ,commission ( ! ,/ate ( ,wa%+ton1 he says3 ,x does n appe> to be good ta/e ei!r to criticize co/s ( "w 9 o!r ,/ates1 or comp>e ! co/s 9 ,wiscons9 & ,mi*igan ) ! co/ 9 ,wa%+ton4 ,ref]r+ to a pap] by ,*>les ,hansel1 ,m4 ,am4 ,soc4 ,c4 ,e41 :o took "p 9 ! ,mi*igan valuation1 ,mr4 ,riggs says3 ,! "o po9t to :i* special att5tion is drawn is ,mr4 ,hansel's a/oni%+ misconception ( ,pr(essor ,adams' plan ( "w4 ,?is mislead+ /atem5t appe>s 9 ! fir/ pap] & is reit]at$ 9 ! second4 ,aga91 ( ! report ( ! exp]t ( ! ,wa%+ton ,railroad ,commission1 :o _h ! tem]ity to decl>e t x f\nd little value ei!r 9 ,pr(essor ,adams' me?ods or 8 e/imates ( ! co/ ( ! "w1 ,mr4 ,riggs says3 ,su* s5t5ces1 & o!rs :i*1 by inf]5ce if n by "n1 reflect on "w execut$ by m5 ( high pr(essional /&+1 are h>dly 9 good ta/e1 ev5 if true1 9 a report to a railroad commission ( ano!r ,/ate4 ,yet ,mr4 ,riggs does n fail to criticize ! me?od ( valuation1 appli$ by ,pr(essor ,adams 9 ,mi*igan1 9 t]ms q z def9ite z any us$ by o!rs4 ,?us1 he condemns ! me?od us$ to e/imate ! value ( ! non-physical elem5ts app]ta9+ to ! ,mi*igan railways1 on ! gr\nds 7fir/7 t x made ?is value a m]e d]ivative ( ! rates exi/+1 & 7second7 t x made no all[ance = negative values :5 co/ ( replacem5t exce$$ real value1 say+3 ,x w be se5 t1 9 ! case ( a prop]ty 9 :i* ! surplus e>n+s dep5d on excessive rates = s]vice1 x w fail z a me?od ( det]m9+ a value = use z a basis ( rate-mak+2 & x fails1 9 ! =m 9 :i* x 0 us$ 9 #aijj & #aijb1 to br+ out ^? negative or subtractive elem5ts :i* may be det]m9$ f ! income acc\nts1 9 ! case ( prop]ties :i* d n e>n a fair return on ! inve/m5t4 ,( ! publi%$ /ati/ics ( ,am]ican railways1 compil$ 9 ! (fice ( :i* ,pr(essor ,adams is ! responsible head1 d]iv$ f annual reports made 9 accordance ) =ms prescrib$ by ! ,int]/ate ,comm]ce ,commission "u 8 guidance1 & conta9+ items select$ f & dep5d+ on ! uni=m railway acc\nt+ sy/em devis$ by ,pr(essor ,adams & impos$ on ! c>ri]s by ! ,commission1 ,mr4 ,riggs writes3 ,! publi%$ /ati/ics are 9 su* =m t only ! c>eful /ud5t ( affairs c und]/& or analyze !m1 & b few ( ! public (ficials :o receive !m are able to read ! reports ( ! prop]ties & compreh5d !m4 ,railway (fic]s fall q g5]ally "u ,mr4 ,riggs' condemnation1 =1 ( !m he says3 ,z a body 99 99 99 x is d\btful if any equal numb] ( m51 ( equal intellig5ce1 h z limit$ a k ( ! fundam5tal tru?s ( gov]nm5t1 or k s color$ by bias4 ,x is also d\btful :e!r any equal numb] ( m5 h 9 _! ranks s few :o be> an active "p 9 ! duties & activities ( citiz5%ip1 or :o ex]cise l>ge influ5ce on _! neighbors4 ,su* ass]tions z ! =ego+ ne$ no comm5t2 _! intemp]ance is _! mo/ effective refutation2 yet a few rec5t examples may be cit$3 ,paul ,morton resign$ z ,vice-,presid5t ( ! ,at*ison1 ,topeka & ,santa ,fe to become ,secret>y ( ! ,navy 9 ,mr4 ,roosevelt's cab9et2 ,jacob ,m4 ,dick9son1 ,g5]al ,solicitor ( ! ,ill9ois ,c5tral1 became ,mr4 ,taft's ,secret>y ( ,w>2 8 successor ) ! ,ill9ois ,c5tral1 ,william ,s4 ,k5yon1 lat] became ,special ,assi/ant ( ! ,attorney-,g5]al2 ,lloyd ,w4 ,b[]s1 ,g5]al ,solicitor ( ! ,*icago & ,nor?we/]n1 0 ,solicitor-,g5]al ( ! ,unit$ ,/ates f e>ly 9 ,mr4 ,taft's adm9i/ration until 8 dea? a few mon?s ago4 ,?us1 )9 b f\r or five ye>s1 ! ,f$]al ,gov]nm5t took f\r ( its highe/ (fic]s f ! railway (fic]s locat$ 9 only "o ( ! c\ntry's great cities--,*icago4 ,( a rec5t address by "o ( ! able/ & mo/ public-spirit$ ( railway (fic]s1 he says3 ,?is address well expresses ! _s ( ! railway manag]s & employees t[>d all =ms ( inve/igation1 & ! complete lack ( und]/&+1 on ! "p ( ^! manag]s1 ( ! legal & moral relations :i* !y be> to ! communities :i* !y s]ve4 ,belong+ to ?is s hateful class1 & hav+ also v5tur$ to "q :e!r ,pr(essor ,adams has said ! la/ & mo/ p]fect ^w on ! subject ( railway valuation1 ! writ] is nei!r surpris$ nor di%e>t5$ to f9d t he1 also1 has caus$ ,mr4 ,riggs undisguis$ dissatisfaction4 ,x is a mis=tune app>5tly insep>able f 8 pr(ession & 8 conception ( 8 obligations to 8 employ]s & to ! public4 ,z has be5 already not$ h]e91 ! "q is n :e!r railway prop]ty %all be (ficially valu$1 b r 7fir/7 z to h[ ! value :i* is to be asc]ta9$ is prop]ly to be def9$1 & 7second7 h[ ! det]m9ation ( value1 z prop]ly def9$1 c be made mo/ accurate4 ,! ess5tial diff]5ce betwe5 ! view advocat$ be=e ! ,am]ican ,economic ,association by ,pr(essor ,adams & t ( ! writ] 01 & is1 t ! =m] n[ desires to exclude all elem5ts ( value :i* are n physical & tangible1 :ile ! writ] holds t1 if x is wor? :ile to asc]ta91 on a g5]al scale1 at ! co/ ( a necess>ily l>ge exp5diture ( taxpay]s' money1 & z to a p>ticul> date1 s un/able a fact z railway value1 ! k9d ( value ! asc]ta9m5t ( :i* c\ld be ( suffici5t utility to w>rant ! ef=t c be no?+ less significant ?an ! fair value :i* ! ,c\rts h said is a prop] elem5t = consid]ation 9 fix+ reasonable rates ( *>ge4 ,! fundam5tal diff]5ce betwe5 ^! two conceptions ( value is admirably indicat$ by ! foll[+ quotations1 bo? ( :i* re/ on ! au?ority ( ! ,int]/ate ,comm]ce ,commission4 ,,fair ,,value4 ,! pres5t value ( a railroad prop]ty is necess>ily v l>gely a matt] ( op9ion only2 x dep5ds ^u a va/ numb] ( cont+5cies & unc]ta9ties1 a road app>5tly ( great value to-day may soon become wor?less by ! op5+ ( a compet+ l9e hav+ sup]ior advantages or by ! competitive /ruggles ( o!r l9es :i* op]ate to r$uce ! income ( all2 ! value ( a railroad l>gely results f ! p]sonal *>act]i/ics ( its (ficials2 ! policy pursu$ by directors = ! cons]vative & economical or progressive & d>+1 is a great factor 9 ! det]m9ation ( ! curr5t value ( ! prop]ty2 a railroad prop]ty is n necess>ily wor? :at x w\ld co/ to replace x &1 on ! o!r h&1 x may be wor? v mu* m ?an t4#cd ,,replacem5t ,,co/4 ,! bill 9 "q makes use ( ! phrase 'fair value4' ,unless !re is "s legislative necessity1 :i* we d n p]ceive1 we "q ! advisability ( us+ ?is phrase4 ,x w\ld seem to u pref]able to sub/itute a phrase :i* indicates ! fact t ,congress desires an inv5tory valuation ( railway prop]ty4 ,by inv5tory valuation is meant t ! prop]ty ( ! sev]al railways %all be li/$ 9 detail1 & t ea* k9d or class ( prop]ty s li/$ %all h assign$ to x a valuation to be det]m9$ f ! po9t ( view ( ! contract+ eng9e]1 & n f ! po9t ( view ( a c\rt or bo>d ( arbitration :i*1 f ! nature ( ! case1 _c judge ( :at is 'fair value' except 9 ! light ( "s specific use to be made ( ! valuation4#ce ,z has already be5 not$ h]e91 & amply v]ifi$ by quotations1 ,mr4 ,riggs is fully aw>e t replacem5t co/ & real value c r>ely1 if ev]1 co9cide1 & !re=e pla9ly agrees1 z to t elem5t>y & ess5tial po9t1 ) ! writ] & disagrees ) ,pr(essor ,adams1 :o w\ld ignore or de/roy e non-physical elem5t ( value 9 ! prop]ty ( all public s]vice corporations4 ,mr4 ,riggs' recognition ( ! inadequacy ( m]e replacem5t co/ is %[n also by ! excell5t & conv9c+ example :i* he cites#cf ( competitive railway r\tes betwe5 two ,mi*igan cities :i* 7 built & are ma9ta9$ & op]at$ "u su* conditions t ! f> m co/ly ( ! two1 :i* inf]5tially has correspond+ly high] replacem5t co/1 has mu* l[] e>n+ capacity1 bo? z to gross & net1 & is !re=e actually wor? mu* less ?an its less co/ly competitor4 ,mr4 ,riggs explicitly favors full recognition ( ! non-physical elem5ts 9 e valuation2 &1 !re=e1 may be rank$ z an oppon5t ( any su* s*eme ( valuation z t advocat$ by ,pr(essor ,adams be=e ! ,am]ican ,economic ,association1 or 9 ! lett] ( ! ,*airman ( ! ,int]/ate ,comm]ce ,commission1 h]e9be=e quot$4 ,mr4 ,riggs1 h[ev]1 believes t ! det]m9ation ( ! co/ ( replacem5t is an ess5tial fir/ /ep t[>d ! asc]ta9m5t ( real value4 ,he says3 ,! wor? ( ! physical prop]ty is prim>ily t on :i* ! value ( ! :ole prop]ty re/s4 ,! ?\ght :i* ! writ] w\ld place 9 opposition to ! =ego+ is t3 ,physical prop]ty has no value :i* is n an expression ( its adaptation to economic ne$s4 ,?is is only ano!r way ( express+ ! inevitable economic law1 f :i* !re is no escape1 ei!r 9 !ory or 9 practice1 t has be5 /at$ & sanction$ by ! ,supreme ,c\rt ( ! ,unit$ ,/ates1 z foll[s3 ,b ! value ( prop]ty results f ! use to :i* x is put1 & v>ies ) ! pr(itabl5ess ( t use1 pres5t & prospective1 actual & anticipat$4 ,!re is no pecuni>y value outside ( t :i* results f su* use4#cg ,mr4 ,riggs' own def9ition ( value is n inconsi/5t ) ! =ego+4 ,he says3 ,! value ( a prop]ty is its e/imat$ wor? at a giv5 "t1 measur$ 9 money1 tak+ into acc\nt all ! elem5ts :i* add to its usefulness or desirability z a bus9ess or pr(it-e>n+ proposition4 ,! view ( ,mr4 ,riggs is t3 ,:ile 444 ! wor? ( ! physical prop]ty1 be+ ! co/ ( reproduction less depreciation1 is n necess>ily ! value ( ! prop]ty1 444 ! physical wor? mu/ be> "s v def9ite relation to value4444 ,& he is1 fur!r3 ,/rongly ( ! conviction t ?is relation is su* t 'value' _c be asc]ta9$ )\t a det]m9ation ( physical wor?4 ,x is exce$+ly difficult to compreh5d j :at ,mr4 ,riggs means :5 he describes ! relation betwe5 real value 7:i* he recognizes s cle>ly z value 9 use7 & co/ ( replacem5t z v def9ite4 ,c]ta9ly1 he does n mean t x is a con/ant relation1 or "o :i* c be asc]ta9$ until !re has be5 indep5d5t det]m9ation ( bo? ( ! aggregates ^: relation x expresses4 ,9 fact1 ! emphasis :i* ,mr4 ,riggs places on replacem5t co/ has l$ him into ! grotesque fallacy ( argu+ t a correct e/imate ( real value is only to be atta9$ by asc]ta9+3 7fir/7 co/ ( replacem5t1 7second7 real value1 & 7?ird7 correct+ ! aggregate fir/ obta9$ by apply+ :atev] v def9ite relation 7ratio7 is necess>y to make x agree ) ! second aggregate1 :i* 0 f ! beg9n+ ! only aggregate really want$4 ,! accuracy ( ?is *>act]ization ( 8 propos$ proc$ure is made p]fectly cle> by ! foll[+ quotation3 444 ! true me?od ( valu+ a corporate prop]ty is fir/ to det]m9e ! co/ ( reproduction ( ! prop]ty & its depreciation1 & modify ?is figure by any applicable positive or negative non-physical elem5ts ( value4 ,x is submitt$ t ! cle> mean+ ( ! =ego+ is t bo? replacem5t co/ & real value z d]iv$ f use mu/ be sep>ately & indep5d5tly asc]ta9$1 & t1 ^! aggregates hav+ be5 comp>$1 ! =m] is to be correct$ by :atev] all[ance = non-physical value may be requir$ to make x agree precisely ) ! latt]4 ,! obvi\s sugge/ion fl[+ f ?is discov]y ( 8 !ory is t only value 9 use is want$1 z t is ! only real value1 & z x mu/ be sep>ately asc]ta9$ 9 any ev5t1 no o!r & pseudo value ne$ be tak54 ,! ess5tial "* ( ! me?od is z describ$1 ev5 :5 x is appli$ ?r\gh det]m9ation ( ! annual value ( ! use & ! assignm5t ( "o portion ( su* annual value to return on ! capital value ( ! physical prop]ty & ano!r portion to return on ! capital value ( non-physical prop]ty4 ,! real nature ( ! me?od is n ev5 effectually conceal$ by ! capitalization ( ! income assign$ to physical prop]ty at "o rate & ! income assign$ to non-physical prop]ty at a diff]5t & high] rate4 ,9 fact1 if x is necess>y to conclude t a portion ( ! net annual income ( railway prop]ty is normally paid to1 or 9 respect (1 a portion ( capital entitl$ to a l[] rate ( return1 & ! rema9d] to or 9 respect ( a rema9d] ( capital entitl$ to a high] rate1 ! appraisal ( ! physical prop]ty is an excessively co/ly1 cumb]some1 & inaccurate exp$i5t = det]m9+ ! am\nt or value ( ei!r portion ( ! capital4 ,yet t is exactly :at 0 done 9 ,mi*igan by ,pr(essor ,adams1 ! valuation he !n made be+ complet$ be=e he alt]$ 8 view by decid+ t ! non-physical elem5ts ( value are entitl$ to no consid]ation :atev]1 & t only co/ ( replacem5t is wor?y ( inclusion 9 an (ficial valuation4 ,b is !re any real di/9ction betwe5 ! physical prop]ties & ! immat]ial elem5ts1 su* z ! =ego+ extract seems to assume8 ,is n ! sup]ficial appe>ance ( su* a di/9ction plausible b deceptive8 ,a locomotive is an entity2 s is a railway4 ,! sep>ate p>ts ( a locomotive are mo/ ( !m indep5d5tly valuable2 s are ! sep>ate p>ts ( a railway2 b a l>ge %>e ( ! value ( ! locomotive is ! result ( ! nice adju/m5t ( ^! sep>ate p>ts to ea* o!r & to ! "w to be done4 ,take a hundr$ diff]5t-siz$ locomotives1 ea* adapt$ to diff]5t "w "u diff]5t conditions1 & sep>ate ea* piece ( metal2 x w\ld be possible to value all ^! p>ts1 b ! aggregate w\ld be f> less ?an ! value ( ! locomotives f :i* !y 7 tak54 ,aga91 x w\ld be possible to con/ruct f ^! p>ts a hundr$ locomotives ( su* poor design1 _! respective p>ts s out ( adju/m5t & balance1 t !y w\ld be wor? ev5 less ?an ! p>ts out ( :i* !y 7 assembl$4 ,! highe/ paid intellig5ce has n yet contriv$ ! p]fectly balanc$ locomotive1 b a l>ge "p ( ! s-call$ physical value ( e locomotive repres5ts ?is sort ( highly paid intellig5ce put =? at e /age f ! op5+ ( ! m9e :]e ! ore 0 obta9$ to ! deliv]y ( ! complet$ locomotive4 ,take t5 railways ( a ?\s& miles ea*1 e "o ( !m effici5tly con/ruct$1 & equipp$ ) prop] t]m9als1 /ations1 signals1 roll+ /ock1 & tra9$ employees1 & ea* prop]ly adapt$ to ! requirem5ts ( its t]ritory & traffic2 sep>ate !m into piles ( ties & rails1 gr\ps ( locomotives & c>s1 acres ( l&1 unorganiz$ bodies ( m5 ( v>i$ capacity & tra9+2 :at sort ( intellig5ce w x require to build up out ( ^! masses t5 railways z effici5t & useful z ^? t orig9ally exi/$8 ,:y1 !n1 %\ld ! physical value ( ! locomotive include ! assembl+ ( its p>ts 9 prop] balance & ! physical value ( ! railway exclude ! co/ ( ! mu* m complicat$ adju/m5t ( its elem5ts ( ma*9]y & labor & location to ea* o!r8 ,at an e>ly po9t 9 8 discussion1 ,mr4 ,riggs makes an ann\ncem5t1 highly becom+ on ! "p ( "o :o proposes to deal ) ! problem solely f ! po9t ( view ( a civil eng9e]1 t he does n int5d to argue ! public utility ( any sort ( valuation1 b only ! me?od by :i* x may be/ be made1 %\ld "o be det]m9$ ^u4 ,he says3 ,?is pap] is conf9$ to a discussion ( ! me?ods :i* %\ld be us$ 9 arriv+ at a correct figure ( co/ ( reproduction & depreciation--x does n take up que/ions involv+ ! propriety ( ^? figures :5 rea*$4 ,! propriety or legality ( us+ su* figures z a basis = an assess$ valuation1 z a basis = rate-mak+ 7rate-mak+ be+ an art 9 itself involv+ complications z great z ^? enc\nt]$ 9 valuation71 or any argum5ts z to ! ju/ice or inju/ice ( legislation re/rict+ issues ( /ocks or bonds1 w be conc$$ no place 9 ?is pap]4 ,x is assum$ t all ^! que/ions w\ld h be5 tak5 up & a satisfactory answ] rea*$ be=e a valuation c\ld h be5 ord]$4 ,two pages aft] ! =ego+ p>agraph1 "u ! sub-head+ ,! ,relation ( ,public ,s]vice1 or ,quasi-,public ,corporations1 to ! ,p1 ,mr4 ,riggs proce$s to violate ! wise1 ?\gh self-impos$ re/riction1 & devotes no less ?an elev5 pages to a def5se ( ! project on gr\nds ( alleg$ public policy4 ,9 ^! pages he concludes t su* a valuation z he proposes--n a m]e det]m9ation ( replacem5t co/s1 b a real valuation1 ) prop] all[ance = all elem5ts ( value 9 use--w\ld be ( s]vice 9 connection ) 7a7 taxation1 7b7 public control ( rates1 & 7c7 public control ( issues ( capital securities4 ,9 support+ valuation z an exp$i5t 9 taxation ( railway prop]ty1 ,mr4 ,riggs seems to rely on a table made up f ,pr(essor ,adams' ,bullet9 ,no4 #ba1 z exp]t employ$ by ! ,f$]al ,bureau ( ! ,c5sus1 :i* table %[s t ! assessm5t ( ! railways ( ,wyom+ = taxation purposes 9 #aijd 0 b #g4e ( _! comm]cial valuation1 z e/imat$ by ,pr(essor ,adams1 & t ?is ratio v>i$ greatly ?r\gh\t ! diff]5t ,/ates1 runn+ z high z #aad4d 9 ,connecticut4 ,( c\rse1 ne>ly e "o kn[s1 ev5 if ,mr4 ,riggs does n1 t ! relation betwe5 ! real value & ! assess$ value ( all o!r k9ds ( prop]ty v>ies greatly f ,/ate to ,/ate1 & ev5 9 diff]5t portions ( ! same ,/ate4 ,on acc\nt ( ?is v>iation1 no table su* z t (f]$ by ,mr4 ,riggs 9 support ( 8 argum5t c h any value unless supplem5t$ & expla9$ by data cov]+ ! assessm5t ( o!r k9ds ( prop]ty4 ,x is wor? not+1 en passant1 t ! s-call$ ,comm]cial ,valuation1 on :i* ,mr4 ,riggs re/s ?is "p ( 8 argum5t1 assigns a value equival5t to #cb1jed p] mile to ! railways ( ,mi*igan & "o ( #de1baa p] mile to ! railways ( ! prairie ,/ate ( ,nebraska4 ,possibly ?is v>iation 9 ! e/imate ( value is p>tly express$ 9 ! conclusion t ,mi*igan railways are assess$ at #gj4i ( _! value & ,nebraska railways at b #ah4e p] c5t4 ,obvi\sly1 !re is no m ne$ ( uni=mity among ! ,/ates 9 ! taxation ( railway prop]ty ?an 9 _! me?ods ( d]iv+ rev5ue f o!r k9ds ( prop]ty4 ,also1 ,mr4 ,riggs admits t1 :5 ! ,mi*igan valuation = taxation 0 made1 x 0 n dim9i%$1 z x %\ld h be51 by ! use ( negative1 non-physical value4 ,?is is fully equival5t to an admission t ! me?od 0 unju/ to e railway n capable ( e>n+ ! full return on its replacem5t co/4 ,he says3 ,! use ( a negative or subtractive non-physical value 0 consid]$1 & advis$ by ,pr(essor ,adams4444 ,pr(essor ,adams & 8 associates1 !re=e1 appli$ only positive values1 :]e any su* 7 f\nd1 al?\gh advocat+ ! use ( negative values4 ,&1 ( ! me?od !n us$1 he says3 444 x fails1 9 ! =m 9 :i* x 0 us$ 9 #aijj & #aijb1 to br+ out ^? negative or subtractive elem5ts :i* may be det]m9$ f ! income acc\nts1 9 ! case ( prop]ties :i* d n e>n a fair return on ! inve/m5t4 ,& aga93 444 :]e ! e>n+s h be5 fairly uni=m & /ation>y = a p]iod ( ye>s1 & ! prop]ty does n e>n a suffici5t sum to c>e = depreciation & annuity1 x is cle> t ! value z an e>n+ inve/m5t is less ?an ! det]m9$ physical value1 & t ! physical valuation %\ld be r$uc$ by "s am\nt to arrive at ! 'fair value4' ,9 8 argum5t favor+ ! use ( a valuation 9 rate-mak+1 ,mr4 ,riggs af=ds no support to ,pr(essor ,adams' cont5tion t1 = t purpose1 only replacem5t co/ %\ld be consid]$1 & t1 aft] fix+ ! rates on ! basis ( ! lea/ favorably locat$ & lea/ effici5t l9e1 s z to af=d x a b>e return on its replacem5t co/1 ! surplus e>n+s at ! same rates ( its m favorably locat$ or bett] op]at$ competitors %\ld be confiscat$ "u ! guise ( a special tax4 ,?is extraord9>y proposal1 ! "* ( :i* is s illum9at+ z to ! attitude t[>d railway prop]ty & inve/m5ts ( ! mo/ prom95t & p]si/5t advocate ( s-call$ physical valuation1 is be/ /at$ 9 ,pr(essor ,adams' own words1 :i* are z foll[s3 ,i _c evade ! conclusion t equity1 z betwe5 v>i\s classes ( roads1 c nev] be atta9$ until all ! excess ( rev5ue ov] ! ,con/itutional limit be made a contribution to ! public treasury1 & t ?is contribution be made z a sub/itute = all taxes ( all k9ds & all sorts4#ch ,on ! contr>y1 ,mr4 ,riggs di/9ctly upholds ! "r to e>n+s 9 excess ( ! b>e return1 at ! m9imum rate ( int]e/1 ^u ! co/ ( replacem5t1 say+1 int] alia3 ,x is cont5d$ t ! det]m9ation ( rates t w be j & fair to all compet+ companies involves o!r consid]ation ?an ! valuation ( ei!r physical or intangible prop]ties1 & t :5 all ^! rate-mak+ problems are prop]ly solv$1 !re w rema9 l>ge intangible values on ! well-design$ plants4 ,pr(essor ,adams has himself admitt$ t !re is no possibility ( utiliz+ any valuation = ! purpose ( fix+ specific rates1 z su* a task is f> beyond ! capacity ( any conceivable sy/em ( co/ acc\nt+4 ,supplem5t+ ?is admission1 ,mr4 ,riggs' opposition to ! plan propos$ by ! =m] & its gross inju/ice1 s app>5t to e "o b its au?or1 de/roys ! la/ elem5t ( plausibility 9 ! sugge/ion t any sort ( valuation c\ld be ( utility 9 t connection4 ,! writ] is n ov]look+ ! fact t ! ,c\rts1 :5 "u ! necessity ( repell+ ef=ts to confiscate railway prop]ties "u ! guise ( rate regulation1 & 9 view ( ! =m 9 :i* ?is necessity has commonly pres5t$ itself1 h accept$ fair value z an elem5t ( importance 9 _! inquiries2 b if ! railways are entitl$ to *>ge rates bas$ on ! value ( ! s]vices !y p]=m1 x is cle> t ! "q :e!r a rate or a s*$ule ( rates is reasonably adju/$ to ! value ( ! s]vice or s]vices is v diff]5t f ! "q :e!r a fair return ^u fair value has be5 all[$4 ,assum+1 h[ev]1 ! ne$ ( an appraisem5t 9 e litigat$ case involv+ railway s*$ules1 x is evid5t t ea* case w\ld h to h its own appraisem5t1 = value is ev] *ang+ & un/able4 ,mr4 ,riggs himself says3 ,x is true t ! 'value' ( a prop]ty is an un/able figure1 subject to fluctuations due to natural or artificial causes1 & t a mat]ial *ange 9 value may occur sudd5ly4444 ,pr(essor ,adams propos$ to keep 8 replacem5t co/ up to date by annual accretions equal to annual exp5ditures = ext5sions & bett]m5ts2 b ?is plan is illogical & inconsi/5t1 = x proposes to ignore t v ess5tial diff]5ce betwe5 orig9al co/ 7less a proportionate all[ance = we> & te>7 & pres5t wor?1 :i* is ! v basis ( ! argum5t 9 favor ( any valuation at all4 ,equally obvi\s objections1 gr[+ out ( ! in/ability ( ! asc]ta9$ value ( any p>ticul> date1 apply to any plan :i* does n provide = a re-appraisem5t e "t ! aggregate is to be us$4 ,! objections to ! use ( any valuation = rate-mak+ :i* h be5 cit$ are valid1 & %\ld be conv9c+1 b !y are insignificant by ! side ( ! fundam5tal objection t1 z ,mr4 ,riggs says1 z a bus9ess proposition1 ! value ( any prop]ty dep5ds on its e>n+s1 :ile ^? :o w\ld ?us utilize a valuation are attempt+ to rev]se ! fact & make e>n+s dep5d on ! value4 ,su* a rev]sal is impossible4 ,asc]ta9 real value & y h a consequ5ce ( e>n+s1 pa/1 pres5t1 & prospective1 no?+ else2 use ?is z a basis = a rate s*$ule & y get1 z a ma!matical result1 ! pres5t rates4 ,! only way to d]ive any o!r result f ?is me?od w\ld be to use z ! basis "s figure o!r ?an ! real value1 a me?od :i* w\ld only be resort$ to ?r\gh moral turpitude or intellectual incapacity4 ,"o might almo/ assume t ,mr4 ,riggs kn[s ?is1 = he says3 ,value is giv5 to a prop]ty1 ei!r by reason ( ! fact t x is an in/rum5t = e>n+ pr(it1 or t x does e>n pr(it or gives promise ( pr(it4 ,! sub/ance ( ,mr4 ,riggs' argum5t on capitalization control is t ,am]ican railways are n (t5 ov]-capitaliz$1 b su* evils d obta9 9 o!r indu/ries1 & !re=e railway issues ( capital securities ought to be re/rict$4#ci ,un=tunately1 he gives no clue to ! me?ods he w\ld h appli$1 nor z to h[ f> he w\ld g 9 int]f]5ce ) ! normal action & int]action ( comm]cial =ces 9 det]m9+ :at securities c & ought to be issu$4 ,railways are n ov]-capitaliz$4 ,table #i1 a comp>ison ( (ficial valuations & capitalization1 orig9ally compil$ by ,mr4 ,slason ,?ompson1 is in/ructive4 ,,table #i4 ,/ate4 ,ye>4,valuation by commission,/ate proportion ( or tax bo>d4 capitalization4 ,m9nesota #aijg #daa1gce1aid #ccd1igi1fia ,s\? ,dakota #aiji #ajf1did1ejc #ajh1iaa1jjj ,wiscons9 #aiji #bhd1jff1jjj #bdi1bii1jfj ,texas #aiji #dac1jjj1jjj #dab1dfe1gdc ,wa%+ton #aijh #ahf1jjg1dij #aec1dic1idj ,total #a1dja1cjc1ahg #a1bei1jdi1dcd ,excess ( total valuation ov] total capitalization #adb1bec1gec ,9 view ( frequ5t sugge/ions1 9 ! public press & else:]e1 :i* indicate t !re is a widespread op9ion t ! securities ( railways h g5]ally be5 wat]$1 ,table #aj is giv54 ,x is an analysis ( ! consolidat$ balance %eet z giv5 9 ! reports ( ! ,int]/ate ,comm]ce ,commission = #aijh & #ahij4 ,table #aa %[s ! l5g?1 9 miles1 ( ma9 & o!r tracks 9 #aijh & #ahij4 ,! ,commission1 9 its annual report1 %[s ! securities issu$ p] mile ( road 7fir/ ma9 track71 b does n %[ ! results p] mile ( ma9 track 7i4 e41 #a/ ma9 track1 #b;d1 #c;d1 #d?1 & o!r ma9 tracks71 nor does x %[ ! results p] mile ( all tracks 7i4 e41 ma9 tracks1 y>d tracks1 pass+ tracks1 & indu/rial tracks74 ,f ! consolidat$ balance %eet1 x w be not$ t ! securities p] mile ( road h increas$ #bi1 :ile p] mile ( ma9 track !y h increas$ only #bd1 & p] mile ( all tracks !y h increas$ b #ad p] c5t4 ,h[ev]1 d$uct+ ! inve/m5ts 9 /ocks & bonds ( o!r corporations1 & %[+ ! results only = ! securities issu$ on acc\nt ( ! co/ ( road & #ab equipm5t1 we h an av]age p] mile ( road ( #fb1chh1 an increase ( #ab2 & an av]age p] mile ( all ma9 tracks ( #ef1aff1 an increase ( #h2 & an av]age p] mile ( all tracks ( #db1hfd1 or a decrease ( #j4g p] c5t4 ,x w be not$ t a consid]able "p ( ^! increases is due to increas$ co/ ( equipm5t1 & ! advantage\s results obta9$ f su* inve/m5t h be5 cle>ly %[n4 ,( ! inve/m5t 9 ! track itself 7co/ ( road71 x w be not$ t ! co/ p] mile ( ma9 track has increas$ only #e1 :ile ! co/ p] mile ( all tracks %[s a slight decrease 9 #aijh z comp>$ ) #ahij4 ,^! comp>isons are m significant & conv9c+ 9 ! light ( ! l>ge exp5ditures s9ce #ahij = ! r$uction ( grades1 revision ( l9e1 int]lock+ t[]s1 automatic block signals1 increas$ weight ( rail1 increas$ capacity ( bridges1 improv$ /ations & t]m9als1 elevation ( tracks1 & ! _m o!r items go+ to make up ! additions & bett]m5ts1 & increas+ ! book co/ ( ! prop]ty4 ,! figures pla9ly prove t !re has be5 no g5]al practice on ! "p ( ! railroads ( ! c\ntry1 f #ahij to date1 ( issu+ capital securities )\t secur+ full value = ! va/ am\nt ref]r$ to4 ,:y1 !n1 %\ld any re/riction be plac$ on ! =m or mann] ( _! future appeal = ! v l>ge volume ( capital necess>y to keep abrea/ ( ,am]ican indu/rial developm5t8 ,:y %\ld !y be limit$ z to :at =m ( security !y may (f] 9 return = ! ca% capital :i* !y mu/ obta9 if !y are to s]ve ! public adequately & prop]ly8 ,,table #aj4--;,,consolidat$ ,,balance ,,%eet ,,= ,,railroads ,,( ,,! ,,unit$ ,,/ates4 ,,exclusive ,,( ,,t]m9al ,,& ,,swit*+ ,,roads4 ,,assets4 ,total4 ,p] mile ( road4 #aijh4 #ahij4 #aijh4 #ahij4 ,,railroad3 ,co/ ( road #ab1jce1aie1djcg1ccc1jif1dcj #ef1bfh #ea1djj ,co/ ( #a1agh1ega1acg #dbb1bij1iea #e1eaj #b1ifj equipm5t ,mat]ial & #bbf1bej1dfb #fc1ghe1iej #a1jeh #ddg supplies ,total #ac1ddj1jag1jjbg1hai1agc1cca #fb1hcf #ed1hjg ,,inve/m5ts3 ,/ocks own$ #b1aae1cac1cgi #dhi1jdi1hei #i1hij #c1dbh ,bonds own$ #a1bga1caa1eab #bda1aae1ffe #e1idd #a1fij ,total #c1chf1fbd1hia #gcj1afe1ebd #ae1hcd #e1aah ,,curr5t ,,assets3 ,ca% & #a1bac1ege1bgb #cjg1hga1ahh #e1fgd #b1aeh curr5t assets ,s9k+1 #aed1ige1dji #abe1jie1ihg #gbd #hgg ,insurance1 & o!r funds ,total #a1cfh1eej1fha #dcb1igj1age #f1cih #c1jce ,miscellane\s #a1bgg1deh1gie #gaj1cjj1ecf #e1igc #d1igi ,gr& #ai1dgb1fea1cfii1fib1fji1eff #ia1jda #fg1ici total--,all assets ,,liabilities4 ,,securities ,,issu$3 ,capital /ock #g1bhi1eig1ifdd1agi1aef1iij #cd1jha #bi1bic ,bonds #i1dda1bjj1bfa #d1dfb1egg1jgi #dd1ada #ca1bhj ,total #af1gcj1gih1bbeh1fda1gcd1jfi #gh1bbb #fj1egc ,,curr5t ,,liabilities3 ,accru$ #be1cda1iid #agg int]e/ ,o!r curr5t #a1aea1bcc1bee #ddj1eac1fbi #e1chb #c1jhh liabilities ,total #a1aea1bcc1bee #dfe1hee1fbc #e1chb #c1bfe ,miscellane\s #hde1aae1eeb #cid1iah1bja #c1ieb #b1gfh ,gr& #ah1gbg1adg1jcbi1ejb1ejg1hic #hg1eef #ff1fjf total--,all liabilities ,pr(it & #gde1ejd1ccg #aij1aja1fgc #c1dhe #a1ccc loss balance ,gr& #ai1dgb1fea1cfii1fib1fji1eff #ia1jda #fg1ici total--,all assets ,,assets4 ,p] ,mile ( ma9 tracks4 ,p] mile ( all tracks4 #aijh4 #ahij4 #aijh4 #ahij4 ,,railroad3 ,co/ ( road #ej1fef #dh1aji #ch1fei #dj1jcc ,co/ ( #d1ifa #b1ggj #c1ghf #b1cje equipm5t ,mat]ial & #ieb #dai #gbg #cdh supplies ,total #ef1efi #ea1bih #dc1agb #db1fhf ,,inve/m5ts3 ,/ocks own$ #h1ijc #c1bjh #f1gie #b1fgj ,bonds own$ #e1cea #a1ehb #d1jhc #a1caf ,total #ad1bed #d1gij #aj1hgh #c1ihf ,,curr5t ,,assets3 ,ca% & #e1ajh #b1jbj #c1hih #a1fha curr5t assets ,s9k+1 #feb #hbj #dih #fhc ,insurance1 & o!r funds ,total #e1gfj #b1hdj #d1cif #b1cfd ,miscellane\s #e1cgg #d1ffj #d1ajc #c1hgh ,gr& #ha1ifj #fc1ehh #fb1edi #eb1iad total--,all assets ,,liabilities4 ,,securities ,,issu$3 ,capital /ock #cj1fhb #bg1dag #bc1dae #bb1hae ,bonds #ci1gch #bi1bgg #cj1cbg #bd1cfb ,total #gj1dbj #ef1fid #ec1gdb #dg1agg ,,curr5t ,,liabilities3 ,accru$ #aff #ahh int]e/ ,o!r curr5t #d1hde #b1hij #c1fih #b1dje liabilities ,total #d1hde #c1jef #c1fih #b1edc ,miscellane\s #c1eeg #b1eia #b1gae #b1aef ,gr& #gh1hbb #fb1cda #fj1aee #ea1hgf total--,all liabilities ,pr(it & #c1ach #a1beg #b1cid #a1jch loss balance ,gr& #ha1ifj #fc1ehh #fb1edi #eb1iad total--,all assets ,x ought also to be borne 9 m9d1 9 ?is connection1 t1 :ile !re c\ld be no lawful mode = ! revision ( exi/+ capitalization1 %\ld x 9 any in/ance be f\nd to be too small or too great :5 measur$ by ! results ( su* a valuation1 ! future issue ( securities mu/ be controll$ by ! necessities ( ! c>ri]s & ! /ate ( ! m>ket1 & is also practically re/rict$ by ! ,int]/ate ,comm]ce ,commission's acc\nt+ sy/em1 :i* decl>es :at exp5ditures may & :at may n be c>ri$ into ! capital acc\nt4 ,! law _c compel any company to repudiate any exi/+ security1 & if x c\ld x is n to be suppos$ t ,congress w\ld compel su* an impairm5t ( contract rights2 public policy w n p]mit 9 practice re/rictions t w\ld prev5t ! issue ( securities to meet ! actual ne$s ( ! public & ! c>ri]s2 ! acc\nt+ sy/em prev5ts issues ( any o!r sort4 ,fur!r re/rictions w\ld be cumulative & sup]flu\s4 ,,table #aa4 ,track4 #aijh4 #ahij4 ,increase4 ,p]c5tage ( increase4 ,s+le track #bac1hhh4cfadb1ffe4hi #ga1bbb4dg #di4i ,second track #bj1bji4je #h1dcg4fe #aa1gga4dj #aci4e ,?ird track #b1jha4af #gfj4hh #a1cbj4bh #agc4e ,f\r? track #a1djh4ii #efa4ha #hdg4ah #aej4h ,total1 all ma9 tracks #bcg1ehg4efaeb1dbf4bc #he1afa4cc #ee4i ,y>d track & sid+s #gc1gbh4eg #cj1gej4ag #db1igh4dj #aci4h ,total mileage op]at$ #caa1caf4acahc1agf4djabh1aci4gc #fi4i 7all tracks7 ,! ,int]/ate ,comm]ce ,commission 9 #aijh report t _! ,balance ,%eet cov]s 'miles ( road' aggregat+ #bac1hhh4cf miles1 :]eas _! /atem5t ( mileage repres5ts all roads report+ to ! ,commission :e!r or n !y furni%$ a ,balance ,%eet4 ,to analyze ! ,consolidat$ ,balance ,%eet1 we h revis$ ! /atem5t ( mileage to cov] same roads z are includ$ 9 ! ,g5]al ,balance ,%eet4 ,! 'miles ( road1' i4 e41 miles ( fir/ ma9 track1 are actual4 ,! ,commission's report n %[+ sep>ately = ea* l9e ! miles ( o!r ma9 tracks or y>d tracks & sid+s1 ! figures %[n 9 ! /atem5t ( mileage are approximate4 ,x includes mileage ( all second1 ?ird & f\r? tracks4 ,und\bt$ly1 practically all ( ! second tracks1 ?ird tracks & f\r? tracks are own$1 or op]at$ by1 roads furni%+ ! ,commission ) a ,balance ,%eet4 ,mileage ( ,y>d ,tracks & ,sid+s is bas$ on ! proportion :i* ! s+le-track mileage ( roads repres5t$ 9 ! ,balance ,%eet be>s to ! total s+le-track mileage ( roads report+ to ! ,commission4 ,mr4 ,riggs consid]s s]iatim n9e objections to ! ord9>y me?ods ( e/imat+ co/ ( replacem5t :i* 7 m5tion$ specifically by ! writ]1 z among ! mo/ important commonly omitt$ items1 9 an address be=e ! ,new ,york ,traffic ,club1 deliv]$ dur+ ,janu>y1 #aiji4 ,he conc$es t ! writ] is correct 9 urg+ t all[ances = work+ capital ) :i* to c>ry on ! bus9ess & = impact & adaptation ought to be includ$1 & 7 omitt$ 9 ,mi*igan & h be5 usually omitt$4 ,^! are two ( ! n9e objections specifically rais$4 ,z to five o!rs1 ,mr4 ,riggs seems to be 9 consid]able d\bt4 ,conc]n+ ! objection t an all[ance ( #c = int]e/ dur+ con/ruction is too l[1 he cont5ds t x 0 ju/ifi$ 9 ,mi*igan by ! assumption1 t ! :ole "w ( replacem5t w\ld be accompli%$ 9 "o ye>1 & also t on long roads p>tial op]ation w\ld comm5ce z v>i\s sections ( ! l9e 7 complet$4 ,he admits t ^! assumptions cle>ly w\ld n be prop] "u diff]5t conditions1 b appe>s to hold t !y 7 w>rant$ z to ! ,mi*igan "w4 ,ano!r ( ! writ]'s objections 0 ! abs5ce ( an all[ance = we> & te> ( mat]ials dur+ ! p]iod ( con/ruction4 ,z to ?is1 ,mr4 ,riggs says3 ,?is det]ioration is a necess>y incid5t to any con/ruction "w4 ,x has n be5 cu/om>y or usual to take acc\nt ( x4 ,to add to ! am\nt capitaliz$ on acc\nt ( ?is item w\ld be manife/ly improp]4 ,! only way 9 :i* ?is c\ld be c>$ = w\ld be 9 an adju/m5t ( ! depreciation res]ve :5 rais$ to cov] t :i* takes place dur+ ! con/ruction p]iod4 ,( c\rse1 ! depreciation acc\nt1 :5 !re is "o1 is a *>ge to op]ation4 ,!re=e1 ,mr4 ,riggs' anxiety to disagree ) ! writ] has l$ him into a frame ( m9d 9 :i* he is prep>$ to f9d t x is manife/ly improp] to *>ge to capital ! real co/ ( con/ruction1 b is q prop] to *>ge to op]ation a "p ( ! co/ ( con/ruction1 ev5 ?\gh ?is results 9 c>ry+ into ! op]at+ acc\nt items ( exp5se incurr$ long be=e op]ation began or c\ld h begun4 ,mr4 ,riggs ?9ks t ! writ] 0 incorrect 9 object+ t a uni=m price = e>?work 0 us$1 ?us ignor+ ! v>y+ "* ( soil & l5g? ( haul1 b he admits t !re 0 practically no classification 9 ! ,s\!rn ,p59sula ( ,mi*igan1 or1 9 fact1 on #ij ( ! mileage ( ! ,/ate1 & 8 def5se goes no fur!r ?an to ass]t t ! price 99 99 99 0 n mu* out ( ! way :5 consid]$ z a fair av]age = ! t]ritory4 ,8 criticism ( ! objection to ! use ( a uni=m price li/ = mat]ials1 & ignor+ ! s\rce ( supply & ! co/ ( deliv]y at ! po9t ( use1 is equally =c$1 = x admits t no ef=t 0 made to use diff]5t unit prices z betwe5 c\nties1 & only cont5ds t 9 a numb] ( cases diff]5ces 9 prices 7 made4 ,! abs5ce ( an all[ance = int]f]5ce by labor tr\bles1 wea!r conditions 7:i* he admits are a frequ5t s\rce ( annoyance1 delay1 & sometimes ( exp5se71 ,mr4 ,riggs def5ds on ! gr\nd t x is an exp5se difficult to sep>ate & set up1 & !re=e ought to be cov]$ by an all[ance = cont+5cies4 ,on ! same gr\nd1 he c\ld easily c>ry e item ( co/ ( replacem5t into ! cont+5t acc\nt4 ,! two rema9+ objections specifically rais$ by ! writ] are squ>ely attack$ by ,mr4 ,riggs4 ,z to "o ( !m1 ! propriety ( an all[ance = c>ry+ *>ges up to ! "t ( atta9+ a rev5ue basis1 has be5 admitt$ by ! ,railroad ,commission ( ,wiscons91 b x is a broad] "q ?an ought "h to be discuss$4 ,! writ] w only sugge/1 at pres5t1 t 9 "s =m or o!r1 ^! *>ges mu/ be on ! :ole & 9 ! long run met out ( net op]at+ income1 & t ! *eape/ way1 = ! us] ( ! s]vices suppli$1 is to c>ry !m into ! capital acc\nt--o!rwise !re mu/ be an e>ly amortization ( ?is item1 :i* _c d o!rwise ?an to ?r[ a heavy burd5 on ! e>ly s*$ules ( *>ges4 ,! language ( ! ,wiscons9 ,railroad ,commission on ?is subject m]its quotation1 & is z foll[s3#dj ,b new plants are seldom pay+ at ! />t4 ,sev]al ye>s are usually requir$ be=e !y obta9 a suffici5t am\nt ( bus9ess or e>n+s to cov] op]at+ exp5ses1 includ+ depreciation & a reasonable rate ( int]e/ ^u ! inve/m5t4 ,! am\nt by :i* ! e>n+s fail to meet ^! requirem5ts may ?us be reg>d$ z deficits f ! op]ation4 ,^! deficits con/itute ! co/ ( build+ up ! bus9ess ( ! plant4 ,!y are z mu* a "p ( ! co/ ( build+ up ! bus9ess z loss ( int]e/ dur+ ! con/ruction ( ! plant is a "p ( ! co/ ( its con/ruction4 ,!y are tak5 into acc\nt by ^? :o ent] ^u su* und]tak+s1 & if !y _c be recov]$ 9 "s way1 ! plant fails by t mu* to yield reasonable returns ^u ! am\nt t has be5 exp5d$ ^u x & its bus9ess4 ,su* deficits may be cov]$ ei!r by be+ reg>d$ z a "p ( ! inve/m5t & includ$ 9 ! capital ^u :i* int]e/ is all[$1 or !y may be c>ri$ until !y c be writt5 (f :5 ! e>n+s h s gr[n z to leave a surplus above a reasonable return on ! inve/m5t t is l>ge en\gh to p]mit x4 ,:5 capitaliz$1 !y become a p]man5t *>ge on ! consum]s4 ,:5 *>g$ (f f ! surplus1 !y are gradually ext+ui%$4 7,^! facts alone1 h[ev]1 d n always furni% ! be/ or mo/ equitable basis = ! disposal ( su* deficits47 ,:e!r !y %\ld g into ! capital acc\nt1 or :e!r !y %\ld be writt5 (f1 z indicat$1 are que/ions t l>gely dep5d on ! circum/ances 9 ea* p>ticul> case4 ,! o!r objection t is squ>ely oppos$ by ,mr4 ,riggs is ! refusal to all[ = unavoidable disc\nts on ! securities sold4 ,"h he quotes ) complete approval an unnam$ writ]1 :o cont5ds t ! impropriety ( su* an all[ance is prov5 because1 z betwe5 an issue ( #aj1jjj1jjj 9 bonds 7p> value7 at #d & at #d1 ! #d bonds br++ #ij & ! #d sell+ at p>1 !re is an annual sav+1 9 issu+ ! #d ( #ej1jjj 9 int]e/1 & t1 if ! issue is to be = fifty ye>s1 ?is sav+ is #b1ejj1jjj1 or #a1ejj1jjj 9 excess ( ! disc\nt4 ,( c\rse1 ^! figures are correct1 b bo? ,mr4 ,riggs & 8 unnam$ au?ority seem /rangely to h ov]look$ ! fact t if a railway con/ruction requires #aj1jjj1jjj1 x _c be obta9$ by issu+ #aj1jjj1jjj 9 p> value at #ij4 ,! comp>ison1 ( c\rse1 ought to be bas$ on ! issue ( en\gh bonds at ea* rate to obta9 equal sums ( money4 ,z #aj1jjj1jjj 9 p> value ( bonds sold at #ij w\ld produce #i1jjj1jjj1 ! foll[+ comp>ison is bas$ on ! issue ( en\gh bonds at ea* rate payable 9 fifty ye>s to secure t sum4 ,fifty-,ye> ,bonds1 #d sold at p>4 #d sold at #ij4 ,am\nt ( capital requir$ #i1jjj1jjj #i1jjj1jjj ,p> value ( bonds necess>y #i1jjj1jjj #aj1jjj1jjj ,annual int]e/ *>ge #dje1jjj #djj1jjj ,if #d bonds are us$3 ,annual sav+ 9 int]e/ #e1jjj ,fifty ye>s sav+ 9 int]e/ #bej1jjj ,loss1 orig9al disc\nt #a1jjj1jjj ,net loss #gej1jjj ,( c\rse1 ! =ego+ figures are n absolutely accurate1 = ! real net loss 9 ! issue ( ! #d r ?an ! #d bonds at ^! prices w\ld be ! diff]5ce betwe5 ! #e1jjj annual sav+ 9 int]e/ & ! am\nts :i* w\ld h to be set aside annually = fifty ye>s to produce #a1jjj1jjj1 ! am\nt ( ! disc\nt1 at ! end ( t p]iod4 ,b ! table is suffici5tly accurate to expose ! curi\s error into :i* ,mr4 ,riggs has fall54 ,p]haps x w conv9ce him t x w\ld be bett]1 h]eaft]1 n to /ray s f> outside ! field ( civil eng9e]+4 ,mr4 ,riggs has little sympa?y ) ^? railway m5 :o v5ture to express ! op9ion t regulation ought n to ext5d s f> z to r5d] x impossible to conduct ! railway bus9ess 9 a bus9ess-l way4 ,8 animadv]sions on railway m5 9 g5]al h already be5 illu/rat$ h]e94 ,he f9ds no?+ worse ) :i* to *>act]ize a previ\s utt]ance ( ! writ]'s ?an to say ( x3 ,! manife/ impati5ce ) all =ms ( gov]nm5tal int]f]5ce ) corporations1 :i* s (t5 *>act]izes ! utt]ances ( prom95t railway (ficials1 appe>s 9 ?is pap] to a m>k$ degree4 ,at ! risk ( incurr+ fur!r displeasure1 ! writ] w n omit n[ to obs]ve t1 9 8 judgm5t1 ! :ole "q :e!r railways %all be g5]ally & (ficially valu$1 & h[ & by :om ! task %all be p]=m$1 is prim>ily condition$ by ! c\ntry's ne$ ( manag+ its legislative control ( railway me?ods s z n to re/rict unduly ! fl[ ( capital into t indu/ry4 ,! /eady pressure = legislation dur+ ! la/ five ye>s has s ext5d$ legislative regulation t1 = ! fir/ "t1 ! /urdy1 frugal1 cons]vative1 small inve/or /&s 9 ! =efront ( ! problem4 ,8 views ( ! /ability & future prosp]ity ( ! ,am]ican railway indu/ry n[ dom9ate ! situation4 ,:at !y are may be read 9 ! facts att5d+ rec5t ef=ts to f9ance necess>y improvem5ts ( old & prosp]\s railways4 ,x develop$ be=e ! ,int]/ate ,comm]ce ,commission dur+ ! rec5t he>+s 9 connection ) ! propos$ p>tial adju/m5t ( rates to ! dim9i%$ pur*as+ p[] ( ! money 9 :i* !y are paid1 t "o ( ! greate/ ( ,ea/]n railway sy/ems1 pay+ #h annual divid5ds on its /ock1 :i* is v widely di/ribut$1 _h (f]$ new %>es to its /ockhold]s at a premium ( #be1 & _h f\nd !m unsalable at t figure1 s t x 0 oblig$ to recall ! (f] & put !m out at p>4 ,o!r te/imony disclos$ ! failure ( "o great company to obta9 an (f] ( m ?an #he = its #d bonds1 :ile ano!r _h be5 =c$ to g to ,france to raise #aj1jjj1jjj1 & _m o!rs h be5 =c$ to ! exp$i5t ( issu+ %ort-t]m notes at relatively high rates ( int]e/4 ,x also appe>$ t ext5sive proposals = new bran* l9es _h be5 ab&on$ or po/pon$1 9 view ( ! impossibility ( obta9+ funds on reasonable t]ms4 ,o!r te/imony %[s t locomotive %ops & c> build]s are putt+ out n m ?an half ( _! capacity2 t ! supply trade is receiv+ no new ord]s4 ,nev]1 s9ce ! beg9n+s ( ! ,am]ican railway indu/ry1 has ! ,am]ican & =eign inve/or be5 s reluctant to supply necess>y capital1 or s d\btful ( ! future ( railway ent]prises4 ,?is fact is n due to abs5ce ( confid5ce 9 ! indu/rial future ( ! ,am]ican p1 b is directly attributable to ! unansw]$ inquiry z to h[ f> ! policy ( legislative control is to ext5d4 ,ei!r ?is "q mu/ be answ]$ 9 a mann] satisfactory to ! inve/or1 or ! cr$it ( ! ,gov]nm5t mu/ be made available = ! ext5sion & improvem5t ( railway facilities1 ei!r ?r\gh ,gov]nm5tal gu>anties ( adequate returns to capital1 or ?r\gh ,gov]nm5t own]%ip2 = adequate & prop]ly con/ruct$ & equipp$ railways ! public mu/ & w h4 ,?us f>1 ! ,am]ican public is ready nei!r = ,f$]al gu>anties nor = ,f$]al own]%ip2 x is to be hop$ t x w nev] be ready = ei!r4 ,9 ?is situation1 if a ,f$]al valuation is to be und]tak51 x is prim>ily important t x %\ld be "u su* auspices & by su* me?ods t ! inve/or w n be al>m$ z to its consequ5ces4 ,?is is n a suitable occasion to attempt to lay d[n all ! consid]ations applicable to su* a valuation1 b x ought to be p]fectly cle> t x mu/ relate to value 9 use1 n to "s concept ( value limit$ to replacem5t co/ :i* excludes "s ( ! mo/ important elem5ts ( value 7:i* are also ^? mo/ wor?y ( a return1 because !y repres5t ! highe/ & mo/ difficult social & indu/rial s]vices71 9 ord] to obta9 a means ( exclud+ ^! same elem5ts f possibilities ( adequate rew>d4 ,"o ( ! mo/ important items to be consid]$ is ! co/ ( progress1 :i* is sometimes ref]r$ to z ab&on$ prop]ty1 or z obsolesc5ce4 ,= illu/ration1 9 ! revision ( ! grade & l9e ( a road1 :]eby ! capacity ( exi/+ track is d\bl$1 ! pres5t in/ructions ( ! ,int]/ate ,comm]ce ,commission require ! *>ge to op]at+ exp5ses ( ! co/ ( t portion ( ! old l9e no long] cont9u$ 9 use4 ,if1 h[ev]1 ! d\bl+ ( ! capacity ( ! l9e be secur$ by ! con/ruction ( a second ma9 track1 ! entire co/ ( ! new "w c be *>g$ to capital acc\nt & paid = f ! proce$s ( ! sale ( capital securities4 ,! latt] me?od becomes ! easi] to f9ance1 b :at ( ! comp>ative results8 ,say1 = example1 ! orig9al co/ ( mat]ial ( exi/+ prop]ty1 includ+ equipm5t1 /ations1 y>ds1 etc41 0 #aj1jjj1jjj1 t ! fir/ ma9 track co/ #a1jjj1jjj1 & t to d\ble ! capacity ( ! ma9 track w\ld require a pres5t exp5diture ( #a1jjj1jjj1 ei!r = 7#a7 a r$uction ( ! grades & curves ( ! fir/ ma9 track1 or 7#b7 = ! con/ruction ( a second ma9 track4 ,! increase 9 capacity is id5tical1 b 9 ! fir/ case ! co/ ( tra9 s]vice to h&le ! tonnage is decreas$ #ej1 & "s r$uction 9 ma9t5ance is secur$1 :ile 9 ! second case no economies ( op]ation are effect$1 b ! exp5ses may be increas$4 ,und\bt$ly1 ,road 7#a7 w\ld be mu* m favorable ?an ,road 7#b71 yet ! ,commission says a portion ( ! co/ ( p]fect+ ,road 7#a7 mu/ be *>g$ to op]at+ exp5ses1 & _c be capitaliz$4 ,:at g5]al manag] w d>e recomm5d su* ext5sive improvem5ts :5 ! *>g+ ( a portion ( ! co/ to op]at+ exp5ses w %[ ! divid5d z une>n$1 & ?us r5d] ! securities ( ! company no long] legal inve/m5ts = sav+s banks1 tru/ees ( tru/ funds1 etc48 ,z an alt]native1 he might p]mit ! old l9e to rema91 & by plac+ !reon a few c>s occasionally1 c\ld consid] x z /ill 9 use1 & c>ry x 9 8 capital acc\nt1 ?us avoid+ ! *>ge to op]at+ exp5ses4 ,?us1 aga91 is x ! me?od & n ! result t is controll$ by ^! in/ructions4 ,:at %\ld be done is to p]mit ! co/ to be *>g$ aga9/ ! surplus accumulat$ dur+ ! ye>s 9 :i* ! prop]ty to be ab&on$ 0 us$4 ,?is w\ld n affect adv]sely ! op]at+ income ( ! ye>1 & w\ld n impair ! cr$it ( ! ,company4 ,pla9ly1 ! in/ructions ( ! ,commission t5d to compel a me?od t is contr>y to ! economic law4 ,obvi\sly1 any requirem5t z to valuation :i* w\ld impose on ! c>ri] su* a result z t %[n w\ld compel ! cont9uance ( ! less effici5t s]vice & prev5t ! progress :i* su* replacem5ts express4 ,! railway bus9ess is a cont9u+ "o1 & an improvem5t ought to be made :5ev] x c e>n income1 n only on its own co/1 b on t ( ! prop]ty ab&on$1 ev5 ?\gh x _c af=d income suffici5t to wipe out ! :ole capital *>ge = ! latt] 9 a s+le ye>4 ,!re is no reason = requir+ ea* item ( capital to e>n its co/ 9 addition to its int]e/ dur+ its individual life4 ,su* a requirem5t w\ld cry halt to progress4 ,x is reasonable & prop] t su* *>ges to op]ation %\ld be made z f> z ! rapid developm5t ( ! art ( transportation p]mits1 & su* is ! practice ( e well-manag$ railway2 b1 to make ! practice uni=m & compulsory1 p]mitt+ no exceptions & all[+ no scope = individual judgm5t1 is q ano!r ?+4 ,:5 ! conditions w>rant su* a c\rse1 ! railway ought to be p]mitt$ to adju/ its acc\nts 9 a mann] ( :i* ! foll[+ is typical3 ,replac+4 ,n replac+4 ,capital acc\nt #ai1gej #e1jjj ,additional net op]at+ income attributable to #a1jjj #bej ?is item ,*>ge to op]ation = ab&on$ prop]ty #bej ,op]at+ ga9 #gej #bej ,a valuation adju/$ 9 recognition ( ?is developm5tal ne$ w\ld include1 9 addition to ! item ( #ae1jjj = ! replacem5t co/ ( ! new locomotive1 an item repres5t+ co/ ( progress ( #d1gej = ! =m] locomotive4 ,x is n to be ov]look$ t 9 actual practice x w\ld be easy to obta9 ?is all[ance by cumb]+ ! y>ds & r\nd-h\ses ) obsolete & sup]flu\s equipm5t4 ,! plan ( ,pr(essor ,adams places a premium on su* a c\rse1 & !re are _m conditions "u :i* x c\ld & w\ld be foll[$ :]e x w\ld be less obvi\s & m detrim5tal4 ,= example1 x might be t an additional track ov] a /eep grade & a new alignm5t :i* w\ld avoid x w\ld co/ ! same4 ,! new alignm5t w\ld give great] op]at+ effici5cy1 b x w\ld require ! *>g+ (f ( ! old l9e2 ! new track ov] ! grade w\ld be m co/ly to op]ate1 b w\ld leave ! app>5t capital unimpair$4 ,x is su* possibilities z ?is t are giv+ pause to ! inve/ors :o w\ld o!rwise supply funds = ! ne$$ developm5t ( ! ,am]ican railway sy/em4 ,h[ f> ?is developm5t has s f> requir$ ! ab&onm5t ( prop]ty capable ( fur!r use & hav+ g5u9e capital value is indicat$ by available records4 ,! aggregate capacity ( all equipm5t has increas$ mu* fa/] ?an ! increase 9 numb] ( locomotives & c>s4 ,! reports ( ! ,int]/ate ,comm]ce ,commission only %[ ?is in=mation = ! ye>s #aijb to #aijh1 bo? inclusive4 ,! av]age tractive p[] ( locomotives 9 #aijh 0 #bf1cef lb41 z comp>$ ) #bj1dhe lb4 9 #aijb1 be+ an increase ( #e1hga lb41 or #bh4g p] locomotive4 ,! av]age capacity ( freight c>s 9 #aijh 0 #ce tons1 z comp>$ ) #bh tons 9 #aijb1 an increase ( #g tons1 or #be p] c5t4 ,und\bt$ly1 ! av]age capacity ( locomotives & ! av]age capacity ( freight c>s 9 #aijh 0 n less ?an #fj above ! av]age capacity ( #ahij4 ,l4 ,f4 ,loree1 ,m4 ,am4 ,soc4 ,c4 ,e41 ,presid5t ( ,! ,delaw>e & ,hudson ,company1 z ,report] 7,= ,unit$ ,/ates7 to ! ,int]national ,railway ,congress1 held 9 ,p>is 9 #aijj1 communicat$ ) all roads 9 ! ,unit$ ,/ates !n op]at+ #ejj miles ( l9e1 or m1 relative to ! capacity ( c>s actually 9 s]vice4 ,! result is %[n 9 ,table #ab4 ,z a result ( ^! improvem5ts 9 roadway & equipm5t1 ! av]age numb] ( tons ( freight h&l$ p] freight tra9 9 #aijh 0 #cea4hj tons1 z comp>$ ) #bif4dg tons 9 #aijb1 an increase ( #ee4cc tons1 or #ah4f p] c5t4 ,! av]age tons p] freight tra9 9 #aijh 0 #cea4hj1 z comp>$ ) #age4ab 9 #ahij1 an increase ( #agf4fh tons1 or #ajj4h p] c5t4 ,^! improvem5ts h n be5 solely or ma9ly = ! b5efit ( ! c>ri]s1 ?\gh !re is no "q t !y h be5 prompt$ by railway self-int]e/4 ,! new c> ( #dj tons capacity is b #bj long] ?an ! old c> ( #ac tons1 :i* means a great augm5tation ( ! effici5cy ( ! private sid+s & tracks ( ! manufactur]s1 z well z ! side tracks & t]m9als ( ! railway4 ,:o w\ld retrace ! /eps ( progress ( ! la/ decade or ( ! la/ two decades8 ,yet ! project to tie railway e>n+s to replacem5t co/1 :i* makes no all[ance = ! co/ly /eps 9 su* progress1 is 9 reality a project to tie !m to _! pres5t /ate ( developm5t & to prohibit future progress4 ,nor c x be =gott5 t x is an inviolable law ( ,nature t t :i* does n g =w>d mu/ g backw>d--no?+ c rema9 /ation>y4 ,! /ory ( ! crude millionaire :o want$ to "k ! value ( ! plant ( ,ox=d ,univ]sity1 9 ord] t he might duplicate x1 is n inappropriate1 & ought to h "s significance to ^? :o imag9e t replacem5t co/ w\ld tell ! /ory ( railway values4 ,d !y imag9e1 because !y are ignorant ( !m1 t a great railway organization c>ries no traditions ( loyalty1 ( p]si/5ce 9 ! face ( ov]:elm+ difficulty1 ( g5]\s recognition ( public ne$s & rights1 ( c\rage\s adh]5ce to ! real int]e/s ( its %>ehold]s t inspire its p]sonnel & provide a g5u9e esprit du corps8 ,d !y f9d no sup]iority 9 "o organization ov] ano!r1 no sy/ematic economies ( me?od1 no especial adaptation to economic ne$s t has value m g5u9e ?an any replaceable elem5t1 & is at lea/ equally wor?y ( comp5satory return8 ,,table #ab4--;,,classification ,,( ,,freight ,,equipm5t ,,accord+ ,,to ,,! ,,capacity4 ,ye>4 ,no4 ( ,five ,t5 ,fifte5 ,tw5ty ,tw5ty- ,?irty ,roads tons tons4 tons4 tons4 five tons4 ,report+ & tons4 7see "u4 note74 #ahhj ,a-#g #ch1cii #aca1ihh #ddg1bgj #hi1dbj #g #ch1cii #aca1ihh #ddg1bgj #hi1dbj #ahij ,a-#g #af1dej #ga1ihb #ahb1age #fea1gdj #dda1dge #edh1fgj ,b-#ac #af1dej #gb1jhb #bdj1ijj #icc1jdj #fbd1abe #fch1ajj #ahic ,a-#g #a1ade #cd1jhh #add1gie #fbi1ghj #gcd1cej #hdb1fdj ,c-#ac #a1ade #cd1bch #bee1gie #iic1hdj #idg1ejja1aab1jgj #ahie ,a-#g #cee #ac1igh #abj1dce #ehi1adj #gdc1igea1jaa1jcj ,d-#ae #cee #bj1hfc #bde1gjia1ahf1cbja1ajc1ajja1dic1gjj #ahig ,a-#g #bj #f1dfb #ib1ehe #eee1ihj #gfa1aeja1bbd1jcj ,e-#af #bj #i1djg #afc1ahia1jbi1gefa1jhi1cjja1hbb1ecj #ahih ,a-#g #a1edj #id1bge #ebc1jhj #gba1dbea1cad1hdj ,f-#bg #fc1efe #i1dia #dah1eeab1aij1cfja1fed1hejd1hca1agj ,ye>4 ,no4 ( ,?irty-,=ty ,=ty- ,fifty ,total ,total ,av]- ,roads five tons4 five tons numb] capacity1 age ,report+ tons4 tons4 & ( 9 tons4 capac- 7see ov]4 c>s4 ity1 9 note74 tons4 #ahhj ,a-#g #ec1gcc #gjg1jgg #ac4b #g #ec1gcc #gjg1jgg #ac4b #ahij ,a-#g #d1jjj #ej #ia1bhaa1iaf1dib #ba4j ,b-#ac #d1jjj #ejaai1eacb1ebh1gdg #ba4b #ahic ,a-#g #d1jjj #ajc1caeb1cij1gih #bc4d ,c-#ac #d1jjj #ade1ddjc1hdh1ehh #bc4j #ahie ,a-#g #gj1jjj #d1jjj #ejajd1difb1feb1ifc #bd4d ,d-#ae #gj1jjj #d1jjj #ejaga1cjgd1jgd1bag #bc4h #ahig ,a-#g #gd1hfe #d1djj #dej #aejajh1aahb1gbj1jdb #be4b ,e-#af #ahc1aij #d1djj #dej #aejagd1caed1cbb1dcb #bd4h #ahih ,a-#g #ge1cbj #d1dhj #bgj #ej1iejajh1eeib1ghf1ahj #be4g ,f-#bg #hh1eae #h1hdj #bgjajd1gjjche1gfei1dji1iah #bd4d ,note3--,a--,figures cov] only ^! roads3 ,report+ = #ahhj & all o!r ye>s1 viz43 ,allegh5y ,valley ,b4 ,m4 ,r4 ,c4 ( ,g4 ,g4 ,r4 ,i4 ,p5n4 ,l9es ,w4 ,phila4 ,read+ ,wis4 ,c5t4 ,b--,includes roads "u ,a1 also3 ,*es4 ,ohio ,c4 ,g4 ,w4 ,m4 ,k4 ,t4 ,n4 ,d4 ,c4 ,phg4 ,we/]n ,v&alia ,c--,includes roads "u ,a1 also3 ,*es4 ,ohio ,c4 ,g4 ,w4 ,mi*4 ,c5t4 ,m4 ,k4 ,t4 ,n4 ,d4 ,c4 ,phg4 ,we/]n ,d--,includes roads "u ,a & ,b1 also3 ,mi*4 ,c5t4 ,s\!rn ,ry4 ,e--,includes roads "u ,a & ,c1 also3 ,c4 ,r4 ,i4 ,p4 ,seabo>d ,air ,l9e ,s\!rn ,ry4 ,f--,includes roads "u ,a & ,b1 also3 ,ann ,arbor ,b4 ,m4 ,c4 ,r4 ,i4 ,p4 ,c4 ,/4 ,p4 ,m4 ,o4 ,gr& ,trunk ,lehigh ,valley ,mi*4 ,c5t4 ,o4 ,r4 ,r4 ,nav4 ,p5n4 ,r4 ,r4 ,p4 ,b4 ,l4 ,e4 ,seabo>d ,air ,l9e ,s4 ,pacific ,s\!rn ,ry4 ,,table #ac4--,,/atem5t ,,( ,,return ,,on ,,inve/m5t ,,9 ,,road1 ,,equipm5t1 ,,etc41 ,,= ,,roads ,,9 ,,! ,,(ficial ,,classification ,,t]ritory1 ,,= ,,elev5 ,,ye>s ,,end$ ,,june #cj,,?1 #aiji1 ,,also ,,= ,,! ,,ye> #ahij4 ,ye>4 ,co/ ( road4 ,co/ ( ,g5]al ,mat]ial & equipm5t4 exp5ditures4 supplies4 #aiji #d1ceg1dee1aja #fhf1aaf1bjf #ej1ehf1hab #ge1eej1ace #aijh #d1cjf1ijb1jch #ffi1gea1cbj #ea1cbd1aeg #hf1bja1gdh #aijg #d1dch1ehb1dch #ehg1fcg1gcc #ia1ibc1cch #aijf #d1bfi1jff1hjj #eac1jbh1jjd #hj1dgi1ccc #aije #d1aaj1hhc1ijd #dib1dih1dhh #fe1hge1jga #aijd #c1ijf1gff1dei #dfa1ida1fgg #gb1bdj1eba #aijc #c1hcj1ehj1ggf #dbf1hbb1cah #fd1deh1beg #aijb #c1gdd1bje1eeb #chi1iji1gee #ej1efe1bij #aija #c1fhb1hid1cdc #cgh1ede1ehj #dg1gdf1agh #aijj #c1fbj1fcj1ahg #cgg1aef1gjj #di1idj1hch #aihi #c1eff1bbc1eeg #cea1ijb1ieg #ca1afb1ijg ,total #dc1hcd1aid1aee #e1cce1caj1gch #aja1iaj1ifi #gaf1adc1faf #aa ye>s ,av]age #c1ihd1ibf1dfi #dhe1jbh1bdi #i1bfd1fcd #fe1ajc1ife #aa ye>s #ahij #b1ibg1bba1bcc #bhc1djg1aci #ce1bfb1bje ,total #df1gfa1dab1chh #e1fah1gag1hgg #aja1iaj1ifi #gea1dje1hba #ab ye>s ,av]age #c1hif1ghd1cfe #dfh1bbf1dhi #h1dib1eha #fb1fag1aeb #ab ye>s ,,table #ac4 7,cont9u$47 ,ye>4 ,total4 ,op]at+ ,op]at+ ,net ,op]at+ ,rev5ues4 ,exp5ses4 ,rev5ue4 #aiji #e1afi1gjh1bed #a1jcb1bhe1hij #gjj1fid1jjg #cca1eia1hhc #aijh #e1aad1agi1bfc #a1jdi1ede1ihd #gdf1ege1jid #cjb1igj1hij #aijg #e1aah1adc1eji #a1ada1cbd1aaf #gid1iih1hjc #cdf1bbe1cac #aijf #d1hfb1egd1acg #a1jdd1eeb1iji #gad1dfa1deb #ccj1jia1deg #aije #d1ffi1beg1dfc #idd1hje1fei #feh1ccg1dih #bhf1dfh1afa #aijd #d1ddj1idh1feg #hii1hfh1eai #fcf1bag1bag #bfc1fea1cjb #aijc #d1cba1hfa1cea #hga1fig1faa #fja1hfd1bhd #bfi1hcc1cbg #aijb #d1ahd1fhj1eig #ghb1ige1eei #ebh1fha1hib #bed1bic1ffg #aija #d1aji1ahf1aja #gcj1eij1add #dia1feg1hii #bch1icb1bde #aijj #d1jdg1gbg1gbe #fih1cfh1hbi #dfg1dfb1jic #bcj1ijf1gcf #ahii #c1idi1bhi1dba #faj1gbd1cja #dac1cij1cei #aig1ccc1idb ,total #di1ihg1eef1dgh #i1hjf1fci1ebaf1ged1cdj1eihc1jeb1bih1ibc #aa ye>s ,av]age #d1edd1cbc1cag #hia1eab1fhd #fad1jcj1ifc #bgg1dha1gba #aa ye>s #ahij #c1bde1hij1egg #ebd1gfg1ijf #cdh1chh1bfh #agf1cgi1fch ,total #ec1bcc1ddg1jeeaj1cca1djg1dbgg1ajb1gbh1h ffc1bbh1fgh1efa #ab ye>s ,av]age #a1dcf1abj1ehh #hfj1iej1fai #eia1hid1jgb #bfi1jef1edg #ab ye>s ,,table #ac4 7,cont9u$47 ,ye>4 ,net rev5ue ,total ,net ,taxes4 ,op]at+ f outside ,rev5ue4 ,income4 op]ations4 #aiji #b1dbe1gbf #ccd1jag1fji #cg1cig1igc #bif1fai1fcf #aijh #c1ddf1fjj #cjf1dag1dij #cf1jba1igd #bgj1cie1eaf #aijg #cdf1bbe1cac #ce1hgf1adh #caj1cdi1afe #aijf #ccj1jia1deg #cd1hfc1cad #bie1bbh1adc #aije #bhf1dfh1afa #bg1fge1baa #beh1gib1iej #aijd #bfc1fea1cjb #bh1jia1dfh #bce1eei1hcd #aijc #bfi1hcc1cbg #bf1ecg1ied #bdc1bie1cgc #aijb #bed1bic1ffg #be1big1dfe #bbh1iif1bjb #aija #bch1icb1bde #bh1gig1bfd #bae1acd1iha #aijj #bcj1ijf1gcf #bb1faf1hic #bjh1bhi1hdc #ahii #aig1ccc1idb #ba1fib1fid #age1fda1bdh ,total #e1hgb1cbf #c1jeh1aga1bdi #cai1hfh1ceh #b1gch1cjb1hia #aa ye>s ,av]age #ecc1hdg #bgh1jae1efh #bi1jgh1ida #bdh1icf1fbg #aa ye>s #ahij #agf1cgi1fch #ad1gec1eej #afa1fbf1jhh ,total #e1hgb1cbf #c1bcd1eej1hhg #ccd1fba1ijh #b1hii1ibh1igi #ab ye>s ,av]age #dhi1cfj #bfi1ede1ijg #bg1hhe1aei #bda1ffj1gdh #ab ye>s ,,table #ac4 7,cont9u$47 ,ye>4 ,op]at+ ratio4 ,p]c5tage to co/ ,mileage ( l9e ( road1 co/ ( own$4 equipm5t1 mat]ial1 & supplies #aiji #fg4hh #e4gch #ef1efc4da #aijh #ga4ac #e4bhg #ef1cbh4gi #aijg #fi4ff #f4jfc #ef1dae4be #aijf #fh4dj #f4jga #ee1iij4ab #aije #fi4fh #e4edb #ed1ifc4bj #aijd #gj4gj #e4cjd #ed1fdc4ej #aijc #fi4jd #e4fcj #ec1hgc4aa #aijb #fg4eb #e4dgb #eb1ihj4gj #aija #fg4cj #e4bce #eb1iaa4df #aijj #ff4id #e4adf #eb1die4be #ahii #fg4fi #d4ddg #eb1jji4ic ,total #fh4hh #e4dgh #eii1agd4gb #aa ye>s ,av]age #fh4hh #ed1dgj4de #aa ye>s #ahij #ff4ci #d4ihj #dc1jid4gc ,total #fh4ge #e4ddh #fdb1bfi4de #ab ye>s ,av]age #fh4ge #ec1ebb4de #ab ye>s ,if !re 7 n abundant evid5ce t ! railway indu/ry is n excessively pr(itable1 !re w\ld be m reason on ! side ( ^? :o cont9ually put =w>d new s*emes ( re/riction2 b1 n only is su* evid5ce ample1 b !re is no evid5ce ( any sort t5d+ to e/abli% ! contr>y4 ,limit+ ! inquiry to ! region ea/ ( ! ,mississippi & nor? ( ! ,ohio & ,potomac ,riv]s1 commonly kn[n z ,(ficial ,classification ,t]ritory1 ! /atem5t 9 ,table #ac1 bas$ on ! book co/ ( railways1 ) _! equipm5t1 supplies1 & mat]ials on h&1 is in/ructive4 ,! data are f ! reports ( ! ,int]/ate ,comm]ce ,commission4 ,! am\nts %[n 9 ,table #ac z op]at+ income are1 z %\ld be rememb]$1 ^? e>n$1 & n ^? di/ribut$ z int]e/ on bonds & divid5ds on %>es1 :i* 7 necess>ily mu* small]4 ,be>+ ?is 9 m9d1 x is significant t ! p]c5tage ( su* op]at+ income to co/ ( prop]ty has n b once 9 ! la/ twelve ye>s1 ! mo/ prosp]\s duo-decade 9 ! ,nation's hi/ory1 exce$$ #f1 & !n only by a v small fraction2 & t ! av]age = ! :ole p]iod is less ?an #e p] c5t4 ,e "o kn[s t ! real value & ! actual co/ ( ! railway prop]ty 9 ?is region greatly exce$s its book co/1 s t ^! p]c5tages are und\bt$ly mu* 9 excess ( ! real rates ( net e>n+s to value or co/ ( prop]ty4 ,p4 ,e4 ,,gre51 ,,assoc4 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,x is n (t5 t !re is pres5t$ to ! ,society a pap] :i* %[s su* ?or\ghness ( und]/&+ ( a difficult problem1 & z mu* real exp]i5ce 9 its solution1 z is manife/$ !re92 & ! au?or is c]ta9ly to be congratulat$ on su* a logical & =cible pres5tation ( ! subject4 ,!re may be "s po9ts on :i* eng9e]s :o h be5 engag$ 9 su* "w _c agree ) him2 b c]ta9ly x _c be said t he has n argu$ v cle>ly & logically on ne>ly all ! debatable que/ions4 ,^? :o h n _h actual exp]i5ce 9 mak+ a valuation ( a railway company's prop]ty _c h any idea ( ! enorm\s am\nt ( detail & labor necess>y to make su* a compilation ( any real value4 ,x simply means t e detail ( e /ructure ( :atev] k9d mu/ be inve/igat$1 toge!r ) ! v>i\s consid]ations cov]+ intangible values1 :i* ! au?or has s ably discuss$4 ,! writ] 0 =tunate en\gh to be employ$ on ! valuation ( ! ,*icago & ,nor?we/]n ,railway prop]ty 9 ,m9nesota 9 #aijf1 & possibly "s details ( ! mann] 9 :i* ! actual field "w ( ! survey 0 done may be ( int]e/4 ,! "w consi/$ ( mak+ a compilation f records1 or f actual surveys :5 necess>y1 ( ab\t #fbe miles ( railway prop]ty1 includ+ sev]al important t]m9als4 ,! prop]ty _h be5 built betwe5 #ahfj & #aija1 mo/ly 9 ! e>ly "p ( ?is p]iod4 ,! portions :i* _h be5 con/ruct$ dur+ ! latt] "p ( ! p]iod1 say f #ahij to #aijf1 pres5t$ no difficulties1 z ! records 7 v cle> & complete1 b ! portions con/ruct$ 9 ! ,sixties _h practically no records4 ,"s _h be5 built by small indep5d5t companies1 :i* 7 acquir$ lat] by ! ,nor?we/]n ,sy/em4 ,on ^! old l9es ! records 7 practically nil1 & ^? 9 exi/5ce 7 soon f\nd to be ( absolutely no use4 ,ev5 on ! new] l9es x 0 f\nd t _m *anges _h be5 made )9 a few ye>s aft] _! con/ruction1 & t x 0 sometimes m economical1 z reg>ds "t at lea/1 to make a new survey ( ! prop]ty ?an to use ! records4 ,aft] exam9+ all ! old records v ?or\ghly1 & endeavor+ to get "s ord] & in=mation out ( !m1 x 0 decid$ t ! only way to d ! "w prop]ly 0 to make a complete survey & valuation ( all ! physical prop]ty4 ,sev]al field p>ties 7 organiz$ & also an (fice =ce1 ab\t tw5ty m5 be+ put on ! "w4 ,! p>ties ran levels = pr(ile purposes1 cross-section$ cuts :]e necess>y1 not$ evid5ces ( cle>+ & grubb+1 ( ! "* ( ! cuts1 & ! disposal ( ! mat]ial1 exam9$ ! balla/ = dep? & "*1 exam9$ ! rails = age1 weight1 & condition1 & not$ ! k9d & condition ( ! f5ces1 gates1 f>m cross+s1 plank+1 :i/le & highway-cross+ po/s1 culv]ts1 bridges1 & 9 fact e detail ( con/ruction4 ,advantage 0 also tak5 ( ! survey to re-/ation ! l9es1 to pa9t su* /ations on ! rails1 & to set p]man5t po/s1 s t aft]w>d ! /ation+ c\ld be pick$ up at any "t ) little tr\ble4 ,9 ?is way !re 0 accompli%$ mu* "w ( value to ! railway company1 = :i* !re _h be5 a dem& by ! division (ficials = ye>s1 b :i* _h n be5 done because ( lack ( m5 & money4 ,no attempt 0 made to assign depreciation1 z reg>ds ! rails2 ?is 0 det]m9$ aft]w>d1 f ! age ( ! /eel 9 ! track4 ,x 0 necess>y1 h[ev]1 to make q a ?or\gh inspection ( ! ties1 & to note _! condition1 z !y 7 replac$ ye> by ye> s+ly z !y wore out4 ,almo/ e conceivable k9d ( timb] _h be5 us$ = ties at "o "t or ano!r4 ,treat$ & untreat$ ties lay side by side2 & ?us !re 0 great difficulty 9 classify+ !m ) reg>d to ! k9d ( timb]4 ,) bridge ties & timb]s ( frame & pile bridges1 !re 0 n s mu* difficulty1 z !y 7 op5 to inspection1 & _h be5 inspect$ twice ye>ly by ! ,division ,eng9e] & ! ,sup]9t5d5t ( ,bridges & ,build+s1 & accurate records ( _! condition & r5ewals _h be5 kept4 ,! dep? & condition ( ! balla/ also v>i$ v widely4 ,9 a v %ort "t all ! m5 on ! survey became well acqua9t$ ) ! "* ( ! "w !y _h to d1 &1 z ! "w w5t on1 ! progress ( ! p>ty day by day 0 v mu* m rapid4 ,at ! beg9n+ ( ! survey1 a progress ( #f or #g miles ( s+le track 0 consid]$ a v good day's "w2 at ! end ( ! survey1 ! p>ties 7 mak+ f #ab to #ae miles p] day4 ,!re 0 consid]able difficulty 9 sett+ prop] values on ! hundr$s ( build+s1 l>ge & small1 own$ by ! railroad4 ,mo/ ( ^! build+s _h nev] be5 con/ruct$ f plans1 & x 0 difficult to calculate :at !y _h co/ orig9ally1 & :at x w\ld h co/ to build !m at ! "t ( ! survey4 ,h[ev]1 "t books 7 se>*$1 & ! cont5ts ( ! build+s 9 bo>d feet 7 calculat$1 &1 :ile 9 _m cases _! age 0 n kn[n f any records1 x 0 ne>ly always possible to f9d out f somebody j :5 !y 7 erect$4 ,z intimat$ be=e1 ! railway company d]iv$ mu* actual b5efit f ! "w1 outside ( ! accurate k obta9$ z to ! value ( ! prop]ty itself4 ,/eel *>ts1 bridge records1 etc41 7 e/abli%$1 & pr(iles1 /ation+1 cont9u\s b5*-levels1 etc41 7 all re-run or re-e/abli%$2 ?us mak+ ! eng9e]+ "w ( ! future m consi/5t & uni=m1 & enabl+ m "w to be done ) a small] =ce4 ,new maps ( all ! /ation gr\nds & t]m9als 7 obta9$1 & all ! records 7 put 9 bett] %ape ?an !y _h ev] be5 be=e4 ,exam9ation ( "s ( ! old t]m9als br\ght to light _m /range & out-(-date conditions4 ,old wr\ght-iron rails ( antiquat$ patt]n1 old ca/-iron frogs1 etc41 ( a patt]n :i* _h n be5 9 g5]al use = fifty ye>s1 7 f\nd 9 ! track4 ,on "s ( ! little-us$ sid+s1 ! old wr\ght-iron rails 7 s worn t ! tread ( ! rail 0 entirely gone1 only ! web rema9+ to c>ry ! traffic1 & su* rails 7 /ill 9 use4 ,9 su* a valuation1 also1 _m items1 "s ( consid]able magnitude1 7 f\nd :i* 7 extremely difficult to classify & assign to _! prop] place4 ,su* a "o1 = in/ance1 z a s(t1 s& rock deposit beside ! track1 :i* = _m ye>s _h furni%$ eng9e s&4 ,_m ?\s& cubic y>ds ( ?is mat]ial _h be5 excavat$1 b x _h n gone into ! roadb$ z balla/1 or to make fills1 or to wid5 embankm5ts4 ,x w\ld h>dly h be5 prop] to classify su* excavation z grad+1 = x 0 an item ( eng9e ma9t5ance & tra9 op]ation4 ,?is is only "o ( num]\s problems :i* _h to be solv$4 ,aft] all ! survey _h be5 made1 mo/ ( ! "w ( compilation _h to be done4 ,"s ( x _h already be5 done 9 ! (fice by ! small (fice =ce1 b ! great mass _h to be done by ! m5 :o did ! "w 9 ! field4 ,?is task 0 ( almo/ incompreh5sible magnitude4 ,!re 7 ?\s&s & ?\s&s ( items1 & su* a great mass ( figures t ! ord9>y man w\ld become lo/ 9 ! maze4 ,! data _h to be *eck$ & re-*eck$ by m5 :o 7 n acc\ntants1 & sometimes mo/ ludicr\s mi/akes 7 discov]$4 ,h[ev]1 x 0 at la/ accompli%$1 & ! writ]'s recollection ( ! ,pres5t ,value ( ! ,*icago & ,nor?we/]n prop]ty 9 ,m9nesota is t x 0 some:at m ?an #bc1jjj1jjj = ! entire mileage 7ab\t #fbe miles71 or an av]age ( ab\t #cg1jjj p] mile ( track4 ,h>dly any ( ! mileage w\ld be call$ high-class or trunk-l9e track1 b mo/ ( x might be class$ z second-class or important bran*-l9e railway4 ,e4 ,,kui*l+1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,?is pap] is a v valuable addition to ! lit]ature ( a comp>atively new subject t is rapidly atta9+ great political importance1 & x gives abundant evid5ce ( deep rese>* & ?\ght by ! au?or4 ,! reasons = det]m9+ ! true value ( su* prop]ties1 z well z ! g5]al pr9ciples ( mak+ ! valuation or appraisal1 h be5 set =? s cle>ly & conv9c+ly t little c be add$ 9 ?is respect2 h5ce1 !re is room = comm5t only ab\t details4 ,"o ( ! p]plex+ que/ions is ! det]m9ation ( ! prop] value ( ! "r ( way & real e/ate ( a railroad4 ,! l& 0 orig9ally acquir$ at a c]ta9 co/1 ess5tially = public use1 & 9 ! c\rse ( "t its value1 z det]m9$ by reproduction co/1 usually becomes greatly increas$ by ! developm5t ( ! adjac5t l& by its v>i\s own]s4 ,)\t ! railroad1 su* developm5t & appreciation ( l& values w\ld probably n h occurr$1 &1 !re=e1 x has be5 argu$ by _m p]sons t1 = taxation purposes1 ! railroad l&s %\ld be apprais$ at only _! orig9al co/1 :ile1 = capitalization purposes1 !y %\ld be apprais$ at a value measur$ by t ( ! adjac5t l& at ! pres5t "t4 ,?is claim is bas$ on ! !ory t ! railroad is l any o!r piece ( public "w1 su* z a canal1 highway1 or pavem5t1 :i* is built = ! use ( ! public1 & on :i* no tax is levi$ by ,/ate or municipality4 ,on ! o!r h&1 x has be5 held by "s ( our ,c\rts t a prop] valuation mu/ take into acc\nt ! appreciation or depreciation ( l& values2 b1 z ! op9ion ( a ,c\rt is n unalt]able1 ! s\ndness ( ?is doctr9e _c be reg>d$ z p]man5tly e/abli%$4 ,! au?or /ates#da t !re c be no s]i\s objection to ?is doctr9e 9 relation to rights ( way 9 ! c\ntry & small t[ns1 al?\gh he admits t x is subject to exceptions 9 ! case ( cities & t]m9al & dock prop]ties4 ,x w be ( great int]e/ to le>n 8 reasons = mak+ su* exceptions 9 ! case ( ! mo/ co/ly l&s1 & :e!r ! valuation ( su* l&s %\ld be m or less ?an t ( simil> adjac5t l&s us$ = o!r purposes4 ,f ! context ! inf]5ce may be drawn t ! valuation %\ld be some:at high] ?an t ( adjac5t simil> l& 9 ! case ( a /eam or int]urban railroad1 because its hold+s =m a cont9u\s /rip2 b to ! writ] ?is reason+ does n appe> satisfactory4 ,! /atem5t ( ! ,c\rt1 t ! value ( l& dep5ds l>gely ^u ! use to :i* x is put & ! "* ( ! improvem5ts ^u x1 does n necess>ily involve a high] valuation ( ! prop]ty ?an its co/1 & x is q conceivable t ! actual value ( ! prop]ty aft] be+ tak5 by a railroad may be mu* less ?an x 0 be=e4 ,! only reason 9 su* a case = ma9ta9+ ! pur*ase price is to cons]ve ! g5]al valuation ( ! adjac5t simil> real e/ate4 ,9 deal+ ) ! subject ( depreciation1 ! au?or has be5 v brief1 z he did n consid] x ess5tial = ! purposes ( ! pap]4 ,?is is to be regrett$1 z depreciation is an important feature 9 e valuation1 & s few tru/wor?y data conc]n+ x are available4 ,! value ( ! pap] w\ld be greatly enhanc$ if ! au?or w\ld give ! assum$ av]age life ( ! pr9cipal compon5ts ( a railroad1 bas$ on "s def9ite traffic1 & normal grades & curves4 ,mu* div]sity ( practice 9 ?is respect prevails1 & ! f9al judgm5t ( ! num]\s exp]ts :o 7 engag$ 9 ! ,mi*igan valuations _c fail to be ( great int]e/4 ,! same rem>ks are also applicable to ! unit prices adopt$ = con/ruction & equipm5t4 ,! subjects ( exp5ses = organization1 eng9e]+1 adm9i/ration1 cont+5cies1 & non-physical values are treat$ v ?or\ghly by ! au?or1 & p>ticul>ly int]e/+ is 8 discussion ( ! complex "q ( fran*ise value4 ,aft] quot+ f num]\s judicial op9ions1 he rea*es ! conclusion t ! fran*ise simply protects ! own]s ( ! prop]ty 9 _! enjoym5t ( ! e>n+s1 & t its value m]ges into ! fair value ( ! prop]ty & becomes insep>able f ! o!r non-physical elem5ts ( value2 also1 t ! aggregate non-physical value ( ! prop]ty dep5ds only on ! net income = a p]iod ( ye>s4 ,?is me?od ( e/imation c]ta9ly has ! m]it ( be+ simple1 rational1 & free f all hypo!tical consid]ations4 ,x is1 h[ev]1 obvi\sly gov]n$ by ! rates *>g$ = ! s]vices r5d]$1 & if ^! are likely to be alt]$ at any "t by gov]nm5tal action1 a correspond+ alt]ation 9 ! fair value ( ! prop]ty w take place4 ,?is consid]ation br+s u at once to ! intricate "q ( reasonable rates1 :i* involves ! matt] ( reasonable design & con/ruction ( ! prop]ty4 ,9 mo/ cases ! work+ capacity ( ! plant mu/ be mu* great] ?an ! av]age annual dem& = ! s]vice p]=m$1 z s-call$ peak loads ( relatively %ort duration mu/ be provid$ =4 ,! magnitude ( ^! peak loads1 h[ev]1 v>ies ) ! subsequ5t developm5t ( ! t]ritory1 :i* is necess>ily conjectural2 h5ce x foll[s t a comp>atively l>ge am\nt ( capital is (t5 inve/$ 9 an ent]prise = ! purpose ( tak+ c>e ( su* anticipat$ tempor>y dem&s1 & on ?is inve/m5t a fair return %\ld be grant$4 ,?is condition is p>ticul>ly noticeable 9 municipal wat]-works plants1 :]e provision mu/ be made = supply+ wat] = fire s]vice to an ext5t :i* may be sev]al times great] ?an ! normal h\rly rate ( consumption4 ,9 ! case ( railroads1 su* dem&s c usually be met by add+ to ! roll+ /ock at mod]ate exp5se1 :ile 9 a wat]-works ! outlay is relatively great] because ! entire plant mu/ be adapt$ 9 ! outset to ! anticipat$ maximum deliv]y 9 ! c\rse ( a comp>atively long p]iod ( "t4 ,! problem ( rate-mak+ has be5 exclud$ by ! au?or f 8 pres5t pap] on valuation2 b1 inasmu* z he is s well qualifi$ = ! task1 & also because ! non-physical value ( ! prop]ty dep5ds ma9ly on ! rates obta9$ = ! s]vice r5d]$1 x is hop$ t he w deal ) ?is feature 9 a subsequ5t pap]1 !reby br++ out a discussion on ! obscure subject ( fair return4 ,x is noticeable t ^! phrases occur frequ5tly 9 judicial op9ions1 b ! fundam5tal pr9ciples on :i* a def9ite conclusion %\ld be rea*$ are seldom set =? cle>ly4 ,,ri*>d ,t4 ,,dana1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! solution ( ?is problem includes practically all ! factors 9 ! g5]al subject ( economics1 9 :i* eng9e]+ occupies a l>ge b by no means prepond]ant "p4 ,mr4 ,riggs has done "s v valuable & pione] "w 9 contribut+ ?is pap] at ?is "t2 & ! writ]1 9 call+ att5tion to :at appe>s to be a radical error 9 x1 does n wi% to be tak5 z attempt+ to detract 9 any way f its great value z a :ole4 ,x is mo/ important1 9 ! inception ( su* an inve/igation1 on ! "p ( ! memb]s ( ?is ,society1 to remove f ! subject ! /umbl+ blocks z !y appe>4 ,! au?or makes ! foll[+ /atem5t3 ,x is true t ! 'value' ( a prop]ty is an un/able figure1 subject to fluctuations due to natural or artificial causes1 & t a mat]ial *ange 9 value may occur sudd5ly1 b ! 'value' ( any giv5 prop]ty on any giv5 date is1 or %\ld be1 f an eng9e]+ /&po9t1 a def9ite sum :i* may n be v>i$ or *ang$ to suit ! :im or w ( ! p = :om ! "w is done4 ,! fundam5tal conception ( a value is s important 9 an inve/igation ( ?is k9d t x is wor?y ( c>eful & ?or\gh discussion4 ,! appraisals :i* ! writ] has _h occasion to make h g5]ally be5 = "o or o!r ( ! foll[+ purposes1 namely3 7,i7 ,taxation1 9 ! int]e/ ( ! community or corporation tax$2 7,,ii7 ,bond+1 9 ! int]e/ ( ! bank] or repres5tative ( p]sons :o contemplat$ l5d+ money on ! prop]ty2 7,,iii7 ,rate-mak+1 9 ord] to det]m9e :at 0 a fair am\nt ( money t ! prop]ty %\ld be all[$ to e>n = ! own]s4 ,n[1 9 g5]al1 a prop] value = any prop]ty = any "o ( ^! purposes is diff]5t f its prop] value = any ( ! o!rs4 ,?is proposition is ( imm5se significance1 = ! reason t1 if ! value = ! prop]ty arriv$ at1 on "o basis1 be accept$ & appli$ = "o ( ! o!r purposes1 x w inevitably result 9 gross injury & f9ancial loss to "s "o4 ,9 attack+ ?is problem1 "o mu/ be c>eful to take ! correct /&po9t1 :i* is n necess>ily t ( eng9e]+4 ,eng9e]+ sci5ce is indisp5sable = a l>ge "p ( ! "w1 b !re are o!r indisp5sables1 :i* w\ld n ord9>ily be recogniz$ z eng9e]+4 ,! writ] takes ! view t eng9e]+ is a "p ( economics1 r ?an economics be+ a "p ( eng9e]+4 ,to illu/rate ?is po9t1 consid] two objects1 "o ( :i* is concrete & simple & ! o!r m complex4 7#a7 ,a /eam %ovel belong+ to a railroad1 co/+ #aj1jjj1 new2 7#b7 ,! entire railroad z an op]at+ entity4 ,assume = 7#a7 t ! %ovel has be5 pur*as$ rec5tly1 is 9 p]fect condition1 & t ! railroad has "s "w = x to comm5ce on z soon z x c be prop]ly in/all$4 ,:at is its3 7,i7 ,taxable value1 7,,ii7 ,bond+ value1 & 7,,iii7 ,rate-mak+ value8 7,i7 ,! tax assessor _c prop]ly appraise x at #aj1jjj1 because x c]ta9ly w\ld n sell = t sum1 & if ! community %\ld h to sell x = taxes ! actual return m9us ! *>ges w\ld be s mu* less ?an ! #aj1jjj t ! community's books w\ld %[ a heavy loss2 & ?is practice1 if l>gely indulg$ 91 w\ld br+ ! community into f9ancial /raits4 ,! community mu/ be exce$+ly cons]vative 9 its e/imate1 = ?is v reason2 &1 !re=e1 x has be5 cu/om>y1 almo/ univ]sally1 to tax su* articles practically on _! sale value at :at might be call$ panic prices4 ,! company :i* sold ! %ovel to ! railroad w\ld n buy x back two days aft] ! sale = m ?an ! orig9al price m9us :at t company consid]s its sell+ *>ges1 say #bj2 s t1 9 ?is case1 ev5 if a cu/om] 7 at ! door1 ! %ovel w\ld n be wor? m ?an #h1jjj1 & a fair tax appraisal c\ld n consi/5tly be m ?an #h1jjj m9us *>ges (1 say1 #bej1 or #g1gej4 7,,ii7 ,assum+ t ! railroad is a v small "o1 t x wants to borr[ money1 & desires to put up ! %ovel z collat]al = ! loan4 ,:at w\ld be its loan value to ! l5d]8 ,9 consid]+ ?is po9t1 x is necess>y to assume t no aid is r5d]$ by ! cr$it ( ! railroad itself1 b t ! protection = ! loan is to be furni%$ by ! %ovel only4 ,n[1 ! bank] w reason t1 9 ! ev5t ( ! note rema9+ unpaid1 he w h to sell ! %ovel to reimburse ! bank = its loan1 & he w be requir$ to consid] ! matt] on a cons]vative basis4 ,he _c l5d on ! %ovel up to its full value1 = 9 ! fir/ place x is n a negotiable security4 ,if x 7 a security1 ) a free m>ket on "s /ock ex*ange1 he w\ld probably l5d to ! am\nt ( #hj ( its value1 b a /eam %ovel 9 a s& bank on a railroad is by no means z conv5i5t ( ex*ange1 nor z easy to =eclose on z a /ock c]tificate 9 a bank]'s box2 !re=e he w l5d1 or he ought to l5d1 less ?an #hj ( its sale value1 m9us ! sell+ *>ges4 ,if he l5ds m ?an ?is1 he is l5d+ on ! cr$it ( ! own] ( ! %ovel r ?an on ! %ovel itself4 ,grant$ t ! mak] ( ! %ovel is will+ to buy x back at its full sell+ price less ! sell+ co/1 ! maximum loan value ( ! %ovel w\ld be a little less ?an #fd ( its pur*ase price1 or #f1djj4 ,to l5d m ?an ?is on ! %ovel w\ld n be cons]vative bank+4 ,!re is ano!r bond+ or loan value to ?is %ovel1 :5 x is consid]$ z "p ( ! assets ( ! railroad1 ! bonds ( :i* are to be held by ! bank]1 "u :i* circum/ances a high] value ?an #f1djj w\ld be admissible4 7,,iii7 ,if ! value is to be det]m9$ ) a view ( asc]ta9+ :at is a reasonable figure t ! own] ( ! %ovel ought to be all[$ to e>n z a public utility organization1 ! problem is entirely di/9ct f ! =ego+ two cases4 ,assume t ! railroad is entitl$ to e>n at lea/ #f on its inve/m5t 9 ! %ovel4 ,n[1 its inve/m5t is #aj1jjj1 because t is ! money t x co/2 & no?+ _h be5 cr$it$ to its acc\nt1 s9ce ! %ovel _h j be5 pur*as$ & _h n yet done any "w4 ,! %ovel _c be consid]$ z be+ wor? m ?an its co/1 & x c easily be %[n x is n wor? less = rate-mak+ purposes4 ,^! ?ree illu/rations1 :i* are v briefly outl9$1 %\ld demon/rate ! fact t !re is almo/ no relation%ip betwe5 any two ( ! diff]5t k9ds ( value :i* are be+ consid]$4 ,n[1 f ! /&po9t ( ! railroad z a :ole3 7,i7 ,%\ld railroad prop]ty be tax$ on ! basis ( :at ! entire railroad w\ld br+ on a =eclosure proc$ure8 ,obvi\sly n1 because ! railroad is tax$ 9 sections4 ,! ,t[n ( ,squ$unk w tax ! portion ( ! railroad t lies )9 t t[n1 & w h consid]able difficulty 9 putt+ d[n z security = its own bonds ! locomotives & c>s :i* g ?r\gh once a week or twice a day at #dj miles p] h\r4 ,to cov] p>tly ! flitt+ assets1 x taxes ! railroad on a fran*ise value4 ,x may tax a railroad's l& on ! same basis t x taxes l& own$ by private individuals1 not)/&+ ! fact t :5 ! railroad buys ! "r ( way x g5]ally has to pay m money p] acre ?an ! h\sehold] or ! f>m]4 ,?is unit co/ to ! railroad may be two or ?ree times t to ! f>m]1 yet ! writ] has nev] he>d ( a community attempt+ to tax railroad prop]ty two or ?ree times z heavily z adjo9+ prop]ty us$ = private or comm]cial purposes4 7,,ii7 ,on ! o!r h&1 ?is same prop]ty is an absolutely s\nd asset = ! railroad1 & ! railroad probably b\ght ! prop]ty f ! proce$s ( ! sale ( bonds4 ,if ! public s]vice commissions 7 to rule t ! railroad may be all[$ to issue bonds only to ! am\nt ( ! taxable value ( ! prop]ty :i* is to be held z security = ! bonds1 ! result w\ld be an absolute p>alysis ( railroad con/ruction4 ,a bond is an obligation to pay s mu* int]e/ = s _m ye>s1 & to pay back ! pr9cipal at ! end ( its t]m4 ,! bondhold] is int]e/$ 9 ! absolute regul>ity ( 8 int]e/1 & 9 ! security t lies beh9d ! pr9cipal1 & x is to-day ! cu/om ( bank+ h\ses to consid] a bond well secur$ :51 9 a t]ritory ( reasonably rapid gr[?1 ! pr9cipal is e>n+ say twice ! int]e/ on its bonds1 & :5 ! co/ ( reproduction is 9 excess ( ! am\nt ( ! bonds1 provid$ t ! prop]ty is 9 good physical condition4 ,if x %\ld be necess>y to =eclose on ! bonds1 x is !n reasonable to suppose t "s "o else w buy x 9 = at lea/ ! am\nt ( its bond$ indebt$ness4 ,:at c ?is possibly h to d ) ! taxable value ( ! track 9 ! ,t[n ( ,squ$unk8 ,"o may be #a4e times ! o!r1 or ?ree times ! o!r1 dep5d+ on a multitude ( circum/ances4 7,,iii7 ,! value ( ! prop]ty = rate-mak+ is a complex "o to det]m9e1 &1 ( c\rse1 !re is no opportunity = a full discussion ( x "h4 ,"o po9t1 h[ev]1 w s]ve to e/abli% ?or\ghly ! diff]5ce betwe5 ?is & taxable or bond+ value4 ,if ! community is prosp]\s & ! bus9ess is a good "o & hone/ly manag$1 ! railroad ought to be all[$ to e>n a reasonable p]c5tage1 say1 at lea/ #f1 on :at has be5 put into x4 ,if ! community %\ld decree o!rwise1 !n p w n build railroads = inve/m5t purposes1 & all w lose money4 ,n[1 x is a well-kn[n fact t a new railroad's e>n+s h to gr[ = sev]al ye>s be=e !y are on a normal basis1 & "p ( :at ! own]s ( ! prop]ty h put into x is1 = example1 ! int]e/ on its co/ be=e its e>n+s are on a normal basis4 ,?is may am\nt to a consid]able p]c5tage ( ! orig9al con/ruction co/ ( ! prop]ty1 if ! bus9ess is sev]al ye>s 9 develop+4 ,grant$ t ! community ought to all[ ! prop]ty to e>n a reasonable int]e/ on :at has be5 put into x1 !n ! rate-mak+ value w be v mu* l>g] ?an ! sum ( ! taxable valuation ( all its diff]5t p>ts4 ,x w also be mu* great] ?an its bond+ value1 because1 z a bond proposition1 x c borr[ money up to a limit$ p]c5tage ( :at x is actually wor?4 ,,george ,t4 ,,hammond1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! eng9e] call$ on to fix ! valuation ( public s]vice corporation prop]ty has s little eng9e]+ lit]ature on ?is special subject to guide him t he mu/ feel grateful to ! au?or ( ?is excell5t pap] = add+ s mu* ( a k9d t is v desirable4 ,e/imat+ ! co/ ( an eng9e]+ /ructure 9 advance ( its con/ruction is "o ( ! mo/ ord9>y pr(essional duties1 b h[ difficult x actually is1 & h[ mu* eng9e]s diff] ) "o ano!r 9 _! e/imates on ! same /ructure6 ,p]haps !re is no pr(essional duty :i* calls = s mu* /udy & s mu* exp]i5ce1 or :i* te/s s closely ! ability & capacity ( ! eng9e]4 ,h[ seldom pr(essional e/imators agree ) ea* o!r2 or design+ eng9e]s ) contract+ eng9e]s2 z witness ! bids receiv$ at ! public lett+s ( contracts :5 comp>$ ) ! eng9e]s' e/imates ( co/2 &1 if ?is is true1 :i* no "o w attempt to d5y1 h[ mu* m s is x probable t e/imators w disagree :5 !y attempt to place a value on works already complet$1 & 9 s]vice1 p]haps1 = _m ye>s1 9 :i* v>i\s *anges 9 value h occurr$1 & 9 :i* que/ions ( fact are mix$ ) legal que/ions involv+ legal rights1 z well z f9ancial que/ions4 ,! t5d5cy 9 all su* valuations appe>s to be a mix+ up ( ?+s 9 g5]al--l ! wit*es' /ew4 ,ev]y?+ goes into ! pot & is boil$ toge!r until all becomes s\p1 at lea/ until ! (ficial commission1 l ! wit*es1 consid]s x done & ready to be s]v$ up 9 ! =m ( a report4 ,x is !n obs]v$ t ! sub/ance s]v$ out is ( a complex nature2 t ! valuation ( eng9e]+ /ructures has become mix$ ) o!r & unc]ta9 values2 t ! :ole value1 z /at$1 is1 aft] all1 little bett] ?an ! commission's op9ion ( ! value2 & t ano!r commission w\ld rea* a diff]5t conclusion4 ,! au?or /ates t ! valuation ( corporation prop]ty3 ,%\ld be ! hone/ judgm5t ( ! m5 compos+ ! commission1 z to ! actual co/ ( reproduction1 pres5t physical value1 or 'fair value1' & %\ld be asc]ta9$ by a sy/ematic & sci5tific me?od :i* takes into acc\nt all ! facts conc]n+ ! prop]ty1 its physical value1 its /rategic location1 its op]at+ rev5ues & exp5ses1 & its fran*ises1 rights1 competition1 opposition1 & all o!r tangible or intangible elem5ts1 :i* w\ld affect values4 ,! me?od ( valuation %\ld be su* z to m9imize or entirely elim9ate all diff]5ces due to errors ( p]sonal judgm5t4 ,?is1 x seems1 complicates actual pres5t values ) conditions :i* might1 or might n1 cont9ue4 ,outside ( ! physical valuation ( ! plant1 :i* (f]s ! easie/ problem pres5t$1 h[ c "o fairly put a value on op]at+ exp5ses & rev5ues1 :i* might be affect$ favorably or advis$ly by good or bad managem5t1 & by num]\s o!r complex & almo/ incompreh5sible circum/ances4 ,! t5d5cy ( all su* commissions seems to be to confuse toge!r & mix up "s ?+s :i* are logically sep>ate4 ,?us1 ! value ( ! plant & fran*ise1 good w1 & pres5t inve/m5t or income value1 etc41 are too (t5 tak5 toge!r4 ,! value ( ! plant is dep5d5t on ! co/ ( reproduction1 & also ! depreciation ( ! /ructures1 z eng9e]+ /ructures1 & %\ld be bas$ on pres5t prices = :i* ! "w c\ld be replac$1 m9us ! depreciation1 :i* is a "q ( eng9e]+ judgm5t & exp]i5ce4 ,! o!r items ( value are l>gely dep5d5t on ! situation ( ! plant & its prospects z an income-produc+ prop]ty1 & ?is aga9 is a matt] ( op9ion1 9 :i* ! op9ions ( f9anci]s & inve/ors are sometimes ( m mom5t ?an ^? ( eng9e]s4 ,! op9ion ( lawy]s z to ! value ( ! fran*ises & ! co/ ( ! legal complications possible or probable mu/ also ent] into any s]i\sly wor?y op9ion z to value4 ,! few sali5t lights 9 ! picture ( valuation1 pres5t$ by ! au?or1 s]ve especially to reveal ! d>kness :i* involves ! :ole subject ( valuation1 e/imat+1 & ! use ( co/ data = su* purposes1 & to sugge/ t1 ) all ! wond]ful progress on ! !oretical side ( ! pr(ession1 eng9e]s h z yet advanc$ b little 9 ?is division ( ! practical side--co/ data1 valuation1 & e/imat+4 ,eng9e]s _c comp>e ! results ( diff]5t e/imators & apprais]s )\t sorr[ & ev5 %ame = _! ignorance1 or _! incapacity to agree 9 ! application ( sci5tific pr9ciples & ! results ( practical exp]i5ce to ?is bran* ( _! "w4 ,at pres5t we w\ld seem to be a long way f a me?od ( valuation1 su* z to m9imize or entirely elim9ate all diff]5ces due to errors ( p]sonal judgm5t4 ,! me?od describ$ z hav+ be5 us$ by ,pr(essor ,adams seems to be at lea/ an advance t[>d a logical & rational me?od ( gett+ at ! value ( corporation prop]ty1 b x mu/ be ackn[l$g$ t we are z yet a long way f a p]fect me?od ( appraisal1 ev5 ( ! physical values1 to say no?+ ( ! non-physical4 ,he held t z no?+ visible or tangible gave support to ! latt] value1 x mu/ be det]m9$ on ! basis ( in=mation secur$ f ! income acc\nts ( ! company4 ,?is me?od ( measure1 x w\ld seem1 is n unlike ! celebrat$ dictum on ! l5g? ( ! ,*ancellor's foot1 "s ,*ancellors h a long foot1 & "s an indiff]5t foot1 & "s a %ort foot2 !re=e1 a great ,engli% ,*ancellor says1 ! l5g? ( a ,*ancellor's foot %\ld n be tak5 z a measure ( rights 9 equity4 ,?us1 if ! income ( ! company is to be tak5 by ! apprais+ eng9e]s1 or ! gross income1 x may h to be giv5 a diff]5t int]pretation f ! net income1 & if ! surplus e>n+s dep5d on transi5t causes or on excessive rates = s]vice x w lead to a totally errone\s conclusion4 ,! same may be said if ! rates = s]vice are too l[1 or if ! company is badly manag$1 or is c>ry+ a great deal ( dead wood1 ei!r 9 ! =m ( prop]ty or ( s]vants4 ,!re=e1 x seems evid5t t he :o attempts to foll[ ?is me?od ( appraisal mu/ possess almo/ sup]human judgm5t ( pres5t conditions1 & presci5ce to =eca/ ! future1 z well z a grade ( wisdom & k ( exi/+ conditions ( trade & indu/ry :i* may be also *>act]iz$ z sup]human4 ,9 ord] to apply ,pr(essor ,adams' me?od ju/ly1 we mu/ "k :e!r ! company is wisely manag$1 :e!r its income is a fair income1 :e!r its physical prop]ty is all useful & ne$ful1 :e!r its s]vice is :at x ought to be z to effici5cy & economy1 etc4 ,we mu/ assume an ideal condition ( comm]ce & indu/ry1 & ( prop]ty value & managem5t1 & !n appraise ! company's prop]ty by comp>+ x1 consci\sly or unconsci\sly1 ) ?is ideal4 ,possibly ?is is ! be/ me?od devis$ s f>1 b surely x leaves a great deal to be desir$2 & x is difficult to see h[ diff]5t eng9e]s1 on diff]5t sides ( ! "q1 repres5t+ diff]5t int]e/s1 c f9d any common gr\nd ( agreem5t 9 ,pr(essor ,adams' me?od4 ,"u su* circum/ances1 eng9e]s are likely to diff] 9 _! results z mu* z ! l5g? ( ! diff]5t ,*ancellors' feet4 ,,leon>d ,,metcalf1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,mr4 ,riggs has done eng9e]s1 & m p>ticul>ly ^? int]e/$ 9 valuation works1 a g5u9e s]vice 9 pres5t+ to ! ,society ?is admirable pap]4 ,no %rewd obs]v] c fail to recognize ! increas+ly insi/5t dem& ( ! public = great] publicity 9 ! acc\nt+1 & a l>g] measure ( gov]nm5tal control 9 ! op]ation1 ( public s]vice corporations4 ,9 its be/ =m1 su* control w be welcom$ by ! corporations1 z giv+ great] /ability to inve/m5t 9 su* prop]ty2 9 its wor/1 x may prove a s]i\s limitation to prompt developm5t ( ! be/ /&>ds ( s]vice4 ,9 ! wat]-works field1 ! anti-corporation movem5t has result$ 9 tak+ ov] by ! public _m su* plants4 ,x does n seem likely1 h[ev]1 t we are ready to g f>!r 9 ! railroad field ( op]ation ?an to dem& reasonable regulation ( su* corporations4 ,:ile ! writ] has _h no exp]i5ce 9 railway managem5t or valuation1 he has devot$ mu* "t & ?\ght to ! valuation (1 & det]m9ation ( fair-rate s*$ules =1 wat]-works prop]ties2 !re=e1 :at he may h to say 9 comm5t on ?is pap] may be assum$ to h direct application to wat]-works valuation1 & to railroad valuation only z ! simil>ity 9 ! public s]vice r5d]$ by ^! corporations may imply4 ,9 ! ma91 ! writ] subscribes he>tily to ! views express$ by ! au?or & ! temp]ate way 9 :i* he has exp\nd$ !m4 ,space =bids discussion 9 detail ( all ! matt]s allud$ to & s well cov]$ by ,mr4 ,riggs4 ,on "o important subject1 h[ev]--! inclusion ( ! go+ value1 or go+ conc]n value1 ( public s]vice corporation prop]ty1 9 ! intangible prop]ty values1 r ?an 9 physical plant value1 & ! consid]ation ( x z an intangible value r ?an z a real & sub/antial item ( co/ to ! public s]vice corporation--! writ] diff]s f ! au?or4 ,x is cle>1 f :at ,mr4 ,riggs has said1 t ?is is debatable gr\nd1 &1 f ! c>e & fairness ) :i* he has express$ 8 views on ?is subject1 "o might almo/ be l$ to inf] t he invites attack on x4 ,x is 9 no c>p+ _s ( criticism1 h[ev]1 t ! foll[+ views are express$4 ,z ! writ] has rec5tly submitt$ to ! ,publication ,committee ( ?is ,society a pap] on ! ,go+ ,value ( ,wat]-,works1 writt5 by him 9 collaboration ) ,john ,w4 ,alvord1 ,m4 ,am4 ,soc ,c4 ,e41 9 :i* a detail$ discussion ( ?is subject w be f\nd1 only en\gh w be said to outl9e cle>ly 8 po9t ( view4 ,! au?or says3 ,! physical prop]ty is t :i* enables ! corporation to d bus9ess4 ,)\t physical prop]ty x c\ld n produce ! commodity :i* x sells4 ,! am\nt ( money actually inve/$ 9 acquir+ t physical prop]ty repres5ts ! measure ( capital on :i* x is morally entitl$ to e>n int]e/ & pr(it2 &1 9 ! /age ( promot+ & f9anc+ ! ent]prise1 all hope ( e>n+s is bas$ on ! am\nt ( money requir$ to con/ruct ! prop]ty4 ,he also says3 ,x w\ld seem reasonable to say t ?is diff]5ce betwe5 ! physical value & ! value bas$ on e>n+s repres5ts ! 'good w1' 'e/abli%$ bus9ess1' or 'go+ value1' & all o!r non-physical elem5ts ( value4 ,9 ref]r+ to go+ value1 he says3 99 99 99 ,yet1 to fix a value on x by ! me?od describ$ by him ,mr4 ,alvord involves go+ into ! realm ( conjecture & speculation to a degree t c\ld nev] be su/a9$4 99 99 99 ,x c be readily se5 t ! physical pres5t value is n always--inde$1 is n (t5--! 'fair value4' ,! 'fair value' may be m1 or less1 ?an ! pres5t value ( ! physical prop]ty4 99 99 99 ,is x n1 !n1 prop] to conclude t ! non-physical or intangible value1 compos$ ( all ^! v>i\s elem5ts ( value1 c only be det]m9$ absolutely by a /udy ( ! e>n+s & op]at+ exp5ses8 99 99 99 ,he also says3 ,! cont5tion t all ! diff]5t elem5ts ( non-physical value m]ge into "o intangible value1 n capable ( sep>ation1 w d\btless be object$ to by _m eng9e]s & corporation manag]s4 99 99 99 ,! writ] does n conc$e t 'go+ conc]n' is a prop] elem5t to consid] 9 ! physical value1 z x does n repres5t any "p ( ! co/ *>geable to capital1 & ! physical valuation %\ld be conf9$ to ! det]m9ation ( capital inve/$4 ,quotations might be multipli$4 ,^? cit$1 h[ev]1 w suffice to recall ! au?or's view1 & to make cle> ! po9t ) :i* issue is tak54 ,is ,mr4 ,riggs "r 9 8 cont5tion t go+ value is 9 fact an intangible value2 t go+ value is n an elem5t ( real co/ to ! company1 involv+ inve/m5t ( capital2 t go+ value1 !re=e1 %\ld n be includ$ 9 physical plant value2 & t ! company is n morally entitl$ to e>n int]e/ & pr(it on x8 ,! writ] cont5ds t go+ value is z real an elem5t ( co/1 9 ! prop]ty ( any public s]vice corporation1 z is ! co/ ( any portion ( its physical plant4 ,x p]ta9s1 h[ev]1 to ! bus9ess1 r ?an to ! physical plant1 ( ! corporation4 ,:atev] ! difficulties ( its computation may be1 :atev] ! me?ods us$--:e!r t adopt$ by ! ,wiscons9 ,public ,s]vice ,commission 7:i* is ess5tially "o ( det]m9+ ! orig9al co/ ( ! go+ value & n its reproduction co/71 or :e!r t p]haps fir/ outl9$ by ,mr4 ,b5ezette ,williams & ,george ,h4 ,b5z5b]g1 ,pa/-,presid5t1 ,am4 ,soc4 ,c4 ,e41 9 ! ,middle ,we/1 & by ,william ,:eel]1 ,m4 ,am4 ,soc4 ,c4 ,e41 9 ! ,ea/1#db a me?od :i* seeks to det]m9e ! reproduction co/ ( ! go+ value1 r ?an its orig9al co/--! go+ conc]n value has come to be recogniz$1 by wat]-works apprais]s at lea/1 z a sub/antial elem5t 9 ! co/ ( ! plant1 & h5ce z diff]+ ess5tially f ! fran*ise elem5t or s-call$ une>n$ increm5ts ( value4 ,is n go+ value 9 a betwe5 class--a middle gr\nd betwe5 tangible & intangible values--tangible 9 t x has involv$ real co/ & exp5diture ( money2 intangible 9 t x is n z readily calculat$ z are o!r reproduction co/ items1 is dep5d5t fundam5tally on ! e>n+s ( ! company1 & t !re is no tangible equival5t to %[ = ! exp5diture1 except ! exi/+ income ( ! corporation8 ,surely its "* is q diff]5t f t ( ! fran*ise1 z ord9>ily f\nd1 ! value ( :i*1 :ile real1 f ! rate-pay]s' po9t ( view1 seems to be made out ( :ole clo?2 9 %ort1 seems to be ( fictiti\s value4 ,c]ta9ly1 ! conjectural & speculative "* ( ! computations--z ref]r$ to by ,mr4 ,riggs--involv$ 9 ! det]m9ation ( go+ value is no excuse = failure to recognize go+ value z a real elem5t ( co/1 r ?an z an intangible value4 ,z a matt] ( fact1 ! v>iation 9 ! views on go+ value1 by eng9e]s :o h giv5 ?is subject p>ticul> /udy1 :ile great] ?an ! v>iation 9 _! e/imates ( ! reproduction co/ ( ! physical plant1 is /ill f> less ?an ! v>iation 9 _! views on fran*ise value4 ,z be>+ on ! prop] basis = rate-mak+1 ! au?or's /atem5t1 t ! 99 99 99 physical prop]ty repres5ts ! measure ( capital on :i* x ! public s]vice corporation is morally entitl$ to e>n int]e/ & pr(it 99 99 99 _c be admitt$1 equitably or legally2 & x is n to be assum$ t ,mr4 ,riggs desir$ to imply t ?is s5t5ce summ$ up 8 f9al views4 ,are we n1 h[ev]1 approa*+ a basis ( rate-mak+1 pr$icat$ on ! e>n+1 by public s]vice corporations1 ( op]ation & ma9t5ance exp5ses1 depreciation all[ance1 & return 7i4 e41 int]e/ & pr(it7 on reproduction co/ ( ! prop]ty1 less accru$ depreciation1 plus go+ value1 plus a nom9al all[ance = ! fran*ise & o!r intangible values ( ! corporation8 ,is x n possible t ! rec5t depression 9 ! bus9ess _w has be5 due1 9 consid]able measure1 to ! %r9kage 9 ! values ascrib$ to fran*ise & o!r intangible value 9 public s]vice corporation prop]ty8 ,if we are approa*+ su* a limitation1 x is ! m important t ! public %\ld be educat$ to ! fact--n !ory1 = x is a fact--t go+ value1 or go+ conc]n value1 is a real elem5t ( co/1 cov]+ an outlay 9 ef=t & money on ! "p ( ! corporation1 & z su* is z mu* entitl$ to e>n a return 7int]e/ & pr(it7 z is ! o!r capital inve/$ 9 plant4 ,x is n on any items ( real & necess>y co/ to ! corporation t ! public objects to pay+ tribute1 b on ! une>n$ increm5ts & ! virtual monopoly privileges enjoy$ by ! corporation & creat$1 9 l>ge measure at lea/1 by ! public itself & by normal conditions ( gr[? & developm5t = :i* ! public1 r ?an ! corporation1 0 p]haps responsible--?\gh 9 _m cases x may be urg$ truly t ! corporation itself1 r ?an ! public1 has be5 responsible = ! developm5t4 ,su* a basis ( rat+1 :ile /ill dep5d5t on s\nd judgm5t & judicial treatm5t1 is nev]!less n beset ) ! speculative elem5t involv$ 9 ! capitalization !ory1 :i*1 ,mr4 ,riggs himself admits1 fails z a basis ( rate-mak+ except :5 pr$icat$ on fair rates4 ,if ! writ]'s cont5tion1 t go+ value is a real elem5t ( co/ 9 ! prop]ty ( any public s]vice corporation1 is s\nd1 ,mr4 ,riggs' /atem5t t1 ,x appe>s to be d\btful :e!r ! ,c\rt c be con/ru$ z approv+ su* an elem5t ( value 9 rate cases1 & 8 int]pretation ( ,judge ,tayl]'s rul+ 9 ! ,clevel& ,/reet ,railway matt]1#dc mu/ be *all5g$4 ,c]ta9ly1 z appli$ to wat]-works valuation1 ,mr4 ,riggs' /atem5t is n ju/ifi$4 ,! ,ma9e cases cle>ly include go+ value z an elem5t ( value on :i* rates %\ld be pr$icat$2 by inf]5ce1 s does ! ,kansas ,city case4 ,9 ! ,knoxville case x 0 9 fact all[$ by ! ,ma/]4 ,9 equity x _c be d\bt$ t go+ value %\ld be includ$ 9 ! base on :i* ! returns are pr$icat$1 if1 z cont5d$1 x involves real co/ to ! company2 = ! company mu/ be p]mitt$ to e>n a fair return on ?is co/1 or to liquidate x 9 "s way1 z o!rwise ! corporation w\ld suff] sub/antial prop]ty loss--f #aj to #bj1 m or less1 ( ! reproduction co/ ( its prop]ty4 ,?is w\ld be contr>y to public policy1 =1 ) su* an outlook1 capital w\ld n ent] ?is field ( ent]prise1 except at increas$ rates ( return1 comm5surate ) ?is add$ haz>d4 ,to assume su* increas$ rates ( return is to provide ano!r means ( liquidat+ su* a loss4 ,z to good w1 x has seem$ to ! writ] m prop] to use ?is t]m 9 private competitive corporation ent]prises1 z appli$ to ! elem5t ( value correspond+ to ! go+ value ( ! quasi-municipal or public s]vice corporation ent]prises1 :i* latt] are 9 effect controll$ monopolies4 ,if ! t]m is us$ 9 its m colloquial s5se1 su* z ! effect on e>n+s ( hav+1 9 ! (fice ( ! corporation1 m5 :o meet ! public pleasantly1 :o are good mix]s1 & :o are active 9 gett+ bus9ess1 ! value is sub/antially includ$ 9 ! consid]ation ( ! income1 9 ! mann] involv$ by go+ value det]m9ation & fran*ise valuation4 ,! depreciation "q has be5 discuss$ s fully else:]e t ! writ] only calls att5tion to ! fact t1 :ile physical & functional depreciation only are to be consid]$ 9 a review ( ! pres5t physical condition ( any plant1 9 consid]+ a fair-rate s*$ule1 provision %\ld also be made = cont+5t depreciation1 cov]+ su* items z co/ incid5t to *ange 9 /reet grades or con/ruction ( subways2 plac+ /ructures "u gr\nd1 :i* 7 previ\sly above gr\nd2 s]i\s loss due to injury by electrolysis1 ! di/ribution ( :i* ov] a p]iod ( ye>s r ?an inclusion 9 ! op]at+ co/ = "o ye>1 is to be pref]r$1 alike f ! public & f ! corporate po9t ( view1 f ! fact t x spreads ! burd5 to be borne by ! rates1 & prev5ts viol5t fluctuation 9 prices or valuation ( ! public s]vice corporation's prop]ty4 ,! public pays de>ly = all haz>ds4 ,x is wise1 !re=e1 to pursue ! cons]vative c\rse 9 provid+ adequate funds to meet extraord9>y conditions1 & to give /ability to ! inve/m5t ( ! corporation4 ,moreov]1 su* funds c be c>ri$ 9 a sep>ate acc\nt :i* c readily be wat*$2 any excess c be cr$it$ to future r$uction 9 depreciation acc\nt requirem5ts1 :ile a prolong$ deficit _c p]haps be recov]$ by ! corporation1 9 ! light ( ! ,knoxville decision4 ,! comm5t t no h>d-&-fa/ rule c cov] det]m9ation ( prop] depreciation all[ances1 is amply ju/ifi$4 ,9 its f9al analysis1 x is a matt] ( good judgm5t1 exp]i5ce1 & judicial temp]4 ,! au?or's /atem5t t ! organization1 legal1 eng9e]+1 adm9i/ration1 & g5]al exp5se acc\nts1 %\ld n be consid]$ z affect$ by depreciation1 z long z ! prop]ty is a go+ conc]n1 is n q cle>4 ,obvi\sly1 ?is is true ) reg>d to all ! e>ly organization exp5ses1 z ^! exp5ses are incurr$ once = all1 & con/itute a cont9u+ asset simil> to o!r elem5ts ( plant co/4 ,if1 h[ev]1 ! au?or ref]s !re9 also to ! eng9e]+ & cont+5t item add$ to _m ( ! reproduction co/ items mak+ up ! physical prop]ty1 exception mu/ be made2 = :5 an old /ructure1 ! life ( :i* is gone1 is replac$ ) a new /ructure1 new eng9e]+ co/s are incurr$1 & ! eng9e]+ elem5t ( co/ incid5t to ! in/allation ( ! orig9al /ructure no long] inh]es 9 ! plant4 ,x1 too1 has pass$ away ) ! life ( ! /ructure1 &1 !re=e1 its co/ %\ld be liquidat$1 or provid$ = 9 ! depreciation acc\nt1 z well z ! co/ ( ! /ructure to :i* x 0 incid5t4 ,9 ! same way ! int]e/-dur+-con/ruction item is n a cont9u+ asset1 b %\ld be liquidat$ ) ! complete depreciation ( ! portion ( ! /ructure to :i* x relates4 ,! replacem5t ( ! /ructure w involve new int]e/-dur+-con/ruction *>ges1 comm5surate ) ! "t requir$ = con/ruction4 ,! value ( ! initial int]e/-dur+-con/ruction co/s w h disappe>$ ) ! orig9al /ructure &1 !re=e1 %\ld be tak5 c>e ( by ! depreciation acc\nt4 ,! me?od ( mak+ all[ances = int]e/ dur+ con/ruction1 sugge/$ by ! au?or1#dd accords closely ) t us$ by ,mr4 ,alvord & ! writ] 9 a rec5t valuation ( a l>ge wat]-works prop]ty1 9 :i* ! int]e/-dur+-con/ruction *>ges 7 limit$1 & ! contributions to depreciation acc\nt 7 begun1 at ! date on :i* any workable unit ( ! prop]ty 0 assum$ to be available = s]vice & to beg9 to e>n a return on its inve/m5t co/1 ev5 ?\gh ! /ructure1 z a :ole1 0 n assum$ to be complet$ = a consid]able p]iod ( ye>s !reaft]4 ,?us1 = in/ance1 x might be assum$ t z soon z ! supply+ works 9 a wat]-works project 7 9 op]ation1 ! inve/m5t 9 !m & 9 ! di/ribution pipe sy/em laid up to t "t1 w\ld cease to be cr$it$ fur!r ) int]e/-dur+-con/ruction all[ances1 & w\ld be compell$ to e>n int]e/ ?r\gh ! wat] rates or income f wat] suppli$ to consum]s--! fact t ! int]e/ *>ge c\ld n be :olly met1 imm$iately at ?is "t1 be+ tak5 c>e ( 9 ! result+ increm5t 9 go+ value4 ,su* a !ory1 ( c\rse1 does involve a det]m9ation ( ! probable ord] & rapidity ( con/ruction ( ! compon5t p>ts ( ! prop]ty1 & ?is is usually made1 9 wat]-works valuation1 9 ! e/imate ( ! reproduction co/ ( ! prop]ty4 ,= ! sake ( complet5ess1 9 ref]5ce to ! legal decisions ( importance 9 valuation proce$+s1 att5tion is call$ to ! ,p5nsylvania case1 ,brym] vs4 ,butl] ,wat] ,company 7#agi ,pa41 #bca71 ref]r$ to 9 ! clos+ discussion on ! writ]'s pap] on ,wat]-,works ,valuation4#de ,9 ?is case ,ju/ice ,williams1 speak+ = ! ,supreme ,c\rt ( ,p5nsylvania1 says3 ,by :at rule is ! ,c\rt to det]m9e :at is reasonable & :at is oppressive8 ,ord9>ily1 t is a reasonable *>ge or sy/em ( *>ges :i* yields a fair return ^u ! inve/m5t4 ,fix$ *>ges & co/s ( ma9t5ance & op]ation mu/ fir/ be provid$ =4 ,!n ! int]e/s ( ! own]s ( ! prop]ty are to be consid]$4 ,!y are entitl$ to a rate ( return1 if _! prop]ty w e>n x1 n less ?an ! legal rate ( int]e/2 & a sy/em ( *>ges t yields no m income ?an is fairly requir$ to ma9ta9 ! plant1 pay fix$ *>ges & op]at+ exp5ses1 provide a suitable s9k+ fund = ! paym5t ( debts1 & pay a fair pr(it to ! own]s ( ! prop]ty _c be said to be unreasonable4 ,! ,p5nsylvania ,c\rt1 !re=e1 9 ! words ( ,william ,s4 ,wallace1 ,esq41 recognizes ! s+le /&>d3 ,! ,s+le ,/&>d1 accord+ to ! ,brym] case1 :ile ackn[l$g+ ! full "r ( ! public to regulate su* public corporations1 also recognizes z a prime factor its private "* & ! rights :i* accrue to x 9 t capacity1 444 & holds to :at seems to me ! only rational & practicable basis1 t a fair return1 aft] d$uct+ ! *>ges above enum]at$1 is a reasonable rate2 :]eas1 ! ,d\ble ,/&>d basis ( fix+ a reasonable rate seems to acc5tuate ! public side ( ! corporation & r ignores ! private elem5t4 ,z to ! propriety ( ! inclusion ( a sub/antial recognition ( fran*ise value z a basis = rat+1 ! layman may well confess to p]plexity1 9 ! light ( ! conflict+ nature ( ! two important rec5t ,unit$ ,/ates ,supreme ,c\rt op9ions ref]r$ to--! ,knoxville case1 & ! ,consolidat$ ,gas ,company case--=1 :ile sub/antial all[ance 0 made = fran*ise value1 9 ! ,consolidat$ ,gas ,company case decision1 9 l>ge measure app>5tly on acc\nt ( its e>li] recognition by ! legislature1 9 ! ,knoxville case1 9 spite ( legislative recognition ( su* value1 & simil> approval ( ! issue ( securities pr$icat$ on su* recognition1 ! ,unit$ ,/ates ,supreme ,c\rt fail$ to make simil> all[ance = fran*ise value4 ,! au?or's treatm5t ( ! unit price "q & ! cont+5cy item is intellig5t & cr$itable4 ,eng9e]s are prone to make valuations bas$ on h9dsight in/ead ( =esight1 on ! assumption t no sub/antial difficulties 9 con/ruction 7 enc\nt]$1 :51 9 fact1 sub/antial difficulties %\ld p]haps h be5 anticipat$1 & may actually h be5 enc\nt]$ 9 ! orig9al con/ruction1 record ( !m hav+ be5 oblit]at$1 h[ev]1 ) ! lapse ( "t4 ,! au?or's def9ition ( ! value ( a prop]ty1 z ! e/imat$ wor? at a giv5 "t1 measur$ 9 money1 tak+ into acc\nt all ! elem5ts :i* add to its usefulness or desirability z a bus9ess or pr(it-e>n+ proposition1 sugge/s ! advisability ( recogniz+ ! o!r side ( ! l$g] by modify+ 8 /atem5t s z to read3 99 99 99 all ! elem5ts :i* add to1 'limit1 or detract f' its usefulness or desirability z a bus9ess or pr(it-e>n+ proposition4 ,:ile recogniz+ ! au?or's view1 t !re is no sep>ate & indep5d5t me?od ( det]m9+ fran*ise value1 :i* is n bas$ on ! det]m9ation ( ! value ( ! prop]ty z a :ole1 by capitalization me?ods1 x mu/ be recogniz$ t go+ value may be det]m9$ indep5d5tly1 & may h a positive value1 ev5 ?\gh ! prop]ty z a comm]cial :ole is wor? less ?an ! sum ( ! physical value & ! go+ value4 ,! ,c\rt1 apprais]s1 & ! au?or1 alike recognize t !re is no "o me?od ( valuation ( univ]sal application4 ,fir/ co/1 reproduction co/1 reproduction co/ less depreciation1 comm]cial value det]m9$ by capitalization1 wor? ( ! s]vice to ! consum]1 & m>ket price ( ! prop]ty1 if su* exi/s1 all h _! weight1 9 v>y+ degree 9 diff]5t cases4 ,:atev] may be said (1 =1 or aga9/1 ^! sev]al me?ods ( valuation1 relates r to _! significance1 & ! weight :i* %\ld atta* to ! results obta9$ by !m1 z evid5ce ( value & ( ! effect ( ! modify+ local conditions1 ?an to ! s\ndness ( ! me?ods !mselves4 ,9 ?is connection x may be ( int]e/ to ref] to a rec5t valuation ( a wat]-works prop]ty1 9 ! appraisal ( :i* ! writ] *anc$ to p>ticipate1 9 :i* !re 0 f9ally plac$ be=e ! bo>d ( appraisal a summ+ up (3 #a4 ,! orig9al co/2 #b4 ,reproduction co/ less accru$ depreciation1 plus go+ value2 #c4 ,! wor? ( ! s]vice to ! consum]s1 bas$ on a /at$ assumption ( reasonable increm5t 9 value 9 excess ( actual co/1 ^u :i* a return 7or int]e/ & pr(it7 %\ld be e>n$2 #d4 ,! comm]cial or capitaliz$ value1 on c]ta9 assumptions bas$ on pres5t conditions1 & also on possible future conditions :i* might be involv$ 9 a r5ewal ( ! ,city contract1 :i* 0 to expire )9 two ye>s4 ,t ^! det]m9ations ( value1 f diff]5t po9ts ( view1 _h an influ5ce 9 m\ld+ ! op9ion ( ! individual apprais]s1 !re c be little d\bt2 yet x is probably equally true t 9 no case 0 l weight atta*$ to ! sev]al items or bases ( valuation4 ,nev]!less1 9 ! f9al valuation1 ! cons5sus ( op9ion z to ! value ( ! prop]ty1 z a :ole1 0 rem>kably close1 ! extreme v>iations 9 op9ion be+ approximately #h1 m1 or less1 ?an ! f9al apprais$ valuation4 ,att5tion %\ld also be call$ to ! necessity1 9 any valuation by capitalization ( income1 su* z t outl9$ by ,mr4 ,riggs & us$ by ,pr(essor ,adams 9 ! ,u4 ,s4 ,gov]nm5t ,valuation ( ,railroads1#df ( det]m9+ :e!r ! plant or prop]ty is 9 :at might be t]m$ an ov]-built1 normally develop$1 or "u-built condition2 9 %ort1 :e!r ! inve/+ public has correctly gaug$ its mom5t>y physical condition ) ref]5ce to its be>+ on ! rates1 & :e!r ! e>n+s are 9 fact inadequate1 comm5surate ) ! s]vice r5d]$1 or excessive4 ,9 ! long run1 due weight w be giv5 to ^! facts2 9 a brief p]iod1 !y may be incorrectly gaug$4 ,9 wat]-works prop]ties1 un=tunately1 !re is r>ely1 if ev]1 a m>ket price ( ! securities :i* c be said to be cr$ible or significant 9 valuation4 ,!re=e1 9 ! valuation ( wat]-works prop]ties1 x is ! m important t ! apprais]s %\ld weigh c>efully ! pres5t "* ( ! s]vice furni%$ & ! mom5t>y adequacy or inadequacy ( ! rates z pr$icat$ on su* s]vice1 on ! ne$s ( ! community1 & ! exi/+ /&>ds ( ! day1 if full ju/ice is to be done4 ,9 conclusion1 ! writ] reit]ates 8 /atem5t1 t he has tak5 issue ) ! au?or 9 no c>p+ _s ( criticism1 b ) a recognition ( ! difficulty & complexity ( ! "w ( appraisal1 & ! conviction t eng9e]s are "u a moral obligation to d an educational "w 9 po9t$ly call+ att5tion to ! fact t ! go+1 or go+ conc]n1 value1 ( a public s]vice corporation's prop]ty is n an intangible value repres5t+ an une>n$ increm5t1 b a v real & sub/antial item ( co/ 9 ! prop]ty z a :ole4 ,:ile ! difficulty may be met by plac+ go+ value1 z sugge/$ by ! writ]1 9 a middle class betwe5 physical plant & intangible values1 ! plac+ ( x 9 ! same class ) fran*ise & o!r intangible elem5ts ( value1 z sugge/$ by ! au?or1 may1 9 ! judgm5t ( ! writ]1 d a s]i\s injury to corporations1 9 fail+ to give expression1 9 su* a mann] z %all be cle>ly )9 ! grasp ( ! popul> m9d1 to ! fundam5tal idea ( ! co/ ( develop+ go+ value4 ,:ile ! writ] has no p]sonal int]e/ 9 ! matt]1 on "o side or ! o!r1 hav+ s]v$ bo? municipality & corporation 9 wat]-works valuations1 he feels1 nev]!less1 t eng9e]s c d a g5u9e s]vice1 alike to ! public & to ! public s]vice corporation1 9 lay+ /ress on ! fundam5tal elem5ts ( co/ & value1 & p>ticul>ly ^? on :i* rates %\ld be pr$icat$1 9 public s]vice corporation prop]ty valuation & rat+4 ,,*>les ,,hansel1 ,m4 ,,am4 ,,soc4 ,c4 ,e4--,s mu* has be5 said on ! subject ( valuation ( public utilities t1 al?\gh ! speak] has ?\ght on ! subject = t5 ye>s1 & has done consid]able valuation ( railroad prop]ties1 he f9ds t he is consid]ably confus$1 = ! reason t ! discussions seem to cov] ! :ole field ( eng9e]+1 acc\nt+1 taxation1 & economics2 !re=e he sugge/s t1 9 ord] to get d[n to a basis ( usefulness1 a special committee %\ld be appo9t$ to take ?is "q "u consid]ation4 ,! speak] _h ! honor ( be+ associat$ ) ! ,mi*igan ,commission1 z a memb] ( ! ,bo>d ( ,review4 ,pr(essor ,m4 ,e4 ,cooley 0 select$ by ! ,/ate ( ,mi*igan to take *>ge ( ! "w ( organization1 & ,mr4 ,riggs 0 ! eng9e] :o organiz$ ! (fice & field =ces4 ,bo? ^! g5tlem5 7 em95tly successful 9 t v difficult "w4 ,mr4 ,cooley did ?is ,bo>d ! honor ( say+ t !re 7 s _m problems com+ up 9 actually c>ry+ out ! "w 7aside f ! !ories ( taxation1 rate-mak+1 acc\nt+1 & sev]al o!r ?+s1 :i* c\ld be f\nd m readily 9 ! ,auditor's (fice ?an 9 ! ,eng9e]'s71 t he _h ask$ = ! appo9tm5t ( ?is ,bo>d ( ,review1 to sit z a ,c\rt1 & to pass on ! _m complex que/ions aris+ f day to day2 & he _h ! satisfaction ( com+ to ! ,bo>d e day & say+3 ,well1 n[ "h is a condition1 & h[ w ,i h&le x8 ,( c\rse1 actually1 he knew m ab\t x ?an ! ,bo>d1 b he 0 k9d en\gh to say t he w\ld ask = ! ,bo>d's op9ion4 ,t ,bo>d adjudicat$ all ^! v>i\s que/ions to ! be/ ( its ability1 & ! speak] has ! satisfaction ( kn[+ t ! valuation has /ood 9 ! ,f$]al ,c\rts4 ,! subjects are s fugitive & s illusive t v mu* dep5ds on ! po9t ( view4 ,! speak] is n[ engag$ 9 ! actual task ( try+ to place a valuation on "s #cjj1jjj1jjj wor? ( prop]ty 9 ,new ,j]sey1 involv+ ! mo/ important t]m9als 9 ! ,unit$ ,/ates4 ,! valuation ( public s]vice utilities is ! mo/ pr(\nd "q :i* has ev] be5 be=e ! ,society1 & x includes a great deal :i* is outside ( /rictly eng9e]+ que/ions2 9 fact1 ! discussions d n ?r[ mu* light on ! me?ods :i* %\ld be foll[$ 9 mak+ valuations4 ,! t]m9ology ( a subject is v important2 9 fact1 ! speak] has f\nd x s important t 9 8 discussions ) ! ,attorney-,g5]al ( ,new ,j]sey1 9 ref]5ce to ! ,railroad ,tax ,law1 :i* he has be5 ask$ to re-draft1 t draft w be accompani$ by a gloss>y1 s t ! mean+ ( c]ta9 t]ms us$ 9 t p>ticul> ,act w be cle>4 ,9 ?is ,new ,j]sey "w "s eighty-sev5 eng9e]s & assi/ants are employ$1 & = _! guidance ! speak] has prep>$ ?irty-five pages ( v c>efully consid]$ in/ructions4 ,^! in/ructions are accompani$ by blue pr9ts %[+ exactly h[ all field notes mu/ be record$1 ) diagrams ( trusses1 culv]ts1 & ! l1 & all ! elem5ts ( railroad con/ruction4 ,! ,tax ,law ( ,new ,j]sey /ates t1 fir/1 ! true value ( ! real e/ate %all be asc]ta9$2 second1 ! true value ( ! tangible p]sonal prop]ty2 & ! fir/ law ( #ahhd /at$3 & ?ird1 ! value ( ! fran*ise2 b somebody discov]$ t !re 0 some?+ besides ! value ( ! real e/ate1 ! tangible p]sonal prop]ty1 & ! fran*ise4 ,!y did n "k :at x 01 b !re 0 some?+ else2 !re=e1 9 ! #ahhh law !y *ang$ ! ?ird division ( value to read3 ! rema9+ prop]ty1 includ+ ! fran*ise4 ,z an example ( "o ( ! difficulties ( det]m9+ classification1 att5tion is direct$ to ! t]m1 ,real ,e/ate1 :i* is broadly1 b seldom accurately1 und]/ood4 ,! ,int]/ate ,comm]ce ,commission is ! highe/ tribunal 9 ! l&1 9 ! matt] ( railroad acc\nt+1 b x af=ds no help 9 _m important elem5ts ( value2 = in/ance1 "u ! ,int]/ate ,comm]ce ,commission1 real e/ate includes only su* real e/ate 7l&7 z is n requir$ = railroad purposes4 ,all l& actually us$ = railroad purposes is classifi$ "u ,"r ( ,way & ,/ation ,gr\nds4 ,:5 ! eng9e]s on ! ,new ,j]sey valuation 7 s5t into ! field1 x 0 necess>y to specify exactly :at elem5ts mu/ be describ$ z real e/ate1 & :at z tangible p]sonal prop]ty4 ,! division l9e _h to be def9$ accurately = ! reason t all p]sonal prop]ty is assess$ p]man5tly to ! ,/ate1 :ile1 9 ! case ( real e/ate1 ! ,/ate receives ! taxes on a /rip n exce$+ #ajj ft4 9 wid?1 & ! tax on all prop]ty us$ = railroad purposes outside ?is /rip rev]ts to ! tax+ di/rict :]e9 x is f\nd4 ,! vexati\s "q z to :e!r ma*9]y is to be consid]$ z real e/ate or p]sonal prop]ty 0 settl$ by ! ,new ,j]sey ,law1 :i* says t tangible p]sonal prop]ty %all include all ma*9]y2 b x left unsettl$ ! "q3 :at is ma*9]y8 ,aft] c>eful consid]ation1 real e/ate 0 divid$ into #gd classes1 & all o!r tangible elem5ts 7 classifi$ z p]sonal prop]ty4 ,"s ( ! items ( real e/ate are3 a%-h&l+ ma*9]y & ! l1 *imneys1 ci/]ns1 conveyors1 dams1 locks1 lock ma*9]y1 electric wir+1 pip+1 heat+1 int]lock+1 signal+1 pavem5ts1 res]voirs1 %op fitt+s1 tanks1 telegraph l9es1 track1 track scales1 transf] tables1 wat]-works1 etc41 etc4 ,g5]ally speak+1 all items ( a fix$ "* 7 includ$ 9 ! #gd divisions ( real e/ate4 ,! difficulties ( det]m9+ all ! elem5ts ( real e/ate are m5tion$ simply to call att5tion to :at at fir/ glance seems q simple1 b on close exam9ation is f\nd to h great complexities4 ,! "q ( useful life depreciation1 direct & indirect1 due to decrepitude or obsolesc5ce1 or bo?1 is "o ( ! illusive que/ions2 & !n comes ! value ( ! fran*ise4 ,! valuation ( railroad prop]ty 9 ,new ,j]sey is fur!r complicat$ by ! requirem5ts ( ! ,/ate ,tax ,law1 :i* specifies t ! value ( ! rema9+ prop]ty1 includ+ ! fran*ise1 %all be det]m9$ aft] ! true value ( ! real e/ate & tangible p]sonal prop]ty h be5 det]m9$4 ,! speak] w n attempt a discussion ( fran*ise values1 z x is a subject :i* requires ! mo/ pr(\nd /udy4 ,! au?or /ates t he is appall$ at ! speak]'s misconception ( ! me?od ( det]m9+ non-physical value us$ by ,pr(essor ,adams 9 ,mi*igan4 ,! speak] is p]fectly famili> ) t me?od1 &1 al?\gh hav+ ! greate/ respect = ,pr(essor ,adams' op9ions1 is compell$ to draw att5tion to two important elem5ts ( t =mula :i* are op5 to objection4 ,pr(essor ,adams e/abli%es 8 annuity on ! depreciat$ value1 r ?an on ! co/1 or ! reproduction co/1 :i*1 9 ! speak]'s op9ion1 does n det]m9e ! prop] annuity or reasonable fix$ *>ges to be d$uct$ f net income be=e net surplus is e/abli%$4 ,bonds are g5]ally sold at a consid]able disc\nt1 & repres5t ! full co/ plus ?is disc\nt1 consequ5tly1 ! int]e/ on bonds or fix$ *>ges w be great] ?an an annuity e/abli%$ on co/1 reproduction co/1 or pres5t value4 ,w\ld x n m ne>ly e/abli% fix$ *>ges or annuity1 to take ! co/ plus disc\nt & commissions z ! basis on :i* to apply ! annuity rate8 ,:ile ,pr(essor ,adams' =mula e/abli%es a l>g] net surplus = capitalization ?an ! me?od sugge/$ by ! speak]1 he 9 effect de/roys ?is net surplus by *>g+ aga9/ x all bett]m5ts *>geable to income4 ,x is q cle> t ?is gives ! railroad company a *ance to absorb all net income into bett]m5ts1 & ?us wipe out all net income1 9 :i* case !re w\ld be no net surplus to capitalize1 consequ5tly1 no non-physical or fran*ise value1 & ! total value e/abli%$ "u ?is plan w\ld be less ?an if ! prop]ty _h n be5 improv$ by ! bett]m5ts--r$uctio ad absurdum4 ,9 ref]5ce to ! "q ( :e!r or n ! me?od ( valuation %\ld be ! same1 reg>dless ( ! purpose to :i* ! value is to be appli$1 ! speak] _c agree ) ! au?or1 & believes t x is q consi/5t to e/abli% diff]5t values = diff]5t purposes4 ,! completion ( a l>ge public utility1 plann$ on su* a scale z to provide = ! requirem5ts ( _m ye>s to come1 utiliz+ b "p ( its capacity1 & e>n+ less ?an its op]at+ exp5ses & fix$ *>ges1 ) its rates ( toll fix$ by law1 mu/ be consid]$ 9 a diff]5t way ?an a well-e/abli%$ public utility1 ) bus9ess =c+ x to its utmo/ capacity1 & ) tolls n fix$ by law4 ,!re are _m important elem5ts be>+ on ?is consid]ation ( value1 & ! purpose ( ! valuation %\ld be kn[n be=e attempt+ to e/abli% ! value4 ,9 ,new ,j]sey ! "w is complicat$ fur!r by ! necessity ( e/abli%+ ! value ( #abb sep>ate railroad corporations1 & ! assignm5t ( all prop]ty outside ! #ajj-;ft4 /rip to ea* ( ! #dej tax+ di/ricts ?r\gh :i* ! #abb corporations1 ) _! _m bran*es & spurs1 are op]at+4 ,9 ord] to det]m9e ! quantities & mat]ials 9 ! p]man5t way & /ructures1 n9e eng9e] corps 7 organiz$1 ea* corp consi/+ ( six m54 ,) ?is =ce ! c5t] l9e ( ! ma9 runn+ track 0 measur$1 & ! exact di/ance 9 ea* tax+ di/rict record$4 ,cross-sections ( ! roadb$ 7 made z (t5 z *anges 9 ! natural surface requir$1 & accurate measurem5ts & notes 7 made ( all /ructures2 &1 al?\gh 9 _m cases ! eng9e]s 7 able to secure ! plans ( ! m important /eel /ructures1 ! field p>ties 7 requir$ to obta9 suffici5t data to compute ! tonnage 9 case x 0 impossible to get ^! plans4 ,! field p>ties 7 also in/ruct$ to note ! "* ( ! l& & improvem5ts adjo9+ railroad prop]ty1 & record su* o!r in=mation z 0 necess>y = a compreh5sive und]/&+ ( ! conditions att5dant on ! con/ruction ( a railroad 9 t locality4 ,! "t allott$ = ! completion ( ! "w is "o ye>1 & al?\gh ?is is a comp>atively %ort p]iod 9 :i* to introduce a premium sy/em 9 field "w1 x 0 decid$ to inaugurate su* a sy/em z w\ld be z ne>ly satisfactory z possible "u ! conditions4 ,a record ( ea* field =ce = ea* day 9 ea* mon? 0 made on pr(ile pap]1 us+ ! horizontal l9es to repres5t ! numb] ( tracks1 & ! v]tical l9es to repres5t di/ance4 ,two horizontal l9es 7 all[$ = s+le track1 f\r = d\ble track1 & s on4 ,"o mile 0 all[$ = ea* v]tical division ( ! pap]1 &1 9 aw>d+ ! premium1 !re 0 tak5 into consid]ation1 n only ! ext5t ( t]ritory cov]$ by ea* field p>ty1 b mu* consid]ation 0 giv5 to ! field notes1 & a ca% prize 0 aw>d$ ea* mon?4 ,! results ( ! organization & enc\ragem5t to ! field p>ties are %[n by ! v great increase 9 ! am\nt ( "w p] man ( ! field p>ties1 :i* 0 ne>ly #cjj dur+ ! "t ! p>ties 7 9 ! field4 ,a great _m que/ions h++ on int]/ate comm]ce1 & involv+ ,fundam5tal1 ,/ate1 ,f$]al1 & ,int]national ,law1 are embrac$ 9 ! broad view ( ! valuation ( railroad prop]ties4 ,! movem5t ( roll+ /ock ?r\gh v>i\s ,/ates1 & betwe5 ! ,unit$ ,/ates1 ,canada1 & ,mexico1 & ! det]m9ation ( ! situs & domicile ( float+ equipm5t1 are subjects :i*1 n only require consid]able k ( railroad op]ation1 b involve _m que/ions n cle>ly det]m9$ by ! ,c\rts4 ,! subject is ( su* great importance t /eps %\ld be tak5 to =mulate me?ods ( proc$ure1 &1 at ! ,annual ,meet+ ( ! ,society1 ! speak] w (f] a resolution reque/+ ! appo9tm5t ( a ,special ,committee to det]m9e ! prop] me?ods to be us$ 9 ! valuation ( public utilities4 ,j4 ,,m>t9 ,,s*reib]1 ,m4 ,,am4 ,,soc4 ,c4 ,e4--,eng9e]s & ^? g5]ally int]e/$ 9 ! valuation ( public s]vice prop]ties are =tunate 9 hav+ ! valuable in=mation embodi$ 9 ?is pap]4 ,al?\gh !re are "s po9ts on :i* ! speak] diff]s ) ! au?or1 ! foll[+ rem>ks are only (f]$ 9 ord] to br+ out1 f exp]i5ce1 "s fur!r phases ( ! subject1 r ?an z an attempt to criticize4 ,a great deal is he>d ab\t ! exact co/ ( reproduction1 also argum5ts 9 ref]5ce to ! prop] all[ance = cont+5cies1 probably only involv+ a small p]c5tage4 ,! speak] que/ions ! propriety ( advocat+ ! exact co/ figures4 ,! c>efully *eck$ co/ figures ( reliable contractors1 ) fir/-class eng9e]+ organizations1 submitt+ proposals on ! same con/ruction1 are (t5 f\nd to v>y f #e to #ae f ! total co/4 ,diff]5t organizations w sometimes be ! cause ( figures v>y+ #e or m1 dep5d+ on ! effici5cy & exp]i5ce ( ! corps4 ,a clev] pur*as+ ag5t w r$uce an app>5tly precise e/imate on equipm5t or supplies z mu* z #aj2 on ! o!r h&1 ! condition ( ! m>ket may be su* t ! actual price paid exce$s ! e/imate by ! same p]c5tage4 ,eng9e]s :o are responsible = e/imat+ on1 & ! execution (1 con/ruction projects g5]ally add m ?an #aj = cont+5cies1 z x is practically impossible to anticipate !m1 & a precise e/imate is almo/ c]ta9 to fall %ort4 ,x is un=tunate t x is almo/ impossible to su/a9 cont+5cy figures on ! witness /&2 = t reason1 probably1 x w\ld be m satisfactory to ! lay m9d1 & to ! v>i\s c\rts1 bo>ds1 etc41 :i* are requir$ to pass on valuations1 & d n ?or\ghly und]/& ! te*nicalities ( ! situation1 if eng9e]s w\ld drop ! cont+5cy item & modify ! quantities or ! unit prices4 ,if x is possible to e/imate ! exact co/ ( reproduction1 c]ta9ly consid]able v>iation may be expect$ f indep5d5t s\rces 9 comput+ depreciation & pres5t values4 ,yet !re are reputable eng9e]s :o w\ld h "o believe 7assum+ t !y "k ! co/ ( reproduction7 t by a simple field inspection !y are able to compute ! exact pres5t value4 ,"s "t ago1 ! speak] he>d an exp]t te/ify 9 ! int]e/ ( a c]ta9 city1 = tax purposes1 ) ref]5ce to ! value ( a piece ( /reet-railway track4 ,he fir/ /at$ ! valuation = reproduction1 & !n ! def9ite pres5t value4 ,! latt] 0 greatly 9 excess ( ! actual value4 ,! exp]t1 :o 0 an eng9e] ( consid]able /&+1 on cross-exam9ation1 did n "k ! height ( rail f top ( head to bottom ( groove1 ei!r at ! jo9t or any o!r "p 9 its l5g?2 he did n "k ! exact dep? ( flange ( ! c> :eels :i* op]at$ ov] t track1 ! headway1 or ! exact weight ( ! c>s us$4 ,he _h assum$ ! condition ( ! ties1 & t ! track 0 balla/$4 ,f9ally1 he 0 compell$ to admit t 8 det]m9ation ( ! depreciation1 by simply a field inspection1 0 a v r\gh approximation4 ,n[1 x is n 9 e case 9 ! pa/ t a corporation attorney1 ev5 ) eng9e]+ assi/ance1 has be5 able to po9t out unfair te/imony4 ,_m times ! speak] has he>d incompet5t te/imony admitt$1 on ! g5]al pr9ciple t ! witness 0 an eng9e] ( note1 ev5 ?\gh 8 record _h be5 made 9 o!r specialities4 ,too mu* /ress _c be put on ?is phase ( ! subject1 & ! speak] is glad t ! au?or has m5tion$ ! fact t ! p]sonnel ( ^? do+ appraisal "w %\ld be ( ! highe/ ord]4 ,9 ! pa/ x is probable t ! failure to discrim9ate prop]ly 9 accept+ incompet5t te/imony 7n to m5tion prejudic$ te/imony7 0 automatic1 & ?is is ! mo/ important reason = mu* ( ! ho/ility ( (ficials ( public s]vice prop]ties t[>d all =ms ( inve/igation1 z ! au?or m5tions4 ,company (ficials "k t !y are (t5 compell$ to employ & tra9 speciali/s to furni%1 )9 fairly accurate limits1 ! v in=mation :i* is be+ s\ght1 & naturally !y are skeptical ab\t ! data pres5t$ by ^? :o1 ?\gh n intimate ) ! prop]ty1 purport to give exact co/ figures4 ,any "o :o is able to po9t out a consi/5t me?od :]eby ^! exact figures may be obta9$ surely w obta9 cr$it = a valuable contribution t[>d ! solution ( ! complex subject ( valuation4 ,ref]r+ to ! valuation ( ! prop]ty ( ! ,detroit ,unit$ ,railroads1 m5tion$ 9 ! pap]1 ! ,director ( ,appraisals = ! city e/imat$ t ! co/ ( ! complete appraisal ( ! prop]ty1 :i* includes ab\t #bbj miles ( s+le track1 w\ld be f #c1jjj to #d1jjj4 ,approximately1 #be1jjj has already be5 sp5t1 n includ+ ! exp5se su/a9$ by ! company1 :i* furni%$ a l>ge proportion ( ! in=mation4 ,probably correct pres5t value e/imates :i* include depreciation may n be ev5 fairly approximat$ )\t intimate k ( ! p>ticul> prop]ty1 & ?is %\ld embody op]ation1 policy ( managem5t1 pa/ p]=mance1 /udy ( hi/orical co/ 7z f> z ! records w p]mit71 e/imat$ co/ ( con/ruction1 & actual co/ ( ma9t5ance4 ,! life ( a piece ( track or equipm5t1 disreg>d+ obsolesc5ce & extraord9>ies1 g5]ally dep5ds on ! type & details ( con/ruction1 ! s]vice x has done1 & ! s]vice t w be requir$ ( x4 ,r5ewals %\ld be made :5 ! co/ ( repairs rea*es a c]ta9 figure1 o!r conditions be+ favorable4 ,x is a fact t able eng9e]s1 intimately acqua9t$ ) ! case at issue1 & employ$ on ! same prop]ty1 (t5 h conflict+ ideas 9 ref]5ce to ! life ( track or equipm5t1 "o recomm5d+ imm$iate r5ewal & ano!r advocat+ long] op]ation4 ,! speak] does n int5d to argue aga9/ ! possibility ( plac+ fairly accurate values on reproduction or pres5t value1 b wi%es to br+ out ! fact t x is n z simple z ! lay m9d is (t5 l$ to believe4 ,fur!r ?an t1 he is ( ! op9ion t ! foll[+ is ess5tial = economical & satisfactory valuations = all conc]n$3 7#a7 ,!re %\ld be co-op]ation ( ! apprais]s ) ! public s]vice prop]ty (ficials1 includ+ op]ators1 eng9e]s1 & _! records4 7#b7 ,pres5t values %\ld be det]m9$ by3 7a7 ,co/ ( reproduction1 7b7 ,mortality tables1 7c7 ,data ( p]=mance1 7d7 ,field exam9ation4 7#c7 ,! organization = ! appraisal "w %\ld be ( suffici5t scope1 & %\ld be all[$ ! "t & funds :i* ! project reasonably requires4 7#d7 ,! apprais]s %\ld be c>efully select$1 ! p]sonnel includ+ m5 :o h _h wide exp]i5ce 9 ! p>ticul> class ( op]ation2 & speciali/s %\ld be obta9$ if necess>y4 ,mr4 ,riggs /ates t ! valuation %\ld be ! same1 reg>dless ( ! pr9ciples at issue4 ,x seems que/ionable to consid] ! fair value :i* involves ! non-physical value 9 co/s or tax regulations4 ,c]ta9ly1 9 ! case ( /reet railways 9 cities1 :]e a p]c5tage is levi$ on ! gross receipts1 ! non-physical valuation1 only repres5t+ pres5t value1 is necess>y4 ,aga91 a physical pres5t value = taxation %\ld n include ! value ( pav+ 9 ! /reet 9 ! /rip occupi$ by /reet-railway tracks4 ,t ! /reet-railway company (t5 pays an arbitr>y assessm5t tax & keeps ! pav+ 9 repair1 ?\gh x is 9 no way responsible = ! we>1 %\ld be suffici5t to (fset any obligation = o!r taxes4 ,9 "s ,/ates ?is is fix$ by ! ,c\rts4 ,! physical valuation1 h[ev]1 int5d$ to be us$ 9 connection ) rates1 co/1 or capital regulation1 %\ld include ! co/ ( pav+ ! railway /rip4 ,ref]r+ fur!r to ! "q ( includ+ ! pav+ 9 ! physical valuation ( /reet railways1 9 ! case ( a decision ( ,r4 ,w4 ,tayl]1 ,arbitrator1 9 ! proce$+s betwe5 ! ,clevel& ,electric ,railway ,company & ! ,city ( ,clevel&1 on a basis ( a r5ewal ( fran*ises1 ,judge ,tayl] said3 ,pav+ repres5ts actual money exp5d$4 ,x belongs to capital acc\nt1 & 9 its depreciat$ =m is wor? all ! all[ance t ,i h giv5 x4 ,also = rate-mak+ & ! capital regulation "s consid]ation is c]ta9ly due to obsolesc5ce & *ange ( art1 :ile 9 taxation !y %\ld n be includ$4 ,9 conclusion1 ! speak] is optimi/ic en\gh to believe t ! problem ( physical valuations w be solv$ satisfactorily = all conc]n$4 ,co-op]ation ( (ficials ( ! public s]vice prop]ties1 reliable te/imony1 ) a bett] und]/&+ by ! ,c\rts1 w c]ta9ly t5d to cl>ify ! situation4 ,non-physical values are v difficult to det]m9e1 & _! intellig5t treatm5t w require "s well-def9$ proc$ure4 ,mr4 ,riggs' valuable pap] w g a great way t[>d produc+ a correct idea ( ! g5]al proportion1 & w1 no d\bt1 assi/ 9 ! =mulation ( prop] me?ods = valuation4 ,,cl9ton ,s4 ,,burns1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! au?or is to be congratulat$ on ! detail$ c>e %[n 9 ! pres5tation ( ?is subject4 ,p]haps few eng9e]s :o h n be5 call$ on to cope ) ! subject ( valuation ( prop]ties1 realize or appreciate ! real complexity ( ! _m v>i$ problems enc\nt]$ 9 "w ( ?is class4 ,to ^? :o are engag$ directly 9 appraisem5t "w1 ?is pap] w be a welcome contribution to ! lit]ature on ! subject4 ,! au?or's /atem5t t if a commission ( eng9e]s is direct$ to report ! true co/ ( reproduction1 depreciation1 or pres5t value ( a c]ta9 prop]ty1 ! f9al figures %\ld n diff]1 :e!r ! report is to be us$ z a basis = reorganization1 sale1 rate purposes1 or taxation1 is op5 to argum5t4 ,x seems prop] t1 if a prop]ty is apprais$ 9 ord] to fix a sell+ price to a ,gov]nm5t or municipality ex]cis+ its "r to pur*ase1 ! f9al figures %\ld be bas$ on curr5t prices ( labor & mat]ial1 because ?is does no inju/ice to ei!r p>ty4 ,x is evid5t t if ! sell] secures paym5t = 8 prop]ty bas$ on curr5t prices1 he may1 if he desires1 re9ve/ ! proce$s ( ! sale 9 simil> ent]prises at curr5t prices1 s t !reby he secures ! same b5efits1 :e!r prices are high or l[4 ,x is equally evid5t t if ! pur*as] 7! municipality7 *ooses to pur*ase ! prop]ty1 ! "r to pur*ase mu/ be ex]cis$ at ! p>ticul> "t p]mitt$ by ! fran*ise4 ,if prices *ance to be abnormally high at t "t1 ! municipality is exactly on a p> ) :at x w\ld be if compell$ to build its own plant at t p>ticul> "t2 :ile1 if prices be abnormally l[1 ! same relative situation /ill exi/s4 ,!re seems1 !re=e1 to be no possible inju/ice to ei!r p>ty 9 us+ curr5t prices1 :5 ! object is a sale or transf] ( ! prop]ty4 ,h[ev]1 9 det]m9+ a prop] value z a basis ( rates1 ano!r factor mu/ be consid]$4 ,x is inexp$i5t & aga9/ public policy to make frequ5t *anges 9 ! rate *>g$ = su* commodities z wat]1 gas1 or electric curr5t4 ,!oretically1 ! rate c\ld be fix$ ea* ye>1 bas$ on an annual valuation ( ! prop]ty1 ?us p]mitt+ a high rate "o ye> & p]haps an abnormally l[ rate ano!r ye>2 b1 practically1 ?is is impossible1 =1 aside f ! inconv5i5ce ( su* a cumb]some sy/em1 no community is well en\gh in=m$ z individuals to compreh5d any reason :atev] = ev] rais+ rates4 ,rais+ rates is inv>iably accompani$ by a wave ( indignation4 ,h[ev]1 x is app>5t t a s]ies ( rates bas$ on an annual curr5t price valuation ( ! prop]ty w\ld av]age exactly ! same1 dur+ a t]m ( ye>s1 z ?\gh ! prop]ty 7 valu$ once = all on ! basis ( ! av]age prices ( labor & mat]ial = ! same t]m ( ye>s1 & ! rate bas$ on ! "o valuation ?us det]m9$4 ,if ! object ( ! valuation is to af=d data = taxation1 ! same argum5t applies z 9 a case ( fix+ rates4 ,x ?us seems prop] t ! object ( ! appraisem5t %\ld be tak5 into consid]ation be=e x is det]m9$ :e!r to use av]age prices1 or curr5t prices1 ( mat]ial & labor2 &1 if ?is is correct logic1 ! f9al figures mu/ diff] accord+ to ! object 9 view2 b1 hav+ det]m9$ ! prop] unit prices to be us$ ?r\gh\t any appraisem5t z be+ ! mo/ equitable = ! object 9 view1 !n1 z ! au?or well says1 ! apprais] mu/ n all[ p]sonal prejudices or fanci$ conditions to influ5ce 8 c\rse4 ,above all1 an apprais] mu/ n be afraid ( 8 cli5t4 ,he mu/ n all[ 8 p]sonal judgm5t to be sw]v$ by ! latt]'s desires4 ,x p]haps seldom if ev] occurs t an apprais]1 repres5t+ a municipality1 or ,/ate1 is subject$ to ?is unconsci\s influ5ce1 inasmu* z 8 employ] is m]ely a tempor>y public (ficial1 & consequ5tly he has no cli5t to fe>4 ,he goes into ! "w ) a full k t 8 employ] kn[s little or no?+ ( ! subject1 & 8 only desire is to rea* results :i* w be unque/ionably fair to bo? p>ties4 ,on ! o!r h&1 ! apprais] :o is *os5 by ! own] ( a plant takes hold ( ! "w ) a feel+ t he is expect$ to report a value z favorable z possible to 8 cli5t1 & ?is feel+ is reflect$ 9 ! report1 reg>dless ( h[ s9c]ely or consci5ti\sly he tries to avoid x4 ,"o ( ! mo/ intricate & yet int]e/+ problems 9 appraisem5t "w is ! computation ( ! go+ value1 or bus9ess value :i* %\ld be all[$ 9 addition to ! physical value4 ,9 consid]+ a competitive ent]prise1 su* z a railway s]v+ a community 9 competition ) ano!r indep5d5t railway1 ?is problem mu/ be treat$ 9 a diff]5t way ?an 9 a non-competitive bus9ess1 su* z a wat]-works1 gas-works1 electric plant1 /reet railway1 or simil> ent]prise op]at+ "u ! protection ( an exclusive fran*ise1 or "u natural conditions equival5t to an exclusive privilege4 ,9 consid]+ competitive ent]prises1 x is manife/ t a railway op]at+ "u conditions m advantage\s ?an its competitor possesses an intangible value equal to ! measure ( t advantage4 ,x is n cle>1 h[ev]1 :e!r x is m prop] to say t ! railway possess+ ! advantage has a positive go+ value1 or :e!r ! less =tunate "o has a negative go+ value4 ,us+ ! rule =mulat$ by ! au?or1 be+ t ( ,pr(essor ,adams1 ) "s modifications1 x is evid5t t _m prop]ties w\ld %[ negative go+ values2 b1 z po9t$ out by ! au?or1 ! ,c\rts hold t public s]vice corporations are entitl$ to e>n3 7a7 ,op]at+ exp5ses2 7b7 ,exp5ses ( ma9t5ance & runn+ repair2 7c7 ,taxes2 7d7 ,a s9k+ fund to cov] depreciation & obsolesc5ce2 7e7 ,a reasonable pr(it on ! fair value ( ! prop]ty4 ,x is improbable t a reasonable pr(it on ! fair value ( ! prop]ty c\ld be con/ru$ to mean less ?an ! int]e/ or rev5ue f a l am\nt ( ,gov]nm5t bonds or o!r non-taxable securities4 ,?is rul+ ( ! ,c\rts fixes ! rates at su* a figure z to preclude ! possibility ( a deficit2 f :i* x mu/ foll[ t a negative go+ value _c be creat$ by a compulsory r$uction 9 rates1 = su* action w\ld be confiscation ( prop]ty to ! ext5t ( ! negative intangible value ?us creat$2 t is to say1 if ! ,c\rts are "r 9 ! above rul+1 !n all intangible or go+ values are positive1 & mu/ be det]m9$ by us+ ! mo/ unfavorably situat$ railway z ! basis ( computation 9 det]m9+ ! "q ( reasonabl5ess ( rates2 & ! rates 9 turn mu/ be reasonable & prop] be=e !y c be appli$ to det]m9e ! intangible value4 ,?is raises an int]e/+ & f>-rea*+ qu]y4 ,assume t a negative go+ value is ! result ( real competition betwe5 two roads su* t ! fair value ( ! less =tunate competitor is #bj less ?an its physical value4 ,if rates are bas$ on ?is valuation1 are !y really fair rates8 ,=1 suppose ! rates _h always be5 ma9ta9$ at a po9t :]e ! less =tunate road c\ld j support its physical valuation4 ,cle>ly1 no rate c\ld !n be en=c$ :i* w\ld compel x to op]ate = less ?an a reasonable pr(it on ! fair value ( its prop]ty1 & ! fair value "u ?is assumption is #be great] ?an be=e1 due to no ef=t ( its own1 b simply to ! fact t its competitor has n cut rates1 & has !reby pres]v$ ! orig9al fair value ( ! less =tunate road1 & at ! same "t increas$ its own positive go+ value by an equal am\nt4 ,9 view ( ?is analysis x is d\btful if x is ev] prop] to consid] ! exi/5ce ( negative intangible values1 al?\gh x is true t ! comm]cial value does fluctuate1 & may be less ?an ! physical value1 due to rates :i* are too l[1 p]haps1 or due to o!r tempor>y causes4 ,! me?od quot$ f ,mr4 ,alvord = det]m9+ go+ value applies to non-competitive ent]prises only1 z 0 /at$ by ,mr4 ,alvord 9 8 pap] be=e ! ,am]ican ,wat]-,works ,association4 ,?is me?od is op5 to ! criticism t ! =eca/ ( ! bus9ess ( ! old] works1 & ( ! new hypo!tical works z well1 is r$uc$ to a monet>y value1 bas$ on ! pres5t rates1 reg>dless ( :e!r or n su* rates are reasonable4 ,rates are subject to legislative control 9 _m ,/ates1 & !re is absolutely no assurance t any o!r ,/ate may n adopt legislation at any "t p]mitt+ regulatory ord9ances to be en=c$4 ,!re=e1 any =eca/ ( ! value ( future bus9ess mu/ be bas$ on reasonable rates1 = o!rwise x is m]ely an unw>rant$ e/imate bas$ on a fond hope4 ,tak+ into consid]ation ! fact t rates mu/ be reasonable1 ei!r by virtue ( pres5t laws or laws :i* may become effective at any "t1 p]haps 9 ! imm$iate future1 go+ value may well be def9$ z ! pres5t wor? ( ! am\nt by :i* ! anticipat$ pr(its ( a go+ plant1 op]at+ at reasonable rates1 exce$ ! pres5t wor? ( ! anticipat$ pr(its ( a simil> hypo!tical />t+ plant1 op]at+ at ^? same rates4 ,) ?is conception ( go+ value1 x is impossible = a non-competitive prop]ty to h a negative go+ value1 & e op]at+ plant has a positive go+ value1 ev5 ?\gh op]at+ at a loss4 ,! :ole problem h+es on ! "q ( :at is ! reasonable rate or prop] return1 & ?is %\ld be det]m9$ 9 ! aggregate z ! />t+ po9t4 ,! ,c\rts h p]si/5tly dodg$ ! issue1 & prop]ly s1 :5ev] t "q has aris51 leav+ x = consid]ation 9 ea* p>ticul> case1 dep5d+ on ! /ability ( ! bus9ess1 ! haz>d involv$1 & v>i\s o!r local factors4 ,x may safely be conc$$ t ?is fair pr(it is some?+ 9 excess ( ! return f ,gov]nm5t bonds1 & = ! purpose ( ?is discussion x matt]s n :at figure is assum$ z ! fair pr(it--:e!r #e1 #f1 or #aj1 or :at-n--! !ory is ! same 9 any case4 ,?is is p]haps be/ expla9$ by a practical illu/ration3 ,take1 = example1 a wat]-works sy/em1 ! physical pres5t value ( :i* has be5 det]m9$ by ! me?od ( reproduction to be #a1jjj1jjj1 & d5ote ! go+ value by ! unkn[n quantity1 x2 suppose1 fur!r1 t #f is consid]$ a reasonable return on ! fair value--n yet det]m9$1 ! fair value be+ #a1jjj1jjj plus ! go+ value1 x4 ,!re=e1 ! rates mu/ be su* z to produce 9 ! aggregate an am\nt equal to ! op]at+ exp5ses1 ma9t5ance1 taxes1 s9k+ fund1 & depreciation1 & /ill h a pr(it ( #f on ! fair value ( ! prop]ty4 ,! anticipat$ pr(its ( ! go+ plant1 !re=e1 are exactly #f ( 7#a1jjj1jjj x7 #fj1jjj #fx_/#ajj p] annum4 ,! anticipat$ pr(its ( ! hypo!tical />t+ plant w be negative at ! />t1 & gradually increase1 f9ally rea*+ a maximum ( #fj1jjj #fx_/#ajj p] annum4 ,x mu/ be rememb]$ t1 9 e/imat+ ! op]at+ exp5se & income ( ! />t+ plant1 z well z ! go+ plant1 ! figures mu/ be conf9$ rigidly to ! plant z x is f\nd at ! date ( valuation1 & 9 no case %\ld any acc\nt be tak5 ( income or op]at+ exp5ses due to probable future ext5sions ( ! di/ribution sy/em4 ,_m apprais]s ov]look ?is po9t1 & pr$icate ! anticipat$ pr(its ( ! go+ plant on ! pa/ gr[? ( ! income acc\nt1 =gett+ t a consid]able portion ( ?is gr[? is due to ext5sions into new t]ritory1 & n to any mat]ial increase 9 rev5ue f ! t]ritory already s]v$4 ,to include income f new t]ritory 9 ! =eca/ ( income is j z fatal an error z to include ! anticipat$ exp5diture ( new capital 9 ! pres5t physical valuation4 ,ei!r ( ^! proc$ures is really an e/imate or appraisem5t ( "s o!r plant1 r ?an ! "o actually "u consid]ation4 ,to complete ! num]ical illu/ration1 suppose x is det]m9$ t ! "t requir$ to con/ruct ! hypo!tical />t+ plant is #c ye>s2 t a portion ( ! plant is put into op]ation at ! end ( ! second ye>1 tak+ ov] fire-hydrant r5tal equival5t to #bj1jjj2 t ! rev5ue f private s\rces aggregates #bj1jjj dur+ ! la/ ye> ( con/ruction2 t ! exp5ses ( op]ation1 ma9t5ance1 taxes1 & depreciation am\nt to #cj1jjj dur+ ?is ye>4 ,aft] ! "t ( completion ( ! plant has elaps$1 x has ! total cr$it = fire-hydrant r5tal1 & x is assum$ t ! rev5ue f private s\rces & ! co/ ( op]ation1 ma9t5ance1 taxes1 & depreciation increase z %[n 9 ,table #ad1 :i* illu/rates ! me?od ( comput+ ! go+ value1 & gives ! result+ value = ! case j /at$4 ,!re=e1 #aga1jje #j4beigx x2 h5ce1 x #bca1jjj4 ,?is result is bas$ on ! assumption t ! />t+ plant e>n$ no int]e/ dur+ ! con/ruction p]iod4 ,if an all[ance = lo/ int]e/ dur+ con/ruction has be5 made & add$ to ! capital acc\nt already be+ includ$ 9 ! physical appraisem5t ( #a1jjj1jjj1 !n ?is mu/ be *>g$ back aga9/ ! go+ value f\nd above4 ,?is is cle>ly evid5t1 because ! calculations to det]m9e go+ value date f ! beg9n+ ( ! con/ruction p]iod1 & ! lo/ int]e/ dur+ con/ruction1 !re=e1 is provid$ = 9 ! result4 ,mo/ apprais]s all[ an item = lo/ int]e/ am\nt+ to ! legal rate ( int]e/ runn+ = half ! con/ruction p]iod1 :i*1 9 ! illu/ration "u discussion1 w\ld be #ij1jjj2 d$uct+ ?is sum1 if previ\sly includ$1 gives #ada1jjj z ! go+ value4 ,!re seems to be no good reason = all[+ lo/ int]e/ dur+ con/ruction z an item 9 ! physical valuation ( a prop]ty1 any m ?an = all[+ all ( ! lo/ int]e/1 up to ! "t :5 ! prop]ty beg9s to yield a return equal to ! rate ( int]e/4 ,x is "o ( ! problems 9 f9ance1 & is mu* bett] treat$ z an elem5t 9 ! go+ value1 z %[n 9 ! above illu/ration4 ,"o ( ! mo/ difficult factors on :i* to agree 9 computations ( ?is nature is ! elem5t ( "t requir$ = ! hypo!tical />t+ plant to acquire ! bus9ess4 ,7 x n = ?is unc]ta9ty1 go+ value c\ld be comput$ ) ma!matical precision by ! me?od sugge/$4 ,9 det]m9+ ! physical valuation on ! basis ( co/ ( reproduction1 su* items z co/ ( tak+ up & replac+ /reet pav+ ov] ! pipe l9es1 co/ incurr$ by reason ( sew]s & dra9s enc\nt]$1 int]f]5ce due to electric wires & conduits1 int]f]5ce ( traffic1 & o!r metropolitan conditions :i* add greatly to ! co/ ( con/ruction1 mu/ be all[$4 ,:]ev] su* metropolitan conditions exi/1 !re mu/ also be pres5t a correspond+ necessity = ! use ( wat] "u pressure4 ,p use wat] because ( necessity or conv5i5ce1 & n on acc\nt ( any feel+ ( obligation or loyalty to ! wat] company4 ,,table #ad4--;,,computation ,,( ,,go+ ,,conc]n ,,value1 ,,bas$ ,,on ,,reasonable ,,rates4 ,ye>1 dat+ ,legitimate ,hydrant1 r5tal ,dome/ic rev5ue f beg9n+ pr(its ( ! tak5 ov] by ( />t+ ( con/ruction4 go+ plant4 />t+ plant4 plant4 ,con/ruction#a/#fj1jjj #j4jfx #j p]iod4 #b;d #fj1jjj #j4jfx #j #c;d #fj1jjj #j4jfx #bj1jjj #bj1jjj ,bus9ess #d? #fj1jjj #j4jfx #dj1jjj #ee1jjj developm5t #e? #fj1jjj #j4jfx #dj1jjj #hj1jjj p]iod4 #f? #fj1jjj #j4jfx #dj1jjj #ij1jjj #j4jfx ,ye>1 dat+ ,int]e/ on ! />t+ plant4 ,op]ation1 f beg9n+ ma9t5ance1 ( con/ruction4 taxes1 & depreciation on />t+ plant4 ,con/ruction#a/,if ! physical validation conta9s an #j p]iod4 item = lo/ int]e/ dur+ con/ruction1 ! same am\nt mu/ be cr$it$ to ! />t+ plant z int]e/ e>n$4 #b;d #j #c;d #cj1jjj ,bus9ess #d? #ej1jjj developm5t #e? #fe1jjj p]iod4 #f? #gj1jjj ,ye>1 dat+ ,total diff]5ce 9 ,pres5t ,pres5t wor? ( ! f beg9n+ anticipat$ pr(its wor? excess ( anticipat$ ( con/ruction4( ! two plants4 factor4 pr(its ( ! go+ plant4 ,con/ruction#a/ #fj1jjj #j4jfx #ie4b #eg1abj #j4jegax p]iod4 #b;d #fj1jjj #j4jfx #ij4g #ed1dbj #j4jeddx #c;d #ej1jjj #j4jfx #hf4d #dc1bjj #j4jeahx ,bus9ess #d? #ae1jjj #j4jfx #hb4c #ab1cde #j4jdidx developm5t #e? #e1jjj #j4jfx #gh4d #c1ibj #j4jdgjx p]iod4 #f? #j #gd4g ,total go+ value #ag1jje #j4beigx x #bca1jjj ,if highly develop$ metropolitan conditions are pres5t1 new bus9ess w be acquir$ 9 ! hypo!tical />t+ plant mu* m rapidly ?an :]e su* conditions are yet to be develop$4 ,= ?is reason ! problem _c be bas$ on ! e>ly gr[? ( ! same plant1 &1 !re be+ no exact duplicate ( conditions 9 exi/5ce else:]e1 ! e/imate ( "t requir$ = ! bus9ess developm5t p]iod is purely speculative1 & mu/ be assum$ ) great c>e & judgm5t1 else inju/ice may be done to "o p>ty or ! o!r 9 ! result+ go+ value4 ,x is int]e/+ to note t1 9 ! ,mi*igan appraisal1 ! all[ance ( a p]c5tage = cont+5cies 0 bitt]ly conte/$ by ! railroads z improp]4 ,probably e apprais] :o has be5 connect$ ) rate cases has se5 ?is same item /r5u\sly insi/$ on by ! corporations4 ,! au?or's qu]y3 %\ld a corporation :i* is compell$ to ab&on appliances :ile yet s]viceable1 9 response to public clamor1 be all[$ any item ( value 9 ! appraisal on acc\nt ( su* appliances1 seems to be be/ answ]$ 9 ! negative4 ,if ! appraisal is = ! basis ( mak+ rates1 ! corporation is fully comp5sat$ by ! fact t its depreciation acc\nt provides = all ab&on$ ma*9]y1 & ! av]age pa/ depreciation is usually consid]$ a fair crit]ion ( ! future4 ,if ! appraisal is = purposes ( taxation1 x w\ld seem improp] to levy tax on ab&on$ or reject$ ma*9]y or equipm5t4 ,if ! appraisal is to det]m9e ! pres5t value ( a prop]ty = sale "u condemnation proce$+s1 x is likewise difficult to conceive any reason = all[+ any pres5t value on acc\nt ( prop]ty ab&on$ or reject$1 &1 inde$1 if su* ab&on$ mat]ial _h any value at ! "t ( its removal1 x is m ?an likely t su* value 0 conv]t$ into ca% at t "t4 ,! /atem5t t no apprais] w\ld be ju/ifi$ 9 plac+ a go+ conc]n value on a prop]ty #c ye>s old1 or #aj ye>s old1 unless ! net e>n+s 7 su* z to indicate t ! prop]ty _h a comm]cial value 9 excess ( ! physical prop]ty1 is que/ionable4 ,comm]cial value is n exactly synonym\s ) go+ conc]n value1 =1 z usually consid]$1 ! t]m go+ conc]n value repres5ts ! diff]5ce betwe5 a dead /ructure & a live "o4 ,a prop]ty might be compell$ to op]ate tempor>ily at rates insuffici5t to return ! legal rate ( int]e/ on ! physical value ( ! prop]ty1 & :ile ?is condition cont9u$1 its comm]cial value w\ld be less ?an its physical value1 & yet ?is same prop]ty is wor? m :ile runn+ ?an if op]ation ceas$ & ! bus9ess 0 all[$ to die4 ,,halb]t ,p4 ,,gilette1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,9 common ) o!rs :o h writt5 on ! subject ( appraisals1 ! au?or omits consid]ation ( "o ( ! mo/ important elem5ts ( ! co/ ( produc+ ! prop]ty ( a public s]vice corporation1 namely1 ! developm5t exp5se4 ,developm5t exp5se is ! deficit 9 fair return on ! inve/m5t dur+ ! e>ly ye>s ( op]ation1 :ile ! bus9ess is be+ develop$ to a po9t t w yield a fair return on ! inve/m5t4 ,unless ?is developm5t exp5se is *>g$ to ! capital acc\nt z fa/ z x occurs ea* ye>1 x %\ld draw comp\nd int]e/ up to ! end ( ! developm5t p]iod4 ,developm5t exp5se might be reg>d$ z a "p ( ! non-physical value ( a plant1 & a few ye>s ago ! writ] s reg>d$ x4 ,latt]ly1 h[ev]1 he has come to see t x does n diff] "o iota 9 pr9ciple f int]e/ dur+ con/ruction1 &1 !re=e1 is prop]ly a "p ( ! co/ ( production or ( reproduction ( ! prop]ty4 ,dur+ ! con/ruction p]iod1 int]e/ on ! inve/m5t is *>g$1 & prop]ly s1 z a "p ( ! physical co/4 ,does ?is int]e/ cease ! day aft] op]ation beg9s8 ,n a :it4 ,! own]s ( ! prop]ty are entitl$ to a fair int]e/--a fair return--on _! money1 f ! day x is inve/$4 ,at fir/ !y receive x 9 ! =m ( int]e/ dur+ con/ruction1 :i* is *>g$ to capital acc\nt4 ,aft] op]ation beg9s !y mu/ ei!r be all[$ to e>n m ?an a fair return dur+ ! fat ye>s foll[+ ! developm5t p]iod1 or ! deficit bel[ a fair return incurr$ dur+ ! developm5t p]iod mu/ be treat$ exactly l int]e/ dur+ con/ruction & add$ to ! capital acc\nt4 ,if public s]vice corporation manag]s h *os5 ! fir/ ( ^! two me?ods1 x does n relieve ! apprais] ( ! duty ( adopt+ ! second me?od2 = ! object ( appraisals = rate-mak+ purposes is to limit capital to a fair return on ! inve/m5t4 ,9 brief1 if !re are to be no fat ye>s1 !n e lean ye> mu/ be cr$it$ ) its deficit z fa/ z x occurs4 ,?is1 ! writ] conc$es1 is a radical dep>ture f su* prec$5t z already exi/s1 b we mu/ n ov]look ! fact t we ( to-day are e/abli%+ ! prec$5ts = appraisals 9 ! future4 ,! :ole matt] ( valuations = rate-mak+ purposes is /ill 9 a nebul\s =m1 z f> z ! public1 & inde$1 z f> z ! ,c\rts1 are conc]n$4 ,9 ! end x w devolve ^u eng9e]s to e/abli% logical me?ods ( appraisal4 ,to d s1 !y mu/ be able to look on ! problem bo? z eng9e]s & z juri/s4 ,up to ! pres5t1 h[ev]1 ?is broadness ( vision has n *>act]iz$ mo/ eng9e]+ apprais]s1 nor is x to be wond]$ at :5 ! ,c\rts !mselves are 9 a maze4 ,a great deal has be5 he>d lately ab\t go+ conc]n value4 ,ultimately1 ! ,c\rts w hold t1 z f> z rate-mak+ is conc]n$1 !re is no su* ?+ z go+ conc]n value 9 ! pres5t mean+ ( ! t]m4 ,go+ conc]n value1 9 ! f9al analysis1 consi/s ( two elem5ts3 ,fir/1 developm5t exp5se 7z previ\sly def9$71 &1 second1 capitaliz$ surplus e>n+s4 ,surplus e>n+s are asc]ta9$ by d$uct+ f net e>n+s bo? taxes & a l[ rate ( int]e/ on ! inve/m5t1 equival5t to int]e/ on bonds4 ,_m factors may affect surplus e>n+s2 b1 t go+ conc]n value consi/s l>gely ( capitaliz$ surplus e>n+s1 _c be d5i$4 ,:at are surplus e>n+s8 ,! public replies t !y are ma9ly ! result ( extortionate *>ges4 ,?is is d\btless correct 9 _m cases2 h5ce1 any inve/igation ( co/s :i* has = its object rate-mak+ mu/ inevitably lead to repudiation ( t "p ( go+ conc]n value :i* is bas$ on surplus e>n+s1 if ! surplus is at all l>ge4 ,9 a ^w1 we reason 9 a circle if we capitalize surplus e>n+s1 call+ ! result go+ conc]n value1 & !n und]take to use go+ conc]n value z "o ( ! factors 9 judg+ ! fairness ( rates4 ,to express ! problem ma!matically1 we _c solve = a v>iable :5 ! v>iable is all[$ to exi/ on bo? sides ( ! equation4 ,yet t is precisely :at "s rate-mak+ bodies are try+ to d1 & x is precisely :at ! ,c\rts h (t5 attempt$ to d4 ,to escape ?is confusion !re is b "o possible /ep1 & t is to elim9ate go+ conc]n value entirely4 ,we mu/ fir/ det]m9e ! elem5t ( co/1 :i* ! writ] t]ms developm5t exp5se1 & we mu/ reg>d ?is item z a "p ( ! co/ ( reproduction4 ,we mu/ next cease to consid] small rates ( int]e/ z be+ a fair return on ?is co/ ( reproduction4 ,:5 fir/-class mortgages draw #e1 x is folly to talk ( #f z be+ a fair return on capital inve/$ 9 a bus9ess ent]prise1 especially :5 ?is #f is figur$ on ! actual co/ ( reproduction ( ! prop]ty4 ,x may be t #g is an ample fair return 9 "s cases1 b 9 o!rs #aj w be f\nd none too mu*1 consid]+ ! small size ( ! bus9ess & ! risks involv$4 ,! writ] w n at ?is "t discuss me?ods ( det]m9+ h[ a fair return %\ld be e/imat$1 b1 9 g5]al1 ! process %\ld be z foll[s3 ,f ! gross e>n+s d$uct ! op]at+ exp5ses & taxes to obta9 ! net e>n+s4 ,f ! net e>n+s d$uct a small rate ( int]e/ 7equival5t to int]e/ on bonds7 on ! co/ ( reproduction4 ,! rema9d] is pr(it1 & %\ld be express$ z a p]c5tage ( ! gross e>n+s4 ,?is p]c5tage ( pr(it c !n be comp>$ ) simil> p]c5tages made by m]*ants1 manufactur]s1 f>m]s1 & o!r capitali/s1 & !n x c be det]m9$ logically by comp>ison :e!r or n ! pr(it made by a public s]vice corporation is fair4 ,we mu/ adopt ?is me?od ( attack+ ! problem or we %all inevitably drive capital away f railway & o!r fields ( public ent]prise4 ,! writ] e/imates r\ghly t a pr(it ( #aj on gross e>n+s1 z above d$uc$1 is ab\t ! same z a direct return ( #g on ! co/ ( reproduc+ ! av]age /eam railway4 ,9 a rec5t appraisal ( a /reet-railway sy/em1 ! writ] det]m9$ ! actual developm5t exp5se ( ! prop]ty1 d$uc+ x f ! acc\nt+ records4 ,x 0 an a/oni%+ly high sum1 ev5 assum+ only #g on ! co/ ( reproduction z be+ a fair return4 ,dur+ 8 appraisal ( all ! railways 9 ! ,/ate ( ,wa%+ton1 = ! ,railroad ,commission1 ! writ] made a simil> /udy ( developm5t exp5se1 b ?is 0 n includ$ 9 8 e/imate ( ! co/ ( reproduction1 z x 0 !n reg>d$ z be+ a "p ( ! go+ conc]n value & he 0 n commission$ to asc]ta9 ! go+ conc]n value ( ! railways4 ,n a s+le railway1 z f> z he kn[s1 has ev] pres5t$ to a ,/ate ,railway ,commission1 or to ! ,int]/ate ,comm]ce ,commission1 an e/imate ( its developm5t exp5se along ! l9es indicat$4 ,in/ead1 ! railway companies h talk$ 9 g5]al t]ms ( long con/ruction p]iods--(t5 claim+ #bj ye>s or m--& ( great exp5se incurr$ 9 build+ up ! bus9ess1 & ( fran*ise value1 & ( a score or m ( non-provable co/s4 ,! consequ5ce is t !y h frequ5tly lo/ entirely ! "o great item t !y are cle>ly entitl$ to1 namely developm5t exp5se1 :i* is an item :i* c be absolutely prov$ f _! acc\nt+ records1 &1 !re=e1 re/s n on ! hot air te/imony ( exp]ts1 b on facts t are incontrov]tible4 ,9 l mann]1 o!r public s]vice corporations h (t5 signally fail$ to prove ! full wor? ( _! prop]ties1 because _! claims = go+ conc]n value h be5 ignor$ entirely4 ,:5 a fran*ise expires1 ! go+ conc]n value is usually look$ on by ! public z wor?less1 nor is ?is view to be wond]$ at4 ,mr4 ,riggs proposes add+ to ! physical value a m9us go+ conc]n value1 & he is logical 9 do+ s1 if x is conc$$ t values = rate-mak+ re/ on pr(its2 b ?is ! writ] does n conc$e = an in/ant4 ,values = rate-mak+ _c re/ on ! v ?+ t x is aim$ to regulate1 to wit1 ! rates *>g$4 ,until eng9e]s & public s]vice commissions & ,c\rts free !mselves f ?is confusion ( cause & effect1 !re c be no rational !ory ( rate-mak+4 ,values = rate-mak+ mu/ re/ prim>ily ei!r on ! actual co/s ( ! production ( a prop]ty or on e/imat$ co/s ( reproduction1 includ+ !re9 bo? int]e/ *>ges dur+ con/ruction & ! sequel !reto--developm5t exp5se4 ,( almo/ z great mom5t z ! item ( developm5t exp5se is ! "q ( depreciation4 ,! au?or1 9 common ) mo/ eng9e]s1 holds t depreciation %\ld be d$uct$4 ,?is is a consequ5ce ( reg>d+ a public s]vice plant z if x 7 a ma*9e b\ght 9 a second-h& /ore4 ,a public s]vice plant is a device :i* is int5d$ to p]=m a giv5 s]vice =ev]4 ,x is true t its p>ts are subject to we>1 & mu/ be r5ew$ f "t to "t2 b ! plant z a :ole is ev]la/+1 or practically s4 ,manag]s ( public s]vice corporations1 p]ceiv+ ?is fundam5tal tru?1 h r>ely e/abli%$ s9k+ funds = ! r$emption ( any consid]able "p ( ! plant4 ,9 a great railway sy/em ! r5ewal ( a freight c> is n a proportionately l>g] item ( exp5se ?an is ! r5ewal ( a too? 9 a /eam %ovel bucket own$ by a contractor4 ,?is fact1 c\pl$ ) ! p]man5ce ( ! railway plant z a :ole1 has l$ railway own]s to make no provision = a return ( ! money lo/ 9 depreciation4 ,railway ties 9 a l>ge railway sy/em inevitably rea* a condition su* t _! av]age age is exactly half ! life ( ! av]age tie4 ,%all a s9k+ fund be provid$ = ties8 ,if n1 :]e does logic place a l9e ( dem>cation8 ,:5 does an elem5t ( ! railway plant atta9 a condition ( suffici5t importance to w>rant writ+ (f "s ( its value f ! capital acc\nt8 ,! facts are t railway manag]s h n writt5 (f any?+ wor?y ( m5tion = depreciation1 &1 9 ! writ]'s op9ion1 !y h be5 p]fectly logical4 ,consequ5tly1 ! op]at+ exp5ses h be5 mu* less ?an !y w\ld h be5 dur+ ! e>ly ye>s1 _h a sum be5 plac$ annually 9 a s9k+ fund4 ,!re=e1 ! developm5t exp5se1 z d$uc$ f ! acc\nt+ records1 is less ?an x w\ld be if a s9k+ fund 7 provid$2 & ! am\nt ( ?is diff]5ce is precisely ! am\nt ( ! depreciation4 ,9 o!r words1 if depreciation is to be d$uct$ f ! co/ ( reproduction1 x mu/ be add$ to ! developm5t exp5se asc]ta9$ f ! acc\nt+ records2 s t1 9 ! f9al analysis1 depreciation %\ld be ignor$ entirely 9 any appraisal ( a public s]vice corporation :]e ! object is ei!r rate-mak+ or pur*ase ( ! corporation by ! public4 ,"o qualification to ?is /atem5t is ne$$1 h[ev]1 & t is t ! depreciation %all n h gone f> en\gh to result 9 an av]age age ( plant less ?an half ! life ( ! plant--t be+ ! ultimate normal op]at+ condition4 ,eng9e]s h a duty to p]=m1 9 mak+ an appraisal ( ! sort "u consid]ation1 :i* is judicial 9 its "* & %\ld n savor 9 ! lea/ ( ! pawn%op4 ,! eng9e] engag$ by a public s]vice commission %\ld n = an in/ant make x 8 object to beat d[n ! price1 no matt] by :at f>-fet*$ !ory he may effect ! result4 ,nor are eng9e]s incl9$ to d ?is1 except :5 !y reg>d !mselves m]ely z ag5ts ( ! public by :om !y are employ$4 ,un=tunately1 _m apprais]s h z yet fail$ to realize t !re is a vital di/9ction betwe5 ! deal+s t %\ld exi/ 9 public affairs & ^? t actually exi/ 9 private matt]s involv+ ! pur*ase & sale ( prop]ty4 ,9 ! latt] case1 ! buy] usually takes e possible advantage ( ! helplessness ( ! sell]4 ,is ! sell] ignorant8 ,see t he rema9s s4 ,is ! sell] h>d-pu%$ = money8 ,gr9d d[n ! price accord+ly4 ,does ! sell] (f] goods :i* are a bit %op-worn8 ,dwell on t fact1 to ! exclusion ( all else4 ,su* are ! tradesman's arts1 & su*1 ! writ] fe>s1 h be5 ! arts ( "s apprais]s ( public s]vice prop]ty4 ,! writ] believes t1 "u "o =m ( agreem5t or ano!r1 ne>ly e k9d ( public s]vice c be m economically & bett] p]=m$ by a public s]vice corporation ?an by ! public itself ?r\gh employees directly hir$4 ,b if ,am]ica is n to pass spe$ily into ,gov]nm5t own]%ip & op]ation ( all public utilities1 !re mu/ be a pron\nc$ *ange ( attitude on ! "p ( ! public t[>d capital n[ inve/$ 9 public s]vice corporations4 ,ev5 z eng9e]s1 we are apt to be unconsci\sly influ5c$ 9 our attitude t[>d public s]vice corporations1 n only because ( ! pres5t public attitude1 b because we are (t5 put to great inconv5i5ce by ! ill-consid]$ resi/ance ( ! corporations ^: prop]ty we are call$ on to appraise = ! public4 ,our duty pla9ly consi/s1 fir/1 9 reg>d+ a public s]vice corporation z a public ag5t1 &1 second1 9 allott+ su* values t ?is public ag5t w receive a full & fair return = e doll> judici\sly & hone/ly sp5t 9 build+ & develop+ its prop]ty4 ,9 c>ry+ out ?is plan1 ! writ] f9ds x wise to /udy ! entire f9ancial hi/ory ( a corporation1 go+ c>efully ?r\gh bo? ! con/ruction acc\nts & ! op]at+ acc\nts f ! beg9n+4 ,! desirability ( analyz+ ! actual co/s ( con/ruction1 bett]m5t1 & op]ation ( public s]vice corporations1 prep>atory to e/imat+ ! co/ ( reproduction1 _c be too /rongly urg$ ^u apprais]s4 ,un=tunately1 _m corporations refuse access to _! records1 or claim t ! records are too incomplete to be ( value4 ,h[ev]1 :5 !y realize t f ^? v records c be d$uc$ "o ( ! l>ge/ items ( co/ ( reproduction1 namely1 ! item ( developm5t exp5se1 !y are c]ta9 to %[ z mu* will+ness z !y n[ %[ av]sion to disclos+ _! records4 ,! writ] has rec5tly complet$ an appraisal ( a /reet railway sy/em1 ! manag]s ( :i* plac$ at 8 disposal ! entire acc\nt+ & eng9e]+ records4 ,f ^! ! developm5t exp5se 0 d$uc$1 & =ms an item :i* c be demon/rat$ 9 ,c\rt1 if ne$ be1 in/ead ( be+ ! subject ( unsupport$ exp]t te/imony4 ,z f> z ! writ] kn[s1 ?is is ! fir/ "t t a /reet railway corporation has volunt>ily op5$ all its books = use 9 an appraisal :i* may be made public4 ,may x n be "o ( ! h>b+]s ( a f>-sight$ action on ! "p ( public s]vice corporations1 :i* w result ev5tually 9 elim9at+ entirely ! ho/ile attitude ( ! public t[>d its accr$it$ ag5ts8 ,rev]t+ aga91 & f9ally1 to ! "q ( developm5t exp5se1 x w be se51 aft] /udy1 t ! me?od ( d$uc+ x f ! acc\nt+ records provides = e possible item4 ,! co/ ( adv]tis+1 ! co/ ( colonization1 & canvass+ by ag5ts engag$ 9 build+ up ! bus9ess tribut>y to ! corporation1 ! co/ ( develop+ an effici5t bus9ess organization & an effici5t plant--e possible item ( develop+ ! bus9ess f9ds accurate record 9 ! developm5t exp5se d$uc$ f ! acc\nt+ records z outl9$4 ,?is may n be app>5t at fir/ glance1 b a little consid]ation proves x to be s4 ,if1 = example1 #bj1jjj has be5 sp5t annually = t5 ye>s 9 adv]tis+ to secure bus9ess1 ! op]at+ exp5ses h be5 increas$ exactly #bj1jjj = ea* ( ! t5 ye>s4 ,consequ5tly1 ! annual deficit bel[ a fair return on ! inve/m5t has be5 made #bj1jjj great] ea* ye> ?an x w\ld h be5 _h no exp5se = adv]tis+ be5 incurr$4 ,9 o!r words1 ! deficit bel[ a fair return1 :i* is ! developm5t exp5se1 %[s automatically ! am\nt sp5t = e su* item z adv]tis+4 ,! writ] reg>ds ?is automatic regi/] ( developm5t exp5ses z be+ "o ( ! mo/ important features ( 8 me?od = det]m9+ su* exp5se4 ,x removes ! entire problem f ! realm ( guess-"w & exp]t te/imony1 & makes x a problem 9 eng9e]+ economics4 ,x involves no "q z to :e!r or n ! exi/+ rates *>g$ = freight1 or = any o!r s]vice1 are fair4 ,,ar?ur ,l4 ,,adams1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,?is pap]1 9 _s1 diction1 & cont5ts1 is a ma/]ly pres5tation ( ! be/ ?\ght & argum5t1 by eng9e] speciali/s & ! high] ,c\rts1 conc]n+ ?is difficult subject--a pres5tation :i* only "o intimately associat$ ) ! "q = ye>s1 z has be5 ! au?or1 c\ld hope to make4 ,x is ( special int]e/1 too1 because x deals fundam5tally ) ! ,mi*igan railroad valuation1 n[ t5 ye>s old1 & des]v$ly consid]$ some:at anci5t 9 ! evolution ( :at may be t]m$ ! logic ( valuation me?ods4 ,! frank ackn[l$gm5t ( ! n[ app>5t defici5cies or errors ( t "w1 notably 9 ! defective me?od & result+ "u-valuation ( real e/ate1 z well z ! uphold+ ( t :i* /ill appe>s to ! au?or to be s\nd 9 pr9ciple1 are excell5t manife/ations ( ! con/ructive & judicial _s s necess>y to ! mak+ ( any sub/antial contribution to ! art4 ,unanimity ( op9ion 9 matt]s ( detail1 ev5 among ^? specializ+ 9 ?is l9e ( practice1 _c be expect$1 especially 9 a g5]al discussion4 ,details mu/ receive _! emphasis f local color+ & local conditions4 ,mak+ all[ance = ^! local conditions 9 ,mi*igan & o!r contigu\s ,/ates--notably conditions ( population & flat topography--& rememb]+ t ! basis ( ! pap] is a railroad valuation = purposes ( taxation1 & n a wat]-works appraisal = annual rate-fix+ 9 a semi-arid region ( rapid developm5t1 or "s o!r widely diff]+ utility1 x seems to ! writ] t ! au?or has be5 s+ul>ly =tunate 9 giv+ expression to views ) :i* speciali/s w = ! mo/ "p agree4 ,! limitations ( ! logical application ( ! me?ods sugge/$1 h[ev]1 are n suffici5tly def9$4 ,e>ly 9 ! pap] an ef=t is made to avoid ! necessity = ?is1 & to simplify ! treatm5t by limit+ ! scope ( ! pap]1 9 ! foll[+ language3 ,?is pap] is conf9$ to a discussion ( ! me?ods :i* %\ld be us$ 9 arriv+ at a correct figure ( co/ ( reproduction & depreciation--x does n take up que/ions involv+ ! propriety ( ^? figures :5 rea*$4 ,! propriety or legality ( us+ su* figures z a basis = an assess$ valuation1 z a basis = rate-mak+1 444 w be conc$$ no place 9 ?is pap]4 ,su* a re/riction1 h[ev]1 seems to ! writ] to leave ! subject mu* confus$4 ,x is impossible to judge ( ! propriety or s\ndness ( a me?od ( valuation :ile ignor+ its purpose & fail+ to po9t out ! limitations ( its logical application4 ,to conf9e discussion to a consid]ation only ( co/ ( duplication & depreciation ( physical prop]ties is presumably an attempt to avoid ! difficulties incid5t to ! application ( su* results to specific purposes1 & is 9 l9e ) ! frequ5t argum5t ( "s attorneys 9 litigat$ valuations1 t ! eng9e] mu/ n encroa* on ! prov9ce ( ! ,c\rt by hav+1 mu* less express+1 any idea relative to ! application ( 8 figures to ! f9al solution4 ,) ?is doctr9e ! writ] has no sympa?y4 ,! eng9e] is ess5tially an economi/1 & no "o is m fully qualifi$ to aid1 ei!r directly or z an advis] to ! ,c\rt1 9 ! f9al det]m9ation ( value = specific purposes1 provid$ he is tra9$ 9 ! con/ruction1 op]ation1 & valuation ( su* prop]ties z are "u consid]ation4 ,to accept any less responsibility ?an ?is is to become p>ty to inf]ior measures lead+ to popul> misconception1 & is ju/ifi$ only z a practicable fir/ /ep t[>d ! f9al realization & acceptance ( ! l>g] duty4 ,all sugge/$ me?ods ( valuation %\ld be subject$ to close logical analysis1 ) a view to _! purpose4 ,! unsuitability ( ! me?od us$ 9 ! ,mi*igan appraisal to _m classes ( appraisals is app>5t1 & c be readily indicat$4 ,mu* space is giv5 to ju/ify+ ! appraisal ( all s-call$ non-physical elem5ts by ! capitalization ( ! residue ( net e>n+s aft] all[+ int]e/ on ! inve/m5t 9 ! physical prop]ties4 ,?is ! au?or ref]s to z ,pr(essor ,adams' me?od4 ,! addition ( ! physical to ! non-physical values1 z ?us det]m9$1 is suppos$ to give ! value ( ! prop]ty z a :ole4 ,x is evid5t t x gives1 by indirection1 ! same total valuation z w\ld be obta9$ by ! direct capitalization ( net e>n+s )\t any det]m9ation ( physical values1 p] se1 &1 z a me?od1 is !re=e n :at x purports to be4 ,s9ce value1 by ?is me?od1 is 9 reality dep5d5t on e>n+s1 x foll[s t :]e rates are fix$ by gov]nm5tal au?ority1 ) ! prop]ty value z ! base1 z is done annually 9 ,cali=nia 9 cases ( privately own$ wat] & light+ plants1 ! me?od sugge/$ is )\t logical application1 & ! prop]ty values ( su* corporations mu/ be det]m9$ & ju/ifi$ on o!r or modifi$ gr\nds4 ,h5ce ! necessity = deal+ ) su* elem5ts z s-call$ go+ conc]n1 fran*ise1 & o!r possible assets1 ea* indep5d5tly1 z is usually done 9 wat]-works appraisals1 in/ead ( collectively1 z 9 ! ,mi*igan appraisal4 ,x %\ld be made cle>1 !re=e1 t ! me?od us$ 9 ?is railroad appraisal1 = ! det]m9ation ( non-physical values1 simply r$uces ! :ole to "o ( capitalization ( net e>n+s1 & presupposes no gov]nm5tal regulation ( rates ) ! value ( ! prop]ty z ! base2 &1 unmodifi$1 has a comp>atively n>r[ range ( application4 ,! au?or seems to see difficulty ahead 9 deal+ ) rate-mak+ by ?is me?od1 = he says1 ne> ! close ( 8 pap]3 ,!re are _m intricate problems 9 connection ) a valuation = rate-mak+ or taxation :i* really belong to ^! und]tak+s1 n to valuation1 b1 9 /at+ "s ( ^! difficulties1 he does n po9t out ! impropriety ( det]m9+ value by capitaliz+ t 7e>n+s7 :i* x may be ! object ( ! valuation to det]m9e & fix4 ,regulation ( rates by gov]nm5tal au?ority1 :i* means _! limitation to t :i* is reasonable & j1 w probably 9 ! future be ! purpose 9 ! mak+ ( mo/ valuations ( ! prop]ty ( public s]vice corporations1 & no me?ods or rules = ! mak+ ( appraisals c be consid]$ z be+ at all complete or fairly compreh5sive :i* d n meet ! logic ( su* an end4 ,if capitalization ( net e>n+s is to det]m9e railroad values = rate-fix+1 :atev] ! process1 x mu/ presuppose a fair & equitable rate1 ?us foll[+ ! rate1 in/ead ( ! rate foll[+ ! prop]ty value4 ,?is is b a %ift+ ( ! difficulty2 =1 :at con/itutes a fair & j rate1 irrespective ( ! value ( ! prop]ty us$1 is at lea/ z difficult ( det]m9ation z is ! prop]ty value1 irrespective ( its e>n+s4 ,valuations1 to be useful1 mu/ h _! purposes c>efully pr$et]m9$1 t ! "r application ( pr9ciples may be made4 ,p]haps n[h]e m ?an 9 ,cali=nia has ?\ght be5 direct$ along ?is l9e1 = ! organic law ( ! ,/ate = ?irty ye>s has requir$ ! annual fix+ ( rates = wat] & light companies by public (ficial bodies1 & _m important cases involv+ rates & valuations ( l>ge prop]ties1 *iefly 9 lat] ye>s1 h be5 tri$4 ,un=tunately1 ! mo/ important & be/ tri$ ( ^! h n yet rea*$ ! ,unit$ ,/ates ,supreme ,c\rt4 ,! result1 ?us f>1 is too long a /ory to be told n[1 b x may be said t capitalization ( e>n+s 9 any =m is n reg>d$ z a logical basis ( value "u su* conditions4 ,fran*ises1 z !y exi/ "h1 are n reg>d$ z hav+ value1 unless f unusual circum/ances4 ,go+ conc]n value is recogniz$1 b its money measure is s\ght ?r\gh o!r *annels ?an pres5t net e>n+s4 ,! au?or's emphasis on ! necessity = elim9at+ ! p]sonal equation1 z f> z possible1 is comm5dable1 b a l>ge ex]cise ( discretion>y judgm5t is insep>able f ! process ( appraisal4 ,! fulle/ inve/igation ( all p]t95t facts %\ld be made4 ,too mu* mu/ n be expect$ f rules & =mulas4 ,!y are education only4 ,gov]n+ pr9ciples mu/ be und]/ood1 & subsequ5t proc$ure ! writ] _c bett] express ?an 9 ! words sub/antially z us$ on a =m] occasion3#dg ,hav+ consid]$ ! v>i\s factors likely to influ5ce ! value ( any prop]ty "u consid]ation1 & hav+ summ>iz$ ! results1 x w rema9 to det]m9e ! v>y+ degrees ( importance & weight to atta* to ea*1 & to decide1 9 view ( all ! att5dant circum/ances1 :at ! am\nt is on :i* ! company is entitl$ to receive a suitable return4 ,?is f9al solution c nev] be r$uc$ to a ma!matical =mula applicable to all cases4 ,! inquiry w h e/abli%$ approximate limitations1 bo? z to maximum & m9imum1 b !re w !n usually be f\nd rema9+ q a wide int]v5+ field = ! ex]cise ( discretion>y judgm5t4 ,t ! f9al result w dep5d to "s ext5t on ! p]sonal equation1 does n ( necessity detract f its wor?4 ,x only %[s ! greatness ( ! problem1 :i* requires = its solution ! ex]cise ( faculties high] ?an ! application ( m]e =mulas & m]e r\t9e1 faculties :i* are root$ 9 labori\s ?\ght1 9 ripe exp]i5ce1 9 moral wor?4 ,a ^w conc]n+ ! use ( exp]ts on "w ( ?is class3 ,mo/ valuations gr[ out ( or gr[ into cases at law4 ,"u ! prevail+ ord]1 ! litigants secure ! s]vices ( ! necess>y exp]t apprais]s1 :o1 9 ! c\rse ( exam9ation1 are subject$ to processes usually mu* bett] calculat$ to magnify ?an to h>monize diff]5ces1 & to cl\d r ?an to cl>ify issues1 to ! detrim5t ( ! record1 ! confusion ( ! ,c\rt1 & ! attempt$ discr$it ( ! witnesses & _! pr(ession4 ,self-def5se is calculat$ to lead witnesses into undue reliance on rules & ma!matical =mulas1 z direct means ( obta9+ ! desir$ result1 in/ead ( aids = ! f9al ex]cise ( a "r judgm5t z to ! real value ( ! prop]ty = ! purpose int5d$1 simply because x is easi] 9 deal+ ) attorneys to ju/ify m]e ma!matical processes ?an to support op9ion re/+ on consid]ations ( a g5]al "*1 n always readily measurable 9 figures4 ,?is t5d5cy leads also to "u-valuations4 ,a *ange 9 ! process ( ,c\rt proc$ure relative to su* exp]t evid5ce is ne$$1 & ! influ5ce ( ! ,pr(ession1 bo? individually & collectively1 might be us$ to secure ! appo9tm5t ( su* witnesses at ! in/ance ( ! ,c\rt1 in/ead ( ! litigants1 to ! great advantage1 bo? ( society & ( ^? m imm$iately conc]n$4 ,c4 ,d4 ,,purdon1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,a comp>ison ( "s ( ! m important items 9 ! ,m9nesota valuation may be ( int]e/4 ,9 ! ,co/ ( ,con/ruction ( ,roadb$ & ,track1 ! pr9cipal items are3 ,l& #be4df ,cle>+ & grad+ #ba4di ,rails #ab4gb ,bridges #g4ja ,ties #f4gb ,^! five items am\nt to #gc4dj ( ! total co/1 & ,adaptation & ,solidification ( ,roadb$ to #d4ec1 ! o!r tw5ty-?ree items am\nt+ to #bb4jg p] c5t4 ,! e/imat$ value ( ,adaptation & ,solidification ( ,roadb$ ranges f #edc to #a1edb4hj p] mile1 av]ag+ #a1bca4ib1 :i* includes #d = eng9e]+4 ,if eng9e]+ is omitt$1 ! av]age = all roads is #a1abd4ie1 & = ,c>ry+ ,roads#dh #a1abh4af4 ,! multipli] = co/ ( "r ( way 0 asc]ta9$ f ! m>ket value ( l& 9 ! vic9ity1 z %[n by late transf]s1 & ! prices paid = "r ( way at ab\t ! same "t2 ?is co/ rang$ f #aie to #hia ( ! m>ket value4 ,tak+ all roads1 ! co/ ( l& = t]m9als 0 #ga4je ( ! total co/ ( l& = all purposes1 b only #c4gh ( ! quantity4 ,a4 ,,mordecai1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,mr4 ,riggs has done a valuable s]vice 9 prep>+ ?is v able & pa9/ak+ pap]1 z ! subject ( ! prop] value ( ,public ,s]vice ,corporation prop]ty is "o b lately dem&+ att5tion4 ,:5 ! c\ntry 0 undevelop$1 & ! railroad companies /ruggl+ = exi/5ce1 & (t5 ahead ( ! ne$s ( ! p1 no criticism 0 made2 b1 dur+ ! la/ few ye>s1 securities h increas$ s l>gely1 ! increas$ issue (t5 be+ manipulat$ s z to accrue to ! b5efit ( a few individuals 9 place ( ! great mass ( orig9al security hold]s1 rates h be5 made & def5d$ on ! plea t ! increase 0 necess>y to pay a fair int]e/ on ! capital inve/$1 & increases 9 assessm5ts = taxes 7 f\ght & criticiz$ to su* an ext5t by ! companies t ! public seems to ?9k x absolutely necess>y to h "s inve/igat+ & regulat+ p[]4 ,x argues t ! hi/ory ( ! pa/ %[s t we _c dep5d on ! (ficials !mselves1 n f any desire to be di%one/ or unfair1 b m]ely t !y _c rea* ! prop] po9t ( view4 ,aft] ye>s ( /ruggl+1 !y _c see ! ju/ice ( be+ oblig$ to %[ _! books or h _! incomes di/urb$1 :ile !y see a neighbor+ factory1 own$ by a l *>t]$ company protect$ by pat5ts & copyrights1 greatly enl>g$1 & ! company pay+ a v h&some return on an ev]-increas+ capital1 )\t inve/igation ( any k9d4 ,no "o supposes t any body ( legislators or a committee select$ f "o %\ld und]/& ! situation bett] ?an ! manag]s !mselves1 b ! public1 =c$ to look some:]e1 dem&s t its repres5tatives try to regulate ^! matt]s & see t no abuses occur1 fully aw>e t ! ma*9]y is n p]fect4 ,x asks3 ,z to ,capital3 t ! company c %[ prop] value = ! securities issu$1 &1 if an increase is made1 ! sum obta9$ %\ld be us$ = ! bett]m5t ( ! prop]ty2 ,z to ,rates3 ! ,c\rts h said t :at ! company is entitl$ to ask is a fair return on ! value ( t :i* x uses = ! public conv5i5ce2 ,z to ,taxes3 :at is ! true value ( ! prop]ty ( ! company1 treat+ x ) absolute equality1 z comp>$ ) t ( o!r taxpay]s8 ,x is to det]m9e :at ^! values are t ! ,eng9e] among o!rs has be5 call$ on4 ,! lit]ature on ! subject is increas+1 & !re are "s decisions ( ! ,c\rts :i* help1 b !re are yet p]plex+ & intricate que/ions to be det]m9$2 n to be answ]$ by capti\s criticism & indignant retort1 b by an hone/ ef=t to arrive at "s common gr\nd ( fairness to bo? ,/ate & ,corporation2 =1 aft] all1 ! ,corporation is a "p ( ! ,/ate1 a great di/ributor ( money1 a l>ge taxpay]1 its /ockhold]s m5 ( wor? & capacity1 & !re %\ld be no desire to p5alize x or int]f]e ) its legitimate prosp]ity4 ,! ,corporation is surely dep5d5t on ! ,/ate & ! good w ( ! p = its welf>e4 ,mi/akes h be5 made1 no d\bt1 j because ?is common gr\nd has n be5 rea*$1 & ! writ] ?9ks t x is l>gely )9 ! prov9ce ( ! ,eng9e] to e/abli% x4 ,9 arriv+ at ei!r ( ^! values1 ! *ief tangible asset is ! value ( ! physical prop]ty4 ,?is c be det]m9$ ) a great degree ( accuracy1 & ?\gh by no means alone repres5t+ any ( ! values1 x seems to be indisp5sable z a basis & />t+ po9t4 ,! balance %eets ( ! ,corporation comm5ce ) a /atem5t ( ! co/ ( road1 plant1 etc41 & mu/ be *eck$ to p]mit correct d$uctions f ! results ( op]ation %[n 9 !m2 &1 = purposes ( taxation1 !y w\ld seem to be p>ticul>ly reliable4 ,! ,eng9e] call$ on to make su* a valuation = :atev] purpose %\ld1 "u l conditions1 value ea* item ! same = all1 b x does n foll[ t e item1 includ+ ! p]c5tages add$1 %\ld appe> 9 ! total valuation = all purposes4 ,!re are legitimate *>ges 9 valuations made to det]m9e capital :i* %\ld n appe> 9 "o made = assessm5t = taxes4 ,unit prices %\ld n *ange1 b ! purpose = :i* ! valuation is made %\ld prop]ly be consid]$ 9 arriv+ at ! f9al figure4 ,to or f ?is valuation1 especially if made to det]m9e prop] capital1 !re mu/ be add$ or subtract$ c]ta9 values = intangible prop]ty1 (t5 f\nd by a /udy ( ! income acc\nt ( ! ,corporation4 ,?is makes ! (ficial ask3 ,:y make a valuation ( ! physical prop]ty at all if y\r f9al result dep5ds on ! income8 ,because x is "o item :i* _c be manipulat$2 x does n *ange mat]ially f ye> to ye>2 x is n dep5d5t on rates or income2 x =ms a v l>ge item 9 ! assets ( ! ,corporation2 & x is a s\nd basis on :i* to /&4 ,= ! purpose ( det]m9+ ! prop] am\nt ( securities1 ! co/ ( reproduction at pres5t prices w\ld seem to be ! value s\ght2 :]eas1 = taxation purposes1 or to det]m9e a prop] sell+ price1 ! pres5t value is :at is requir$1 all[ance be+ made = depreciation4 ,a railroad1 = in/ance1 might be consid]$ z an in/rum5t = transport+ pass5g]s & freight1 &1 ?\gh ! ties are n new1 ! rails worn1 & ! locomotives ( an old type1 !y d _! "w j z safely & exp$iti\sly1 &1 if no acc\nt is to be tak5 ( ! co/ ( ma9t5ance1 ! road might be consid]$ to be wor? z mu* z if new4 ,! (ficials ( ! ,corporation are g5]ally p]fectly will+ to give any facts or to furni% access to any records !y may h1 b are n will+ to /ate _! op9ions z to prices1 depreciation1 etc4 ,! ,eng9e] is mak+ ! valuation1 n !y2 & !y res]ve ! "r to criticize1 at ! prop] "t1 bo? ! results & ! conclusions drawn f !m4 ,! ,eng9e] %\ld be absolutely fair & j1 n us+ improp]ly ! in=mation obta9$1 b endeavor+ to rea* results :i* appe> to be unque/ionably correct4 ,he mu/ dive/ 8 m9d ( ! innate desire to m9imize ! consequ5ces ( 8 decision to ! ,corporation1 on ! "o h&1 or to favor ! ,/ate or 8 employ]1 on ! o!r2 x may be difficult1 b on 8 ability to d ?is dep5ds ! success or failure ( 8 "w4 ,consid]+ ! subject g5]ally3 9 mak+ ! valuation ( ! physical prop]ty1 ! organization %\ld consi/ ( "o man 9 *>ge1 & "u him a field organization & an (fice organization4 ,! prop]ty1 if l>ge1 %\ld be divid$ into conv5i5t di/ricts1 ) a division eng9e] & necess>y assi/ants 9 *>ge ( ea*4 ,c>e %\ld be tak5 t ^! assi/ants are compet5t m51 ?\gh !y are (t5 h>d to obta9 = tempor>y "w ( ?is "*1 & !re is n suffici5t "t 9 :i* to we$ out & p]fect an organization4 ,!y %\ld be m5 ( exp]i5ce on ! p>ticul> class ( "w to :i* !y are assign$1 & %\ld be tactful & c\rte\s4 ,/ress %\ld be laid on keep+ pla91 neat notes1 n too cr[d$2 on wat*ful c>e ( ! p>ty work+ 9 ! field1 to prev5t accid5ts1 & on ! necessity ( absolute correctness 9 calculations & figures1 9 ! multitude ( :i* x is surpris+ h[ _m mi/akes w creep 9 unless special c>e is tak5 to *eck e /ep ?or\ghly4 ,! (fice eng9e] %\ld be equally compet5t1 & accu/om$ to sy/ematiz+ & analyz+1 s t ! results w be arrang$ sy/ematically1 n only z consid]$ by !mselves1 b z f> z possible accord+ to ! classification ( ! ,int]/ate ,comm]ce ,commission1 s t1 no matt] :]e made1 !y c be easily comp>$4 ,! "w1 if l>ge1 %\ld be /&>diz$4 ,ev]y?+ to be report$ %\ld h a =m = ! purpose4 ,^! %\ld be z concise z possible1 call+ att5tion to ! ess5tial in=mation1 b n 9 too mu* detail4 ,unit prices %\ld be e/abli%$ aft] prop] consid]ation4 ,reproduction ,value4--,9 asc]ta9+ ! reproduction value1 ! aim %\ld be to obta9 prices = :i* ! mat]ial c\ld be pur*as$ & ! "w let to responsible p>ties at ! date ( ! valuation4 ,real e/ate & depreciation are probably ! two items 9 :i* !re w be ! l>ge/ diff]5ces 9 op9ion z to values1 & bo? %\ld be det]m9$ by ! p]sonal exam9ation ( exp]ts1 foll[+ "s pre>rang$ sy/em4 ,"o f\nd$ on ! ,som]s sy/em might d = ! l&1 & c]ta9 p]c5tages ( depreciation p] ye>1 v>y+ = ! ?ree conditions ( good1 fair & poor1 = ! /ructures & equipm5t1 b ! results 9 any case %\ld be exam9$ & pass$ ^u by "s "o p]son s z to elim9ate ! individual equation z f> z possible4 ,x is :5 ! figures ?us rea*$ are be=e him t ! ,eng9e] f9ds himself confront$ ) _m p]plex+ problems4 ,to :at items %\ld p]c5tages be add$1 & 9 :at am\nts8 ,a small *ange 9 su* items (t5 makes a l>ge diff]5ce 9 ! total4 ,!re is n mu* tr\ble ab\t g5]al exp5ses1 legal exp5ses1 eng9e]+1 etc41 z ^! are und\bt$ly prop] items to be add$1 & ! am\nts ( ! p]c5tages are n difficult to det]m9e f suffici5t /udy ( ! prop]ty4 ,op9ions on su* matt]s w n v>y greatly1 b !re is a diff]5ce ) reg>d to su* items z leasehold int]e/s1 solidification1 cont+5cies1 int]e/ & taxes dur+ con/ruction1 commissions & disc\nts on securities1 work+ capital1 value ( ! good w1 & consid]+ ! prop]ty z a go+ conc]n1 ab\t :i* op9ions w diff] mu* m widely4 ,leases f ! company are l any o!r book asset4 ,leases to ! company %\ld be consid]$ z ! l& is consid]$4 ,:at is ! pres5t value ( ! leasehold int]e/ = ! rema9d] ( ! t]m = :i* ! r5tal is fix$8 ,pres5t ,value4--,9 asc]ta9+ ! pres5t value1 x w\ld seem t some?+ %\ld be all[$ = solidification1 ! am\nt dep5d+ on ! mann] 9 :i* ! "w 0 built1 its age1 ! likelihood ( damage by ! elem5ts1 etc4 ,possibly a p]c5tage ( appreciation on ! value ( ! e>?work & masonry w\ld be ! faire/ mann] 9 :i* to consid] x4 ,due c>e mu/ be tak51 h[ev]1 to give prop] cr$it to good "w & n put a premium on inf]ior con/ruction4 ,a p]c5tage %\ld be all[$ = cont+5cies 9 all cases1 b ?is is n necess>ily ! same = e piece ( prop]ty4 ,! e/imate is made on a complet$ piece ( "w1 consequ5tly1 if done ) prop] c>e1 ?is item %\ld n be z l>ge z if ! e/imate 7 made = "w to be con/ruct$2 b !re are _m ?+s1 n se5 by ! e/imat+ eng9e] or disclos$ by available records1 :i* mu/ be cov]$ by ?is item1 su* z build+s b\ght ) ! l& & aft]w>d de/roy$1 damages paid = reasons n n[ app>5t1 difficulties enc\nt]$ 9 excavat+ wet or h>d mat]ial1 am\nts sp5t 9 dr$g+1 9 artificial & difficult f\ndations1 losses dur+ con/ruction on acc\nt ( /rikes1 wa%\ts1 etc4 ,^! are p]fectly legitimate *>ges1 & are likely to h occurr$1 & prop] all[ance %\ld be made = !m4 ,x w\ld seem t int]e/ & taxes dur+ con/ruction is a legitimate *>ge1 & !re=e1 9 ! co/ ( reproduction1 suffici5t am\nts %\ld be add$ to cov] x4 ,c>e %\ld be tak5 to make ! "t long en\gh1 z eng9e]s are (t5 too sangu9e z to ! l5g? ( "t necess>y to complete a c]ta9 piece ( "w4 ,x is true t a "p ( a railroad1 = in/ance1 may be complet$ & op5$ = op]ation1 b ! net rev5ue d]iv$ w\ld be v diff]5t f t ( ! complet$ road ) its t]m9als & connections4 ,a new corporation c r>ely m>ket its securities at p>1 n only on acc\nt ( ! *ances tak5 by ! inve/or1 b also because1 be+ human1 he likes to ?9k he is buy+ at a b>ga91 gett+ some?+ a little bel[ its value2 consequ5tly1 inducem5ts v>y f a small disc\nt on bonds to a %>e or two ( /ock ?r[n 94 ,to :at ext5t a reasonable disc\nt is a prop] *>ge aga9/ con/ruction may be consid]$ an op5 "q4 ,x might seem fair t a c]ta9 fix$ p]c5tage be all[$ 9 valuations1 to det]m9e capital = commissions & necess>y disc\nts1 v>y+ accord+ to ! am\nt ( ! securities4 ,?is ne$ n cov] ! :ole am\nt ( ! disc\nt1 b only t portion :i* exp]i5ce w\ld consid] ess5tial 9 m>ket+ unque/ion$ securities4 ,consid]ation ( ! items work+ capital1 good w1 etc41 may n prop]ly belong to ! ,eng9e]1 b r to ! ,/ati/ician1 except z ! =m] he>s ( su* items be+ us$ z an argum5t aga9/ ! necessity = a valuation ( ! physical prop]ty ( a corporation4 ,x is (t5 ask$1 = in/ance1 h[ c a value be plac$ on ! prop]ty ( ! ,p5nsylvania ,railroad ,company1 ) its great comm]cial position1 its magnific5t t]m9als1 & its spl5did organization1 all ! result ( ! exp5diture ( mu* "t & money8 ,x is c]ta9ly a difficult problem1 b ! ,p5nsylvania ,railroad is "o ( ! greate/ prop]ties 9 ,am]ica1 possibly 9 ! _w1 & because ! prop] valuation ( ?is prop]ty is surr\nd$ ) difficulties x does n foll[ t ! valuation ( ! prop]ties ( all o!r public s]vice corporations are equally tr\blesome4 ,! v difficulty ( ! task %[s ! importance ( hav+ firm gr\nd = ! fir/ /ep4 ,hav+ t1 x may n be z h>d z imag9$ to take o!rs4 ,?us x is se5 t !re are _m p]plex+ que/ions = ! ,eng9e] to consid]1 & _m details = him to "w out1 9 do+ :i* ,mr4 ,riggs' pap] w mat]ially help4 ,above all1 ! ,eng9e] mu/ aim to be imp>tial2 he mu/ arrive at su* a po9t ( view z to see bo? sides ) equal di/9ctness1 & judge fairly & ju/ly1 try+ to det]m9e "s well-def9$ laws & =mulas :i* w s]ve z a basis 9 asc]ta9+ ! values desir$4 ,w4 ,b4 ,,ruggles1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,9 8 discussion ,mr4 ,lavis quotes ! case assum$ by ! ,new ,york ,sun1 ( two bridges ov] ! ,ohio ,riv]--"o betwe5 ,c9c9nati & ,newport & "o #bj miles bel[1 betwe5 villages1 etc4 ,9 #ahih ! writ] 0 employ$ by ! ,bo>d ( ,sup]visors ( ,c9c9nati to put a valuation on its ,ohio ,riv] bridges = purposes ( taxation1 & ! _m po9ts ( view1 z to _! co/ & _! actual value to ! own]s & to ! communities1 7 at t "t1 & h be5 frequ5tly s9ce1 consid]$ by him4 ,9 ?is p>ticul> valuation ! duties ( ! ,eng9e] 7 comp>atively simple & pla91 =1 z !re 7 sure to be controv]sies on two po9ts at lea/1 fir/1 z to ! "r ( ! city to levy any tax on ! bridges z su*1 & second1 z to :e!r any control by ! city ext5d$ to ! c5t] ( ! riv]1 in=mally b g5]ally recogniz$ to be ! division betwe5 ! cities = police & simil> purposes1 or only to ! nor!rly l[-wat] m>k1 ! limit+ b\nd>y to ! ,t]ritory ,nor?we/ ( ! ,riv] ,ohio1 z recogniz$ by ! ord9ance ( #aghg1 x appe>$ to ! ,bo>d to be advisable1 9 ! e>li] /ages ( _! ef=ts1 to avoid1 z f> z reasonable1 any controv]sies conc]n+ details ( ! valuation1 & ! writ] 0 in/ruct$ to give ! bridge companies ! b5efit ( any d\bts4 ,! railroad bridge ( ! ,c9c9nati ,s\!rn ,railway1 ! "o l[e/ on ! riv] & hav+ ! little village ( ,ludl[ at its s\!rn end1 & ?us mo/ ne>ly fill+ ! conditions ( "o ( ! assum$ /ructures ( ! ,sun1 is1 ) its railroad1 ! prop]ty ( ! city1 & ! ,sup]visors believ$ t1 "u ! t]ms ( ! lease to ! op]at+ company1 x %\ld n be tax$4 ,( ! o!r f\r bridges1 ! ,c9c9nati & ,cov+ton ,elevat$ ,railway & ,transf] ,bridge--commonly kn[n z ! ,*esapeake & ,ohio ,railway ,bridge--! ,cov+ton & ,c9c9nati ,susp5sion ,bridge1 ! ,c5tral ,railway & ,bridge ,company's ,bridge1 & ! ,newport & ,c9c9nati ,bridge1 commonly kn[n z ! ,p5nsylvania ,railway ,bridge 7all not$ 9 ! ord] ( occurr5ce1 pass+ up ! riv]71 ! writ] _h (ficial or semi-(ficial reports giv+ su* details ( at lea/ ! pr9cipal features ( ! /ructures t 9 a measure !y suppli$ quantities1 weights1 & "s prices2 ^? lack+ 7 ei!r calculat$ f actual measurem5ts tak5 on ! /ructures or suppli$ f plans furni%$ by ! companies1 s9ce1 z ! sev]al companies reli$ on defeat+ ! ef=ts ( ! sup]vision on legal gr\nds1 !y conc$$ values :i* o!rwise might h be5 /r5u\sly conte/$4 ,z long z ! writ] knew any?+ ( ! results1 ! ,bo>d ( ,sup]visors 0 unsuccessful 9 its purpose to get ! bridges1 z su*1 on ! tax duplicates2 b t has no p>ticul> be>+ on ! po9ts rais$ 9 ?is discussion4 ,( ! five bridges1 ?ree are prim>ily railroad bridges4 ,! ,c9c9nati ,s\!rn ,bridge has "o footway only1 on :i* x =m]ly collect$ tolls2 all ! o!rs h footways & wagonways1 & ! ?ree above ! ,*esapeake & ,ohio ,railway ,bridge c>ry electric railways4 ,! ,newport & ,c9c9nati 7,p5nsylvania ,railway7 ,bridge has all ! features ( /eam & electric railways1 wagonways & footways4 ,9 "s p>ticul>s ^! bridges diff] greatly1 = in/ance1 ! b$-rock ( ! riv] lies at ! surface ( ! mo/ ea/]ly 7,p5nsylvania ,railway7 bridge1 & = ea* successive bridge is f\nd deep]1 z ! riv] is foll[$ we/w>d1 ! riv]-span pi]s ( ! ,*esapeake & ,ohio ,railway ,bridge be+ #ed ft4 bel[ l[ wat] & ^? ( ! ,c9c9nati ,s\!rn ,railway ,bridge be+ likewise v tr\blesome4 ,! two bridges ) exactly ! same uses--d\ble footways1 wagonways1 & electric l9es--are ! adjac5t ,susp5sion & ,c5tral ,bridges1 "o hav+ ! ,city ( ,cov+ton & ! o!r ! ,city ( ,newport at its s\!rn t]m9us1 b ^! diff] mo/ widely z to valuation4 ,! ,susp5sion ,bridge1 z report$ to ! writ] by ! late ,w4 ,hild5br&1 ,m4 ,am4 ,soc4 ,c4 ,e41 ) ! cons5t ( 8 company1 0 valu$ at only a little %ort ( #a1jjj1jjj z re9=c$2 t ( ! ,c5tral ,bridge ,company1 z r$uc$ f ! reports ( ! eng9e]s1 0 v ne>ly "o-?ird1 only1 ( t am\nt1 bo? )\t any "r ( way1 z real e/ate 0 9 all cases li/$ sep>ately4 ,at t "t1 h[ev]1 ! traffic ov] ! ,susp5sion ,bridge1 c\nt$ 9 p]sons & vehicles pass+ ov] its sev]al l9es1 0 n f> f z relatively great] ?an t ( ! ,c5tral ,bridge z its valuation 0 high]1 & x 0 m indisp5sably necess>y1 z ! writ] views x1 ?an ei!r ! ,c5tral ,bridge above1 or ! ,*esapeake & ,ohio ,bridge bel[ x1 = 9 ! ?irty odd ye>s ( its use 7x 0 complet$ 9 #ahfg71 ! adjo9+ communities _h adju/$ _! l9es ( traffic to x1 :ile t pass+ ov] ! o!r two bridges occurr$ m because ( little diff]5ces ( conv5i5ce 7n1 h[ev]1 to be consid]$ o!rwise ?an an important provision 9 traffic ( su* magnitude74 ,disreg>d+ o!r diff]5ces1 su* z ! unit prices ( #aj or #aa c5ts p] lb4 = iron paid by ! ,susp5sion ,bridge ,company 9 ! "t ( ! ,civil ,w>1 comp>$ ) #d4dg c5ts p] lb4 = ! new cable wire or #c4cb c5ts p] lb4 = ! new /ructural /eel1 x appe>s to ! writ] t ! elem5t ( m or less indisp5sable use by a community1 z well z ! great] fre$om ( movem5t 9 ! riv] bel[ by reason ( !re be+ no pi]s 9 ! /ream1 are elem5ts ( value2 b t !y are items to be r$uc$ to figures = ! purpose ( taxation is n s cle>1 any m ?an t !re is equity 9 any dem& t might be made t ! ,new ,york ,c5tral & ,new ,york1 ,new ,hav51 & ,h>t=d ,railroad ,companies %\ld be tax$ on ! additional #bb1jjj1jjj exp5d$ 9 ! electrification ( _! l9es ab\t ,new ,york ,city = ! com=t1 conv5i5ce1 & edification1 n ( ! patrons ( ! roads alone1 b ( ! public at l>ge1 )\t--z j conclud$ by an em95tly able bo>d--any m>k$ economies 9 op]ation4 ,!re is no "q 9 ! writ]'s m9d t any "o l9e ( railroad is sev]al times m valuable to ea* individual 9 inl& regions1 su* z ,mexico & ,arizona1 ?an an equal mileage 9 ,connecticut ) its ,s\nd h>bors1 /eam%ip l9es1 good wagon roads1 & num]\s b non-compet+ railways1 p>tly because ( ! relative usefulness1 = :i* no practicable sub/itute c\ld be f\nd1 & p>tly because ^! new] ,/ates h n ent]$ on all ^! multif>i\s l9es ( gov]nm5tal activities1 su* z polic+ & safegu>d+ = public heal? & ! l1 &1 mu* z funds are ev]y:]e desirable1 c\ld possibly def] = a "t "s ( ^! developm5ts ( civic zeal4 ,x does n appe>1 !re=e1 t ! discrim9ations 9 valuations disclos$ by ! au?or's ,table #a are altoge!r )\t a good basis 9 relative conv5i5ce1 al?\gh cle>ly extreme2 b1 z ! law ( mo/ ,/ates is und]/ood by ! writ]1 su* discrim9ations may n usually be made ) /rict reg>d = ! legality ( tax assessm5ts4 ,x is true1 z rem>k$ by ,mr4 ,riggs1 t a bridge is1 ( itself1 n usually a desirable feature ( a railroad1 b x mu/ be cle> t if !re 7 no riv] betwe5 ,c9c9nati & h] si/] cities 9 ,k5tucky1 communication betwe5 ! two ,/ates might be entirely free1 & ! bus9ess op5+ = toll bridges w\ld n exi/2 consequ5tly1 9 ^! p>ticul> cases1 ! bridges _c be consid]$ undesirable4 ,"o o!r consid]ation be>+ on values has be5 at lea/ sugge/$ by ! /udy ( ! ,c9c9nati ,susp5sion ,bridge4 ,x is1 z indicat$1 ! olde/ riv] bridge at ,c9c9nati1 ! second or ?ird olde/ ov] ! ,ohio ,riv]1 &1 ?\gh repair$ & /r5g!n$1 x has nev] be5 supplant$ by an entirely new sup]/ructure4 ,! next olde/ bridge is ! p9-connect$ ,p5nsylvania ,railway ,bridge1 built five ye>s lat] ?an ! ,susp5sion ,bridge1 b1 at ! "t ( ?is valuation1 x _h be5 entirely replac$ by q a diff]5t /ructure--ev5 ! masonry 0 l>gely rebuilt4 ,9 a degree ?is comp>ative facility ) :i* provisions = ! great] loads c be provid$ )\t condemnation ( ! lead+ features ( ! /ructures has be5 %[n 9 ! ,brooklyn & ,niag>a ,bridges1 ?\gh n by any means p]fectly1 b ! po9t ! writ] w\ld make is t ?is elem5t ( ease ( re9=cem5t1 or ) :i* provision c be made = great] loads1 is to be consid]$ 9 ! au?or's ,physical ,prop]ty ,elem5ts ( ,value1 z d\btless he has conclud$4 ,,h5ry ,,e>le ,,riggs1 ,m4 ,,am4 ,,soc4 ,c4 ,e4 7by lett]74--,! discussion ( ?is pap] has be5 s full1 & s mu* ( x is devot$ to br++ out me?ods ( valuation n fully cov]$ 9 ! pap]1 t x does n appe> to ! writ] desirable to d m ?an to cle> up "o or two matt]s :i* may h be5 left some:at ambigu\s 9 ! pap]1 & to review ! ma9 po9ts on :i* !re is app>5t disagreem5t among eng9e]s :o h engag$ 9 valuation "w4 ,! writ] wi%es to express1 to ^? :o h add$ s mat]ially to ! value ( ! pap] by _! discussion1 8 s9c]e appreciation & 8 ?anks1 & he regrets t1 ow+ to ! l5g? ( ! pap] & ! ext5t ( ! discussion1 x w be impossible to review all ! po9ts rais$4 ,x w\ld appe> t !re are a few matt]s 9 reg>d to :i* ! writ] did n succe$ 9 mak+ 8 views entirely cle>2 consequ5tly1 a few words on ^! items may n be amiss4 ,ov]head ,*>ges ,v]sus ,unit ,values4--,! po9t rais$ by ,mr4 ,higg9s1 t ! det]m9ation ( any p]c5tage figures to be appli$ to cov] ov]head *>ges mu/ be c>efully consid]$ 9 connection ) ! unit prices t h be5 adopt$ & appli$ to ! items ( ! physical inv5tory1 is well tak54 ,on all valuation "w ) :i* ! writ] has be5 connect$ ! v>i\s local conditions 7 tak5 into acc\nt1 &1 = ea* item a figure 0 us$ :i*1 x 0 believ$1 w\ld fairly repres5t su* price z w\ld be nam$ by a contractor = ! "w "u ! exi/+ conditions4 ,!re=e1 all elem5ts ( haz>d to contractors1 & contractors' pr(its1 h be5 includ$ 9 ! unit price1 leav+ to be treat$ "u ov]head *>ges only ^? elem5ts ( co/ :i* ! corporation "u inve/igation w\ld be compell$ to be>4 ,! det]m9ation ( a prop] set ( unit prices = a valuation involves a v c>eful /udy ( prices & local conditions1 s t x w\ld appe> to be impossible to e/abli% any fix$ rule :i* w\ld be g5]ally applicable to all appraisals4 ,if ! unit prices adopt$ be ! co/ to a contractor1 !n ! ov]head *>ges mu/ be made l>ge en\gh to cov] ! contractor's haz>d & pr(it4 ,e appraisal %\ld be accompani$ ) a report or /atem5t1 %[+ cle>ly :at has be5 done 9 ?is matt]4 ,items to be ,inv5tori$4--,9 ref]5ce to ! items to be inv5tori$1 ! con/ruction plac$ on "o s5t5ce by ,mr4 ,newton is entirely =eign to ! mean+ :i* ! writ] int5d$ to convey4 ,mr4 ,newton's /atem5t ( 8 own views is entirely 9 h>mony ) ^? ( ! writ]4 ,disc\nt4--,messrs4 ,h5ry ,c4 ,adams & ,w4 ,h4 ,williams h bo? discuss$ disc\nt1 & bo? take exception to ! conclusions ( ! writ]4 ,?is w\ld appe> to be a subject on :i* !re is disagreem5t 9 all pr(essions4 ,v able & exp]i5c$ railway manag]s & acc\ntants w be f\nd on bo? sides4 ,s9ce ! pap] 0 writt51 ! writ] has be5 engag$ on ! appraisal ( a comp>atively new prop]ty :i* 0 def5dant 9 a condemnation suit4 ,9 ?is case1 #bj-ye> bonds 7 issu$ 9 #aije1 & sold at an av]age disc\nt ( #ae p] c5t4 ,! disc\nt has be5 treat$ z an int]e/ *>ge on ! books ( ! company1 & 0 be+ writt5 (f f ye> to ye>4 ,! "q arose3 ,%\ld ! disc\nt balance 7approximately ?ree-qu>t]s ( ! disc\nt7 be add$ to ! physical value & paid by ! p>ties acquir+ ! prop]ty2 or %\ld ! loss be su/a9$ by ! own]8 ,! treatm5t ( ! acc\nt on ! books ( ! company 0 9 exact accord ) ! writ]'s fir/ cont5tion1 b a c>eful /udy ( ! case 9 h& l$ to ! conclusion t equity dem&$ inclusion ( ! unamortiz$ disc\nt 9 ?is case4 ,_h ! condemnation tak5 place 9 #aibe1 aft] all ! disc\nt item _h be5 *>g$ aga9/ op]ation1 no "p ( ?is am\nt w\ld appe> to be prop] 9 an appraisal4 ,?is case is cit$ z be+ ! only "o :i* has come up 9 ! writ]'s practice 9 :i* he has be5 incl9$ to recognize ! propriety ( includ+ ! item4 ,! writ] is n yet conv9c$ t 8 fir/ conclusion 0 9 error4 ,pr(essor ,adams sugge/s sev]al diff]5t claims made z to ! disc\nt item4 ,if any "o ( !m be adopt$1 has suitable agreem5t be5 advanc$ = treat+ ! item z a capital *>ge8 ,cle>ly1 ! am\nt ( money involv$ 9 ! disc\nt item is n paid by ! company until ! maturity ( ! bond4 ,x is n inve/$ 9 ! physical prop]ty ( ! company until x is paid4 ,if writt5 (f f ye> to ye> & *>g$ aga9/ op]ation1 or treat$ z a d$uction f e>n+s or f surplus1 x w\ld h>dly seem prop] to include x 9 capital at ! end ( ! p]iod4 ,! writ] is op5 to conviction1 b he has n yet be5 conv9c$ ( 8 error on ?is po9t4 ,happily1 ?is is an item1 ! am\nt ( :i* may be exactly det]m9$ f ! books ( any company "u inve/igation2 s t1 :atev] ! f9al det]m9ation may be z to ! propriety ( its inclusion 9 an appraisal1 ! am\nt to be treat$ is n a matt] ( e/imate4 ,"o ,value ,v]sus ,sev]al ,values4--,! writ] has call$ =? discussion on ?is po9t f sev]al memb]s1 &1 9 view ( "s ( ! discussion1 he believes t a few s5t5ces may t5d to cl>ify 8 views3 7#a7 ,an appraisal %\ld be 9 complete detail1 & %\ld %[ fully1 n only all s*$ules ( physical prop]ty & ( unit co/s & depreciation p]c5tages on :i* physical values are bas$1 b %\ld completely detail all s*$ules bas$ on an exam9ation ( ! books4 7#b7 ,! f9al summ>y %\ld include e elem5t ( value :i* ent]s into ! prop]ty1 & :i* %\ld ent] into ! fair value or true value ( ! prop]ty1 if valu$ = any purpose :atsoev]4 7#c7 ,an assess$ value = taxation purposes %\ld n necess>ily include all ! items 9 ! eng9e]+ valuation2 b an assessm5t c be made ) absolute fairness if all ! facts are at h& & 9 su* =m t non-taxable items are sep>able4 7#d7 ,if rate-mak+ or ! sale ( ! prop]ty be ! ultimate object1 ! "w ( mak+ rates or ( negotiat+ ! sale c be c>ri$ on to bett] advantage ) a complete appraisal ?an ) an incomplete "o4 7#e7 ,! "w 9 ! ,/ates ( ,m9nesota & ,wa%+ton 0 done ) "o object 9 view4 ,x 0 ultimately us$ = ano!r purpose4 ,if a l[ valuation is delib]ately made = taxation purposes1 s]i\s emb>rassm5t is likely to arise :5 rate legislation is contemplat$4 ,x w be v difficult = an eng9e] to su/a9 8 position :5 he submits "o true value or fair value1 ) ! expectation t x w be us$ z a figure = assess$ valuation1 & ano!r & radically diff]5t "o z a basis = rate-mak+4 ,x w\ld appe> to be mu* easi] to submit a complete set ( s*$ules1 %[+ ! co/ ( reproduc+ ! physical prop]ty1 depreciation1 pres5t physical value1 toge!r ) all o!r elem5ts affect+ ! f9al value1 & !n to po9t out t c]ta9 modifications w\ld appe> to be prop] 9 an assessm5t = taxes4 7#f7 ,! actual mak+ ( rates or ( assessm5ts = taxation is n a duty usually assign$ to a body ( eng9e]s4 ,mr4 ,dana's discussion is direct$ to ?is phase ( ! subject1 & br+s out a numb] ( po9ts :i* are sugge/$ above v fully4 ,?is is a matt] on :i* eng9e]s h radically diff]$ 9 practice1 & x involves a pr9ciple ( valuation :i* %\ld be f9ally det]m9$ z soon z practicable4 ,fur!r discussion 9 connection ) ?is pap] w\ld h>dly accompli% any def9ite end1 !re=e x is left1 ) emphasis on ! fact t !re are radical diff]5ces ( op9ion reg>d+ x4 ,go+ ,conc]n4--,! discussion ( ?is pap]1 tak5 9 connection ) ! pap] by ,mr4 ,alvord be=e ! ,am]ican ,wat]-,works ,association1 & ! rec5t pap] by ,messrs4 ,metcalf & ,alvord1#di br+s out cle>ly ?ree po9ts ( view3 7#a7 ,t ( ,pr(essor ,h5ry ,c4 ,adams1 /at$ by him 9 v>i\s publications1 & advocat$ by ! writ] 9 ! pap]3 ,t !re is no go+ conc]n value1 z su*1 b t all intangible elem5ts ( value m]ge into "o non-physical value1 :i* may be det]m9$ by a /udy ( ! income acc\nts ( ! p>ticul> prop]ty "u inve/igation4 7#b7 ,! ,wiscons9 ,me?od1 sometimes call$ ! ,cooley ,me?od4 ,! g5]al pr9ciples ( ?is are describ$ s fully & s cle>ly 9 ,mr4 ,gillette's discussion1 "u ! head ( ,developm5t ,exp5se1 t fur!r explanation is unnecess>y4 7#c7 ,! me?od advocat$ by ,mr4 ,metcalf 9 8 able discussion ( ?is pap]1 & by ,messrs4 ,metcalf & ,alvord 9 _! pap]4 ,! writ] _c conc$e ! accuracy ( ! position ( ,mr4 ,burns1 t int]e/ dur+ con/ruction %\ld be elim9at$ f ! physical valuation ( ! prop]ty & includ$ z "p ( ! go+ value4 ,int]e/ dur+ con/ruction is no less a "p ( ! actual co/ ( con/ruct+ ! prop]ty ?an ! rails 9 a railroad or ! wat] pipe 9 a wat]-works plant4 ,nor c ! writ] accept ,mr4 ,metcalf's optimi/ic view ( ! probable action ( ! ,supreme ,c\rt :5 x w be call$ on to pass squ>ely on ! go+ conc]n value 9 a rate case4 ,mr4 ,metcalf says3 ,c]ta9ly1 z appli$ to wat]-works valuation1 ,mr4 ,riggs' /atem5t is n ju/ifi$4 ,! ,ma9e cases cle>ly include go+ value z an elem5t ( value on :i* rates %\ld be pr$icat$2 by inf]5ce1 s does ! ,kansas ,city case4 ,9 ! ,knoxville case x 0 9 fact all[$ by ! ,ma/]4 ,?is is all true4 ,! ,knoxville case1 h[ev]1 rea*$ ! ,supreme ,c\rt1 & ! ,supreme ,c\rt squ>ely side-/epp$ go+ value 9 ! foll[+ words3 ,we express no op9ion z to ! propriety ( ^! two items 'organization promotion1 etc41' & 'go+ conc]n'1 9 ! valuation ( ! plant = ! purpose = :i* x 0 valu$ 9 ?is case1 b leave t "q to be consid]$ :5 x necess>ily arises4 ,judge ,lurton1 9 uphold+ an intangible value 9 ! ,omaha case1 & quot+ among o!rs ! ,kansas ,city case & ! ,gl\ce/] & ,norwi* cases1 :i* approv$ & foll[$ ! ,kansas ,city case1 significantly adds3 ,no su* "q 0 consid]$ on ,knoxville ,wat] ,co4 #bab ,u4 ,s41 #a or ,wilcox vs4 ,consolidat$ ,gas ,co4 #bab ,u4 ,s41 #ai2 bo? cases 7 rate cases1 & did n conc]n ! asc]ta9m5t ( value "u contracts ( sale4 ,! writ] q incl9es to ! views express$ by ,mr4 ,gillette1 & fails to read any approval ( go+ conc]n or go+ value1 z advanc$ by our wat]-works bre?r51 :5 ! det]m9ation ( a value on :i* to base rates is ! issue4 ,t !re is s\nd logic 9 ,mr4 ,gillette's argum5t = developm5t exp5se--:i* diff]s 9 ! la/ analysis b little f ,mr4 ,metcalf's pres5tation ( go+ value--! writ] w admit4 ,!re are _m corporations 9 exi/5ce to-day :i* h made sub/antial inve/m5ts 9 creat+ a successful bus9ess aft] ! physical plant 0 complet$ & 9 op]ation4 ,x h>dly seems equitable t su* an inve/m5t %\ld n be tak5 into acc\nt 9 fix+ a value4 ,! real difficulty lies 9 draw+ ! l9e betwe5 ! really valuable prop]ty1 & "o :i* is truly a pr(itable inve/m5t1 & t prop]ty :i*1 by reason ( poor bus9ess judgm5t 9 its creation1 faulty or uneconomical con/ruction or bad managem5t1 is n e>n+ a reasonable pr(it4 ,! writ] has giv5 "s /udy to ! !ory advanc$ by ,pr(essor ,cooley 9 ! ,milwaukee ,/reet ,railway case1 & lat] adopt$ by ! ,wiscons9 ,commission 9 ! ,antigo ,wat] case1 b is n yet ready to accept x4 ,! hypo!tical curve appe>s to be acceptable & reasonable1 b ! actual application ( ! =mula to cases :i* h come "u ! writ]'s att5tion1 fails to %[ a pr(it at ! end ( a p]iod ( ye>s4 ,if ! rule be /at$3 ! great] ! deficit 9 e>n+s ! great] ! value1 !n ?is me?od may be ( g5]al application1 b x does n appeal to ! writ] z s\nd bus9ess to advocate ! assign+ ( any non-physical or go+ value to a prop]ty unless ! prop]ty has1 = "s ye>s1 actually be5 e>n+ a return on ! inve/m5t :i* is l>ge en\gh to ju/ify fully ! claim t x is wor? m ?an x co/1 or m ?an its pres5t physical value4 ,if1 dur+ ! fir/ few ye>s1 !re 0 a deficit1 due to ! exp5se ( creat+ ! dem& = ! commodity produc$ & build+ up ! bus9ess to a pr(itable condition1 x may be s\nd to include ?is elem5t 9 an appraisal4 ,! actual co/ may be det]m9$1 b ! co/ ( reproduction is pure speculation4 ,! actual co/ ( a ton ( rail1 a locomotive1 a boil]1 or ! copp] = a transmission l9e b\ght fifte5 ye>s ago may be radically diff]5t f ! co/ ( reproduction ( ! same physical ?+s to-day2 b t co/ ( reproduction is radically det]m9$ z ! ?+s are be+ b\ght & sold 9 ! op5 m>ket4 ,n s1 h[ev]1 ) ! developm5t *>ge1 or co/ ( creat+ a bus9ess4 ,conditions are n ! same1 !y may n be at all simil>4 ,)\t argu+ ! subject fur!r1 ! writ] submits t ?is is a matt] t requires ! greate/ ( c>e 9 its treatm5t4 ,! adoption ( any rule :i* w assign a go+ value to a prop]ty :i* has be5 manag$ s t x n only has nev] e>n$ a l>ge return on ! inve/m5t1 b has n tak5 c>e ( depreciation--a prop]ty :i* w\ld n appeal to f9ancial m5 z a s\nd inve/m5t at its physical valuation--w n only be difficult to su/a9 9 ! ,c\rts1 b w t5d to discr$it ! entire subject ( valuation4 ,! writ]'s pres5t feel+ is t ! t]m go+ conc]n ought to be elim9at$ f ! nom5clature ( valuation practice1 & t scant consid]ation ought to be giv5 to any attempt to include anticipat$ pr(its 9 any mann] 9 a valuation4 ,mr4 ,kui*l+ has sugge/$ t "s fur!r data z to ! ,mi*igan ,appraisal might be ( value4 ,un=tunately1 ! writ] has n 9 available =m in=mation z to diff]5t classes ( railroads4 ,table #ae1 bas$ on ! av]age ( all ! roads 9 ,mi*igan1 0 prep>$ by ,james ,walk]1 ,*ief ,eng9e] ( ! ,mi*igan ,bo>d ( ,/ate ,tax ,commission]s1 aft] ! completion ( ! ,mi*igan ,appraisal4 ,column #b gives ! p]c5tage ( ea* item to ! entire co/ ( reproduction4 ,column #c gives ! av]age p]c5tage ( conditions4 ,! rema9+ f\r columns give ! av]age co/ ( reproduction p] mile on v>i\s mileage bases4 ,x mu/ be borne 9 m9d t ,mi*igan is geographically unlike any o!r ,/ate 9 ! ,union1 t ! mileage ( high-class ma9-l9e railroad is relatively small1 & t !re is a l>ge mileage ( *eap bran* l9es & logg+ roads4 ,z a result1 ^! g5]al av]ages are ( little value = comp>ison ) simil> figures 9 o!r ,/ates1 :]e trunk-l9e mileage =ms a great] p]c5tage ( ! entire mileage4 ,9 clos+1 ! writ] believes t x is b ju/ice to himself to correct a few mislead+ /atem5ts 9 ,mr4 ,williams' discussion :i* might cause s]i\s misund]/&+ ( ! writ]'s views4 ,mr4 ,williams ref]s to 8 discussion ( ,pr(essor ,adams' pap] be=e ! ,am]ican ,economic ,association 9 ,decemb]1 #aiji1 he also aga9 ref]s to ! same pap]1 & conveys ! impression t ! writ] discuss$ ?is p>ticul> article 9 ! pap] be=e ?is ,society4 ,ref]5ce to page #aje w %[ t ! writ] did n ref] to ?is pap] 7:i*1 9 fact1 he did n see until 8 own pap] 0 9 pr9t71 b to "o writt5 by ,mr4 ,williams 9 ,janu>y1 #aiji1 & giv5 ! wide/ publicity1 n only by its di/ribution 9 pamphlet =m1 b by publication 9 ! columns ( ,railway ,age ,gazette4 ,,table #ae4 ,item4 ,p]- ,pres5t ,,co/ ,,p] ,,mile1 ,,on ,,basis ,,(3 c5tage value4 ( ea* ,co/ item to p]- entire c5tage4 co/ ( repro- duction4 ,ma9 ,ma9 ,ma9 ,ma9 track4 track track1 track1 #g1jhb & bran- bran- miles4 bran- *es1 *es1 *es4 spurs1 spurs1 #b #g1hac & sid+s1 miles4 sid+s4 & #aj1gah second miles4 track4 #aj1hhc miles4 #a4 ,eng9e]+ #b4g #ajj #gfa #fhi #ejc #die #b4 ,"r ( way #ac4g #ajj #c1iah #c1eea #b1ehi #b1edb #c4 ,real e/ate #j4d #ajj #abb #aaj #ha #gi #d4 ,grad+ #aj4g #ii4i #c1jfd #b1ggg #b1jbe #a1iid #e4 ,tunnels #j4f #ie4b #afb #adg #ajg #ajj #f4 ,bridges #d4j #gh4i #a1acc #a1jbg #gdi #gch #g4 ,ties #e4e #ee4b #a1egh #a1dbf #a1jdj #a1jbd #h4 ,rails #ad4a #gf4b #d1jeb #c1fgc #b1fgh #b1fcg #i4 ,track #a4i #gg4g #edc #dib #cei #cec fa/5+s #aj4 ,frogs1 #j4g #gj4g #bjg #ahh #acg #ace swit*es #aa4 ,balla/ #a4h #ajj #ebe #dgg #cdg #cdb #ab4 ,track lay+ #c4b #ig4f #ibf #hci #fab #fjb #ac4 ,f5c+ #a4d #eh4i #cij #ced #beh #bed #ad4 ,cross+s #j4c #gj4e #hf #gh #eg #ef #ae4 ,int]lock]s #j4b #hi4d #ga #fd #dg #df #af4 ,telegraph #j4a #eb #cf #cc #bd #bd #ag4 ,/ations #j4b #ge4g #ehj #ebf #chd #cgh #ah4 ,%ops #j4a #fh #cje #bgf #bjb #aih #ai4 ,%op #j4e #gi4f #aef #adb #ajd #ajb ma*9]y #bj4 ,wat] #j4d #ga4i #ajc #ic #fh #fg /ations #ba4 ,fuel /ations #j4a #ff4d #dc #ch #bi #bh #bb4 ,elevators #j4f #ge4e #ahi #aga #abe #abc #bc4 ,w>eh\ses #j4a #ga4a #cg #ce #bd #bd #bd4 ,docks & #b4g #fi4c #gha #gjh #eaf #ejg :>ves #be4 ,miscellane\s #j4f #fi4d #agd #aeh #aae #aac /ructures #bf4 ,locomotives #d4d #ef4d #a1bgd #a1aed #cdb #hbi #bg4 ,pass5g] #a4f #ga4b #deb #dji #bii #bid equipm5t #bh4 ,freight #i4g #fi4d #b1ghg #b1ebe #a1hda #a1hac equipm5t #bi4 ,miscellane\s #j4c #fj4c #ii #ij #ff #fe equipm5t #cj4 ,f]ries & #j4h #fc4e #bdd #bba #afa #aei /eam]s #ca4 ,electric #j4jjd #if4f #ac #ab #i #i plants #cb4 ,t]m9als #cc4 ,legal #j4c #ajj #ie #hf #fc #fb exp5ses #cd4 ,int]e/ #b4f #ajj #gdg #fgg #did #dhf #ce4 ,organization #a4c #ajj #cgc #cci #bdg #bdc #cf4 ,cont+5cies #i4a #hb #b1fjb #b1ceh #a1gab #a1fie #cg4 ,total co/ #ajj #hb4abh1fbc #be1ide #ah1iad #ah1fbg ,! writ] does n c>e to p]mit to g unnotic$ ! imputation t he has attack$ railroad (ficials z a class4 ,if su* inf]5ce is to be drawn f ?is pap]1 he desires to correct x4 ,! writ] 0 9 railway s]vice = "s ye>s1 = six ye>s 9 an (ficial position4 ,= ! pa/ fifte5 ye>s he has be51 at frequ5t int]vals1 on special s]vice = railroads4 ,he is at pres5t "u employm5t by two ( ! pr9cipal railways ( ! c\ntry4 ,he has _m w>m fri5ds 9 ! s]vice1 _m 9 (ficial capacities1 & he is fully cognizant ( ! high ability1 integrity1 & loyalty ( railway employees1 & by employees he means to be und]/ood z includ+ all classes1 f ! highe/ (ficials d[n4 ,inasmu* z our railroads =m our greate/ indu/ry1 & inasmu* z ! active heads ( ! l>ge roads h "u _! control su* prop]ties z b few 9 o!r fields are call$ to adm9i/]1 x foll[s t !re are hundr$s--yes1 ?\s&s--( m5 9 railway s]vice1 compet5t to fill any (fice 9 ! l&4 ,! writ] repeats3 x is a pity t ! dem&s ( _! "w are su* t !y _c give m ( ! b5efit ( _! highly specializ$ tra9+ to ! public s]vice1 & t !y h s (t5 app>5tly misund]/ood or miscon/ru$ ! p]fectly hone/ attempts ( public (ficials to f9d a rem$y = real evils4 ,9 clos+1 ! writ] desires to say t he regrets ! impossibility ( treat+ ! subjects ( depreciation & fair return 9 a satisfactory mann] )\t unduly l5g!n+ ?is discussion4 ,x may n be out ( place to say t1 9 ! writ]'s op9ion1 a fair return on ! av]age public s]vice corporation prop]ty %\ld be consid]ably 9 excess ( ! figures usually nam$4 ,!re is b little inc5tive to inve/ 9 railways1 /reet railways1 or o!r public s]vice corporations1 if ! limit ( return is to be #g1 or #h1 or ev5 #aj1 on ! actual inve/m5t4 ,?is is especially true :]e ! haz>d ( inve/m5t is increas$ by t]m fran*ises "u :i* ! companies are op]at+4 ,! writ] has ! mo/ absolute confid5ce 9 ! ability & integrity ( our ,supreme ,c\rt1 & is l$ to believe t1 on a prop] %[+1 confiscation w n be p]mitt$4 ,he also believes t1 9 g5]al1 ! great mass ( intellig5t p wi% only absolutely fair deal+ ) ! corporations4 ,on mak+ a full & frank %[+ ( facts & conditions1 ! public s]vice corporation :i* is hone/ly f9anc$ & hone/ly op]at$1 ne$ h little fe> ( ultimate ju/ice4 ,! public s]vice corporation :i* is adm9i/]$1 n to r5d] s]vice to ! public1 b to p]mit /ock speculators to reap a h>ve/1 c h>dly hope = ! same br& ( ju/ice1 & x is h>dly to be expect$ t su* a corporation w welcome publicity4 ----- ,footnote #ai3 ,electric ,railway ,j\rnal1 ,janu>y #h?1 #aiaj4 p4 #gf4 ,footnote #bj3 ,decemb] #d?1 #aiaj4 ,footnote #ba3 ,railroad ,age ,gazette1 ,july #bd?1 #aijh4 p4 #ehg4 ,footnote #bb3 ,eng9e]+ ,news1 ,june #af?1 #aiaj1 p4 #fig4 ,footnote #bc3 ,m>* #d?1 #aiaj4 ,footnote #bd3 ,railroad ,age ,gazette4 ,july #ca/4 #aijh1 p1 #fbg4 ,footnote #be3 ,eng9e]+-,contract+1 ,may #be?1 #aiaj1 p4 #dfh4 ,footnote #bf3 ,railway ,age ,gazette1 ,m>* #d?1 #aiaj1 p4 #dcg4 ,footnote #bg3 ,electric ,railway ,j\rnal1 ,janu>y #ae?1 #aiaj1 p4 #aaj4 ,footnote #bh3 ,pr(essor ( ,political ,economy & ,f9ance1 ,univ]sity ( ,mi*igan4 ,footnote #bi3 ,= conv5i5t ref]5ce1 a set ( ^! =ms is fil$ 9 ! ,libr>y ( ! ,society4 ,footnote #cj3 ,n[ ,m4 ,am4 ,soc4 ,c4 ,e4 ,footnote #ca3 ,transactions1 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lii1 p4 #cbh4 ,footnote #cb3 ,elem5ts ( ,railroad ,eng9e]+4 ,footnote #cc3 ,mi*igan ,c5tral vs4 ,p[]s ,record1 p4 #ejj4 ,footnote #cd3 ,second ,annual 7#ahhh7 ,report ( ! ,int]/ate ,comm]ce ,commission1 p4 #fd4 ,footnote #ce3 ,lett] ( ,hon4 ,m>t9 ,a4 ,knapp1 ,*airman ( ! ,int]/ate ,comm]ce ,commission1 to ,hon4 ,/eph5 ,b4 ,elk9s1 ,*airman ( ! ,s5ate ,committee on ,int]/ate ,comm]ce1 cov]+ a !n p5d+ bill provid+ = railway valuation1 ,m>* #be?1 #aijh4 ,footnote #cf3 ,pages #ah-ai4 ,footnote #cg3 ,c41 ,c41 ,c4 ,/4 ,l4 ,ry4 vs4 ,backus1 #aed ,u4 ,s41 #dde4 ,footnote #ch3 ,proce$+s ( ! #bb;d ,annual ,meet+ ( ! ,am]ican ,economic ,association4 ,footnote #ci3 ,page #aa4 ,footnote #dj3 ,decision & ord] ( ! ,railroad ,commission ( ,wiscons91 issu$ ,augu/ #c;d1 #aiji1 9 ! case ( ,hill et al4 vs4 ,antigo ,wat] ,company1 pp4 #hd-he4 ,footnote #da3 ,page #aci4 ,footnote #db3 ,%ortly aft] ! ,kansas ,city ,wat] ,company case & ! classic decision ( ,mr4 ,ju/ice ,brew]1 & s9ce develop$ by ! sugge/ions ( a numb] ( eng9e]s1 among !m ,john ,w4 ,alvord1 ,m4 ,am4 ,soc4 ,c4 ,e41 ^: admirable article on ,go+ ,value ( ,wat]-,works1 pres5t$ at ! ,milwaukee ,conv5tion ( ! ,am]ican ,wat]-,works ,association1 held 9 #aiji1 is famili> to all /ud5ts ( wat]-works valuation4 ,footnote #dc3 ,page #aee4 ,footnote #dd3 ,page #add4 ,footnote #de3 ,transactions1 ,am4 ,soc4 ,c4 ,e41 ,vol4 ,,lxiv4 p4 #id4 ,footnote #df3 ,bullet9 #ba4 ,dep>tm5t ( ,comm]ce & ,labor1 ,u4 ,s4 ,bureau ( ! ,c5sus4 ,footnote #dg3 ,! ,pr9ciples ,gov]n+ ! ,valuation = ,rate-,fix+ ,purposes ( ,wat]-,works ,"u ,private ,own]%ip4 ,by ,ar?ur ,l4 ,adams4 ,j\rnal1 ,assoc4 ( ,eng4 ,societies4 ,vol4 ,,xxxvi1 ,no4 #b4 ,footnote #dh3 ,! ,m9nesota ,commission classifi$ all roads z ,c>ry+ ,roads or ,swit*+ ,roads1 ! latt] be+ mo/ly ,union ,depots4 ,footnote #di3 ,?is pap] w be publi%$ 9 a subsequ5t volume ( ,transactions1 ,am4 ,soc4 ,c4 ,e4 ,,transcrib]',s ,,notes #a4 ,us$ a comma in/ead ( a space aft] e ?ird digit f "r to left 9 numb]s ( m ?an ?ree digits 9 keep+ ) au?ors pref]5ce4 #b4 ,table #i on p4 #bbh has an error 9 ! ma?4 ,! total ( ! second column is #a1bei1adi1dcd in/ead ( #a1bei1jdi1dcd4 ,! latt] does agree ) ! diff]5ce arriv$ at 9 ! next l9e4 #c4 ,add$ ,gr& total--,all assets to la/ l9e 9 ,table #aj on p4 #bcj z ?is description agrees ) ! actual totals provid$4 #d4 ,sil5tly correct$ simple spell+1 gramm>1 & typographical errors4 #e4 ,reta9$ ana*roni/ic & non-/&>d spell+s z pr9t$4 #f4 ,enclos$ italics font 9 und]scores4 #g4 ,adjac5t id5tical columns duplicat$ m ?an twice 7 n %[n 9 ! repres5tations ( ! =ms4 #h4 ,! =ms t 7 too wide 7 split4 ,! foll[+ section7s7 orig9ally cont9u$ to ! "r4