Chapter XI: Appendix: Bibliography

_Railroad Valuation._—

"The Appraisal of
Plants for Public Services." Nicholas S.
Hill, Jr. _The Engineering Record_, June
8th, 1901. A review of the principles on
which a property is valued when purchased by
private parties or by municipalities.

"The Value of
Railways and Their Capitalization." H. T.
Newcomb. _Railroad Gazette_, August 29th,
1902. Abstract from _Yale Review_, August,
1902.

"The Census Office
Railroad Valuation." (Editorial.) _Railroad
Gazette_, September 1st, 1905. A discussion
of the work of Professor Henry C. Adams,
Statistician of the Interstate Commerce
Commission, and his assistants.

"Railroad Taxes and
Plans for Ascertaining the Fair Valuation of
Railroad Property." _The Railway Age_,
September 8th, 1905. Report presented at the
meeting of the National Association of
Railroad Commissioners, at Deadwood, S. Dak.

"Railroad Valuations
in State Reports." Professor Harold M.
Bowman. _Railroad Gazette_, September 8th,
1905. Abstract of a report, which explains
briefly the systems of valuation provided
for by the laws of the several States, with
a critical review of the systems and
administrative reports.

"The Determination of
Physical Values." Clinton S. Burns, M. Am.
Soc. C. E. _The Engineering Record_,
September 16th, 1905. Presents a
mathematical formula for fixing depreciation
on articles, based on age, with quite a
complete demonstration of the theory
presented.

"Valuation of
Railroad Property," Henry Fink. (Serial.)
_Railway Age Gazette_, July 24th, 1908, _et
seq._ A brief review of several methods.

"The Valuation of
Railways." (Serial.) _Railway Age Gazette_,
January 22d, 1909, _et seq._ A thorough
discussion of the subject, and one of the
best presentations of it from a rational
corporation standpoint.

"Some Neglected
Factors of Fair Valuation." (Editorial.)
_Railway Age Gazette_, March 5th, 1909.

"Railway Capital and
Values." W. H. Williams. (Serial.) _Railway
Age Gazette_, April 2d, 1909, _et seq._ An
address setting forth at length the views of
the railway managers who oppose valuation of
property for any purpose.

"Valuation of Street
Railway Properties." _Electric Railway
Journal_, June 19th, 1909. A general
discussion of the subject.

"Commercial Valuation
of Railway Operating Property in the United
States: 1904." Bulletin 21, United States
Bureau of the Census. Contains an exhaustive
discussion of sundry methods of valuation.
The most complete series of papers on
valuation yet published.

_The Chicago Appraisal._—

Report to the Common
Council on Railroad Valuation. B. J. Arnold,
M. Am. Soc. C. E., M. E. Cooley, and A. B.
Du Pont.

_The Michigan Appraisal._—

"Expert Valuation of
Railway and Other Corporate Property in
Michigan." E. E. R. Tratman, Assoc. M. Am.
Soc. C. E. _Engineering News_, December
20th, 1900. A descriptive paper.

"What is the Value of
a Railroad for the Purpose of Taxation?"
Charles Hansel, M. Am. Soc. C. E. _Railroad
Gazette_, April 19th, 1901. Discussion of
the work done by Professor M. E. Cooley, and
on valuation in general.

"Michigan Railroad
Appraisal—Valuation of Physical Properties."
Professor Mortimer E. Cooley. Bulletin 21,
U. S. Bureau of the Census, p. 76.

"Michigan Railroad
Appraisal—Valuation of Non-Physical Elements
of Railway Property." Professor Henry C.
Adams. Bulletin 21, U. S. Bureau of the
Census, p. 78.

_The Minnesota Appraisal._—

"Valuation of Railway
Property." A. S. Cutler. _Year Book_,
University of Minnesota, 1908. An account of
the methods used for obtaining and checking
the information.

Report on the
Valuation of Railways in Minnesota, January,
1909. Minnesota State Railroad Commission.

"Valuation of
Railways in Minnesota." _Railway Age
Gazette_, February 5th, 1909. A descriptive
article.

_The Texas Appraisal._—

"Railroad Franchise
Values in Texas." W. H. Coverdale, Assoc. M.
Am. Soc. C. E. _Railroad Gazette_, February
12th, 1904. Discussion of methods used in
Texas.

"Methods Used by the
Railroad Commission of Texas Under the Stock
and Bond Law, in Valuing Railroad
Properties." R. A. Thompson, Assoc. M. Am.
Soc. C. E., with discussion by Messrs. E. L.
Corthell, F. Lavis, W. H. Coverdale, and W.
D. Taylor. _Transactions_, Am. Soc. C. E.,
Vol. LII, p. 328, _et seq._

_The Washington Appraisal._—

"Report to the
Washington Railroad Commission on the
Valuation of Railways in Washington."
Halbert P. Gillette, M. Am. Soc. C. E.
_Engineering-Contracting_, April 7th, 1909.

_The Wisconsin Appraisal._—

"Wisconsin Railroad
Valuation." W. D. Taylor, M. Am. Soc. C. E.
Bulletin 21, U. S. Bureau of the Census, p.
82.

"The Appraisement of
the Physical Value of Wisconsin Railways for
the Purpose of Taxation." W. D. Taylor, M.
Am. Soc. C. E. _Engineering News_, March
31st, 1904.

Discussion on
"Valuation of Railroad Properties." W. D.
Taylor, M. Am. Soc. C. E. _Transactions_,
Am. Soc. C. E., Vol. LII, p. 353.

"Report to the Tax
Commission." W. D. Taylor, M. Am. Soc. C. E.
Report of the Wisconsin Tax Commission,
1907, p. 269.

"The Work of the
Joint Engineering Staff of the Wisconsin Tax
and Railroad Commissions." W. D. Pence, M.
Am. Soc. C. E. _Journal_, Western Society of
Engineers, Vol. XIV, p. 73. (Abstract.)
_Engineering News_, March 4th, 1909.

_Water-Works Valuation._—

"Water-Works
Valuation and Fair Rates, in the Light of
the Maine Supreme Court Decisions, in the
Waterville and Brunswick Cases." Leonard
Metcalf, M. Am. Soc. C. E. _Transactions_,
Am. Soc. C. E., Vol. LXIV, p. 1. (A complete
bibliography of the subject of water-works
valuation may be found on p. 69 of Mr.
Metcalf's paper.)

TABLE OF CONTENTS.

PAGE

INTRODUCTORY 1

_Reasons for Valuation_ 2

_As a Matter of Public Interest_ 2

_As a Matter of Corporation Necessity or Expediency_ 3

_Difficulties of Accurate Valuation Encountered_ 4

THE RELATION OF PUBLIC SERVICE, OR QUASI-PUBLIC CORPORATIONS, TO 6
THE PEOPLE

_Supreme Courts_ 8

_Regulation and Legislation_ 10

EXPLANATION OF TERMS 16

_Appraisal or Valuation_ 16

_Cost of Reproduction_ 16

_Cost, or Original Cost_ 16

_Present Value, or Present Physical Value_ 16

_Non-Physical, or Intangible, Value_ 17

_Elements of Final Value_ 18

_The "Physical Property" Element of Value_ 18

_The "Non-Physical" or "Intangible" Elements of Value_ 18

_True Method of Valuation_ 19

THE MICHIGAN STATE APPRAISALS 20

Organization 20

_Administration_ 20

_Civil Engineering_ 20

_Mechanical Engineering_ 20

_Telegraphs_ 20

_Telephones_ 21

_Vessel Properties_ 21

_Methods of Procedure_ 21

_Difficulties_ 22

_Lack of Complete Understanding on the Part of the State 22
Officials_

_The Attitude of the Railroad Corporation Managers_ 22

_The Confused Condition of the Records_ 22

_Forms Used_ 23

_Board of Review_ 36

Office and Field Methods 37

_Making the Inventories_ 38

_Office Inspection as a Check on Field Work_ 39

_Field Inspection_ 40

_Special Work on the Chicago and Northwestern Railway_ 40

_Special Valuations_ 41

_Computation_ 42

_Filing in Office_ 42

_Computation Tables_ 43

_Unit Prices_ 43

_Classification_ 45

_Compilation_ 46

Special Problems of the Mechanical Department 46

_Assignment of Value to States_ 46

_Freight Car Inspection_ 47

_Locomotives_ 48

_Vessels_ 48

Overhead Charges 49

_Engineering_ 49

_Legal Expense_ 49

_Organization Expense_ 49

_Interest_ 49

_Discount on Bonds_ 49

_The Charge of Ten Per Cent. for Contingencies_ 50

Right-of-Way Values 52

_Comparison of Country Land Values_ 59

_Average Price per Acre for Village Land_ 63

_Comparison of Valuation Figures with Actual Considerations_ 64

Non-Physical Values 64

History and Results of the Michigan Appraisal 67

_Market Value of Stocks and Bonds_ 67

_Error in Published Reports as to Michigan Work_ 67

_The Cost of the Work_ 69

_Grand Summary of Railroad Appraisal of 1900 as to 70
Seventy-eight Incorporated Railroads_

_The Result of the Michigan Appraisal_ 70

RAILROAD APPRAISAL OF THE STATE OF TEXAS 71

_Authority for the Work_ 71

_Method of Physical Appraisal_ 72

_The Result of the Texas Work_ 73

RAILROAD APPRAISAL OF THE STATE OF WISCONSIN 75

THE MINNESOTA STATE RAILWAY APPRAISAL 77

_Land Valuation_ 78

_Forms Used in the Compilation of Information_ 79

THE WASHINGTON STATE APPRAISAL 79

THE VALUATION OF TRACTION PROPERTIES IN CHICAGO 94

THE COMMERCIAL VALUATION OF RAILWAY OPERATING PROPERTY OF THE 97
DEPARTMENT OF COMMERCE AND LABOR

THE EXTENT OF APPRAISAL PRACTICE 99

REVIEW OF SOME METHODS OF VALUATION, AND SOME OF THE CRITICISMS ON 101
THE MICHIGAN APPRAISAL

THE DETERMINATION OF ELEMENTS OF VALUE AND METHODS OF VALUATION BY 112
THE COURTS

PHYSICAL VALUES AND METHODS FOR THEIR DETERMINATION 128

_The Preliminary Study_ 132

_The Field Inspection_ 135

_The Computation_ 136

_Classification of Properties_ 137

_Unit Values_ 138

_Right of Way and Real Estate_ 139

_Depreciation_ 141

_Immaterial Elements of Physical Property_ 142

_Organization_ 143

_Legal Expense_ 143

_Engineering_ 143

_Administration_ 143

_General Expense_ 143

_Discount_ 145

_Working Capital_ 145

_Contingencies_ 145

_Design_ 146

_Adaptation_ 146

_Apportionment of Values_ 147

_Terminals_ 147

_Development of the Art_ 148

The Preparation of the Final Figure 150

NON-PHYSICAL VALUES AND METHODS FOR THEIR DETERMINATION 150

_"Going Concern" Value_ 154

_Developed Business_ 155

_Cost of Handling Business_ 155

_Good Will and Established Organization_ 155

_Franchise Values_ 156

_Conclusions Regarding Non-Physical Rules for Determination_ 165