In addition to these prices, secured by averaging several years' quotations, or by agreement of experienced construction engineers, many valuable figures were obtained from manufacturers of locomotives, cars, mechanical equipment, and bridges; and in several cases access was given to the mechanical cost data of the larger roads. Specifications for locomotives, cars, and shop tools were sent out to builders with a request that they give average prices for a period of years.
From all this mass of data the unit prices for the valuation were determined. For locomotives, values were plotted for engines of different weights, in order to establish a curve, and curves representing deterioration, scrap value, and major repairs were also plotted, so as to ascertain diagrammatically the value of an engine of given weight and stated condition.
The tables and diagrams proved of incalculable benefit in reducing the work, and in securing that absolute uniformity of method necessary to give the appraisal standing.
It may not be amiss to state here that in such a work no set of unit prices could possibly be adopted which would not work some apparent injustice. A number of Michigan lumber roads were of the cheapest possible type of construction, and any unit price applied to ties or timber, which would be at all reasonable for such roads as the Michigan Central, Grand Rapids and Indiana, Pere Marquette, and others, would be far in excess of the actual money paid out by these little roads. A few individual instances of such apparent discrepancy were cause of complaint and criticism, but, on analysis, very generally, these did not appear to be anything but a disagreement with book values, in which ties cut off the right of way were treated as having no cost; or in some similar item certain local conditions may have made the first cost so low as to amount to a donation of property. Conceding the propriety of the objections, the reason for making the appraisal was to furnish information on which the legislature might determine whether the State should go from a specific to an ad valorem basis, and in view of this purpose the objections became unimportant, as they applied to but a few miles of road.
Classification.—All work of computation was classified in strict accordance with the Interstate Commerce Commission's classification of construction accounts, to which were added one or two classifications not recognized by that Commission, and final summaries were returned on sheets similar to those illustrated by Figs. 1 to 10.
In computing, the staff made use of all data of every nature which was before them, checked the judgment of the field inspector wherever any reliable data were furnished, took into account age, special notes, or costs, and, in case of any serious discrepancy in his percentage, reported to the head of the department for either a re-inspection or for a conference with the appraiser and inspector. In this department every possible safeguard was thrown around the work to insure its absolute mathematical correctness, and to guard against errors in the personal equation.
Compilation.—After the calculations were checked and completed they passed to the compilers, who arranged and classified them, and prepared the form of the final report. This consisted of a detailed list of every piece of property and every structure, with a short description and specification, and a statement of estimated cost of reproduction and present value. The division is made by roads, by divisions of roads, and by counties. This was done after the completion of all other work, and the disbanding of the organization, a small force being retained by the State to compile and put in permanent form all the papers of the appraisal. This work was done under the direction of Messrs. James Walker and O. C. Le Suer in consultation with Professor Cooley.
The final compilations were typewritten on large sheets and bound, and constitute the final record of the physical valuation. After the completion of the 1900 appraisal, all papers connected with the work of the computing office were arranged in proper order and bound.
Special Problems of the Mechanical Department.
The Civil Engineering section dealt wholly with fixed property located entirely within the State; and the work offered no special difficulties in the way of assignment of values. It is true that, when the question of terminal values was under discussion, the Wisconsin and Michigan Railroad offered a very pretty example, in that the revenue-producing half of its mileage lay in Michigan, while its shops, yards, docks, and car ferries, comprising the great bulk of its physical property, were in Wisconsin. This instance merely emphasized the fact that no State valuation of an interstate property can settle finally and definitely all the questions that arise.