It is not contended that railroad land values do not bear a direct relation to land values for other purposes, as those things which tend to increase general values usually make the construction of a railroad profitable, and the better and more fully developed the country, the greater is the need for transportation facilities and the higher the prices of land for all purposes. This is shown in the figures submitted herewith.
For purposes of appraisal, therefore, in 1902 the average value, as derived from the 1900 appraisal, was taken, and, by comparison with actual purchases, an attempt was made to ascertain the relation existing between the appraisal figures of 1900 and the usual purchase price for railroad properties, as determined by actual transfers. In making these figures the appraiser was forced to the following conclusions:
(1) That the naked land value is not a proper one to use in country lands, but that the going value of country lands with all improvements should be used as a basis for computing the added increment due to railway use;
(2) That a classification of farm land and waste land should not be made, except as a basis for arriving at the relative differences in quality of land in different sections of a county;
(3) That the added value for railroad purposes is due to the three elements:
(a) Continuity,
(b) Severance or damages,
(c) Changed earning power,
all of which the farmer or owner has cognizance of in making his price;
(4) That in making up land values, account should be taken of: