The report of the Washington appraiser differs widely from that for other States in that it is diffuse and does not present the methods clearly and systematically; it is difficult, indeed, to trace what was actually done. The writer is loath to criticize, but this report is such as to suggest comment on a number of points.
1.—Throughout the report very great stress is laid on the cost of making the appraisal. Such an undertaking as an appraisal of corporation property should be done thoroughly or left alone. It matters not whether the work of Professor Cooley or Professor Taylor cost $5 a mile or $50 a mile, if a dependable result was secured. It does not appear to be good taste either to criticize costs of work in other States, or compare the costs in Wisconsin and Michigan with the costs in Washington.
2.—A number of criticisms, amounting almost to reflections, are made on the methods elsewhere. The appraiser says:
"Speaking for myself, I found the precedents established by Texas, Michigan, and Wisconsin of little value either in deciding the methods to be pursued in making the appraisals or in estimating the probable cost of appraisal....
"In estimating present or depreciated values of structures, rolling stock, etc., both Michigan and Wisconsin had sent experts into the field to estimate the percentage of present value to each unit. In this manner 40,000 freight cars were inspected in Michigan and their 'present value' estimated. To me this seemed to be not only a useless procedure but very erroneous....
"The appraisals heretofore made in other states have been based almost entirely upon field surveys and inspection, no attempt having been made to secure the necessary data from the engineering and accounting records of the railways. Why? The answer is found in the purpose of the appraisal."
Such sentences, and others which, by inference if not by name, reflect on work executed by men of high professional standing, are hardly in good taste, even if true, in a report to a railroad commission of another State. Whether or not he found little of value, the appraiser's general line of procedure was not radically different from that followed in Michigan and Wisconsin in getting all available data first from the companies, then in making a field inspection before fixing values. If misled by erroneous profiles, he went into an error needlessly, as it was fully known in Michigan that records were in the condition described before any field work was begun.
The inspection of freight cars in Michigan was not to "estimate present value" but to determine at first hand whether the Master Car Builders rules for valuation were safe to use, and to back up their use in Court.
The third paragraph quoted is a misstatement, due clearly to a misapprehension of what really was done.
3.—The spirit of suspicion of railroad men's motives is an unfortunate one to carry into a railroad appraisal, much less into a report.