The instructions of this Commission from the Chicago City Council were:
"To consider the detailed inventories and estimates of value to be submitted by the Street Railway Companies, to investigate the same and to ascertain whether the values thus listed were reasonable, fair and just."
Detailed inventories and estimates of value were submitted by the roads, and, from time to time during the progress of the work, additions or corrections to these schedules were made.
Reports showing income, operating expense, and traffic statistics were made, and such detailed statements as were called for from time to time were furnished.
The Commission organized its force for valuation work by using the office and field organization of the Arnold Company under the direct charge of George Weston, M. Am. Soc. C. E., for the major part of the work, and retained Messrs. Theodore H. Hinchman, Jr., C. V. Conover, and the writer to give special study to certain features of the appraisal. In the determination of franchise values, Professor Henry C. Adams was retained in consultation by the Commission.
In arriving at the value of the physical properties, a complete field examination was made, depreciation determined, cost of reproduction estimated, and in general, the work was carried on along lines quite similar to those of the railway appraisals heretofore described in detail.
Several very interesting and unique problems were presented, some of which were as follows:
"Upon what basis shall the cable properties of the companies be estimated—(a) as operating cable systems, or (b) as obsolete systems having no value except so far as the physical property can be utilized in the conversion of the cable lines into electric?"
In the final conclusions of the Commission, part of the cable lines were treated in one way, and part in the other.
"What allowance, if any, shall be made for the pavements laid by the companies on their right of way?"