This method, of course, cannot be used for purposes of rate-making, or of bond or stock restrictive legislation, but the general uniformity of its results with those of State appraisals, and the radical differences noted in the case of values for taxation in other States, lead very properly to the inference that a value determined by this method is very close to the truth.
The Extent of Appraisal Practice.
There have been many appraisals of property besides those reviewed in the foregoing pages. Several excellent contributions to valuation literature, as a result of the numerous water-works appraisals, are mentioned in the Appendix.
New Jersey and Nebraska have had railway appraisals in progress during 1909-10. At the time of writing, neither appraisal has gone far enough to add any points of interest to the subject, except as the appraisers in these two States discuss the subject and bring out new points.
Valuations of street railway property have been made in several cities, Cleveland, Ohio, Detroit, and Milwaukee being the most recent.
The Cleveland and Milwaukee hearings have produced large records, and have tended to determine finally certain principles of valuation. Several valuations have also been made for corporations, among which may be mentioned that of The Toledo Railways and Light Company, by Messrs. Ford, Bacon, and Davis, and that for the New York, New Haven, and Hartford Railway, under the direction of John F. Stevens, M. Am. Soc. C. E.
This latter valuation offers some very interesting points, and, in view of Mr. Stevens' standing as a railroad engineer, the adoption by him of methods of inventory and field inspection would go far toward fixing a precedent which would be acceptable to the railroads. It is to be regretted that the interests of the road are such that it is not deemed wise by its President to discuss even the principles of this work at present.
In connection with the recent appraisal made by the City of Detroit, The Detroit United Railway made an independent examination and appraisal of its own property, with the double purpose of furnishing an inventory to the city and of checking the work of the staff employed by the city. This work for the railroad was done by officials and employees of the company, under the personal direction of Mr. R. B. Rifenberick. It is noteworthy for the completeness of its inventory, which goes into the most minute detail, and for the excellence of the maps and drawings which accompany it and show, not only every standard type of track, rail, and all buildings and machinery, but every piece of track and overhead special work on the entire system. This appraisal includes a most complete and exhaustive study of average unit costs. Inasmuch as this work is likely to be fully reviewed in the Courts in the near future, any further description would hardly be proper. It is not too much to say, however, that it probably stands as the most complete in every detail, as to inventory and records, of all American appraisals up to this date.
During the summer of 1910 the Railway Commission of Michigan ordered an appraisal of certain large electric-power properties of the State. This work was done by Professor Mortimer E. Cooley, assisted by Mr. Henry C. Anderson and the writer. This appraisal, involving certain comparatively new corporations, made it possible to obtain a fairly definite solution of some of the problems relative to overhead charges.
It is evident that the demand for valuation work of a high character will increase, and that it will come, not only from States and cities, but from corporations. Much of the work done in the past has not been described in the publications of scientific societies; much very valuable work has secured only partial notice through reports of litigation; and it is undoubtedly true that the most complete and full discussions of the principles of valuation have been in the form of expert evidence before the Courts, and are buried in the mass of unprinted records of testimony.