Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1895-12-19
LOCKS AND DAMS.
Major Hoxie's Report on the Monongahei'
River Improvements.

River improvements
Washington. December 1S.@Secretary
Lamont has transmitted to Congress tns
renort of Major R. l.. Hoxie, united
States Engineer Corps, relative 10 MS
INQUIRY into the value Of the works Oh
the Monongahela Navigation Company.
From the accompanying testimony CIV
en- by members of the Engineer Society
Of Western Pennsylvania ana the Cha4n, =,
Der of Commerce and Coal Exchange OF
Pittsburgh. it IS shown that while all
agree as to the value Of the WORKS,
placing It at $4,000 900, they differ as 70
their value with the franchises includ-
ed. The Navigation Company hxes II
at $4,000. 900, while the others places II
at 81, 634. 72O and S2,SS9, 700. The second
estimate is that made by the represeh-
tatives of the Chamber of Commerce
and is regarded by Major Hoxie as the
lowest figure at which the United States
could acquire the property.
The Coal Exchange people also
argued that the decrease Of the coal
trade by the competition Of the Great
Kanawha, where navigation is free, az
fects the value of the stock, since the
tolls increase with each pool until II
proves prohibitory in the last pool. Inc
evidence also shows that railroads nave
been projected to ship coal TO points on
the Ohio below Wheeling, there to be
loaded into barges and thus avoid trans
portation over the Monongahela Nayl-
CATION Companys works. II construct
ed. the report says, there is little doubt
these roads would be formidable com
petitors with the company. The claim
is made that the market value OF the
stock would not be a just basis, as It
has been affected during the last ten
years by the attempts of the govern
ment to obtain possession. The rep
resentatives of che Coal Exchange
argued that the liability to eXtraord!n
airy danger and expense by Ice gorges
and floods affects the market value, but
Major HoN:e recalls that this has not al
fected the net income during the past
five years.
Major Hoxie states in his analysis Of
the testimony taken that the estimate
OF the Pittsburgh Chamber of Commerce,
80, $3.50. 700 is based on the average pro-
ductiveness of the property during an
extensive period. The average ne, in
come during the last five years, on the
capitalization was five per cent. The
majority of the representatives of the
Engineers Society fix the value at the
market value of the capital stock at the
time Of transfer. The minority of these
representatives fix it at S3,SS5,S79, on
the produotiveness of the property,
while the Pittsburg Coal Exchange also
fixes the value at the market value Of
the stock at the time of the transfer.
Of the two methods of ascerta.ning
the value of the property, the one fix
ing the value at the current value of the
capital stock is objected TO by the Navi
cation Company. That which fixes the
value at such a sum as will produce at
current rates Of interest the present net
income is advocated by the company.
The report concludes:
1T IS not clear that, IN the event of
condemnation, the viewers can be in
structed to determine the value of the
property from the market value Of the
stock, and without such instruction
they can be relied upon to determine it
from the productiveness Of the property.
1t is impossible to select from the citi-
zens of Pittsburgh a board of viewers
of higher standing than the nine men,
bers of the Chamber of Commerce, whose
unanimous opinion is in evidence here
with. They give as the value of the
property upon this basis the sum of
S2,S89, 700 Whether this should be too
high or too low, as seen from different
points Of view, it is, in my judgment,
the lower limit of possible valuation
through the process of condemnation,
and the least amount for which this
property can be acquired by the United
States"