Omaha daily bee., 1905-08-13
COMMERCIAL wAYTALUArloN.

COMMERCIAL RAIL WAY VALUA TON
Acting on behalf of the Department
OF Commerce, the United State census
bureau has published a bulletin prepared
by experts under the title Of Various
Aspects Of Railway Valuation The
commercial value Of railways now in op-
GRAFTON I'm the United States is computed
for the year 1904 at S11, PA, $4,000, ex-
elusive Of the value Of sleeping cars and
private freight cars, which are esti-
mated to be worth i'm round figures Sl23,-
100000. A conservative estimate of the
increase in mileage and value of Amer
lean railways, based upon their in
creased earning power would place their
commercial value for 1905 at approx
mately $12,OOOOOO,OOO
With an aggregate mileage of 100000
miles, the commercial value Of American
railroads, as computed officially by the
Department of Commerce, is figured at
$57, 144 per mile, but by some inexpllca-
BILE process Of reasoning the bureau
seems to have appraised the railroads
in some states way above and in others
way below the standard of $57,144 per
mile. For example, Nebraska is cred
tied with 5,s18 miles of railroad and the
value OF the Nebraska railways, which
at the standard rate of S57, 144 per mile
would be 1882, $40, 504, although some
what below their stock and bond value
would come very near being correct
But the Nebraska railroads are COM
puted at only $263, 10000, or S69,170,5O4
less than the standard value. Even this
under-valuation, however is still far
above the valuation placed upon Ne
braska railroads by the State Board Of
Railway Assessment. which appraised
the railroads of Nebraska at $3.50, Ala
2G5, or S32, 755, 1857 less than the value
credited to Nebraska railroads by the
national census bureau.
Railroad men will scarcely have the
hardihood to contend that Nebraska rail-
roads mile for mile are worth less than
the average railroad Of the United States,
in the face of the fact that Nebraska
railroads in comparison with those in
other states have earned dividends
enormously in excess of the railroads in
at least one-half of the states. And this
is not saying that Nebraska has Jared
the worst in the commercial valuation or
in assessment.
The railroad mileage in our neighbor-
m gfn 10 Of NrThi n grCrr DCrnf foe
9541 miles, is appraised at only $344,-
$4,000 and assessed for $57 ,535, 100, on
basis Of one-fifth of its true value,
which is equal to $2S7, $40, 800, or $751;
1712OO less than the commercial value,
whereas the commercial value of rail
ways in Iowa, based on the average for
the United States, or $57, 144 per mile, is
$545, 21O,9O4, or 5000, 1893 O4 below stand
ard commercial value.
The railways Of the state of Kansas
with "A mileage of S79S miles, which is
743 miles less than the railroad mileage
of Iowa, are credited with a commercial
value of S35635G,OOO, or $11,5O9OOC
more than Iowa, and their assessment is
proportiOnately higher.
Contrast these figures with the esti
| mated value Of railways in Illinois
which has 1925 miles of railroad hp
praised at $685., O57, 900, or $7O,554 pei
mile, when at the average rate of $57, IA
the valuation would have been only
| $685., 1897, 344. In other words in the
state of Illinois the commercial value OF
the railroads is S13,41O per mile above
the average mileage rate for the United
States and the aggregate assessment OF
railways in Illinois is $425, ,O55, or 6;
per cent of their commercial value
whereas In Nebraska the assessment IL
only 1906 per cent and in Iowa 1907.
These figures indicate sufficiently tina
there is room for a great deal of improve
ment in the matter of railway valuation
and railway assessment. The pivota
point, however, in the official estimate
Of commercial railway valuation is the
fact that the railroads of the United
States with a mileage of 10000 miles
| and a commercial value Of $12,0OO,0OO,
600 have earned more than S2,0OO,O00.OO'
during the past year after paying al
their operating expenses and cost o
maintenance, including the many better
ments as we'll as taxes.