Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1909-01-28
Fail NAY VALUES
/ q ... !. ..-
AFIi: SUBMIT TED.
EXPERTS APPRAISAL OF MINNIE
sofa ROADS. zs a a
Report Gives Higher Value Than Cap
italization Upon Nearly All Roads
Board Does Not Wholly
Approve Of figures.

st. Paul, Jan. 26.-The result 81
three years work on the valuation Of
Minnesota railroads was submitted
yesterday to the state legislature in
q special report from the state rails
road commission. It consists mainly
Of the report made to the commission
by Dwight G.. Morgan, expert engi-
neer in charge of the work Only
the summary of his work is printed.
but it fills 152 pages. sss,s 81 q;
The Northern Pacific values were
given recently as evidence in the
stockholders Injunction case. inVolv-.
ing state-made rate reductions. Fig
ures as to the other roads were not
made public until today. AS predict
ed in The Journal, the cost Of repro
duction of railroad property in the.
state is found to be much higher than.
Minnesota's proportion of the capital
stock and funded debt of the differ
ent systems, figured on a mileage ba-
sis, This is generally true, but mot
as to all the roads. The Great. West.
ern's capitalization is more than
twice the value found, and this is true
of it's proprietary lines, the Mason
City & Fort Dodge and the Wiscon-
sin, Minnesota & Pacific The North
Western, Rock Island and Minneap
oils & ST.. Louis also show greater
capitalized value on a mileage basis
than the value placed on their prop
erty; but as to the southwestern,
this is explained by it's having no
terminal property in the twin clues
and Duluth, ~,.,..- 3t.-.
Commissions View of It.
+ A striking feature of the report is
the disagreement between the COM
missioners and their expert on some
important features of the work The
commission submits statement with
the report, in which it discusses the
meaning of Mr.. Morgan's figures. in
one place it claims that his totals
are not fair basis on. which to figure
rates. The commission says:
while Of necessity the, report
shows the value Of the entire prop
erty of each road located in the state,
this by no means implies that in as
timating fair return upon its Min
nesota business, company is EMIT
led to claim return upon the total
value Of the property. The large, and
expensive terminals situated in st,
Paul, Minneapolis and Duluth flrhysln
terminal facilities in most cases for
large amount of interstate business
and a road is generally built. with a
view of handling an interstate bust
ness many times larger than its state
business" .. So, 1..'.~
Mr.. Morgan's report gives two diff
ferent estimates on each road, accord
ing to the way land values are figured.
His Estimate A" takes notice Of the
fact that railroads in acquiring right
Of way are compelled to pay far more
than actual value Of the land, in the
line of damages for cutting farms and
lots in two. He has secured figures
as to the actual value of land along
every road in the state, and outside
the cities he uses the multiple OF
three for fright of way value" On
city terminal property he uses smaller
multiples, and the average for all rail-
road land in the state is 1.6. The
Estimate b" puts in land at actual
value, and also omits the item called
adaptation and qualification of road
way" which, according to the railroad
commissioners, should be counted as
part of maintenance expense. :