Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-03-09
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judging of the adyisability of provid-
ing further time and money to continue
and complete the work.
The task of making a "true and COM
plete inventory and appraisal of the
true value of the railroad and canal
property, including separately the fran
chises, of a State like New Jersey is
one of great magnitude and difficulty.
1t involves the study of a large num-
Der of important railroads, the inven-
torying of all the property belonging to
them and the appraisement of its fair
and just value, which, according to the
report of the State Board of Assessors.
mounts to nearly $500, 900, 900, sub
divided into four classes and among III
railroads and about 500 taxing districts.
The preliminary work necessary before
any tangible results can be reached is
in itself very extensive, complicated
and important. General conditions
must be studied and controlling prin-
clples worked out and adopted. The
joint resolution stipulates that the
valuation shall be in form available
for the purpose of taxation under
existing laws and these laws must,
therefore, be studied and complied with
in so far, at least, as they relate to
the classification of property and the
principles and scope Of the appraise-
ment.
1t is not positively stated in the joint
resolution that the valuation is to be
solely for taxation purposes. A true
and complete inventory and appraisal
of value seems to be called for regard
less of the purpose for which the valua-
ton is made. But the term true value
is not definitive, since the value OF any
property varies with the standard OIL
value applied and the point of view
from which it is judged. From the very
nature of railroad property and the
manner in which it is held, it's market
value, in the sense in which that term
is applied to other property, is DIM
cult to determine. The commercial
value of a railroad is usually deter
mined by it's net earnings and h re-
turns made to its owners quite indie
pendent of it's cost or of the value or
the property it possesses. Frequently
there appears to be no close relation
etween the cost of a railroad and its
commercial value. Valuations for the
purpose of fixing rates, or for de-
termining proper rental, or terms for
Joint running operation may also be
quite apart from the commercial or the
intrinsic value. The value of the a
chises and the other intangible prop
erty of a railroad may be differently
appraised according to the purpose or
or the point of view from which the
appraisement is made. Finally, the
value of this class of property for taxa
ton purposes may be quite different
from any of those named above. 1t
seems, therefore, impracticable to ap-
ply any single valuation of the railroad
and canal property of the State to more
than one specific use, and If this be
true, it follows that the purpose of the
valuation should be determined upon
before an appraisal is made.
In view Of all these conditions, and
after a careful consideration Of the
joint resolution, and in view of the ne
cessity of establishing h particular
kim of value W. are called upon to
determine, your board has thought it
best to appraise the various railroad
and canal properties from the view
point of the use of the appraisal mainly
Tor the Oh tdAdIioH'
Made on Broad Lines.
TO be fair and just, any valuation
OF railroad properties, whether intend
cd for taxation purposes or not, should
obviously be made upon broad lines ap-
rlicable to all, and in order that this
might be lone it was necessary thai a
comprehensive preliminary study of
railroad property in the State should
he made before the actual work of
valuation was begun. This involved
the formulation by the board of con-
trolling general principles, and the
preparation of. a complete code of rules
and instructions for h guidance oil
the boards assistants in making IN
MEMORIES of railroad property. 1t was
also necessary to devise and prepare a
tomplete set of blank forms for use
In scheduling and valuing property, and
IA. formulate a comprehensive and eff
cidnt system Of filing and