Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-02-15
DIFFICULT To
MAKE VALUATION
------- ~.
CLIFFORD THORNE SAYS VARYING
METHODS OF ENGINEERS
HINDERS WORK

Des Moines. Feb. 13-(SpeciaD-
Iowa is not to be urged to take steps
, now for having survey and valua-
ton of railroads, step that has been
considered at times, and one that Is
regarded by persons interested in rate
matters as inevitable and necessary
before rate making can be placed on
a permanent scientific basis.
Clifford Thorne, as member of a
committee of the National Association
from his office here TN Des Moines an
investigation into the methods of
valuation in vogue and analysed the
results of said investigation in re-
port which has been printed, giving
for the first time a comprehensive
view Of the progress made in this line.
Briefly the conclusion was made that
there has been no agreement as to
the methods of valuation such as to
make such valuation of any great
worth. ' -E-..., g..
Do Not All Agree. l.
Mr.. Thorne found, upon investiga-
ton that twenty states have had
valued one or more railroads and ten
of these have made during recent
years or are making today, exhaustive
inventories and valuations of all their
railroad properties. But it was also
found that on thirteen very important
items there were substantial differ
ences of opinion. Before any plan is
laid for valuation of all railroads
some agreement should be reached as
TO methods.
There is such a wide disparity in
the prevailing methods of making
valuations of railroad properties" says
Mr.. Thorne. that in case two expert
engineers, one just as honest as the
other, were valuing the same property
for the same purpose at the same
time, one could arrive at total value
so per cent greater than that found
by the other expert. This glaring diff
ference in conclusions could easily
and naturally follow from the simple
adoption of different rules or methods
which today are being used in actual
practice by able and experienced en-
gineers in different parts of the ma
ton. . ..~
"The necessity for dispassionate.
broad guaged, thorough analysis of
these valuation methods in the imme-
diate future. and before final con-
illusions are reached, is completely
established by the facts disclosed in
the comparison of the methods pur-
sued in the. different states. There are
certain questions that are very tech
nical in their character which the
courts will feel tempted to leave to
the discretion of engineers. Actual ex-
perience has shown that these en-
gineers themselves have adopted such
varying methods as would cause diff
ferences in totals for the country
amounting to several billion dollars,
upon which returns are to be paid
year after year for generations to
come. ~r-
1T becomes Of supreme Importance
that we shall consider these problems
carefully, and shall adopt just and
reasonable methods We are under OBJ
legation to render entire justice to the
owners of these properties. A spirit OF
fairness must pervade our work. No
fair-minded citizen will countenance
for an instant any attempt to take
away or destroy Or iniure property
which rightfully belongs to the stock
holders of American railroads. At the
same time we owe it to the present and
to all future generations that unjust
burdens shall not be placed upon them
through any fault OF ours"
1t will be seen from this that the
science of valuine railway property is
as yet in its infancy.