The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-03-27
PHYSICAL VALUATION.

Under the physical valuation bill
passed by the recent session of con-
gress, the interstate commerce COM
mission will have in charge the work of
ascertaining just what the entire rail-
way system of the United States cost
and its present value.
When it is realized that there are
over 100000 miles of main line to be
inventoried, the data in regard to cost
and value of 2,25O, GOO freight cars. 500
/ locomotives, together with shops, right
of-way. terminal properties. bridges,
buildings, road equipment general Of
flee equipment am in fact every item
owned or used by each and every rail-
way. says the Railway Record, some
little appreciation OF the magnitude of
this undertaking will be had.
The law calls for ascertaining "orig-
inal cost to date with prices pad for
property, materials. labor and serv-
ices,' the comncissio to decide whether
these disbursements have been legiti-
mate and in the event they are found
excessive to state what would ave
been proper figures at the time they
were made
A second requirement will be to as
certain the valuation in dollars of the
cost Of existing railway properties, in
Guiding real estate and equipment at
present prices.
The third requirement is for the COM
mission to ascertain the historical cost
of the railways as they stand today.
This involves going back into the his
tory of each ano every company from
its inception and would include pre-
hminary cost, such as legitimate fees
to promoters. legislative expenses. etc.
AS many of the lines date back over
half a century, this will involve a tre-
mendous task in itself. In some cases
it will be a physical imposibility to ar
rive at the figures, the records having
been lost or destroyed Intentionally or
otherwise.
Fourth, the law calls for the ascer-
tanning of the intangible values which
might be included as an asset by the
railway corporations. This would in
clude franchises, good will, geograph-
zeal location, etc, and must of neces-
sity be largely a matter of personal
opinion, there being no basis on which
actual figures could be arrived at.
As soon as the commission has COM
pleted the valuation of any one road,
the law required it to interview the at
torney general of the United States,
the governors of all states through
which the road passes and the attor-
neys of the railway company concerned
that a tentative valuation has zen
reached. If no protest is made against
these figures within thirty days, the
valuation becomes final. but if any
party to the proceedings does protest,
the commission is required to hold a
hearing and to accept evidence tend
ing to show that the figures named are
incorrect after which the commission is
to make it's final decision During the
progress of the investigation reports are
to be made to congress at the opening
of each regular session.
1t is expected that this work will en-
ploy the services of a large number of
employees for the next five years. The
estimate cost of the government was
from 81, 500 900 t. 5.0o0. 900. The prob
abilities are it will be nearer triple
that amount. The expense of the in
quiry to the railway companies will be
fully as great, as it will involve them
in an endless amount of clerical Dor,
time and expense Of Off
Gals. ETC. 1t is quite reasona Bile to
suppose that the railways will expend
from SO, 0o0. 900 to SIS. 100000 before the
valuations are settled, and it will lien
be a question as to what value the
figures have.