The Washington times., 1915-06-02
Roads FinalAppraisal|
Will Be Up to Courts
Congress to Take Up Various Elements of Value as
Reported to II By Interstate Commission.
Much Litigation Predicted.
By JUDSON C. WELLIvER.

resenting what they originally cost the
railroads, and no more.
2. That they should be listed as worth
what like areas of adjacent lands are
worth today.
g. That they should be listed as worth
what 1t would cost today to buy the
same property de novo; that Is, as IL
there were no railroad there, and 1t
were necessary to buy the lands piece
Dy piece, by bargaining. condemnation.
1t is now believed that the greatest
single opportunity for making tho re-
suits OF the valuation vary according to
the discretion exercised in settling any
lem OF valuing lands.
To Tabulate All Elements.
Recently Prof. Cooley made a valua-
ton Of the Flint and Pere Marquette rail-
road, for the guidance of financial in
terests concerned with the property. He
found that its lands were worth today,
on the basis Of comparison with ad-
taeent property, 100000; but he al
ground that II 1t were necessary now
to get these same strips Of land, con-
tinuous and connecting, by purchase ana
court process, they would cost that fig
ure. 1t is easy to imagine. though DIFF
ficult to calcuate, the difference in the
valuation Of the railroads of the whole
country that would be represented by
adopting one view or the other.
When the valuation Is completed by
the Interstate Commerce Commission, 1t
will not be completed at all. The differ
ent elements of value will be tabulated,
column by column, under the different
theories. Thus. under value of real
estate" there will be shown the origi-
nal cost in one column, the present
Value as determined by the values of
adjacent property, in another column; !;
and finally. the cost of getting the
property de novo today, at present
valuations.
Various Items Discretionary.
There will be this same presentation
of the various items that must be dis
cretionary; that Is, dependent on what
theory and reasoning is applied to them.
When all the calculations are completed
and reported, the real valuation VIII
finally be decided by the processes OF
legislation and adjudication. Congress
and the State legislatures will have to
decide what columns of these debatable
figures shall be added together to de-
termine the value of the railroads: and
after Congress and the legislatures have
made their various guesses, the courts
will have the last determination.
AS to the question Of land values. the
Supreme Court of the United States In
the Minnesota rate case seems to have
decided that railroad lands are wortl,
| as much as adjacent lands. as Of the
date when the valuation Is made. II
rejected the theory that lands ere
| worth what 1t would cost to get them
at present; and it left the other con-
clusion s its judgment
To Be Much Litigation.
There is q growing feeling that this
will be the final determination. II il
is. then the valuation of lands will be
shifting factor, tending constantly to
rise as the values of adjoining property
rise. ....
Still smother view of this problem Is
presented in the cases of the land grant
roads. The Northern Pacific Is typical
Of these. 1t uses a right-ofway 4o(
| feet wide seom the Red River of the
| North to the Pacific ocean; but 1t does
| not own that land in fee; 1t simply en-
| joys an easement that gives 1t the right
| to use the land. What is its status
The recent conference gave 1t UP. Their,
| will be plenty of litigation. some day
to decide Just such issues.