The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1915-11-14
VALUATIONS
CONFERENCE
VAR|AT T|ONS
VARIATION IN VALUES DISCUSSED
BY CHAIRMAN OF IOWA STATE
BOARD OF RAILROAD COMMlS-
SlONERS.

Philadelphia, Pa, Nov. 1S.-Varia-
tions in values were discussed here
today before the railroad valuation
conference by Clifford Thorne, chair
man of the Iowa state board of rail
road commissioners. He said:
property values may be classified
under two eads: Tangible and in
tangible. That which is tangible can
be seen or felt and is more easily ar
rived at than that which is intangi-
BILE
THE valuations in values determin-
ed by experts are amazing; and the
chief source Of this variation is in the
method adopted for the determination
of intangible values. That does not
mean there are no difficulties in the
determination of tangible values; for
they are many and of large proportion.
I'VE all agree that there is and al
ways will be wide room for varia-
tions in judgment as to values. But it
is an interesting coincidence that
when city and a company employ
experts and the findings are submit
ted under oath by these witnesses to
a court or commission the lower valu-
ations are those invariably prepared by
the experts in the employ of the city
and the higher valuations are those
prepared by the men employed by the
utility company. | attack the integri-
ty of no person. merely suggest this
as an interesting coincidence. There
may be exceptions to the law of chance
governing the testimony of experts,
as just stated, but | have found not
one instance in the scores of valuation
cases that | have read.
"This would make very valuable
example for the critical analysis OF
the psychologist or the learned stu
dent of experimental ethics wherein
the golden rule is Charge what the
traffic will bear or, translated into
ordinary English, Get all you can
at is not fair to imply dishonesty
in the ordinary valuation experts. The
differences exist largely in methods
followed Some of these variations in
methods have caused unending dis
cussions by courts, commissions, at
torneys, witnesses and students.
"These variations are not theoretic-
to dollars and cents. A few years ago
al but real and tangible when reduced
two expert witnesses in the Spring
Valley Water Works case at San Fran
cisco made estimates of the same
plant for the same purpose and diff
fered more than 800 per cent That
may be unusual, but it is very ordinary
for the variations to range from 100 to
$50 per cent.
"Our highest courts and commissions
also differ One commission, that of
New Jersey-a few years ago allowed
80 per cent for intangible values and
then allowed per cent return on both
tangible and intangible values in addi-
tion to a per cent depreciation, max
ing 10 per cent in all Practically the
same time the New York commission
allowed nothing for intangible values
and said there was plenty of money
seeking investment at less than>6 per
cent. The man who wrote that de-
cision in New York has since lost hiI
job, but he was Immediately employed
as an attorney for one of the largest
railroad systems in the United States
zone state commission has allowed
a depreciation ample to maintain and
renew the property, and s per cent
return on the investment, the same re-
turn on all increased land values, the
same return on all depreciation allow
ances. the same return on all deficits
or failures to realize s per cent in
the past. In other words, we have ac-
cumulative compound interest of per
cent guaranteed by the state. If that
doctrine had ever become established,
a security of that character would out
class the best giltedged cumulative
preferred railroad stock in the United
States which readily sell on the mar
ket on a Az or 81 per cent basis.
1T is very doubtful if the govern
ment should ever guarantee private
companies against losses, so long as