The Penn's Grove record., 1915-10-22
VALUES roo LOW.
unique Plea by Pennsylvania r. X.
for Higher Jersey Fares.

Jersey and Seashore Railroad started
in to convince the Board OF Pubic
Utility Commissioners that the rail-
road is taxed by the State on(Sfv-
eral million dollars worth of property
less than it actually owns. To sup
port this contention, Charles F.
sci, employed by the State five years
ago to make a r~e-valuation OF all
railroad and canal property, was cali
ed by the railroads to demonstrate
that he had greatly ~undervalued the
property.
The testimony of Mr.. Hansel, in re-
duced form. was to the effect that al
though the West Jersey is taxed on an
approximate valuation of l 5.5OO,OO0
it's property, exclusive of franchises
and overhead charges, Is worth 49,
O94, 73S. Adding the franchise values
and overhead charges counsel for the
commuters of South Jersey, who are
opposing the proposed increase In
passenger rates, contended that Mr.
HanseI's own admissions show that
the property of the railroad is worth
$22, 000, 900.
At the OUTSET of the hearing it was
agreed that because of the technical
character Of the testimony the rail-
roads should be permitted to put IN
their entire case, leaving the cross
examination to be taken up later,
instead of ~interrogating each witness
in turn. H. w. Bike, who appeared
for the Pennsylvania and West Jersey,
informed the commission that the
Pennsylvania was willing to accept,
for purposes of ratemaking, the val
uation placed Upon its property by
the State Board of Assessors.
Railroad Property UndervaIued.
In explanation of this stand Mr..
Bike said it would be shown that
the Pennsylvania on this basis of val
uation derives only ~six-tenths of L
per cent. income from its intrastate
passenger traffic in New Jersey. He
assumed, therefore, that confronted
by this fact the board would be forced
to admit that an increase in passenger
rates was not unreasonable.
Telling of his work five years oga
in revaluing railroad property for the
State, Mr.. Hansel said that, while the
railroads always treated him courte-
ously at that time, that they did not
cooperate with him and were not
helpful in the performance of his du-
ties. Therefore, he said, there were
many elements of hidden cost OF un-
known value which it vas impossible
for him to include in making his ap-
praisal. For example, he said, it was
impossible for him to tell whether
piling below the ground had been
treated or not. Hence, If 1t had been
treated his valuation would apt to be
much lower than the true value.
Mr.. Hansel told of one bridge which
he had valued at $4,000, not knowing
that it was supported by underpiling,
which alone cost $4,000. Upon learn
ing the details of the bridge construc-
ton he found that the actual cost OF
the bridge was SAT, 900. Similar in
stances were referred to as regards
the laying Of track and other con-
struction work not entirely visible.
When making the valuation for the
STATE NT. f1dIS0l dQlAAlIC0, LII AOPAJ W
questions from E.. G.. c. Bleakley, coun-
sci for the South Jersey Commuters
Association, that he had added only Z
per cent. for overhead charges, while
in his valuation for the railroad he
had added % per cent. h differ
ence, Mr.. Bleakley estimated, meant
the addition of $3.50, 900 to the valte-
Testimony given by Thomas w.
Hume, of Philadelphia, real estate
agent for the Pennsylvania and secre-
tary of the organization which is fight
ing the physical valuation of railroads.
by the Interstate Commerce Commits
sion, indicated that the grossest I'M
de~rvaluations were on property of the
West Jersey and Seashore at Atlantic
City terminal property assessed at
1928, 900 is worth $825,0 00. He also
said that second-class property of the
West Jersey at Atlantic City assessed
at $3.50 is worth $752, 900.
The Cape May division was cited by
Hume as another instance where
marked undervaluations prevail. The
property on this division, he said, as
SeSSed at SIZE, 0O0 is worth $ooZ,VUV-
From present indications the testi-
mony regarding valuations on the
West Jersey and Seashore will con-
sumo an entire week. Following this
the Philadelphia and Reading and At
lantic City Railroad Companies will
be given an opportunity to present
evidence in support of the reasonable
ness of the proposed passenger rate
increases which the board held in a
decision handed down last spring had
not been proved by the railroads.
Rules Contractor Must Finish Job.
The contract for dredging the first
section of the canal extending the In
land Waterway from Barnegat Bay