The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1920-04-16
REPORT ON PHYSICAL VALU-
ALTON OF PROPERTY OF THE
CALDWELL TRACTION COM
PANY, IN CANYON, COUNTY.
IDAHO
c. A. FariS. Civil Engineer. r. w
Faris, Consulting Engineer.
January LIST. 1920


January LIST. 1920
The property of the Caldwell Trac-
ton company, here under conSidera
ton, consists of a line of electric
railway, owned by the company. about
ia miles in length. extending in a
south westerly direction from the city
of Caldwell. Canyon county, Idaho,
TO Mcneil, Idaho, known as the Nc
Neil branch. with stub some two
or three miles in length extending
from Skyline station. on the Mcneil
branch to Lake Lowell known as the
Lake Lowell Branch. now abandoned
for railway purposes. and line oper-
ated under lease from the Oregon
Short Line railroad company. about
l1.3 miles in length. extending in 4
westerly direction from Caldwell to
Wilder. Idaho, known as the Wilder
branch; together with necessary sub
station equipment, trackage and ter
minal facilities at Caldwell, See map
attached.
While the primary purpose and in
tent of this survey has been to arrive
at fair. physical valuation OF the
property of the company. brief
statement and discussion as to the
extent and general character of the
property and the territory served
seems not out of place, as having a
bearing upon the physical valuation,
which is. necessarily affected by the
present earnings of the property and
the prospects for future development
and increased earnings.
The territory served by this syS-
tenn lies between the Oregon Short
line railroad on the north and Snake
river on the south, comprising an ar
ca of approximately 100 square miles
or about 100000 acres of we'll develop
ed farm land, having. at this time, a
general average value of at least $500
per acre. and supporting a population
Of from 5000 to 10000 people This
section of the country has been re,
claimed from its desert state only
about ten or twelve years, through
the construction of the Arrowrock
dam and the extension of the canals
of the Payette- Boise project of the
United States Reclamation service
While. as above stated, the land is al
ready highly improved and very pro.
ductive, it seems certain. by com
parison with other tracts in the state
under similar conditions further de-
velopment is assured resulting in
higher land values, increased popula-
ton and additional business for the
Traction company Upon completion
of the bridge across Snake river, near
Mcneil, now under construction, and
the extension of the Mcneil branch
from Mcneil to the bridge. now par
TALLY constructed, the system will
doubtless draw large amount of
traffic from the Gem Irrigation dis
trict one of the most highly develop
ed and prosperous sections of the
state, comprising about $4,000 acres
of land. lying just across the river
from Mcneil, as we'll as from the old
settled and we'll developed farming
and stockgrowing communities in and
about Jordan Valley. Oregon. That
increased business will follow further
development of the territory is cvi-
denced by the record of earnings dur
ing past years, which shows steady
and consistent increase as the terri
tory has developed. Following is a
table showing the gross earnings OF
the system year by year since it has
been in operation.
1ol6-$2o, 3o8.13.
lo17-$49, 642.3l.
1ol8-$53, 306.22.
| lo1o-$67 ,63347.
| The above table shows a steady and
consistent increase in earnings in pro
portion and value of farm lands and
il is fair to assume that earnings will
continue to increase, in the same pro.
portion, as the territory develops
| fr,t al =
case, that at this stage of develop
ment, operating charges and fixed ex.
penses are comparatively high ant
somewhat out Of proportion 10 the
earnings, it is stated by the account
ing department. that the company il
now operating on 80 per cent of tn,
gross earnings, which, if fact, which
we have no reason to doubt. furnishe.
definite assurances of fair profits
from the operation Of the propert,
when the territory it serves is full,
developed. From inquiry and obser
walton, it is our judgment that twic
the volume of business now bein.
done could be handled at an increas,
ed operating expense of not to ex
ceed Is per cent
In arriving at our conclusion as t.
the present fair physical value of tn
property, we have applied the usua
tables of expectancy or useful life t,
the various elements as far as prac
ticable, but have relied, in grea
measure, upon our own judgment a
to depreciation and present value
based upon careful examination ant
inspection of the condition of tn
property.
| We have included in our estimate
under the head of Intangible Items,
10 per cent of the total valuation t,
cover engineering. organization an,
incidental expenses, which allowanc
we consider conservative and reason
able. Such an allowance is now gen
orally conceded by the courts an,
Public Utility officials. The rule o
authority with reference to such al
lowances is, we think, we'll stated il
the decision of the Public Service cor
mission of New York. First District
in an opinion and order. dated Jun
II3d 1911 in the matter nf the oac ~