Perth Amboy evening news., 1921-04-13
REPORT MADE
ON VALUATION
S125,OOO,0OO is Fixed as the
Value of the Public Serv-
ice Railroad Company.
BY STATE COMMISSION
Findings Have Much to do
With the Ten Cent Fare Is
sue Now Before Utility Bd.
BY STATE COMMISSION
tBv Evening News Correspondent.l


TRENTON, April 13.-The Nalu-
alton Commission created by the
1920 legislature has made public the
report of the work of the New YORK
firm of experts, Ford, Bacon IL
Davis, fixing the appraisal OF the
property of the Public Health Ser
vice Railway Company at Sl2o,00o,-
600 and that of the Trenton & Mer-
Ger County Traction Corporation at
$5,000,000. These are the much as
cussed reports which all persons IN
terested in the controversy over
trolley fares in this state have been
awaiting with interest. The two were
filed Yesterday with the commission
and were addressed to Governor Ed
wards, although he has refused to
serve on the body, State Treasurer
Read and State Comptroller Bugbee.
the three officials designated by the
Allan act of last year to have super
vision over the valuation.
Originally this valuation on the
property of the Public Service was
to be binding upon the Public Utili-
ty Commission in fixing permanent
trolley fare to be charged by TINS
company, but legislation recently
passed gives the commission author
ity to go outside of this appraisal
i'm finding it's fare basis. However,
the valuation fixing on the property
of the Public Service, which togeth-
er with the Trenton Trolley Com
pany appraisal will cost the state
100000, is of interest and will no
doubt play an important part in the
settling of the ten cent fare issue
on both the Public Service and the
Trenton lines.
The figures S125,00O.O00 are given
as of January J., 1921. for the Pub
lie Service and what comment was
heard here upon them was to the eff
feet that they were not exorbitant.
In the past the valuation of this
property, which Is located in many
parts of the state on the company S
lines, has been variously estimated
by various persons from 100000 09O
to $3.50, 100000. In the case of the
Trenton Traction Corporation. the
valuation fixed by Ford, Bacon IL
Davis of $5,000,000 is less than the
total outstanding bonds and mort
cages of the company, which are I'M
derstood to aggregate $5,600,000.
in arriving at the final figure rep
resenting the value of the property
of the Public Service Railway Com
pany." 9ays the firm of appraisers
in its report, I'VE have been guided
by the decision of the supreme court
OF the United States in Smythe vs..
Ames.
What the company is entitled to
ask is fair return upon the value
of that which 1t employs for the
public convenience; in other words,
our valuation includes only so much
OF IT, e business and property of the
4 a a
it employs for the public convenience
anG excludes any so-called element
of franchise value.
"Ip order to comply with the
strict letter of the law which calls
for determination of the value of
all of the property. we have shown
separately the unamortized cost Ct
the superseded property and the re-
Cduction cost of the property not
dst Il in operation.
We have also given due weight to
all CT the principles laid down in
the Passaic Gus Case as We, as the
mere recent Eliza BEETHOVEN Gas Case
decided by Judge Swayze, August Z,
1920. in which decision it is clearly
set forth that present day prices
must. be given consideration in any
determination of value"
In the summary or various ele-
ments which on the first of last jan
uary entered into the consideration
of the Public Service valuation the
firm of experts included what it
would cost to reproduce the property
now as a going concern. based upon
prices for labor and material as of
September /. 1920. This was es-
timated at $3.50. 4S9, $50. The ele-
r1ent ba Sgd lpOn tbp average Dre-
war prices for labor and material, is
eri zen In the enart S22 91S S27