Evening star., 1922-03-31
S9bQ,ME VALUE
Of CENTER MARKET
Commission Report Lacks
Unanimity-AppeaI to
Be Made.

The washington Market COMMISSION,
appointed by President Harding to
value the Center market property at 9TH
street and Pennsylvania avenue north
west. which is to be taken over by the
Department of Agriculture. today filed
Its award. The majority Of the conf
and John NJ Waiker-vaiue the property
at ss6O.250.
Louis A. Dent, former auditor of the
District Supreme Court. and the only
Washington man on the commission,
filed minority report. Mr.. Dent places
the value Of the property at $l,5oS 2ol.So.
Attorneys Charles A. Douglas and
Alexander Wolf, representing the
market company. noted an appeal to
the Court of Appeals from the award
of the commission. The lawyers say
even Mr.. Dents figures are too low.
They claim the evidence as present
ed to the commission showed the
property to be worth s2.000,060.
A resume of the figures of the m"-
jority award shows the two members
of the commission placed the total
reproduction cost at Sl.5 5s4.o2949,
from which they deducted deprecia-
tion and obsolescense of Sal, 43Si.
leaving a balance of $932.2SS.l2, to
which they add s2.s6s.5s for inter
est during construction. making
total of 1850, from which. strik-
ing the odd dollars, they reach a VAL
uation of sSS8.25o.
Majority Figures Explained.
The majority state they reached
their figures on present value by de-
Quoting depreciation, including OBJ
solescence from total reproduction
cost. While this factor undoubtedly
is the prime element" says the major
ity award, lin arriving at the Valua-
ton, the commission gave consider
able weight as collateral evidence to
the valuation of the property by the
corporation as shown in its income
tax returns; an analysis of earnings
of company. valuation OF part of as
sets as shown by quoted market prices
of capital stock as representative of
valuation by stockholders and invest
Ing public and the amount of fire in
surance carried on the property"
The commission disregarded his
torical cost as not covering appreci-
alton, depreciation and obSolescence.
of valuation of improvements and
refused to value the business as a
going concern.
In his minority report Mr. Dent
places his idea of reproduction cost
at se.001,596.20. and figures depreci
tion at s495 $500. leaving a present
value of $1,5oS.2e1.SO
Mr.. Dent points out that in several
Items of reproduction the witnesses
for the government were manifestly
ures. for which reason he rejected
these low valuations. He claims the
average OF estimates on each particu-
lar unit of value is the proper method
of reaching fair valuation rather
than to accept the lowest figure OF
~,
various witnesses. He explains his
higher reproduction cost figures by
the errors of the government wit
nesses in quantities and other items.
Il similar difference in valuation Of
stands and stalls as to which there
ferences in what is known as gen.
eral conditions of building opera
tions-that is, construction expense!
as to which he accepted the period
of construction shown by witnesses
for the market company as twenty
n. on,hs instead of twelve menths
fixed by government experts.
Work Tosk Six Mentha.
A large part of the minority report
Is devoted to discussion of depre-
and obSoleScence. Dir. Dent
points out that by the method adopt
ed by the majority of the commission
o obsolescenee is piled On depreciation.
in his opinion. He refers to the life
of materials and gives as examples
buildings in Washington and else
where which have stood for more
than a century while the market
has all been erected since
1870. His examples include the De-
catur house. the Octagou house. st.
Paurs Church. at Rock Greek. the
Mount Vernon property. and others.
The work of the commission has
occupied the entire six months au-
thorized by the law. of which three
months was occupied in public hear
ings. Miss Kathleen Lawler has acted
as secretary of the commission. More
than 1000 pages of testimony was
taken.
Under the provision of the law the
of Agriculture may take
of the property tomorrow,
despite the appeal of the market COM
pany. The government is required
10 pay over as per cent of the award
of the majority Of the commission
a nd let the litigation proceed as to
the balance of that award IL finally
upheld in the courts or of an amount
TO be set by jury of review should
the courts not agree with the ma
jority finding.
Frank A. Horne. chairman of the
commission, is president of the Mer-
chants Refrigerating Company of
New York and John NJ. Walker is
mining expert from Delaware.