Analysis of the Electric Railway Problem Report of the Federal Electric Railway

Cover Analysis of the Electric Railway Problem Report of the Federal Electric Railway
Analysis of the Electric Railway Problem Report of the Federal Electric Railway
Delos F Delos Franklin Wilcox
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So where an electric raihvay started by buying up an existing horse railway and made a clean start, I would make a clean start there also. '' That he thinks this method of arriving at a fair investment value is prefer- able to a physical valuation is shown by the following testimony at pages 165 and 166 of the Proceedings : "Commissioner Meeker: You think it is easier and better policy to get at the invest- ment ill the way that you have indicated rather than to make a physical valuation of the... properties now existing?
"Gen. Tripp: A physical valuation of the property, Mr. Commissioner, would not de- termine the investment. It would determine the value, and that value would be figured on some basis of prices. An arbitrary assumption would have to be made as to what period they would take for the purpose of establishing prices on such a valuation. It would be impossible to take each item of an electric railway and ascertain what the original price paid for that particular piece of apparatus was.


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