In arriving at the value of the physical properties, a complete field examination was made, depreciation determined, cost of reproduction estimated, and in general, the work was carried on along lines quite similar to those of the railway appraisals heretofore described in detail. Several very interesting and unique problems were presented, some of which were as follows: "Upon what basis shall the cable properties of the companies be estimated—(_a_) as operating cable systems, or (_b_) as obsolete systems having no value except so far as the physical property can be utilized in the conversion of the cable lines into electric?" In the final conclusions of the Commission, part of the cable lines were treated in one way, and part in the other. "What allowance, if any, shall be made for the pavements laid by the companies on their right of way?" The discussion of this topic, together with the opinions of counsel as to the legal status, is of interest. The Commission did not consider the value of paving as constituting any part of the physical property, the value of which must be supported out of earnings. The present value of the pavement was estimated and reported without specific recommendation as to whether an allowance should be made. The valuation of real estate was left in the hands of real estate experts familiar with values in Chicago, each piece of property being personally examined and valued, and the representatives of the roads given such hearings as they desired. In computing the value of physical properties, an allowance of 10% was made to cover the following items: "_1.—Legal Expenses_—including those incurred in securing right of way and frontage consents. "_2.—Interest or carrying charge_ for the money expended during the construction period and up to the time the property goes into operation. "_3.—Brokerage_—or the expense of securing the necessary moneys. "_4.—Contingencies_—to cover incomplete inventories, unforeseen difficulties of construction, and any and all other items of expense which cannot be foreseen." The only novel feature in this list is Item 3, which was not included specifically in any of the railroad valuations made by States and heretofore described. The franchise and intangible property valuation, amounting to some $9,000,000, or about one-fifth of the total, was a very important phase of the work, and the Commission gave up a large part of the report to its discussion. The difficulties in this part of the work are described as threefold: "_First._—The difficulty of determining what are the exact legal rights of the companies in any given street or part of street, in absence of a direct and final judicial decision as to these rights; "_Second._—The difficulty in estimating the value of a line of street railways, consisting of several parts, where each of these parts is operated under a different tenure due to the character of the ordinances or franchises, respectively; and