This work affords many interesting problems, and is perhaps the largest valuation for determining a price for the purchase of property that had been made to date. THE COMMERCIAL VALUATION OF RAILWAY OPERATING PROPERTY OF THE DEPARTMENT OF COMMERCE AND LABOR. In 1902 the permanent Census Office was established, and the Director was authorized to collect statistics relative to public indebtedness, valuation, taxation, and expenditures. The Bureau of the Census co-operated with the Department of Commerce and Labor in the preparation of the appraisal of the commercial valuation of railway properties of the country. The report of this work, issued as Bulletin 21 of the Bureau of the Census, is the most interesting and valuable exposition of the subject of railway valuations yet published, as it includes not only the report of this particular work, together with the results, tabulated by States, but appendices describing and discussing the work in States and foreign countries, and the work of valuation by railway men. The results are of prime interest, as they show the valuation of all railway property in all the States, based on uniform methods of appraisal and distribution, which enables a comparison to be made with work done by the States. The method adopted in this work was so radically different from that of the various State appraisals as to make a detailed description a matter of interest, and it is to be regretted that it cannot be included. The method is really a capitalization of net earnings. Owing to the nature of the inquiry, namely, to determine what part of the wealth of the nation is devoted to railway transportation, it was obligatory on the appraisers to adopt a method which would disclose as nearly as possible the true market value. Certain restrictions and limitations on the term, "value," and on the use of the resultant figures of the appraisal, are suggested by Professor Adams, as follows: "The valuation submitted in this report may be properly defined as the commercial value of property used by railways in connection with the business of transportation. By 'commercial value' is meant the estimate placed upon the worth of property regarded as a business proposition. This must, of course, be the market estimate and not the arbitrary estimate of a public official. The two fundamental considerations by which the market is influenced in placing a value upon property when bought or sold, are the expectation of income arising from the use of the property, and the strategic significance of the property. These two considerations are made the basis of the valuation of railway property submitted in this report. The material made use of in this valuation is, first, the operating and financial accounts of the railways; second, inter-railway contracts and agreements; and, third, the published records of the stock market.