During the summer of 1910 the Railway Commission of Michigan ordered an appraisal of certain large electric-power properties of the State. This work was done by Professor Mortimer E. Cooley, assisted by Mr. Henry C. Anderson and the writer. This appraisal, involving certain comparatively new corporations, made it possible to obtain a fairly definite solution of some of the problems relative to overhead charges. It is evident that the demand for valuation work of a high character will increase, and that it will come, not only from States and cities, but from corporations. Much of the work done in the past has not been described in the publications of scientific societies; much very valuable work has secured only partial notice through reports of litigation; and it is undoubtedly true that the most complete and full discussions of the principles of valuation have been in the form of expert evidence before the Courts, and are buried in the mass of unprinted records of testimony. REVIEW OF SOME METHODS OF VALUATION, AND SOME OF THE CRITICISMS ON THE MICHIGAN APPRAISAL. Much of the available literature on the subject of valuations is in the form of papers descriptive of water-works appraisals and arbitrations, many of which have been made, and a few of which have been the subject of valuable papers and discussions before learned societies. Before the American Water-Works Association, D. W. Mead and J. W. Alvord, Members, Am. Soc. C. E., have presented papers[12] which have been quite fully discussed. The chief point of interest in these papers is the treatment of the intangible element termed "going value." Mr. Alvord advances the argument that, after the determination of physical present value, there should be added, to determine the fair value, two non-physical elements: the "going" or "business" value, and the franchise value. The first element is defined as that special value which is: "Built up ... by the energy, perseverance and solicitation of the officers in charge, as distinct from the inert plant itself, ... * * * * * "The element of 'going value' has been before described as the element of growth in the plant irrespective of its physical condition. It is comparable somewhat to that indefinable quality known in other lines of business as 'Good Will'. Nevertheless it is something more than good will in water works business, as it represents what might be more aptly described as 'connected good will', that is to say, the acquisition of customers who have invested considerable sums in actually connecting their premises with the plant of the company, and provided appliances for the use of the water which it can deliver." The method advocated by Mr. Alvord as the most rational one for computing this value is described as follows: