The question of railroad valuation, involving as it does the largest industry of the nation, naturally takes first place in such a discussion, but so many of the general principles of railroad valuation are applicable to the appraisement of corporate property, so many arguments have been advanced by engineers and others, and so many judgments of the Courts have been rendered in connection with water-works and gas-works valuations, that it is not desirable to limit this discussion wholly to the problem of railroad valuations. The reasons for requiring that valuations be made may be broadly divided into two general classes: _First.—As a Matter of Public Interest._—The public, and particularly the investing public, requires valuations in order to guard against unworthy and dishonest corporation securities, to be assured that corporations are bearing their legitimate and proper share of the burden of taxation, and to furnish a proper basis for fixing equitable and just rates for the services rendered by the corporation. Under this class would come all appraisals made for information to be used as a basis for legislation relative to: (_a_) _Taxation of Corporations._—Such were the valuations in Michigan and Wisconsin. (_b_) _Rate Regulation._—This was the reason which prompted the work in Minnesota and Nebraska. (_c_) _Limitation of Capitalization._—The regulation of issue of stocks and bonds was the purpose of the Texas valuation. (_d_) _Fixing a Price for Sale._—Many of the water-works and electric light valuations were made in order to determine a fair price to be paid for the property at the expiration of the franchise. (_e_) _The General Information of the Public._—To be used in connection with the fixing of terms for franchise renewals, etc., etc. _Second.—As a Matter of Corporation Necessity or Expediency._—Valuations are made in order to guide large investors, to secure a safe and up-to-date basis on which to negotiate a sale, a purchase, or a reorganization of the property, or a consolidation with other like properties, and to secure justice to honestly administered corporations. The great majority of appraisals under this head have been in accordance with some other methods than those adopted in the State valuations. It is not intended in this paper to engage in any argument as to the various purposes of appraisals, or even to urge the necessity or desirability of a general appraisal of properties. An absolutely accurate and correct statement of the cost of reproduction of all the physical properties of the railroads of the country, a correct statement of the actual capital needed to reproduce these properties as they exist, and, along with this, a statement of the actual physical depreciation, would be a document of vital interest.