The Valuation of Public Service Corporation Property: Transactions of the American Society of Civil Engineers,; vol. LXXII, June, 1911, ASCE 1190Riggs, Henry Earle
General
The Valuation of Public Service Corporation Property: Transactions of the American Society of Civil Engineers,; vol. LXXII, June, 1911, ASCE 1190
In fixing these values, the drift of public sentiment—the bias of juries
of view and of trial juries—at the time the estimate of cost of
reproduction is made must be considered, since that sentiment may affect
enormously the cost of the right of way. The amount to be paid for a
right of way is in the end that which a condemnation court will award.
The question as to whether or not the right of way was originally
donated can no more enter into the determination of the cost of
reproduction, for the purpose of lessening the estimate of cost of
acquiring the right of way, than the fact that donations of lands or
bonds (or of convict labor and slave labor, as in the South prior to
1860) made by governmental authority or private enterprise, at the time
of the original construction, can be used to reduce the reproduction
cost of the excavation made in the formation of the roadway.
No rule as to the sale of property for commercial purposes in the
vicinity of an operated railway can be rightfully adapted as covering
the line as a whole. While the cost of right of way through farm or
timber lands bears a general relation to the value of those for
agricultural purposes, where improvements thereon bear but a small
proportion to their total value, this relation is wholly wanting in the
cost of a right of way through a village or city or at any point where
the improvements on the property bear a large proportion to its total
value. The relation is also wanting where a right of way is obtained
through agricultural lands devoted to special purposes, like that of
country homes for the rich. It is also wanting where the right of way is
taken out of the narrow river lands in the Appalachian Mountains, where
the total value of the whole farm is dependent on the small acreage of
flat land along the river bank. The general rule of prefixing a constant
to the current selling price of lands, in order to determine the
estimated cost of right of way, should be limited to agricultural and
timber lands, and to those which, owing to their extent, the carving out
of the right of way does not wholly destroy for the continuation of
agricultural and timber operations.
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