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
The same is true of the right of way. In no case which has come under
the writer's notice has a new company, or a set of promoters disposing
of a new line or a new right of way, ever consented to deal except on
the basis of construction account, plus promoters' profit. The cost of a
right of way is increased on account of continuity. A farmer is
justified in increasing his price per acre by reason of the fact that
the road must have a continuous line, regardless of how it affects the
individual. He must rearrange his fields, replant his orchard, change
his fences, ditches, and tile lines, and re-adjust his entire property
to accommodate the necessity of the road. He must also take into account
severance or damages. He is compelled to cross the line at an
inconvenient place, open and close two gates in every lane or at every
crossing, drive his cattle back and forth to water, haul his produce
over a short heavy grade across the track, and he must not interfere
with the railroad. He is in constant danger of loss of property from
fire or from accident, and he is in personal danger every time he passes
from his own land on one side of the railroad to his own land on the
other side. Every one who has bought right of way knows these arguments,
and is aware that the farmer knows them and charges extra on account of
them.
The law provides that, in condemnation, the jury shall take into account
two elements, the value of the land, and damages. The railroad pays
them, and very promptly charges the entire cost to the right-of-way
account. No one will question the propriety of the farmer taking them
into account in fixing his price. The value of continuity to the
railroad can hardly be measured in dollars and cents.
A fair illustration of continuity may be found in coal lands. A promoter
will secure option on a large acreage. As long as his holdings are
disconnected and widely separated they are of no more value than
adjoining lands, but let him close options on a large block of land all
in one body, and immediately he can add from 100 to 200% to the value of
his land for mining purposes. This added percentage is due to
continuity.
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