The physical valuation, as represented by two figures—the cost of reproduction of the physical property, and its present value—was submitted to the Board of State Tax Commissioners as the work of Professor Cooley, and in most of the literature descriptive of it, it has been termed the "Cooley Appraisal." After the completion of Professor Cooley's work, his figures were submitted to Professor Henry C. Adams, who had been making a study of the income accounts of the various companies, and to whom had been assigned the duty of determining the non-physical or franchise values of the properties. Professor Adams has described[5] very fully the plan adopted for this work, and this plan has been commented on so fully that any lengthy description is deemed unnecessary. It appears to be perfectly proper, however, to correct certain misstatements regarding this work. When it was first determined to make the appraisal, Professor Cooley—not Professor Adams—was requested to take charge. The assignment to Professor Adams of the non-physical valuation was made after the physical valuation was well under way. The use of a negative or subtractive non-physical value was considered, and advised by Professor Adams. The work was not undertaken with a view of "increasing the assessments," but to put the Tax Commission in possession of a figure which would represent the business value of the property as well as the physical value. Professor Adams held that the non-physical element of value was not a simple commercial element, but included: {to be a corporation, The franchise {to use public property, The possession of traffic not exposed to competition, The possession of traffic through connections, The benefit of economies due to density of traffic, The value due to organization and vitality of industries served. He also held that, as nothing visible or tangible gave support to this value, it must be determined on the basis of information secured from the income accounts of the company. Without going into any complete description of Professor Adams' method, it may be said that he made an analysis of the income accounts, and, after providing for operating expenses and taxes, he deducted, as an annuity properly chargeable to capital, a certain percentage of the appraised value of the physical properties. Any remainder was capitalized to give the true value of the immaterial element, or the business value.