State Railroad Taxation

Cover State Railroad Taxation
State Railroad Taxation
Frank C French
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S. , 340, 353. Tlhe entire property of the corporation, thus consid- ered, is to be regarded and treated as indivisible for the purpose of sale under adverse process; and to permit it to be sold other- wise would defeat the uses impressed on it for public purposes, and which constituted the consideration for the grant of its franchises. " In making a valuation under the' inventory method the first step would be to have made by a competent engineer a careful estimate of the value of each of the ...elements which enter into the entire physical plant of the railway. The physical plant being only a part of the real value of a property, the earning power must also be considered; this earning power is best determined by financiers and the financial rule for valuation is that the worth of a property is determined by what it will produce in actual income. In a case wherein the income is assured by a glance at the past history of the corporation, the risk is less and the real value of the property more in proportion.

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