This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1909 Excerpt: ... wholly dissatisfied with this method, for I felt that it would make it almost imperative for me to accept the appraisals made by the railways, practically at their own figures, or to undertake in the end what I could just as well undertake in the beginning, namely an independent investigation of my own. I need scarcely say that the results of the investigation have served to confirm my position on this point. Neither the State of Minnesota nor Wisconsin had gone into the matter of the actual cost of the original railway property. This seemed to me a serious ommission, not merely because of the Nebraska rate case decision, but because of the invaluable data that an investigation into actual costs would disclose. In estimating the present or depreciated value of structures, rolling stock, etc., both Michigan and Wisconsin had sent experts into the field to estimate the percentage of present value of each unit. In this manner 40,000 freight cars were inspected in Michigan, and their "present value" estimated. To me this seemed to be not only a useless procedure, but very erroneous. Aside from the great expense of thus inspecting each car and structure, I was influenced by a belief in the far greater accuracy of applying what might be termed "mortality tables of structures." If the age of a man is known, his expectation of life can be estimated from mortality tables. Insurance companies do not have their doctors guess at the man's probable life. The doctor merely reports the man as not suffering from disease, and the insurance company having the man's age, applies its mortality tables. In like manner, it seemed to me, the "present value" of a car or locomotive could be accurately estimated if its present age were known. It is a we...