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Author: 
 
 Blossom, Francis 
 
 Title: 
 
 Review of the report by 
 the Transit Commission 
 
 Dcito. 
 
 L J 
 
MASTER NEGATIVE f 
 
 COLUMBIA UNIVERSITY LIBRARIES 
 PRESERVATION DIVISION 
 
 BIBLIOGRAPHIC MICROFORM TARGET 
 
 OMQINAL MATERIAL AS HLMED - EXISTING BIBLIOGRAPHIC RECORD 
 
 162 Blossom, Franois, 1870- 
 
 Reviov o£ the report by the Transit oommission 
 Bureau of valuai^ion dated pebritery 15, 1922, and 
 titled "Valuation as of Juno 30, 1921, of the 
 physioal property of rapid transit and street 
 surface railroads in the city of Ilew York" with 
 special reference to the street surface railroads 
 0(f Brooklyn, July 29, 1922, by Franois Blossom^ 
 [Albany, H, Y,, Tho Argus oo., 1922j 
 105 p. 27 cm* 
 
 Supplement no, It^^ p* [lOlj-105, 
 
 RESTRICTIONS ON U 
 
 cr. 
 
 TECHNICAL MICROFORM DATA 
 
 FILM SIZE: "^Sfv^rv. REDUCTION RATIO: \bi IMAGE PLACEMENT: lA @ IB IIB 
 
 DATE RLMED: \-l?)-qS INITIALS: IX^ 
 
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 TRACKING « : SH 0313 \ « ^5^^ ^73 ^ 
 
 FILMED BY PRESERVATION RESOURCES. BETHLEHEM. PA. 
 
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REVIEW 
 
 of the 
 
 Report by the Transit Commission Bureau of Valuation 
 dated February 15, 1922, and titled 
 
 "Valuation as of June 30, 1921, of the Physical Property of Rapid 
 Transit and Street Surface Railroads in the 
 Qty of New York** 
 
 with aiMGiid iilcKnoe to 
 
 THE STREET SURFACE RAHJIOADS OF BRClMlLYN 
 
 JULY 29, 1922 
 
 BY 
 
 FRANCIS BLOSSOM 
 
COHTIHTS 
 
 Statement. 
 
 9Mm 
 7 
 9 
 
 PART I. 
 
 COMMENTS ON THE GENERAL INTRODUCTORY STATEMPlTO rm 
 
 VALUATON REPORT i^lATEMENTO OF 
 
 Conuneato on the Ceneml lotwductoiy Sfcatemente of Valuation Report 
 
 13 
 
 PARTIL 
 
 COMMENTS ON THE ALLOWANCES FOR CONSTRUCTION OVERHFATV! A*rr» 
 COMPANY OVERHEADS AND OTHER COMPAN^SS^^S^^iSS 
 General Methods, Procedure and NomenclAinm TT«»/» .r, Voj t. 
 
 Company Overheads 24 
 
 Construction Overheads 24 
 
 Depreciation of Overheads .... 24 
 
 Composition of Overheads. . 24 
 
 Contract Cost ; at 
 
 Cost to Reproduce SSS 
 
 Taies During Construction 27 
 
 Engmeering, Design and Inspection Costs .' ^ 
 
 Administrative, Executive, Legal and Office Oiste ^ 
 
 r ire Insurance .... 29 
 
 ^SSX^ ^ r^"P or Company'8 Costs Prior t<; Conatoidion" 2 
 
 UnmentB on Group (c) Cost of Procuring Monev 30 
 
 ^^kiH caSsr". ^'^•^^'^^i^caiii^ i 
 
 Physical Property Deveiopment Costo ^8 
 
 Costs to Create the BuaneBs. . 83 
 
 ValMofOoiit»ot«forIVmer,Ad^^rtiriiiir^^ ff 
 
 PAST m. 
 
 REVISION OP VALUATOONHK^GS OF THE VALUATION BUREAU TOR 
 1881 RBCDMBTRUCnON COST NEW, 
 
 Dwcription of Statements Accompaayiag Report 
 ooBUDary of Revised Valuations 
 
 EnjMuttion of statemante. . . . :::::::::: 
 
 Statement I 
 
 btatement II 
 
 ^atementm 
 
 Statement IV 
 
 Statement V. 
 
 &7a™7r^a''g^":'"^" 
 
 Mei^od of Obtaining Valuation of Damasee. 
 
 37 
 87 
 38 
 
 38 
 39 
 39 
 39 
 39 
 40 
 
 m 
 
 41 
 
STAIXMENTS ACCOMPANYING REVIEW. 
 
 wmm •• to m 
 
 am WMBiXJ MLECfEBIO BAILBOAD COUPAMT: 
 
 flUflnKMEin- I. Summary of VUiMS. ^ ^ . 
 
 Statement II. Overhead Chargw to Omfmy on gPf^ ^J ^^g^ 
 Statement ITI. Overhead Charges to CmuptMJ m Nott-Opmtiaf rn^mtf. 
 SxATEiiXNT IV. Shortages in Inventory. ^ . . » 
 
 THE CONEY ISLAND AND BROOKI^^li&»a^^ 
 
 OCXNXY ISLAND 4 BROOKLYN TBBlflNAL COUfPlMT. 
 
 SKiaufBira I. SmmMu^ of VaIum. ^ » 
 
 BiftSBiiainr n. Overhead CkargM to GomiMiiy m OpemUiig Property. 
 
 aEaanoifT ra. Overhead Charges to CompMqr «i m-Opcrmtiiig Profertgr. 
 
 St&naaora IV. Shwtog^ to Inventorj^^^^ ^ 
 
 BBOOKLYN, QUEINB COUNTY k SUBURBAN RAILBOAB OOMFAIIT t 
 BCATKMKHT I. Simunary of Values. 
 
 Bl*lKM»ra n. Overhead Charges to Compuiy on OP«^"g_.^f°iy^^y- 
 SrATKHKirr HI. OwrbMid Charges to Cemfumj' m TXtmrQtmmmg rntmtj. 
 Statement IV. ShortM m iBTOBtoff. ai..«^— i- Ww 
 
 STATEMENT V. OverliMd Clwrges to Gompuiy on ShortogM m Jmfmmj. 
 
 SOUTH BROOKLYN RAILWAY COMPANY AND LESSOR COMPANIESj 
 SOUTH BROOKLYN RAILWAY COMPANY. 
 IBOSPECT PARK 4 CONEY ISLAND RAILROAD COlffANY. 
 SoSPEOr PARK * SOUTH BROfMCLTK RAILBOAD COXPANT. 
 HEW TOKK 4 CONEY ISLAND R ATTillHAB OOMPANT. 
 
 BiaaBam n. Ovwknd Ghsrgei to CanpMiy on Operating P>qf«ty. 
 BkaSSMENT III. Overhead Charges to CoMpuj on NoB-Opemttag Property. 
 BumoifT IV. Shortages in Inveatory. ^ ._ . 
 
 THB BBOOKLYN HEIOHTS RAILROAD COMPANT: 
 
 Statement I. Summary of Values. ^ ^. __ . 
 
 SXAniaiiT II. Overhead Charges to Company on Oper!i*mg I^oper^. 
 BtAmmnr m. Orarhead Oiai^ to Coaffuqr on M««4Jpii«ttaf,*Yot«iy. 
 
 BtArmmm IV. SkortaeM ^ lawatory. ^ . .i.t.... 
 
 SrATBMBirr V. OtcriiMid Charges to Coaqiaay oa Shortafw la lavwtoty. 
 
 CONEY ISLAND AND GRAVESEND RAILWAY COMPANY: 
 
 Statebcent I. Saauosry of Vatvea. - 
 
 Statement II. Overhead Charges to Coaqpaay «■ OperaUag Propar^. 
 
 Statuiknt IV. Shortages in Inventory. - » ^ 
 
 I f * Y. OvwlMaA OMfisa to' 'CMBfaay «■ SMttatai m laMmiy. 
 
 Ttt BROOKLYN CITY KAILROAD OOMPAmT: 
 
 Statkmeitt I. Simunary of Values. ^. „ . 
 
 SKAmonr H. Overhead Charges to Company on Operating ^"'V ^^f ; 
 StAWMairr m. Overhead Charges to CcHfaay m Vm-Ormmmg PKOffWty. 
 
 Statement IV. Shortages in InTeatary. - 
 
 Statement V. Overhead Charges to Compaay oa ShortafM la mnmmf. 
 
 SUMMARIES AND PERCENTAGES OF OMISSIONS OR 
 SHORTAGES FOR ALL COMPANIES 
 
 6 
 
 SAN PRMieWOO 
 
 SANDERSON a PORTER 
 
 ENGINEERS 
 
 82 WILLIAM STREET NEW YORK 
 
 CHICAGO 
 
 STATEMENT. 
 
 *i, ^ ^?fl«wiiig Renew is made, so far as practicable, iu conformance with 
 the methods and prooedm foUowed by the Valuation Bureau of the Transit 
 Commission in its report dated February 15, 1922. The full review and analysis 
 ot such report will require additional conferences with the Engineers of 'the 
 Valuation Bureau and the study of matters beyond the scope of this Review 
 
 h^'^^^^^^'^^^K^'^'T P'T"' ""I^ortant facts that have" 
 
 oeea aaoertauted, oanun^t on thrai from the viewpoint of experience, derive 
 
 b ^l?id^°i,fto'? «i«8e8tioii8 as seem appropriate. Sich presentation 
 
 Part I—idiich cjMiimente on the General Introductory statements of 
 V aluation Bepwt. 
 
 Part II— whic^comments on the Allowances for Construction Over- 
 tada and Company Overheads and other Company 
 Ooats foe mil properties. 
 
 Part ni— idliA deals with the changes that should be made in the 
 itema and coats siiown in Valuation Report as applicable 
 to Land and Right <rf Way Values, Conbract Coste, 
 Construction and Company Overhead and Other Costs 
 Quantity Shortages and so-called Non-Operating Prop^ 
 erty for Reconstruction Cost New as of 1921. 
 
 This Review covers the properties of the following companies: 
 The Nassau Electric Railroad Company. 
 The Coney Island and Brooklyn Railroad Company 
 Brooklyn, Queeiw Omnty & Suburban Railroad Company. 
 South Brooklyn Railway Company and LeMN>r Companii. 
 The Brooklyn Heights Railroad Company. 
 Coney Island and Gravesend Railway Comnanv. 
 Tfce Brooklyn City Railroad Company. 
 
 July 2% 1922. 
 
 PBAVoa Blossom. 
 
GENERAL. 
 
 1 
 
 J *J^\ ComtaMiWii has stated that the Report of its VaJuatiim Buieaii 
 
 dged ^ebroaiy 16, 1922, is tentative, is open to criticisms or suggestions with 
 rapeet to ite owtents or conclusions, deals only with values having to do with 
 the contwiq»hted powliase <rf the properties covered and does not relate to rate 
 making or to condemnation figures. I have reviewf»d tiwt portion of ^ Vtlua- 
 tion Report which relates to the Brooklyn Surface Boada. I have also oommmA 
 Its tigures witii data furnished to me by the companies and information inmy 
 SS^Tisb BeJte!^"'*''*' Valuation R^rt as a 
 
 My views and oondnsions ai« hemn st«ted. They are first given as com- 
 ments <m the general 8totement« containiMl in tlie printed tea-page introduction 
 of the Report entit ed " Report on the Vdnmti^T TnmiH Pw^SST^ 
 Greater New York;"— and then on the 
 
 (a) Errors in the bases or principles <rf valoatioa adopted ind in Hie 
 
 conclusions expressed. 
 
 (b) Omissions of items or quantities from inwtoriei. 
 
 (c) Under-estimates of unit ooets. 
 
 (d) laadeqnatoalliNmioeifor JobOmfcead()o8(& 
 
 (e) Inadequate alkmanoes fer Con^y Omiietd Costs durimr 
 
 oonetnietiiiiL ^ 
 
 (f) Omissions of pre^50Bitniotii» Company 
 
 charges thereon. 
 
 (g) Omissions of other Companj Coets^ 
 
 •IfJ, SlTi'^i? « to «» differences a conference will be necessary 
 
 mUi the Valuation Beport Engineers ngaiding each property. ^ 
 
 Omissions of many kinds are ineritable in makimr inmtories and iwMm. 
 struction c^t estimates of properties and it is necew^l to mateUb^ 
 ances therefor. The principal omissions comprise: 
 
 (a) Property overlooked and not listed because inaccessible or not 
 
 readily seen. 
 
 (b) The actual costs of removing the obstacles met when the work was 
 
 h^^"^ not erident when the 
 
 m Undwertimates of qi«ntities, unit construction costs, job and 2 
 
 and iraluatm woik ai» lAaly to u»le«estimato the compmiy coste i ^i^^ 
 
 9 
 
3 t»yii tnd the pwHSonstruction work, the financing and interest. TheyMMtoitt 
 differentiate properly between the rates for interest ^^^^^^^^^J" 
 speculative conatniction enterprise without earnings or eiedit awl ««« 
 securable by m «iiiig CMieem having earaings adequate to guarantee payment 
 of intetest and Svidendi on the seemiliee it markets iot mm construction. 
 
 WhcD eonsnlted on these matters I advised that every facility and the 
 ' fullest information be given the Commission engineers, and that they be 
 furnished with full data regarding all the properties. I was so 
 proceeded accordingly. I utilized competent assistute ^ «>2P«;*«d "^It^ 
 Commission. Amoiig thoee I had widi me ill my work oil the ^ooWyn Sn^ 
 
 IiBii» IB addition to oBgiiieeri regokrl^ 
 
 4 B. a Bnck— Gradoated in 1887 from Trey Polytechnic Institute; was 
 
 formerly a partner in Sanderson & Porter ; in Government service ; 
 Chief Engineer of Manhattan and Williamsburg Bridges; Chief 
 Engineer of Dominion Bridge Company ; Engineer of Mamtenance 
 ^Way of Kew York Railways ; and wlA ma lor over two years on 
 Brooklyn City Eailroad woik. 
 Thos. F. MuUaney — Engaged for over thirty years in eleotrical coBr 
 struction and iequipment woA throughout the United Sutra; 
 foimerly Chief Engineer of Third Armm Baihraad, J»«w Ywk. 
 
 J. R. C. Armstrong— Engaged for over 27 yean on cwistruction and 
 operatifm of power statiims and substations; electnficaticm of horae 
 1^ eahle roads; Chief Electrical Engineer in charge of the 
 engineering and design of electric freight and passenger rolling 
 stock; and in practice as Consulting Engineer in the foregoing 
 lines. 
 
 Clias. A. Remelius— Engaged for over 35 years in machine tool design; 
 a Mechanical Engineer thoroughly familiar with raihroad tools and 
 th^ construetion. 
 
 1 Julius A. Hanna— Eiw>d for w«r ^ 7^ ^ manulMsture and 
 
 sale of ndlioid cms, tru«a» and equipment; reoogniaed to he a 
 rolHng ■took vahution and appraisal o^ert theseiB. 
 
 In addition, I have eonfencd on Iiand and Bi^^t of Way and Easements 
 with J. H. Bennington of the Bifartmont of Real Estate & Taxes of the 
 mmfm^mKgkiTmaACoB^n^. I hav« used herein the values I obtained 
 
 from hTf^T 
 
 10 
 
 COMMENTS ON THE GENERAL INTRODUCTOEY 
 STATEMENTS OF VALUATION REPORT. 
 
PARTL 
 
 6 
 
 COMMENTS ON THE GENERAL INTRODUCTOBY STAT£M£NXS 
 
 OF VALUATION REPORT. 
 
 (1) The " Original Cost " valuation described in the Bepott appears to 
 be a mixture of estiimted and of actual costs and of many assumptions, indi- 
 cating that the valuing engineer has presented figures which show what he 
 dumgiit the properties probably cost or should have cost,— under conditions he 
 assumes to have exiated when h» assumes tfaej were <aeated;— imAer dian whtA 
 they actually did cost, on a recognized accounting basis. The costs and prices 
 prevailing one or two generations ago are not either normal or applicable to 
 present purchase and sale appraisals, and can h&ve no value therein. They 
 mll^t iranraut eoiisiderati<m in a rate case to arrive at an " investor's sacrifice " 
 igare of cost This would necessarily ineliide aeemed deficits in fair letorn, 
 or gong value iiiid«r tiie New Yoik law, and ote difeot and indiraot costa. 
 
 (S) The lil0-1914 BeooiistnictioB Goek desorifaed in the Valuation 
 Report uses prices which it dedgniates " pre-war prices." These are supposed 
 to be the prices prevailing during such years but appear to be the eztromely 
 low prices of 1914. These also have passed away. While nearer the prices of 7 
 today than are Ihe original costs of prior years, there is no justification for 
 calling 1910-1914 prices nomurfeKcept for their own period. They are *uper- 
 normal judged by many earlier or lower prices, and sub-mortMl judged by the 
 higher prices which have since prevailed. Neither does a normal exchange value 
 of commodities east, although the ratio of the average price of rails and 
 meehamc^ ai^eieetrical equipment, etc, to the average of living costs is much 
 less vanaWe ^ ihe of priees of single commodtkiea. The gold dollar 
 shows the mosl estienie variation in vmhie as measured by everything else; 
 
 (8) The 1921 Beoonstmetion Cost valuation described in the Report is 
 based on an inventory stated therein to have been made as of June 80 192L 
 and on prices stated in Report to be taken in the " period of the first six Stidnths 
 of 1921, which was immediately preceding the completion of the inventory 
 and intended to reflect the then ' present day prices and conditions.* " 
 
 ,^JA) In each of the three above-described bases of negotiation the Report 
 IM^at deduction should be made either for depreciation, or for the cost of 
 gH^ptte propeiiiet into fintdass operadng condition. In this ccmnection. c 
 flwlleportstatw under Ae caption » 
 investor it would become necessary to trace the actual investment of the present 
 holders of the securities, and to ascertain whether such investment when hhmIb 
 reflect^ ^ depreciated condition of the property before any iniustice in 
 (iite^<^reei»tion £mn the full vahiatiou of the property could be seriously 
 maintained. Investon in transit properties have ehai^^ many times sinoe 
 operation was first commenced, and the price paid in the transf^ undonbtedlv 
 considered the condition of the property." This is incorrect, for a stot^ohhv 
 succeeds «o all rights of a previous stockholder, and the justice or injuatioe of 
 
 18 
 
S iBj meduid ol iNSliiii 4mtaMam eumol lie afleeted hj a ekni» k Ite 
 ouMffiMp of ■eoiintiee---iiMt]ier wmk elumge is effleoted by purchase, gift, 
 bequest, ezehsnge or otberwise. Moreover, prieee paid lor •took exe luiiaUy 
 dupentet on present or prospective eaminge. 
 
 The Report further states that "the straight line basis has been ^te 
 uniformly accepted as the most practical mieans of determining the ainoiint 
 
 9 whididioiild be dedoeledfraiiitevtlaeol^ proper^ 
 
 appUet." This statenMBi alio kineomet Sodi basis has been quite uniformly 
 fejeelei* This is admitted in testimony ^ven at the hearings held since the 
 Report was presented. The reason it is rejected is that the straight line method 
 is illogical. It takes no cognizance of the wear, tear, us^ expoaore or condition 
 of Ike property nor of tiie amomil of Hie expenditiiM idnde teeon lor Bun- 
 tenmee, repairs, ic n ew ale and repkoementa On the straight line depreeictioa 
 tiMory of the Valuation Report two pieces of equipment of the same age are 
 given the nme depteeiaition and aotoal facts as to their real condition are 
 ignored. 
 
 Two methods of computing depreciation are used in the Report, viz. : 
 
 (a) Straight line depreciation, based on the proportion that the esiir 
 n^ed expired portion of the ettimaied life (with allowance 
 inr estimated salva^^ or aenp valne) bears to the total esl»> 
 wmhi life (imIi lilt Waf ap aa alalif i or oIdioiiii in 
 
 (k) Bivneiite detiUMiiied bj iw eikimated oost in 19il of plaeiBf 
 A» propMtisi in Mmtdtm oftntiag e a adi tiw i, 
 
 10 (ft) 11m Import advoealeslaki]«^i»«8!]ed<'origiiiale^ 
 
 ^fffiAftg t iw re ffom the eoal of plaeinf IIm properties in infe«las8 operating 
 
 DWiliitfiHi at &e higher prices of 1921. It includes in the amounts so deducted 
 both its estimated " deferred miaintenance " and its estimated " deferred replace* 
 n^nts," t. e.f in addition to deferred maintenance the Report deducts mudi 
 accrued etraii^ line depreeiattioB. lleBeparttknixeesmBMBditbaltiMMMnt 
 of midni^ ipKning eatlBiailid vahw of dM noMipan^ pmpvty, W oSmd 
 to the omns, in bonds. 
 
 The method used in this connection is stated in Valuation Report under 
 the caption " Conclusions and Recommendations," and reads : " It is our con- 
 clusi(m that a fair valuation for the existing property of companies other than 
 that inchided under Goutraeta Voe, 1, S, 8, and 4 and Mr vdated eert ifa a te t 
 WNldd eoMuA in sHoiiiBf Hie original oost less the o mpmditu res necessary to 
 pBt Hm ' p roper ty in first-class condition." I do not agree with this conclusion. 
 It is difficult to see how it could be reached by business men. Certainly none 
 of those who wrote the Report would consider such a method of valuation fair 
 if applied to tbeir mm hone or property. U the eoncMoa or rsle eKpr sase d 
 
 11 in 1M Bsport nere gBmniSfy ap^ed owners might have to pari with property 
 lor noHdng, or pay a boyer for taking it. It penalizes investors who, instead 
 of waiting until 1921, spent their money 20, 30 or more years ago to serve the 
 public. A cubic yard of excavation or fill work done in 1890 is now as valuable 
 to the pnUie aa if done in 19S0. Had tiie eonehiaioii or nds been originally 
 aimoiiMed #at: inaletii m'tAut Wmi» 'Of prqier^ 'iSkm itHioada mM 
 
 appreeiatiOB in ytlbB» bnt tlmt omnen of poblie aervioe property would be 11 
 denied any appreciation of value if and when they aoU tiiar property, 
 
 Brooklynites would probably now be walking or riding in horse cars or buses. 
 This valuation is for the purpose of purchase. For all work, whenever built, 
 it would seem that the owners are entitled to receive its present value. 
 
 (6) Herein I deal with basis number three, mentioned above and given 
 Report, namely, reconstruction cost at 1921 prices, because I do not 
 
 eo^er tiiat a ralvation arrived at by any other method will meet the tests of 
 enmnt bnalBeaa praetiee lor Hie pnrposes of proposed negotiatioBS. 
 
 (7) The Report states under caption " Expenditures Neeessary to Place 
 Property in First-Class Operating Condition " that the pxescmt day condition 12 
 
 is not necessarily that of June 30, 1921. This statement is particularly true 
 now, as very liberal expenditures on maintenance have been made since the 
 enaetion of the Transit Act, and the values of the properties are now corre- 
 Hxmdingly increased. The lesser prices <rf the present day woul^ by reducing 
 the costs of the work which the Report deducts as necessary to put the properties 
 in good condition — show larger values for each of the propertisa. Hie Report 
 includes in the amount which it so deducts at 1921 prices: 
 
 (a) An estimated amount to cover the estimated requiieoienla lor 
 
 overcoming deferred maintenance ; 
 
 (b) A large additional estimated amount to cover its estimates for 
 
 ''deferred replacements" of equipment, i. e., equipment 
 ^^tiek h aarames dioald be retired from service. 
 
 Moreover, audi deferred replacements have been determined bv an 
 erroneous meOod, I by assuming the ezpenditnro of money to place property 
 m first-ckss condition and then retiring such property. An indication of the 
 
 magnitude of the aniount that the Report claims should be allowed for deferred 
 replacements is given by the statement appearing in Report of Public Service 
 Commission, First District, New York, for year ending December 31, 1920, 
 OB pi^ 88, whidi gives I9ie then deferred maitUewmce of the surface lines 11 
 
 asfiiOoiiia: 
 
 " AU eoB^panies (baaed on 8100 eaia) |281,lft0 
 
 * Trade SPmm0 
 
 Brooklyn City Railroad Company i 500 QOO 
 
 Brooklyn Heights Railroad Company 101000 
 
 Brooklyn, Queens County & Suburban Baihroad 670*000 
 
 Nassau Electric Railroad Company 1 300 000 
 
 Coney Ishmd & Graveeend Railroad ' 70 000 
 
 OoMjIriaadlbBrooklyBBailnadCo.. 423^000 
 
 iM95,159 
 
 mWmm!!r!i%Jm l^ U . ^ tmt^^nnwS\t%mitr'^ »nmattm whidi MBoiuto for 
 
 The deferred mainienanee phu deferred replacements for these same com- 
 panies is eatiiiiiiBd lor 1921 in TahmtioD Bepoi* $11,868,645. 
 
 15 
 
13 Ib tliia oonnectioB #i ¥«lluitiaii Beport states " it is believed that due 
 eanncknitiflii should \m gifw to m mtimt^ of Obib niWMnry ezpendknres of 
 tiii dMuraeter as » pnetel mniia of detamfaupg tka Mlwd itttar Hub l3b» 
 theoretical dgpwmialioii. Life is necessarily aftHtad by ithe d UaAmd . 0f ihfb 
 
 14 lepairs. Benovation and rehabilitation from time to time will o'pen^ to make 
 over and renew and if successively continued may prolong the line in service 
 to an extent difficuHt to estimate." This statement cancels the preceding state- 
 mi^t in the Beport which says in efiFect that it is proper to deduct theoretical 
 dt^mmmim iMMd en age. It ■wlwtmtiitoe the eontontkn made by the oooi- 
 pniae tta% lor fraper detamiiiuitioii of diBpmAi&am, ftadmgi must not be 
 tlMMMit'ii.ill Iwl mnal be' bund 'IM Iftpffl f ji m on ^Miib 
 
 The Brooklyn Surf eoe Boed praportiei tan now in seasoned condition and 
 require only that enough money be spent on them to enable then^ to give a 
 quality of service equal to that which the same properties could give if new. 
 To spend more than this amount would be wasteful and extravagant In 
 amving at a purchase and sale figure it may be proper to allow a credit, from 
 tiie Taliie of the propepty if netir in aBMNDit niBeiaBt to pat ikme propertka 
 into eonditkn to gite iiafreiaaa aMfM% bat it k not pi^^ 
 ooat of new eqaipmcnt expected to be pwrnbaaed niA <i» iljaal el fanwaiinfl; 
 net earnings reoeivaUe by tiie new ownera. 
 
 In the record of the service hearing had recently before the Transit Com- 
 mission in the mattter of the overloading and underloading of the Brooklyn 
 ^5 Surface Ianea» testimony was given as to the b^eficial effect on the service 
 of faont eipenditaiaa made on aMinlnnMe by the Brooklyn Qwef»M Linea. 
 In oommeDting thereon Mr. Badiagton, Counsel to the Commission, then ^ted, 
 in connection with the testimony of Mr. D. L. Turner, Chief Engineer of tiie 
 Commission, — " it is somewhat of a relief, Mr. CmrimHwiniiiff; to find Maiiuti 
 that is proper under the ^hai^ging conditions." 
 
 (8) Whether the owners would be willing to aee^t bonds instead of 
 cash is a matter for them to determine. There is of course a difference between 
 the proper price for these roads if paid in cash and if paid in bonds issued 
 againat tbe gniap wiOMNit e eity gomaaftee of the booda. The rate of interest 
 and the tem of the Onmp bond woaldabo be important laetoaa. At one of ^ 
 hearings the Engineer of the Commission testified, in this connection, that the 
 Beport Engineers assumed that 7V^ per cent bonds could be sold for par. 
 The corresponding price for a 5 per cent bond yielding per cent to maturity 
 woald be but 66^^ for a 50 year bond; 68^ f a 40 year bond; 70>2 for a 
 SO year bond; and 74>4 lor « SO year bond. 
 
 10 (9) Certain general costs, some of which are mentioned in the Report, 
 apply to »11 the Brooklyn aorfaee roads. Sndi eosto include the Construction 
 Ovethead eoati and the Compainr Oteited eoMiy whaieaa, tiia dlieet individual 
 property costs for materials and labor are a function of quantitiea in each case 
 and of their corresponding unit costs. All such general costs are as inevitable 
 and unavoidable as the costs of steel rails or cars. They may be computed 
 etHMr on the baais of material and labor ooats or they may be based on reason- 
 abb eaUMatea fiand Igr msptanmm liad in the balUiiBg of aimilar properte. 
 
 (10) In the estimates given for 1921 leoonatnuNikm oaats no allowance ]0 
 IS mcluded in the Report for the extra cost of piece-meal oonstmotion. Though 
 this item is possibly irrelevant on the basis of 1921 reconstruction it seems 
 proper to point out that substantial addition should be added therefor in any 
 aatisnrtaa of fffiginal or aetoal or hiatorical cost 
 
 (Jl) Beport underestimates the allowances that must be made for 
 
 ooato^land and right of way. Such costs must^ as estimlated by Mr. Benningtoo, 
 
 ba talw<»1lie average, at not leaaliamLMtimea the assessed valuati^^^ In 17 
 ttooaaeofthekiidownedliyliieConaylalandABiook^T 
 
 whidi IS a busmess corporation and not a railroad con^aoy, the land is believed 
 by^e Company to be saleable at more than double the assessed valuation. That 
 theae nraltipUers are conservative is proved by a detailed signed statement of 
 aaM poidbaaea of aone 200 parcels of land prepared by Mr. Benniniijton. 
 dated July 26, 1922. These fignrea of 1.60 ti«8aAe««aaaidvahiationZ«S 
 be us^ m place of the figures given in B^Murt whidi are Aenin alatod to be 
 Market value as of June 30, 1921, determined by expert realeatateararaisers- 
 this^ark^ v^ was held to apply to both the original cost and the costs ti 
 reprodoee. Tlie Beport doea no* even include the necessarily incurred costs 
 mjidental to Ihe aoquiei!ti<m of the land and right of way, nor the c^ 
 mterest and taxes, of carrying the inveatment in land and right of way during 
 construction. This land must, in most cases, be acquired weU in advancellf 
 toe starti ng of can struotion. Interest mu»t be thereafter paid on its cost and 
 tuna tun thnmafter payabfo on ouch property and mjost be paid if the Tax 
 pe^irtar^nt does ite duty. Aa toatified, in tfiia eonoeetion by Mr. Bennington 18 
 in the Consolidated and Brooklyn Bajad Tranait hevinga, taaai havebeen 
 levied and paid on land and on uncompleted structurea during oonatmotion and 
 TfJl^^"^ ff* ""^S operation. The present companies report such hnd 
 n^- atnictarea to State Tax Commission when purchased and a copy goes to 
 4e local Tax auAontaea. The Beport aima to justify the inadequate pri^ it 
 uses for land and nght of way eatimatea by aMag: maitet rahie is a 
 price to the purehaaer, ondaaj aooh ebaq^ altMh to paed^ 
 
 .r.A ^^^^ ^ Eaasments, Private Bl^t of Way, Gonsente 
 
 and Damages should be limited in all valuations to Ae^riginal eoS shown on 
 
 the books, and that Aey have not enhanced by hmd value increases or rental 
 value mcreases. This statement is incorrect as would be soon discovered bv 
 TJJ!^^U^Zf^^ to obtainsuch property and rights or to meet the 
 
 i««dd dewdy. Efen .Lr making this reference to and 
 
 (13) The Beport inebdea notiiing for the value of many miles of irrevo- 1Q 
 cable and perpetual easements, *. a., toe value of toe perpetid riThte to 
 struct and operate through, on and over the land occupied bv Ae tn^ TW 
 
 'A^Zf^Z^-'^S'^''^'^^^ priva1.^ownenr^e^^ 
 fife form of of way m locations that became streets when officiallv 
 as such eabsequent to the obtaining of these company casemate Such 
 
 ^T^^^"^ not now be p«M^ in atiy »ao&ion pro-am 
 
 If 
 
t0 ( 14) The Report does not include valuation of physical property develop- 
 meiA oo0ts, nor for the oo^t of experimentation or changes. Tkew ootte indw 
 ttiveC node, gndbciaiigM wd other work done at the instance of paUieratlMin- 
 
 tiia, or im otiber canaes, ol which work no physical evidence now exists and 
 which therefore canmot be ascertained from an inventory of the property taken 
 at this time, nor from! any othetr sources except company or personal records 
 or ^e recollection of those who were engaged on such work, 
 
 (15) The R/epoirt does not include any valuation for expenditures made 
 to ereste and develop the business. It deals only with the costs of reooDStruCting 
 the phyiieiil property, wbrnem 1M tmapukj yropattj lAaek is ewmtd tmd ii 
 ptopoied Ho be pmiebMed otHOprises both its physical jMPoperty and its attached 
 
 20 busineM. Any estimates of cost of reconstruction must assume that the physical 
 property is wiped ou!t and then reconstructed. In addition to such expenditures 
 for physical property other large expenditures would immediately have to be 
 made to Teeomtmet or leeresfte tiie eadstii^ c umpetiU f^ Vnnneas. 
 
 (16) The Report does not include any valuation for power or the adver- 
 liilif eomtniota. It makes no estuuitoi of wteatkn for the eo ntw wti nydb 
 9mM in the iotai «f £naidliiMi (or frandiiie rahw). This means the pmit 
 irarth of future eamiigi iuidflr existing franchise conditions and under con- 
 ttacrts wherein the companies have a perpetual franohiae fgr the i^malw part 
 ef the mileage of their lines. 
 
 (17) As to the methods used in making its valuations, the Report has 
 assumed that only a porti<m of the work would be reconstructed by the contract 
 method. This assumption is contrary to customary practice. If the work were 
 so lelnik, as c ii i itom| i l ated in Hw Beport, Company Ooeta, inelndi^g ill 
 ateiinistrative and engineering costs, would be greater by enou^ to offnt 
 saving in Job Overheads and comtwclor** awfieea wbidx ^ Ba|Mrt Mil— lUllJj 
 •asunes could so be effected. 
 
 21 (18) On M aorch 30, 1921, the preeent socalled Transit Law (Chap. 134), 
 became a law and on April 27, 1921, the Amendment thereto (Cha;>. 335), 
 became a law. The Act requires, by its Section 106, that " the Commission Aall 
 eanie • vahMtion to be niide ol Hie property, other 4iani ^ fnaAmm at going 
 
 necessarily used in poMie service of the lailMda it proposes to iiKlude 
 ftmsiik'' The Amendment states, with reference to this valnatioii, " bat such 
 nalnalioii shall not in any case exceed the fair reconstruction cost of the property 
 less depreeistion.'' Hie Vahmtian Report states that in its Report the term 
 ** reeoostroction eoat," was held to be synonymoaa with " reproductioa Mats" 
 m inpldgped amd n n deia to od in vahuikMs mi^ Thia knr doaa not Mm 
 lenn ^ rsoonstmcition cost," — niiieh can mean only the leooiutraetion, Teoraation 
 or rebuilding new of these identical properties at current prices, according to 
 the specifications and quantities of the existing properties, using reasonable 
 diligence and meliiods and period of oonstrueticm and aswiming 1^ noiH oM 
 enee mt wiping ciit <if mhIi {mfMrtiea. 
 
 ytmifwi| y fn fl ^ ■^liMp—fc jnattniiff or iiliBMilei nf jflie ItSit leooHlnMtini eoil 
 new, the governing con^litions must be those existing at the date wlwB tfie law, 
 passed March 30, 1921, took effect, which was immediately. Reference shooM 
 also be hnd to important pertinent facta involved in the oonstniflfcion hiatoiy of 
 
 18 
 
 il» property, whenever the making of a rational reconetrudtion cost estintote 22 
 iMraM ao req^nie in order properly to oonaider all f acMots. FoU knowledge of 
 the conditions aotnally met in the o(nistruction of the properties b^ig valued 
 is important in ascei^taining quantities and in estimfatmg oniissi<»is^ ooor 
 tingencies and other costs. Such costs must include the reoonstmctioa costs of 
 recreating company surveys, maps, profiles, plans, specifications and other 
 reeofdannd of Bwwrobling the facts and data naed in iSbmi making. 
 
 lie Bepoi<t rtatos diai the inventories were, in aill cases, made as of June 
 30, 1921, and that the 1921 ralnaltion of phyaical {nopeily ww based on the 
 Cost to Reproduce l^ew at prices and conditions existing in the first six monflis 
 of 1921. The date of the Act, March 30, 1921, falls in the middle of such six 
 moniths period imimediately preceding the completion of the inventory. On its 
 own statfsnpnt, the Report should theiefoxe bave used prices current at the end 
 iA Haieh, 1881, aa I have done in my review Iheraof. 
 
 The Act and the Amendment each reqaire that tiie vnlnation include the 
 
 property " necessarily used in the public service." This term, " necessarily used 
 in the public service " seems to be synonymous with the usual term " used or 23 
 useful property." The Repofrt, however, states thait "the inventory for the 
 vnhution, wwb set up by segregating the property into operative and nonroperor 
 <tiw property" the latter including principally bnildiiigs and powa> ^imt and 
 sub^tion equipment retained by the companies hat not utilized in tfaeopentian 
 of the railroad." However, the Report gives no rules for the segregation of 
 Pf^rty into that which is valued and that which is not valued. It is therefore 
 diiMiilt to nndevstand and to foUow some of ilts proposed classifications. For 
 instance, the Repoit ioehidea under "Property useful for operaUon by comr 
 panics" both "property used for operation" and "property not nsed for 
 operation;" and Report includes under " Nonroperaiing Property " the " prop- 
 erty not used in operation by companies." This is very confusing. Considerable 
 land is listed nnder " property " not used in operation. The Report lists as 
 non-operating property, eonie property that is nsed and is neoesaaxy fw good 
 public service. An instance is the Power Plant of the Brooklyn Ci^ TtaiWwf il 
 now used for heating ew abopi^ hot lifted ondar Bmek^ Bapid mnnt noor 
 operating property. 
 
 Property, whether or not utilized, is dlMiMttr mM nmpeitr in 
 many cases. # ■■^'T'' 
 
 Used or useful' property must, broadly speakii^, include the following 24 
 I»oper^; property regularly in serviee in <iie ooime of operation; property not 
 i^arly in serviee bat which is needed or used ok intavfala vmg to wide 
 
 range in service demand ; property which ordinary prudenoe end good manage- 
 ment deem essential as reserve capacity and as a safety measure to protect the 
 8^][we; pr^rty which reasonable business judgment deems it necessary to 
 eequire in wdvaneeef inmiediale needs beeanse of the greater economy of present 
 acquirement or for o4to reaaons affecting the vMiuate good of ^ eerrioe- 
 and other pinperlj and propeity rig^ dervdted to pahlie iiaek ' 
 In this same coraiectioD the Report, under caption "Conclusions and 
 Recommendations " states, " it is our opinion that there should be included in 
 rodi valuation only the propei*ty now existent and suited for operation " 
 Wliite1ie«iwnen wovM he wilKng to di^oeeof less than aU of their prop^ 
 
 18 
 
M. timkmmmml^ aiul <ii<iwitiwi, Ummm,hmmm, titai nj foA pitiil 
 
 or limited valnaition should equal ilw acceptable Talnation of the entiro pm p ^jj 
 in each case, leas the salvage obteinable by the owner in dispoeing elsewhere 
 «f the property not included in meh valuation and not t<aken over, i. e., that a 
 21 pt i imi tnjiig orij ul iey a pertii— ql Ifae pwn>ertieB should expect to pay 
 tiwiior ga^aMoinrtyil i» lit fika nl fBbm min pniptrty Im Ikt 
 
 (20) Iimloiiia of liie diaraelar below Hated mm imBed by or on 
 bebatf of the BnMkfya SBilm Boaaf Ihe 
 Vunation: 
 
 (a) Imentories supplied by mie during the miiiimi irf fall cf 1981 
 
 of the Brooklyn City Railroad Company property covering 
 "the property designated by Brooklyn Heighte Railroad as 
 being die pioperty <tf BrooUyn Oity Railroad October 19, 
 1919, mam b^ iufiitipled and dMoked." Theae kveik- 
 tories comprised a number of volumes of character indifflilBd 
 by their contents which included: track, special track 
 paving, land, buildings, miscelhmeous strudfcuree, shop eqiip- 
 amt and niMbiM tooli» tnmwijiBBOB and distribution systems 
 and ioliilatiiMii, pliolcill^i^lMar ^jM 
 ber of each type owned, maps of feeder and trdley, mape of 
 entire underground feeder system, imp of high tension feeder 
 syiltem, inventory of high tension underground cable sy^em, 
 inliflation drawiuA imrentoiy of underground trolley feeders 
 and ratonia, pralMBaiy invenlovj «f «ai«nt tiwd^ tnA 
 bonds, track iufwtaty, oteriiead ^weial woA and bondingi» 
 overhead conatriietion, special vrork, consents and damages 
 (being thjiee slieetB of etreet locations of lines in which fee 
 la In abnttin| property and in the city, divided between bosi- 
 nesa and tendmoe ibontage), rigjits el way eaaements, mis- 
 eeflaneops equipment, ii i i|wweui ^ 
 fmnknie and fixtmee, and miwallHMiMa e qnipm lBi H. 
 
 (b) Inventories of generally eimiaar cbaraeter and ioope aapplied by 
 
 the Brooklyn Rapid Transit Company office during ik» 
 summer and fall of 1921 of the othei; Brooklyn Surface Roadi. 
 
 HI 
 
 PAKT n 
 
 COMMENTS ON THE ALLOWANCES FOR CONSTRUC- 
 TION OVERHEADS AND COMPANY OVEBHEADS 
 AND OTHEE COMPANY COSTS FOR ALL 
 
 PEOPERTIES. 
 
paut it 
 
 27 
 
 GBKEBAL METHODS, PROCEDTIRE AND NOMENCLATURE USED 
 
 IN VALUATION REPORT. 
 
 The general neetiiiods «iid prooediire followed in tiie Valuatiom Report ate 
 oirtimed, and tite nomeiKslaitiue therein uaed m explained in the tiiree following 
 puagnaplis: 
 
 1. " OoNTBAOT Cost."— As stated in its Part 3 or statistical section, 
 which gives unit coet data, etc., the Report adds, but only in the case of some 
 items (as is explained in paragraph " Unit Costs " of tiie transmittal letter) 
 to the " Bare Oast " (which is therein stated to include all charges for material, 
 labor and £oranen) the anwunt of 6 per cent for " Job Overhead," — making 
 T^iat k tlierein calkd " ConaitractioD Cost;" to this it adds^ but only in the 
 
 ease of some itenls, the amount of 10 per cent for " Contractor's Services," 
 
 malring what is therein called " Contract Cost." However, in making up the 
 estimates of " Contract Cost " for Electrical and ]\rechanieal Equipment and 
 Boiling Stodk, the Reiport adds no ov^bead but uses the manufacturer's bare 
 a^ing price to the Compiany, stating that this price corresponds to the above- 
 mientioned " Cohtraot Cost " (which, in the case of Track and Structures, is 
 the amount paid to the Contractor for the finished work, ri'ady to operate). 
 In other words, this means that in the Report no allowances for " Job Over- 
 head " OT " Ccmtraotor's Services " are included in the Electrical and Mechanical 
 eqnipmeiit and Bolfin^ Stock. 
 
 2. The Report theoi adds to ** Contract Cost " (as made up from the sum 
 of l2ie foregoing itemia) certain estimated overhead and other ch^irges to the 
 company; it terns these " Company Overhead Charges '* md divides them into 
 ** Expenses during Development " and " Expenses during Coofttructioo." 
 
 8. " CoBT TO Repboditcii " as termed in the Report is made up from the 
 total of the estimated costs mentioned in 1 and 2, plus the Report valuation 
 for Land, Right of Way and Mafterials and Supplies — ^in which hgt three items 
 the Report includes no overhead or carrying costs. 
 
 In the pages hereof immediately following I give my opinions on these 
 sbomnmed costs in a statement, which applies to all the Brooklyn Surface 
 Baiboads, regarding the overheads and other additional costs. Thereafter I 
 give in »Bpararte statements for each Company, the dianges which should be 
 made in items and costs of valuations given in the Yahxaidon Report for 1921 
 Reconstruction Cost. 
 
 23 
 
20 AJTALYSIS OF AND CONCLUSIONS RESPECTING ALLOWANCES 
 FOR OVERHEAD AND OTHER ADDITIONAL COSTS ENTER- 
 mQ INTO RECONSTRUCTION COST-OR " COST TO EEr 
 
 mmmm " as termed in valuation report. 
 
 Company Overheads: 
 
 A company or organiaation reconstructing the Brooklyn Surface Railroads 
 m 1921f would have had to paj costs for Company Overheads in excess of the 
 perontages md wmma^ alloirod in im Valaatioii Report of February 15, 
 1922. Some of Hitm «ti nooM be inoatwd in cwmectiott iriflt rngBdHawt 
 
 in detail. 
 
 Comiruetion Overheads: 
 
 A sinrilar statement also applies to the Con«tructian Overheads shown in 
 liie estimated Ccmtract Costs of the Report, but in this case the extent to Which 
 it aiipliif em coly be determined by « ei»ifereiMse with the Valuation Bureau 
 Mlgineere in order to aeoertain nimt iteoM, nflmt elmenli ef eoet and uluit 
 ■Qmnoet tb^ incdoded in 1i» IWl 
 
 IhfKctation ef Omrkmii: 
 
 The Report depreciates the OowlRietion Ovtriteada, and the Oon^My 
 Overheads. The Company overheads should not be depreciated heeanse Ilie 
 creative engineering, legal and administrative work and the expenses of inaur- 
 aneei taaeeiv intereit and cMfc of money, once made are permanent and will never 
 aO ba dii]iiifla!tad. Sonii of Ilia CkMtrnatiim Oniteda ipiH be 
 
 ijaking renewals and replaeeoMnlB, but tbia atetemflnt doea not apply to all <tf 
 tbe CooatnictMA Qvai^^ or to all i»f tlka praperl^. 
 
 The Report appears to aHow Construction Overheads only on Track and 
 Structuree, made up of d per cent for " Job Overhead " and 10 per cent for 
 ** Oonttaelor^a Ser^oei " (including therein contractor's home office overhead 
 ittd fmAt). TbeM, eon nliine d^ amaant to 10.6 per ecnt, which seems entiidy 
 isiiiqfttate. My practice in such wmk is to allow at least 12 per oent fbr Jm 
 Overhead and to figure it on all (eioept Rolling Stock, to which I add 3 per 
 eent) in^ltead of on only a paH of the work. The 12 per cent is made up of 4 
 per cent for Oontractor'e works office coBts and 8 perx^t for all other items 
 nndar (a) and (b) of ^ next foiowii^ paragrapha. la my opinion this 12 
 
 per cent, 80 fignred, should be Qied in llieae ^alnation iMtaad of ^ • per 00^^ 
 
 as used and fibred. The 12 per oent for " Job Overhead ** and the 10 per cent 
 for " Contractors' Services," combined, amount to 23.2 per cent. It is neces- 
 aary to make proper aHowances for all incidravtals, contingencies and omi?»9ions. 
 Oafy hj making a atady and analyaa of mat prices with the Report Engineers 
 can one determine liie «Mit to vUdb aaaded aOimaiMa lliwiiffiii luiu luun 
 made in the Report unit prices and mmk final conehianna regarding the 
 so-called "Contract Coat." Generally speaking the practice of individual 
 31 engineers in making up unit costs varies so widely as to what items thev include 
 in Mr ** wit ooata »» and what they imOnda in ** job overhead " that* only the 
 nariM^'flQ^iract costs'' can ptopeity be em Sodi eoali nmat inelndo 
 «n '"jab vmAmiB" and "q n i m i ito i a' anrtieea.'' 
 
 ** CoHnuoT Ooer " aa defined in lefort snvt include the following 31 
 oonatmetion ooate: 
 
 (a) All itemlB listed in Rqwrt as baving been inelnded in 
 
 ''Contract Cost" 
 
 (b) Ea^reea, frei^^t^ demurrage, teleph<me, telegimpli, storeroom, 
 
 s^r&ge, yard, automobile hire, cartage, rental, job lia- 
 bility insurance, incidentals, extras, omissions, mistakes, 
 changes, corrections, breakage and waste, rehandling, 
 temporary oouiLniutSMi and duplication of woric, removal 
 of poor work, removal of obstructiona or mterferenoes, 
 excess cost of doing work while maintaining operation, 
 idle or overtime labor, power, heating, lighting for night- 
 work, failure of 8ub^»ntnactors and reletting of work, 
 delays, alrikee, aeetdents, '< weather damtage, disastera, 
 miscarriage of shipments, city inepeetion and permits, 
 bonds, fees, all other uninsurable costs, injuries and 
 damages to persons and property, operation of job shops, 
 construction plant maintenance, trial operation, con- 
 trenitorB* moAa oAoe coali and r^uneration for oon- 
 tracta' eervieea fw<!lndii^ tiMnia }m borne office 
 ovwliead costs. 
 
 " Cost to Rspbodvcs " as defined in Report nmiit iiwlude the following 32 
 oompany ooMs: ^ 
 
 (a) Company's Overhead Costa During Construction: 
 
 Intereilt during constmetion <m all e^endituree made, 
 incbiding mterest on land and rig^it of -m^, taxes, 
 engineering, administrative, 1^1, etc, coste. 
 
 Taxes during construction, including taxes on land and 
 right of way and on structures, if payable. 
 
 Engineering, design and inspection costs. 
 
 AdminiatiMfctve, eoDeeotifn, I^gal and office coste. 
 
 (b) Company's Cods Prior U Coadructum:^ 
 
 . TwBMto^M remuneration for swvices and expenses — 
 Inelnduig franefane and permit costs and fees paid 
 
 therefor. 
 
 Administrative, legal and engineering costs. 
 
 Interest on expenditures made, including interest on land 
 
 sasA. rig^ of way, prior to constmetioo. 
 Taxes <m knd and rigbt of way and on etmetniei, if pay- 
 
 abie. (See Note on foltomng paga)* 
 
 (c) Cost of procuring money. 
 
 (d) Company's Costs Subsequent to Construction: 
 
 Working capital— including materials and aoppliea, and 
 cash if valtied. 
 
 25 
 
1P||!M«tl pNfiflf 4mtAofmmii eotte; invwitmeiity pending 
 imortiiB^ fmm mrmngtf in mipeneded, mhtmiaaioA 
 
 or unmea property (or sometimes in property now non- 
 existent) when an unavoidable cost of the present com- 
 pleted and improfved property thoui^ not appearing in 
 infliwilorr, 
 
 rmkm iif OmtoMte for power, iidfertitiQ& ete. 
 
 JTof* ■ff i i w M t t0 Or ai if t (•) mJ (i) af pifv Mt 
 
 l-*«^^!!21!^ '""^ Taxes on Land and Right of Way, and Interest on Consenta and DamagM 
 ueurred pnor to construction are, for oonvenience of presentation in the tables of Part TiT. 
 listed therein with other Interest and Taxes incurred during coBitnwIion. The prraMtnw! 
 
 it irS!fiLr!!ii^ '« "S**^ •* *^ pw^tmcUon period. 
 
 Tlie following comments are submitted on the four fmmimg imiiiiitriM 
 of tlM eonipMiy ootts designated (a), (b), (c) snd (d). 
 
 COMMENTS m GROUP («) OR COMPANFS OVERHEAD COSTS 84 
 
 IWJRmQ COKSTRUCTION. 
 
 IfUereat during Construction: 
 
 Interest must be paid on all money spent prior to starting of regular 
 operations, and such payments are chargeable to Construction. The whole 
 amannft of mon^y must often be raised before the work can be commenced in 
 ordet to insure against sosp^iBion of constniction opeiations from lack of funds. 
 Even under the mott fayocable oonditioos iM the money wamt be raised eoQ- 
 •iderably in advance of its aopenditom 
 
 The total Interest Cost differs ftom many other overliead eoite in tiiat 
 the rate of interest payable depends npon financial, business and money market 
 conditions, the nature of the enterprise and the security of the investment. The 
 interest payable depends upon the interest period, i. e., either 
 upon the avenise ooortmctioa period or the average period between the raising 
 of tiienmiqraiidtfiefltuitii^of opovlioa. 
 
 The interest rede will be at least the pravaUiiig rate and wiH generaHy be 
 
 more than the rate required when the company is in snooessfal' operation. In 
 determining the proper interest rate it nmst be remembered that all loaned 
 capital participates during construction in the risks of the enterprise, and must 
 be figured at a higher rate than on loans to a well secured property having 
 established credit and ample earnings. Any organizatioii constnieting or reoon.- 35 
 structing the Brooklyn Surface Roads would have had to pay for construction 
 money an annual interest rate of at loa*t 8 per cent, because a lender advancing 
 money for construction would consider the hazards and risks of a loan on an 
 unimiH project For iiuB ream lie would not lend monev for less than 8 per 
 oen* flat, or at 6 per oent phis a loan eonaniBsioiL ranging from 2 per oent 
 upwards. Such loan commiseions in 1921 were generally at leatt double this 
 figure, which would mjake the actual iuteroEtt rate "w^ orer 8 per eent, niiidi is 
 the rate I use herein. 
 
 It should be noted that the subscribing underwriters do not usuallv put 
 up aU the money, bn4 oonmKmly secure most of it by a loan, backed by the 
 subecnber's credit and his deporited seeurities. Th» method is that subscrip- 
 tions are secured equal to llie estimated overall coet, the subscribers puttii 
 up as collateral for their loan the bonds allotted to them (usually at a dimmnt) 
 mth a trust company or banker which agrees to advance to the company, on 
 Joan, most of the amount of the subscriptions, the balance of the cash needed 
 bwng leiit direct by the suhscribew Aemhel^ The eash is then advanced to 
 the company either in one block or from time to time as needed for oonstruetiou 
 expenditures, fuM legal interest being charged, plus a substantial oonm^on. 
 f^aloan for a given period. If the loan is not paid off at maturity 
 additml oomlmMflon w usually charged for renewing it for an additional 
 penod M^nwhie eiorts are made to ee» the hoods to investing pubUc 
 through banking houses and their distributing houses. If a gooi mariSt exists 36 
 and Ihe bonds are sold, the net pzooseda are d^tod iviiit die lending oompany 
 
 27 
 
ae «Bd ^gaint «e loui. H Uie bort ma** i. paonni A, bonds «m 
 
 not readily «,Id the ™tooribe» W to w off the l<S!«!Z£m^tSl 
 
 «e«ii^do ih« fteir loai» have to be cloeed out, in «me cases the lender 
 h^Sottgrf to J4. oif« «id cany «ieh unsaleable collateral. For these 
 mtarnt Hto «a long mi» to goMtrMifam projeoto modi exceed thoee 
 
 S^i^ttl^*- "ZW " ""l^^' --1 «e not used « coSl^STk^ 
 Sl^JfSJf! y *^*?* " l*"""** *e inyesting public wflTS 
 
 ^mVbL^^^Lr?*2L"^r5 »to «!otb the amount paid out per 
 g™m m boiri «oq». ajnded b^r O. Hunt «f «t «■* i^Sized W 
 
 ™»a^!^!Lif!r?*' computed from Ae time the mean ii ntod 
 
 SSdTSfSffcB" The least r^e in^ 
 
 Sit or .11 of ty^^^^zsT:^^^^::^^ 
 
 to^se^v1SSSZ2T£S "If "J^™ "■"•^^t condition,^ 2 
 
 V f? "y, »»"n>«>««« MfaocB jitniiad ID bok and normaUv rntnr,.. • w 
 one-half of the intere* rate pud «mfbr. •n»t^^«S ^^11 
 
 Mm mfrnm., MM CMMiy M whm Securities are sold to Dron'^lp all f^^^A^ 
 
 li^TiXZ^ clean., up tl« 
 
 iii.iiiSSr'!Sl?£!^^^ ■ ""i*^ AwgniM and draf tinir 
 
 m 
 
 connection therewith in the design, location and construction of the property, — 3g 
 inciudiiig the f<umi»hing of plana^ specifications and superviaion of the con- 
 tractor anid Ua orgamzatioii, in Aott, all encplaeering woric and services not 
 included in construction. The expenses under tbu geomvJ liead during the 
 
 construction period would range between 3 per cent and 4 per cent of the fall 
 constructjpn cost including therein the job overhead and the payment f<w ooo- 
 tractors' services. I use 3 per cent herein. 
 
 Administrative, Executive, Legal and Office Costs: 
 
 These costs represent expenditures for suitable executives, company staff 
 and office forces, including the requisite legal depaxtment. This company 
 oirganisatum waM carry the project through to eomplefcion, controUing and 
 directing the performance of all purchases and construction work not indaded 
 in the contractor's work; dealing with local authoritiee; handling legal and 39 
 financial and otlher negotiations in connection with the prosecution of the con- 
 striiGti(m woik; and caring for all the interests of the company and its enter- 
 prise up to Ae eooopletMMi of oonstaietion and the taming over of the completed 
 system to the operating oiganization. The expense oiider tfiia general head 
 during the construction period would range from 2 p« cent to 3 per cent of the 
 fair construction cost including therein the job ov^ihatd and the ooutiartora' 
 services. I use 2 per cent herein. 
 
 Fire Insurance: 
 
 Business prudence would necessitate the carrying of fire insurance on a 
 munber of constmcti(HL items including buildings, power plant and substation 
 eqfoipinent, roUiiig etoek and possibly othen. The rate for such insurance 
 wooM be not less tlhan 0.4 per cent per year. It woald be payable lor at leaat 
 
 one year on the insurable portions of buildings above foundations, and power 
 plants and substation equipment, and for at least three mionths on rolling stock. 
 Computation shows that this item would amount to at least .05 per cent of the 
 OoBtnet cost (esdiisive of land and rig^t of way), whidh figure I have 
 
40 OOMllENTS ON GROUP (b) OR COMPANY'S COSTS PRIOR TO 
 
 CONSTRUCTION. 
 
 Thm Rcffvrt inehidM nottang lor Hhern pramoCion ooete, wk&A. are ahmji 
 
 iuBonred. They inclTide payment, customarily made in cash or securities, for 
 services and disbursements of those who conceived, created, organized and 
 bpoaght about the construction of the enteiprise; foimd and interested the 
 feo^ hImi agreed toaopply the moiMgr; and promoted ila inteveate to Hhe poiiil 
 wkem ita eonstruetMHi wm aetnaUj unidertaken. Haj ako include pireliiBmBiT 
 expenses of the company, before construction commences, for neceasary lega% 
 administrative and engineering costs; and include the carrying costs of intereit 
 and taxes until construction begins. The first item includes expenses incurred 
 and a reaaonaye profit payalde to lie pramotan upon tiMir i^Iity to eoneeive 
 and initiate tiie eaeentioii of ^ fra|eet If mlBkea no diiEvenoe whether thea% 
 if reasonable, are made in cash or in securities. The work paid for includea 
 the organization and development of the plan and the interesting of the public, 
 bankers and others having capital to supply. 8uch payments are imavoidable 
 if liua oealife la to ie dm and tlw eoanin^ 
 
 and iafwtion wiU atopi. The patent law reeogniaea thia by aaaoxiag ean|Mtt- 
 aation to liw iiif«Btor oibffiiiV Ua tlie proapeots of re^ 
 
 41 These 1931 eombined pre^oaBtnietion eoati ivooM, {<« tiie reaaons below 
 
 given, undoubtedly run from 5 per cent to 10 per cent of the re-construction 
 ooet of diese roads. In amount they would total not less than 0 per cent of the 
 Contract Cost plus the pre^onstroction cost of Interest on Land and Rigkt of 
 Wgr, CbMMtonid BamagM and of Taaei on Land and Bi|^i of Way. I vae 
 
 To eapiain forlher Hwae eoata liitod nnder Qnmp (b) I iiuwrt ^ loUow* 
 huf p tur f i imA fafomeaas 
 
 Aeeotding to die Pnblie Senrioe Commiseion oi New Tofk, First Distfiei^ 
 in opinion and order dated June 23, 1911, in Queensborough Gas and Electric 
 case — " There are certain expenses connected with every undertaking which are 
 not represented by physical prc^rty but which nmst be incurred before the 
 plant ia operated. Tliaae VMte to Ike initial pmno4ioB of tibe aohme and 
 ^ Qfganiaatioft ol tiie Oompany. Inveaton ntoat be inteieited, lawyers and 
 engineers must be consulted, and frandiiiea and permits must be secured. * * * 
 The foregoing items of valtiation do not ♦ ♦ • make any allowance for 
 franchise values nor for a considerable amount of development expense, as for 
 eami^le, reaaonaUe ptofite of protnoting the enterprise, prdindnary legal 
 mpmtm «i oiganiaation and oilier l^gal preliminaries, cost of eoapMaig wMi 
 various preliniinary requirements of law. All of these itann wmn be .abso- 
 Intely essential disbursements in the reproduction of any existing railroad.^' 
 
 Simdlarly the Second District, New York Commission, in decision March 
 30, 1908, in the Rochester, Coming, £lmira Traction case allows "for the 
 121 lerfieea of liow engaged in oiganisiqg Hie enteruriae anoHier 6 per oent npott 
 iSkm eatimaied eoat" SimHaii^ Hie YalnaiioB Sifineeta of tiia lf«w lotk 
 
 Urat District Ocnmnieaitm in Coney Island and Brooklyn Company case 1134, 42 
 Sept 15, 1909, testified tliat dieie ahoaM be inoloM, in nddition to Hie 
 
 physical property, legal expenses in connection with pidiminary promotion, 
 organization and incorporation of company; technical expenses in connecticm 
 with preliminary survey and location of line, estimates of cost, estimate of 
 earnings, preparation of prospectus, maps for property owners' consents and 
 consents of kwal andiarities; promtotian expenaei; ooet of <nganiz«tion prior to 
 actual construction ; profits of promotion, inehiding original <nganaation and 
 consolidation, 5 per cent to 10 per cent, etc. 
 
 The Wisconsin Commission, in the Antigo Water Case, Aug, 3, 1909, 
 states: " Owners and promoters are undoubtedly as much entitled to &ir 
 compensation for Intimate and valnable services as anyone else." 
 
 The Bailroad Secorities Conmiission, in ito ItU Report to the Presi- 
 dent, states: 
 
 " The promoters, using the term in a broad sense, may be divided into two 
 classes ; constructors who build a road whose future is uncertain, in the ei^ee- 
 tetion of selling the stock for more than it cost them'; and financiers who induce 
 Oe public to buy the bonds of such roads. Both of these classes, if they do 
 ilia woA honeedy, render naefol aerrioea to tbe pabHc. The constructor gives 
 our undeveloped districts the boMfit of new totOt, wUoh Oaw- wodd not get 
 wiHioat hcia intervention.'' 
 
 SI 
 
43 COMMENTS ON GROUP (c) COST OF PBOCURtNG MONEY. 
 
 Tio «oat iif immaaag or of leniriiig eonalnielioii mcaugr Iim noliiiiig to do 
 witii interest. It is undravettiBiatod^ st leaat for in ikt Beport» nhiah 
 
 mm 8^ ftr wnt for the original cost valuation and 5 per cent for the 
 lil(K-1914 umI 1021 reoonatruction cost valuations. Such allowance must cover 
 •M brokerage and uiulnrwriting charges, the services and expenses of banking 
 iMiiiMt and of Ihmr aeeiiritj diatmbating houaes, and tiw expanaea of tile oom- 
 pany inourred in lliis connection, L it nmat paj the undeniTiter, the banker 
 purchaser and the distributors of the leoiirities sold. In amount it is equal 
 to the difference between the amount llie investors pay for the securities and 
 tke net amount of cash received therefrom by the company after paying its 
 own share of tiMse eoiiB, i^iioli inelndo the printing of securities, prepamtion 
 and Mag of mortgages, aloQk tax, oompmsatioii of tmataaa, and tiiiitew' 
 counsel, etc. The Report appears to be in error in AiimTning ^^ f. the monej 
 would all be raised by the sale of bonds or prior lien securities, as at least one- 
 third would probably have to be raised by the sale of junior securities. It is 
 n^ opinion, based on my experiMiee and thai of wtj firm and of corporations 
 which I am connect that iie aelnal coat of pnblie vtiHty mauBj ndaed 
 by iStie sale of bonds of profitable going comipames would run from 6 per cent to 
 6 per cent, while the like cost of that raised by the sale of junior seouritiee, 
 44 would range from 8 per cent upwards. The average cost of so procuring money 
 weiid eertaioiy eaeeed 6 per cent and would probably be 7 per cent These 
 peroentages are loiMr than woaM he aifad for etveel raihmy aeenritiee, and 
 especially for thoie of a construction enterprise. They also assume the existenee 
 of more favorable mlarket conditions, company credit and city authorities' atti- 
 tude than prevailed in 1921 or than now prevail. Under 1921 conditions the 
 cost of 1Mb money would almost neoeasarily have been more than 7 per cent, 
 Inehidiiv boih ''lamken' spiead'' and eoota to eoB{ttny thflN^ It ad^t 
 not have Imn securable at 10 per oent or 16 per cent, lor tibe inmeliBg pubHo 
 which constitutes the only continuous source of money supiyiy now considers 
 proven risks of investing in traction enterprises and believes that it has 
 BO aaannnee of reeeiving fixed and permanent returns .on investments made 
 in street nUimy securities. Tliey oounqiiently pass ttaa ovor in &Tor of 
 more reliable and productive investment opportunities; tios atefcement is e^e- 
 eia% applicable to New York City surface tranaportatibn systems. These are 
 nignlated as to earnings but are not protected therein. The testimony of bankers 
 ahonld be helpful in ascertaining the risks they take in buying such securities 
 and tiie laela aa to tfie fareeBtofe wiiidi nmat Be taken for the cost of money. 
 I am anie that 6 iper cent of the total of all other coats and iiii wWh k the 
 least percentage that can properly be figured and have used it in my estimates. 
 The brokerage and other like company cost items entering into the cost of 
 procuring construction utoney would have to be paid When construction begins. 
 
 COMMENTS ON GROUP (d) : COMPANY S COSTS SUBSEQtJEHT AR 
 
 TO CONSTRUOTION. 
 
 Working CapUd: 
 
 The ^poirt allows for and includes floating capital as determined by 
 mventoiy of Materials and SuppKes, but inchides no allowance for cash working 
 capital. I %mre adhered to the same piocednre; 
 
 Physical Property Development Costs: 
 
 The Report does not allow for physical property development costs or for 
 cost of experimentation or changes. These costs include expenditures for street 
 woi*, grade changes and otfier woric done at the instance of public authorities, 
 or for other causes, of which work no physical eridenoe now existo and whkh 
 therefore cannot be 'ascortained from an inventory of the praperty taken at tiiis 
 time nor from other souro<^s exoopt company or praaonal leeotds or the reool^ 
 lections of those who were engaged on such work. 
 
 Costs to Create the BuJiiness: 
 
 ii^POTt allows nothing? for expenditures nUade to create and develop 
 ^twwness. It deals only with the costs of reconstructing the physical prop- 
 orty, wiunea^ the company property owned and proposed to b^ purchased 
 comprises both its physical property and its attached hasineaa. The estimates 
 of cost of reconstruction assumes that tihe physical property is wmed out and 
 then reconstructed. In addition to such costs, other large expen^tores would 
 l^^^tely have to follow to reconstruct or recreate the existing coo^tiTe 
 
 Value of Contracts for Power, Advertlnng, etc.: 
 
 xJi! includes nothing for the value of the power or the advertising ' 
 
 ojmtra^ ^ese ue m a measure a corollary of openation and call for con- 
 sideration; tfa^ mi^t be dealt wiA in Earnings Valuation. The Report inves 
 no estimates of valuation for the existing contraete in tfie form of ^^nmlises 
 
 (or franchise value), which term is assumed to mean the present worth of 
 future earnings under existing conditions and under contracts wherein the 
 JJ^P^** * perpetual franchise for the greater part of the mileage of 
 
 33 
 
PART HL 
 
 BBVISION OF VALUATION FINDINGS OF THE 
 VALUATION BUREAU FOR 1921 BECON- 
 STRUCTION COST NEW. 
 
 THE NASSAU ELECTKIC RAILROAD COMPAOT. 
 THE CONEY ISLAOT> AND BROOKLYN RAILROAD COMPANY. 
 BBOOKLYN, QUEENS COUNTY & SUBURBAN RAILROAD 
 
 COMPAiNY. 
 
 SOOTH BBOOKLYIN EAILWAY C0MP13TY AND LESSOR 
 
 COMPANIES. 
 THE BROOKLYN HEIGHTS RAILROAD COMPANY. 
 CONEY ISLAND AND GRAVESEND RAILWAY COMPAiNY. 
 THE BBOOKLYN CITY BAILBOAD COMPANY. 
 
PART HI 47 
 
 aiVlSIOJf OF VALUATION FINDINGS OF THE VALUATION 
 BUKEAU FOR 1921 RECONSTEUCTION COST NEW. 
 
 Herein are given statements applyi'ng to the VBlnalioiiB of the property 
 of each of the Street Surface Railroads of Brooklyn. 
 
 In these statements the Valuation Bureau Report Inventory, with 1921 
 prices undepreciated, is used as a basis and the method of analysis set forth in 
 the foregoing sections of this Review is applied thereto. 
 
 For each of the Ccnnpiiiies aeptrate statemebts in tabular form are herelA 
 given as follows: 
 
 8iaimi%mii 1: 
 
 Comprises Tables I, II and III which contain sanunaries of the values 
 obtained by using the Inventory and Unit Prices of the Valuation Report, 
 except as otherwise stated. Additional Construction Overheads are thetti applied 
 thereto in order to arrive at a revised " Contract Cost." To this revised Con- 
 traet Oost are then applied rerised Overhead Charges to the Company " 
 tfans reaching a revised Beeonstnieti<m Cost New." 
 
 BiaUmmii H: 4g 
 
 Shows details of the oompfatation of the revised overhead charges to the 
 
 Company, based upon the revised Contract Cost of the property classified in 
 the Valuation Report as " Operating Property." See Table I of Statemoit 1. 
 
 Statement 3: 
 
 Gives the computation of the revised " Overhead Charges to the Company " 
 figured on the Contract Cost of the property classified in the Valuation Report 
 as " Non-operating Property." See Table II of Statement 1. 
 
 Statement J^: 
 
 Shows the Shortages in the Valuation Bureau Inventory. See Tihie 
 in of Statement 1* 
 
 Statement 5: 
 
 Gives the computation of Overhead Charges to the Company based mm 
 the Oontraet Cost of the l^ortages shown in Statement 4. See Table IM^ 
 Statenumt 1. 
 
 The following summary gives the results of these revisions of the Valnft- 
 
 tian Report figures includino^ therein all property, both operating and mm- 
 operating, as shown on Statement 1 for each Company: 
 
 The Nassau Electric Railroad Company ^ $34,318,249 
 
 The Coney Island and Brooklyn Railroad Company 1CJB43.385 AQ 
 
 Brooklyn, Queens County & Suburban Bailroad Companv !4.tlff*4gS 
 
 South Brooklyn Railway Company and T—wr OoBpmUM 1^127 009 
 
 The Brooklyn Heaghts Bailroad Company 2 183 338 
 
 GoMjr Maud 4 wa vw— d Balhrmy Company iser'AAi 
 
 Tit Braokljra OHy Bailvoiid OoiVimf 9^f%i 
 
 87 
 
EzvLANATioir om Statzmxnts. 
 
 i9fal0iiMii< 1. 
 
 TABLE I of mB StetrawBt gitw the propertj elMnfied in the Tnamt 
 Commission Valiist«» Beport it '' OperttiiiK Pxoperty 1921 Prices 
 
 Undepreciated.'' 
 
 Column (1) giyes the Valuation Bniemi fiadiugs. 
 
 CSoliimn (2) shows the multipliers applied to Column (1) hased on 
 the increased percentages for Construction Overhead as set forth 
 ill dtotail in the body of the Review. For example, under " Tracks 
 and Stmokofw " ^ deBominator of the fracdon 116.6 is the 
 CDmulative Constrnetioii Overhead used by the Vehwtion Eeport 
 representifng 6 per cent for Job Overhead and 10 per cent for Con- 
 tractors'_ Services. The numerator of this fraction 123.2, is the 
 oomnlative Constmetion Overhead as revised, representing 12 per 
 eeiit Ibr Job Overheed, omiflsioiit, et&, and 10 per eent for Con- 
 tractors' Services. The fraction itself, expressed decimally, is 
 1.0566. Under Electrical and Mechanical Equipment, the de- 
 nominator 100 signifies that the Valuation Bureau used no con- 
 stmolion oveiliead on tiieae items, whereas the revinon shows 88.9 
 per cent, i. e., the same as for " Track and Straetores.** tTndor 
 " Rolling Stock " the Valuatiom Bureau used no Construction 
 Overhead, whereas 3 per cent is used in the revision thereof. 
 
 CSoIumn (3) down to " Contract Cost " shows the result of applying 
 revised Construction Overheads to the items of Column (1). Be- 
 loir ''Oontraet Oost" are gim the "Overhead Charges to the 
 Companj,'' of which the detail is shown in Statemeoit 11; ahw 
 Materials and Snp^es and the revised yaloalion of Land uid 
 Right of Way. 
 
 TABLE II of Statement T shows the property classified in Talvation 
 Beport as " Non-Operating Property 1921 Prices itndepreciated." 
 
 Column (1) gives the values as set up in the Valuation Report. 
 
 Column (2) contains the revised Overhead Percentages explained 
 under TaUe I. 
 
 Gaknin (8) down to ** Contraet Gost," gives the result of applying 
 the revised Construction Overheads to the items of Cohnn (!)«. 
 Below " Contract Cost " are given the Overhead ObaigBS to ih^ 
 Company, as set forth in detail in Statement III. 
 
 TABLE III of Statement I gives the Shortages in Valuation B^rt 
 Inventory, stating shortages in quantity and using the Valuation Report prices 
 for the same quantities, except where otherwise stated. The details of these 
 items (as shown in Statement IV) listed below the caption " Contract Cost " 
 are gim in ik» ''Overiiead Ohufes to the Company " computed on smsli 
 ShmtigeB' in Imeniofy. 
 
 88 
 
 Statement II. 
 
 Herein are stated the details of computations of the " Overhead Charges 
 to the Company " as contained m Column (3) of Table I of Statement I. 
 
 auOemeat II L 52 
 
 Herein are stated the details of computations of ''Ov^head Charges 
 to the CoBpany " as contained in Column (3) of Table 11 of Statranent I. 
 
 Statement IV. 
 
 Herein are stated the details of Table III of Statement I down to " Con- 
 tract Cost " and the details of the Shortages in Inventory. In this compila- 
 tion the Valuation Report Inventory is taken as a basis for the various items 
 of property, and compared with l3ie Sorfaoe Line Company's Inventory and 
 tiie shmrtage in quantity is noted. To this shortage in quantity is then applied 
 the average prices used in the Valuation Report, thus obtaining the " Con- 
 tract Cost." To the resulting values are added revised " Ccnstruction Over- 
 heads " as set forth in Column (2) of Statement I. In items of property 
 whereiB the Vahiation Report gives no quantities, only the shortages in value 
 are shown. No OoBStroetion Overheads " is applied to Ihese shortages in 
 value. 
 
 Siakmeni F. 53 
 
 This gives the details of the computation of the ** Overhead Charges to 
 the Company/' based upon the shortages in value stated in Statement fV. 
 
 8UMMABY TABLE OF OMISSIONS OR 8H0BTAGE8 IN 
 
 VALUATION REPORT. 
 
 A Table summarizing in part the Omissions or Shortages in the Valua- 
 tion Report is annexed hereto, immediately following Statements I to V of the 
 Brooklyn City Railroad Company. This summarizes the Omissions and^or 
 Shortages listed in the foregoing tables. It diould howevw be noted Aat Ease- 
 ments and Cuts aadte Fills hive not been ImciudiBd in. ik» list ol ShiKtagea 
 in this Review. 
 
 89 
 
Hi Consents and Damages. 
 
 In the case of the Brooklyn Surface Roads the unusual condition exists 
 tlial in a great numher of streets where car lines operate, the abutting prop- 
 erty ownen hold tlie f ee in the street Thia eoaditioii obtains in practicaUy 
 all streets that were officially opeaied htiomUkii year 1898. Ita streets opened 
 subsequent to that date the fee, in many instances is in the City, subject to 
 the rights of the railway company where .it secured am easement from the 
 originai property owners before official opening of the street was made. 
 
 For the pnrpOiSB of ibis Beriew a diiriilM has been made between the 
 eiMt of O o mt i , and the ezpcndituret for Dami^ 
 
 Ctaiimft of die abnttii^ property owners nnnt be aeeued, im all cases, if 
 a street railway company wishes to constmet a railway, ib ease of dw franfr- 
 
 age whose title goes to the center of the street, it must secure from the prop- 
 erty owners the right to burden their fee with the operation of the street rail- 
 way. This eoadition lias resolted, in certain instances, in materially larger 
 
 ^ eraenditnres itt otdsr to seenie the to opsrate Oe atnel railway tiutt is 
 iHrdinarily the case where the streets are public property held in fee by 
 city. In case a street is held in fee by the city it is necessary for the company 
 to secure a franchise from the city in addition to so securing the consents from 
 ^ property owaen. UioniettioBably in the re c ous lr u ction of the Brooklyn 
 Sorf ace loBCi eosla of OoMCBts and Bunagsi wwJd 
 
 The cost of obtaining Consents has been applied to the entin iiirfiwe line 
 mileage not owned in fee by the railroad compattiies. The unit cost per mile of 
 street has been computed on a record of the expenditures made in the case of 
 <he Ifassau Electric Bailroad in obtaining Consents of property owners in 
 im OB Iivi«ptoB Stieet and l4il||«tte AvemM. TUi expense covered the 
 cost of salaries and expenses of canvaiMriy leeoardiBg Ooosents, tax maps, filing 
 of certificate for extension, money paid to property owners for Consents, and 
 expenses in connection with the advertising and the printing of the applica- 
 tion Idr fe i nfiii s e . On account of the subsequent increases in costs in salaries, 
 pater, pnipvly vakes and aU ei ^bem niwiiiiiHi trfM eater faito tiie seeor^ 
 ■m§ m such Comsents, that similar costs to-day wwld be from 50 per cent to 
 100 per cent above the costs in 1907 ; however, as a basis of determining the 
 
 66 S'^ ^ Consents, only the actual money paid in the Livingston Street and 
 I«%i*t» Ammm mm was takm, which was at the rate of $3,460 per mile. 
 
 Ikmaget ham beai eompated for the street mileage in which the fee owner- 
 •hip of Hiiel dooi not he in the eity. In Ais cmo the fee ownership of 
 the street Hjjililly lay in the owners of the abutting pnipcrty and la many 
 cases still lies in the present owners of the abutting property. Doe to thia 
 owmership of the land in the street by the abutting property owners, the com- 
 jpaaieB bra to pay comparatively large Damages to the abutting property owners 
 in certain esMa be€ne they were allowed to proceed with tiM eonstroction of 
 the surface lines. As a basis for estimating the Dami^ 1^ wodd have to 
 be paid in the reconstruction of the properties it has been assumed ;— first, that 
 only nominal Damages would be paid in the case of business property, these 
 dasMgea h«vii|g been taken oa a basis of a payment of $100 per 
 lot (tAng a 20 &ol liesrtage •• a lot) lor eaoh caae lAsm Dimages w^ 
 claimed and sustamed ; and, seeoad, that snch BuBifii woald bo wiliincid ia 
 esse of 10 per cent of the bnnaMt franti^ 
 
 In case of such Damages applying to rcsideince frontage the experience in 57 
 the case of Union Street residence frontage has been taken as a basis. In Union 
 Street, with a total street length of slightly over two miles, the total Damages 
 paid amounted to nearly $40,000 of irfiich nearly $3,000 was paid to owners 
 of business frontage, leaving sli^tly over $37,000 paid to ovmers of resi- 
 dence frontage. Practically 90 per cent of this street, or 1.94 miles, is resi- 
 dence frontage. Distributing the entire amount of Damages paid o»n account 
 of residence frontage over the total residence mileage of 1.94 miles shows a 
 cost per mile for Damages of $19,100. For the purpose of estimating the 
 total cost of Damages to residence property the unit cost of $19,000 per mile 
 or $3.60 per street foot has been applied to the residence mileage in order to 
 obtain cost of the Damages on residence frontage. The cost of Damages to 
 the small mileage of vacant frontage in residence districts has been ^gured 
 by using 50 per cent of the Damage cost per mile on xesid^ice f rontsge or at 
 the rate of $9,500 per mile. 
 
 To determine which of the car line streets are owned in fee by the prop- 
 erty owners, and which by the City, the entire surface line mileage was 
 examined and classified, and the unit cost of Damages on business and resid^ce 
 fecmtage per mile of street has been applied only to those streets in which 58 
 rights to operate would have to be secured from property owners having the 
 fee in the street. All other streets have been classified as owned in fee by the 
 City, including streets where the companies have secured an easement and 
 r^ardless of the fact that the fee in the street has now been acquired by the 
 
 Easements, The value of the Easements is still to be determined and 
 has not beoa attempted in tiiis Review. As these easemraits were secured many 
 years before these streets were officially opened, the perpetual rights to operate 
 thereon have, without doubt, a greater value than the 10 year to 25 year fran- 
 chises that would now have to be obtained on these streets from the "tfynMMf 1 
 authorities. 
 
 The value is still to be determined for the right to operate on streets held 
 ia fee by the City nnenenmbered by Snrfaee Line Easments. The gsaeral 
 procedure in applying for the right to operate in these streets is to secure a 
 Franchise from the City for a period of from 10 to 25 years, and also to secure 
 the Consents of at least 50 per cent of the abutting property values. The 
 Oompanies mxmt also deposit, with the proper authorities, securities for the 
 faitibfol performance of their contract. This ties np capital used for that 
 purpose which should be listed in the valuati<ms. It ia no^ however, indnded 
 in the items named in this Keview. 
 
 Notb: — The numbers plaoed on tiie outer marginH of the pages hereof are the page numben 
 of the type writt en eopy m the Review (filed as Exhibit 260) and ot Supplement Number One 
 (filed as Exhibit 270) at the hearings of the Transit Commission. BrfHMMS to snh pMi WMI- 
 bere is made in the record of the testimony given at such heaiingiB. 
 
 41 
 
4l 
 
in iTATBHBNT H. 
 
 THE NASSAU ELECTRIC RAILROAD COMPANY. 
 COMPANY EXPSNSB8 COMPUTSD ON TABLB L 
 
 ixPExsEs DVKsm o mm mmimi 
 
 0% Lmmd amd Mi§ki of Way, exclusive of PerpetiMl ItMmenta: 
 
 $42«,188X8%X2.5 jmn V. 
 
 tia.8tMMX§%Xl jmr. ..T...T. 1,110,772 
 
 #■ Jtolltiijr Stoek: 
 
 18,912,384 X 8% Xi year 178.248 
 
 SUB TOTAL or ABOVB INTIRBST ITBM8 "nAHjm 
 
 On of JV oenrfa f Jftnqr (La. m Mm. Iwiiii imitinm !■ 
 Braurt): 
 
 mmmnm m s jmn. ssMts 
 
 TOTAL INTEREST... |1,«32;2M 
 
 It 
 
 On Land and WUkt «# Fflf .* 
 
 $426,1 18X2.8%X2Ji ymn tlyitt 
 
 S2i«»EEBii«o, Design ako Ixshbctiox Costs: 
 Ota Contract Costs sadtaslvt «f Balttac tUmAt 
 
 ^^^MZfiM,^Xi%, , ^§jm 
 
 Qm Ostalfsci Oosii 
 
 wWiiitxtft. mjm 
 
 ^ISUXAlfCZ: 
 
 HI Om BaUiof Stodt, iMwaUs Bortiata ol Biiildi«p ami Satotstiota E«ip> 
 
 Mtat. snifaint Is M% «f CoalrMloSlt ^ 
 
 MmMx jM. ii^aii 
 
 voxM. cxnirAiiT MiMrami noBiiro tm m mmim M. . .Imm^mi 
 
 SKPENSES PRIOR TO COHmPOfKWs 
 
 Mnt jMxa%. i,se7.82s 
 
 COST OF PROdTRlNQ MUNXY: 
 
 (Termed Brokerage is V s l lS iti wi BlfOTt> for ^ lsllsiwl% IlMMt 
 
 Contrsct Coat |IS,787,M8 
 
 - • 'BigMofWar lai^iss 
 
 MsMM ( HMHi for tetHSsI Ota «o>t' of wrocar la g 
 
 ry 1,174,288 
 
 Taxes 29,833 
 
 En^neering, Design 4 Inspection 416,539 
 
 Administraliia, Ti^pl mm OfltS. 455,94 1 
 
 lararaaee. 11,889 
 
 frim U C lB tas tinUMi ijmjm 
 
 'WSMs. $26,879,008 
 
 9HjBfnjmx$% 1,612,740 
 
 TOTAL COMPANY EXPENSES. |6.6S6^70 
 
 STATEMENT lU. 02 
 
 THK IMMAn BLBCTSIC RAILROAD COMPAIIY. 
 i:OIIPAlfY BXPBMSBS COMPUTED ON TABLB IL 
 
 dasriflad ita Tkataslt VatnatkM Report as ''Not Used ts Opemtitm.*' 
 BXPKNBBB DDBINO OONBTRUCTION: 
 
 Ota Iifltatf atad Right of Way, exclwrive of Porpetual Baiciwitai 
 
 HHW0X8%X2i years fl00,800 
 
 Ota Cotalraof Cost, odiuiTe of Bdling Stoek: 
 
 |SfM7SX8%Xl year 67,870 
 
 SUB-TOTAL OF ABOVE INTEREST ITEMS fie8,ffini 
 
 Ota Coat of Proemrim§ JToaey (iA on itea teraaed BrdBerafs in Valtaatfoa 
 Banort) : 
 
 i8MMX8%X2 years 15,841 
 
 TOTAL INTEREST $184^11 
 
 Taxes: 
 
 Ota Land and Right of Way: 
 
 |6O4,000X2.8%X21 years 36;S80 
 
 Xanrntamra, Dnam Mm InsnBcmoN Costs: 
 Ota CotaArast GiBt» eidiHlfe dF Rolling Stock: 
 
 |SiMTSXi%. 2MSI 
 
 AtaMUHw amar, Baaoimf^ Lbsal juid OmcB Costs: 
 Ota Contract Coat: 
 
 $848,373X2% 16,967 
 
 INSUBAHOB: 
 
 Ota Itasantlis fortion of BidMinga. cqnivaloBt to .05% of Oontraet Cost: 
 
 IMMISXjM. 4M 
 
 TOTAL COMPANT EXPENSES IIUBINO 00N8fSU€nON. . Hmm 
 
 EXPENSES PRIOR TO CONSTRUCTION: 63 
 8% of Contract Cost: 
 
 iMMnxf%. 5M» 
 
 008T OP FBOODBINa MONEY: 
 
 (Ttantaod Irokerage in Valuation Report) for the following Items: 
 
 Ootatraet cost $848,373 
 
 Latad tand Right of Way WkfiM 
 
 btanat items except for interest on cost of procuring 
 
 ■Mtaqr) 168,670 
 
 Taxaa. 36,280 
 
 Engimering, Design aad Inspection Costs 25,451 
 
 AAtatadatration, Executive Lagal and Office Costs 16,967 
 
 Insurance. 424 
 
 O u w pa y sosis frior to aotastraetioB fio^ 
 
 $l,660j067 
 
 fi,iiMi7xt% Mjsoi 
 
 TOTAL OOMPANY EXPENSES $412,539 
 
 m 
 
m STATSMBNT IV. 
 
 THE NASSAU ELECTRIC RAILROAD COMPAMY. 
 
 •■■•i QlMMi^ Shortaiw Only and on Transit _ 
 
 Mm, Sxccpt ai Stated. 
 
 GRADING: 
 
 XBMBWtiMi mai Back ill: 
 
 T. C. has 338,190 cu. yda. 
 should have 350^223 en. jdi. 
 
 Shortage lg,WS en. jda. t46Ba8 
 
 Ballast, Omitted by T. C. ' '"^ 
 
 Shortage 440 cu. yds... 4^400 
 
 SHORTAGE.. ffljltt 
 
 RAILS: 
 
 T. C. kaa 22,225 net tona 
 
 should have 22,253 net tons 
 
 Shortage 28 net tons g^jj 
 
 RAIL FASTENINGS: 
 
 T. C. has tt^llS Cirl. 
 
 27,490 Cwt. 
 
 8^377 Cwt. Ifi^l- 
 
 jmnraB: 
 
 T. C. has 33,262 each 
 
 dMoU hava 43^23 each 
 
 Shavtigi Mil 63,702 
 
 aPSCIAL W0KK: 
 
 T. C. has 78,433 lin. ft. 
 
 should be 80,996 lin. ft. 
 
 Shortafs %/m hm.it tMM 
 
 fRACK LAYING AND SURTACINGt 
 
 T. C. has 781,476 lin. ft. 
 ^ould have 683,912 lin. ft. 
 
 SksfUlt MM Hi. ft. Wit 
 
 FAV'IAKI: 
 
 T. C. has 672,001 sq. yds. • 
 should have 676,794 sq. yda. 
 
 flkovlafi 4|7M 8^ yda.. 
 
 (A)$168,38S 
 
 BRITOBS^ TSnSTLBS AND OULVKKffH: 
 
 Over 95% of this item is the Coney Island 250-ft. Span Steel drawbridn 
 which cost $6&,000 in 1916, from which it is evidmt that the total ' ' 
 for HMsa ItSMi, hMindinf insk dralM, la at toast. , 
 
 moBBBsm, yiif€» Aim sicore: 
 
 This covers the Church Avenue and Oesaa Parkway concrete imiar ecoesing, 
 which cost about $69,000 before ths mat, from which it is evidnl fhat the 
 
 is at toast ftyOM 
 
 BUILDINOS: 
 
 T. C. includes the whole of 9th Avenue Car House, of which about i is 
 owned by Prospect Park 4 Coney Island Railway, and should be transferred 
 tatia apfratoai of ths Sooth l>aoli^y» Baflfnad Ccaspany wiitoh hoMs title. 
 
 BONDING: 
 
 Mttad fegr T. a ahortage 9Hjm 
 
 !BLECTRIC TRACK S WI T CHE S! 
 
 Omitted hy T. C skflTtagt. n^gi 
 
 ROLLIXG STOCK: 
 
 Extra motors, Trucks, C<nnpre8sors, Controllers $763,182 
 
 Truck parts Motor parts, Mr Canpressor parts, OontroUer puts, 
 
 Car-body fittings, etc. . . aw,260 
 
 SHOSTA£HE..... flMtt 
 
 SHOP TOOLS: 
 
 Shortage » juu. 
 
 inBnin .i. AW »)DB tmomatn, 
 
 Omitted hy T. C fttvjMa 
 
 DAMAGES: 
 
 O'^Wt.C. 594^ 
 
 TOTAL. *2 137 664 
 
 Dsdnet for daaage aoooont of Ninth Avenue Ou Bani 'sso^MO 
 
 PROPERTY SHORTAGE tl 787 664 
 
 LAND AND RIGHT OF WAY SHORTAGE '.'..'* STlSo 
 
 Shortage la eoastmetioB overhead bring 6.66% on (A) $168,383 9,631 
 
 $2,669,115 
 
 ^Nov^nus shertsfe does not laelade the AtlaatSe Aveaas Uae that to toasst t» Lsag Ulaai 
 
 TABLE UL 
 
 SUimART OF SaORTAGES: 
 
 Track and StnwtmM (with $S6M00 dedneted on aeoouit of Ninth Ava. (tor 
 
 Barn ) $162,066 
 
 Electrical and Meehanical , IliAM 
 
 BoUiUgStock wtSZ 
 
 TOTAL PHYSICAL PROPERTIES $986,195 
 
 Land and Right of Way 871,920 
 
 Consents 217^000 
 
 I>Mn«««M- 694,000 
 
 GRAND TOTAL OF SHORTAGES UjmMS 
 
 49 
 
STATSMBNT V. 
 
 THB NASSAU KLBCTUC KAIUtOAD COMPAaiY. 
 
 COMfimD OH TABLB m. 
 
 rt 
 
 Ml MiA* Ww9, wuimim of BtffMliiia _ _ 
 |griJMxi%X^ ymn fT.!. $174^ 
 
 'On € t mmmlw : 
 
 |ll7,iMXt%Xli iwn 
 
 $S»4,000X8%X2J yeanj IIBJU» 
 
 On CiMiifvef Cmt, mdhuin of Bolliiv Btodci 
 
 m7«Xt%Xl ymr i^ti 
 
 On RottiHg Stock: 
 
 |W2,432 X 8%XJ year 
 
 SUB-TOTAL OP ABOVE INTERB8T ITEMS IMT^M 
 
 Om Cm! «/ Pnemim§ Jf mmv (i a, «b Vmm Iwii Itinhwji jgi Vataatiw 
 B«part)t 
 
 iiaMMX8«xi TMM mm 
 
 WiMs mxmast 9mjm 
 
 m»d Might of Way: 
 
 |871,920X2.8%X2i years iMM 
 
 ro, Dnieir ahs Inanonoif Oonst 
 Om CSoBtract Carta, exehwhre «f BoUii^ Stetki 
 
 $13,763X3% 419 
 
 .Tioir, BxwtmTB, hmu,: am Qmoi Caiiai 
 
 Ik Contract Cwt: 
 
 ••«M»5X2% 10,784 
 
 TOTAL COMPANY busikbis mmsm ao m m amix m.,, mm,m 
 
 nVHISES PKIOR TO OOMBmUCTiaift • 
 
 $986.iwx6% , mm 
 
 COST OiF PBOCUKINO MONEY: 
 
 IfBtiUp la ▼■i M i i M lafMi) far tib iMmAam IHumt 
 
 IMMM OmI |tM,10l 
 
 Laad aai Bl^ of Way 871,920 
 
 Consenta. 21 7,000 
 
 Damagaa. 594,000 
 
 Interest ilMMI («nfi for IbIwmI «■ eiMl «f ft aw lug MMjf) 357,1 34 
 
 Taxe^ 61,0S4 
 
 BugiBceriBg. Dii(pi and iMpaetiai 4U 
 
 AdaiiUatratkm, Kueiithw mi LmbI 19,784 
 
 Camftmj Coata prior to CoMtraBttMi 59,179 
 
 TOTAL. 93,106,698 
 
 18M9t 
 
 wmSi cxmriinr hfmhi sb iriTM 
 
 THE CONEY ISLAND AND BROOKLYN RAILBOAD 
 COMPANY Ie CONHY ISLAND k BROOKLYN 
 TERMINAL COMPANY. 
 
ilil 
 
 6=> 
 
 H IS 
 
 I 
 
 3 
 
 S 8 
 
 CM 
 
 CO (N 
 
 
 
 
 8 : 
 
 
 
 
 
 
 
 
 S 
 
 H 
 O 
 
 u 
 
 » 
 
 g 
 
 (N 
 
 •o 
 
 1 S 
 
 lis 
 
 to r« 
 
 3 SSSS^ S S 
 
 •ee 
 
 8I8 
 
 « 
 
 00 
 
 CO 
 
 00 
 
 >e<3« 
 
 P3 
 
 CO«( 
 
 8 8 
 
 to 
 
 « CI 
 
 s si 
 
 8 S 
 
 8 
 
 d « lO 
 
 CO ^ 
 CO 
 
 88 
 8" 
 
 S 
 
 I 
 to 
 
 5 
 
 J 
 
 g 
 
 S c o 
 
 K X £ 
 
 car ct S a 
 S S o"5 
 
 a. 
 
 3 
 
 — to Q 
 
 I 
 
 MM O 
 
 « 0) a> 
 
 53 
 
STATEMENT II. 
 
 I Jta§ U» 1922. 
 
 T8B CONEY ISLAND AND BROOKLYN RAILROAD COMFAMT. 
 COMFAMY VmsmSEg COMFUTBD ON TABLB L 
 
 n 
 
 Om Lmtd mi4 Might of W«f, ezaiiaive of perpetual EMcments: 
 
 iraMMXt%XH J«M» ••• flIM>i 
 
 Ol» Contract Cost, exclusive of loOiag m&mt 
 
 $•,240,630 X 8% XI jmr.,. ♦ 499^ 
 
 9ijmjmxmx% ymt - tMW 
 
 m-mii* AKuvB iM T MMB wr imtB iriMtt 
 
 0» OMt of I* ro e mrki§ JfeMf (1 «. «i ttwi I w e i Bminriii 1b YatatllflK 
 
 Report) : 
 
 |804,676X8%X2 yw« ^'^^^ 
 
 TOTAL mXEBEST 1876.130 
 
 Tazks: 
 
 Ok Land and Right of Wa/y: 
 
 9782,400X2.8% X2i years 
 
 taaumantm Comi 
 
 9MIMItxt« l« 1 " m»» 
 
 ADHnnsnuLTioir. Exxocnfl* Tlif Am MnM OOMit 
 On Contract Coet: 
 
 $10,773^48X2% HIMW 
 
 Boiling Stock, insurable portion of Buildings, and Power 
 Snlwtation Equipment, equivalent to .06% of Omtraet Ooalt 
 
 mmMtx ji« — wr 
 
 vmss ooMrAiiY hfi i w duito oomnniofioif .. . ^mm 
 Mxm a m wmm to ooiiBimDoiKiiri 
 
 •% «| Owtract Cost: ' 
 
 $10,773,248 X 6% • 040,3»8 
 
 (Vmi f« Bntenga to VtlMlta* laf«t) im m MlMtef taat 
 
 ooHiNfli Cost 
 
 IiMi aad Bight of Waj • • 782,400 
 
 . .TTTT. 746,382 
 
 ,,,...«.».....»•»••• 54,768 
 
 «C, Design and Inspection if 
 
 AdSiiBtotration, Executive and Legal tl5,4«8 
 
 Insurance a.flQoI 
 
 GoMfugr coats prior to Conatmctioii. Q^G,S9b 
 
 •iMiijMXi%. tnm* 
 
 imAL COMPANY EXPENSES $2,789/>40 
 
 STATEMENT UL 72 
 
 THB CONEY ISLAND AND BROOKLYN RAILROAD COMPANY. 
 COMPANY EXPENSES COMFUTBD ON TABLB IL 
 
 ClMriSed in Tnasit Vakutioa Report u " Not Ussd in OperaHMk" 
 BZPBM8BB DURING OONSTRUCTION: 
 
 IITTERE8T : 
 
 On Land and Right of Way, exdusive of perpetual fflMfMiatl i 
 
 $285,800X8% X2i years $57,160 
 
 On Contract Coat, exclusive of Rolling Stock: 
 
 f786,S«4X8%Xl year 02^ 
 
 SUB-TOTAL OP ABOVE INTEREST ITEMS $119,989 
 
 On Cott of Procuring Money (t. e., on item termed Brokerage in Valuatios 
 
 Report) : 
 
 $78WX8%X2 yeMra 
 
 TOTAL INTBR18T flS2,i29 
 
 Taibb! 
 
 On Land amd Right of Way: 
 
 mijmxnjt%xu yM«i.... njam 
 
 BimRKEBiNG, Dbsiok AITD iNSnCTIOir 00B»: 
 
 On Contract Costs, ezeluaive oi Rolling Stock: 
 
 $785,364X3% njm. 
 
 AamniBTRATioir, Ezbcuhvb, Legal and Omoi Costs: 
 Ok Ooirtnwt Cost: 
 
 $wmx9%. wm 
 
 Iksubance : 
 
 On insurable portion of Buildings and Power Plant and Substation Equip- 
 ment, equivalsttt to M% of Ooalract €3oat: 
 
 f7aMMXj0O%. S0S 
 
 TO1:AL aWAHY EXFUIBBS DURINO OONSllKOCTIOir... ftOS,lM 
 
 XXPENSBS FRHMl TO OONSTRUCTION: 
 
 6% of Contract Cost: 73 
 $785,364X6% 47422 
 
 COST OF PBOCURINO MONEY: 
 
 (Termed Brokerage in Valvation Report) for tlie following Items: 
 
 Contract Cost $785,364 
 
 Land and Right of Way 285,800 
 
 Interest itsBM (cifiept for interest on oost of pr«earb4: mmj ) 128,309 
 
 Taxes 20,006 
 
 Engineering, Design and Inspection Costs 2^501 
 
 Adn^stration, Sbbeentir^ Legal and Offlee Costs 15,707 
 
 beuranee. 393 
 
 Oamf— y Eipaseis PMor to Qmstmetifm 47,122 
 
 TOTAL. $1,306,262 
 
 $1^,202X6% 78,376 
 
 TOTAL OOMPANY RXPENSES |117,Mi 
 
 65 
 
^ SflifeMENT IV. 
 
 THE CONEY ISLAND AND BROOKLYN RAILROAD COMPANY. 
 m QMBlity SlMCtilM QaOf ud on TraM^Co miniwinn Valuation Bureau 
 
 GRADINO: 
 
 T. C. has 105,164 cu. yds. 
 should have 128^11 cu. yds. 
 
 BAILS, RAIL FASTENIIVQ8 AKB JOINISt 
 Bail Fastenings: 
 
 T. C. has 7,207 cwt. 
 
 mrt. tlMM 
 
 Joiats: 
 
 T. C. has 11.431 [ 
 
 ■honld hav« 16,648 jahite 
 
 Jataia. 16.109 
 
 nnCIAL WOBK: 
 
 T. C. has 29.752 lin. ft 
 should have 30,^4 Im. ft 
 
 fOIXS AND FUXCBBS: 
 
 T. C. kM 1^ polM 
 
 lOWER PLANT AND SUBSTATION EQUIPMENT: 
 
 Shortage in this item is apparenUy due te wiMty lev «Bil fffieea «ni, aad 
 
 BOHDINO: 
 
 Omitted hy T. C • • ^fi^ 
 
 XLBCIBIC TRACK 8W1XGB18: 
 
 <Mtlei W CI. ' ' 
 
 BBOP TOOLS: • ^ 
 Shortage. ••••• •••• 
 
 ROLLING STOCK: 
 
 mm Shortage in extra trucks and compressors wl^m 
 
 • " BlMirtaie m truA^yto^jBotor^^ts, air compressor parts, contrM- gg^jy 
 
 MBIMIM3L , M^TOt 
 
 LLANEouB BQinniiirrt ^ 
 
 CONSENTS: immn 
 
 Omitted bty T. OL. lepow 
 
 mmtim mMii 
 
 KM. 
 
 LiXD AND RIGHT OF WAY SHORTAGE ^41 ,tM»n 
 
 Shortage in eonetruetiou overhead being 6JB»% of (A) $W,303 6,621 
 
 TOfAL.. 1712,838 
 
 TABLE m. 
 
 SUMMARY OF SHORTAGES: 
 
 Track and Structures 9104,924 
 
 Electrical and Mechanical 201,000 
 
 RoUing Stock »8,T09 
 
 TOTAL PHYSICAL PROPERTIES , . $399,633 
 
 Land and Bli^ of Way ; 41,600 
 
 Consents. 76,000 
 
 DaaagM. ItMOO 
 
 GRAND TOTAL OF SHORTAGES $7 12,238 
 
 S7 
 
* 
 
 mum mum Mm mukvnniD railway compamt. 
 
 COMPUnD ON TABLB HI. 
 
 ii 
 
 BXPENSES DUBOm iXMVIBIWflOlft 
 
 0m Lumi mU Mi§ht of Wom, mOmOm «f fHfrtil Ih i n i f ti 
 
 $41 ,600X11 9wnXt% • WtSao 
 
 OnCom»emt$: 
 
 «Nyittxt%x»i yMM .... iMM 
 
 flt6,000X 8%X2i jm ti.«W 
 
 Ok Contract Co»t», excluriTe «f Bollipf fltoekt 
 
 $306,924X8% X I JM* 2M74 
 
 0» XollMtf fliodb: . 
 
 HMttXtftXl iwr '»W4 
 
 8ij»>ToirAii ABoiTB nmBiBf-inniB 9mm 
 
 fM^EtXtllXt fMH....... • W 
 
 TOIM. II T MM BI 
 
 On iMtf Mitf Aif k« cf Way.* 
 
 $4I,600X2^%X2| years Mil 
 
 BmanHOuara, Dnnir ahs Insncnoii Coani 
 
 Qi Onrtnet Ooate, cuiwHw of lolltef OlMk: 
 
 $305,924X3% for 1 year w,Vt9 
 
 97 AMOmnuTioN, Emcutitk, Lual ahd Orrici Costs: 
 •* Contimct Cost: 
 
 $3MdiaiXl%. 
 
 '"'Si"?ower PUnt aai O i ihrtatiwi IfiilpMBt, eqniTalcnt to .06% of 
 
 CMtnefc CoBt ^ 
 
 TOTAL COMPANY EXPENSES DUfiINO CONSTRUCTION.. . $113,430 
 
 ■imnSES PRIOR TO CONSTRUCTION: 
 •% of Contrmct Corti 
 
 $899,633X 6% S»,»78 
 
 Lud and Right of Way M1.600 
 
 CoBMIltS llijSo 
 
 '!*.*.'.'.*.".!!.!!'.!!*"!!"'*. 1 1 1 ! zIq 1 2 
 
 Engineering, design and inspeettOB • • • 
 
 Administration, Executive and Legal mi 
 
 Insurance. wra 
 
 OoBpaay aspcnaea prkw to construction vUfWi^ 
 
 TOTAL. •*46.729 
 
 •«46,729Xe% • • • 
 
 TOTAL COMPANY EXPENSES • • flt4,181 
 
 BROOKLYN, QUEENS COUNTY & SUBURBAN 
 
 BAILROAD COMPANY. 
 
I 
 
STATBIDDIT II» 
 BROOKLYN. QUSBN8 COUNTY ft 8UBUBBAN RAILROAD COMPANY. 
 
 cmmmv M Mwrn rnm ammnm om vAauiL 
 
 XXPENSES DUBmQ €UilM!llll€II€irt 
 
 't 
 
 Oil Imnd and Right of Way, OBeiariva of parpateal 
 
 $271,200X8%X2J year* 964,240 
 
 Om CMfraot Co»t, exeluuve of BoUiag Stock: 
 
 irm»ixt%xi fMT MMot 
 
 Oil Boiling Stock: 
 
 |8,071,330X8%XJ jmr 41,427 
 
 flUB-IOTAL OF ABOVE INTEREST ITEMS ttMilTS 
 
 m OmI 9f Fmmrim§ Mwmtg {i. ft. <ii It— Un mA Br ti r— gi fa VahMlioa 
 
 PM^MXaHXS fwm liMtl 
 
 mil. nmiiBr iitMM 
 
 : 
 
 On Lm* md Right of Woy: 
 
 9tTl JMX2^%X2i j«m lliMi 
 
 Bhoixeebing, Drareif JUi nmaoniw Oomt 
 
 Ob Cootract Ckwts, exclushw «| Billlif BImIii 
 
 $7,046,321X3% XI year SIMM 
 
 I, tocPTm, Lmai. 4jn Omci Oonts 
 
 Boiling Stoek and iwrtll §&Mm «f .BlBilWp, Ull lriw t i» Jl% cT 
 CoBtraet Coat: 
 
 i%lIf,MlXJM. 
 
 mAL (xmPAMY BiFiMns mrnxm vm m mmm ,,. m^mjm 
 
 PRIOR TO CONSTRUCTION: . 
 
 IMlT.«lXtft. . 
 
 OF PROCURING MONEY: 
 (Termed Brokerage in ValuatioB Report) for the foUowing Iteau: 
 
 Contract Coet »»."J.«51 
 
 wi «i w» • - i: • — 111" 27 i^ioo 
 
 TkacM. • • W|1S4 
 
 Engineering, De»ign and Inspcetta ?il'JS 
 
 AdaibiMralh% Executive and Leg al 182,303 
 
 4,659 
 
 IMto y^iv tft OailnMtfHi. «..••..•. 647,050 
 
 loiAL. "iijiiisi 
 
 9ii.Pi^xe% 
 
 TOTAL OOiiPANy BXHOnUS »8»»»0»>M 
 
 BROOKLYN, QUEENS COUNTY ft SUBURBAN RAILROAD COMPANY. 
 COMPAMT BXPBMBBB COMPUTBD OH TABLB U. 
 
 m 
 
 C kwM e d ia Tkaatit Vahnttaa Biport u *Nok Um4 in Opcratte.' 
 
 EXPENSES DURING CONSTRDCTiON: 
 Intbbest: 
 
 On Lmmi tmd MUghi t4 Way, exdosm of Mmtwa Eaaeawata: 
 
 fn7,IMXfli%XSi jmn .VT...." . tiT^ 
 
 On Contract Coato, mitmitn of BoUbig Stodcs 
 
 |lfi(VSllX8%Xl J«r. ... IMM 
 
 SDB-TOfXAL Of ABOVB IMTBKBSr HBMS flf^ 
 
 0» Cott of JV o owiwy JfoMy (i. ft, on ftaai iiiiMiMl B m iawi g t ia Vnlartioa 
 BoBort): 
 
 |M,4llX8%X2 years tjm 
 
 TOTAL INTEREST $86,204 
 
 Taxes: 
 
 On Land and Right of Wajf! 
 $S37,200X2.8%X2i 
 
 Emcineerino, Design and Inspection Costs : 
 
 On Contract Costs, exclusive of Rolling Stock: 
 9180311X3% 
 
 AOUINISTRATION, ExECUTIVB, LBQAL AND OFFICB COBTfl: 
 
 On Contract Coet: 
 
 9lfiMllX2%. 
 
 ImVBANCE : 
 
 On insurable portion of Buildings, equivalent to .05% of Contract Coat: 
 
 91iO,SllXjOO%. TO 
 
 TOTAL COMPANY EXPENSES DURING CONSTRUCTION. . . $116,488 
 
 EXPENSES PRIOR TO CONSXRUCTION: 
 0% of Contract Cost: 
 
 9160,811X0% OjOlO 
 
 COST OF PROCURING MONEY: 
 
 {TtnmA B^olMMgo te ValaalioB Boport) for the foBMitef Itaw: 
 
 Contrapt Cost 9150,311 
 
 Land and Right of W» 337,200 
 
 I far - 
 
 Interest tfeOM {mMf/t far fartnvofc oa ooat of proenriaf tnmny) 79,465 
 
 TaxM. 23,604 
 
 WjagtarfiTlng. Deran and Inspection Costs ^SOO 
 
 Administratlmi, &MVtiv«, Ugal oad OiBee Coats MM 
 
 Insurance 75 
 
 prior to oonrtnMtiw . . 0,010 
 
 TOTAL. 9i9r499 
 
 9007A8»XO% UA»l 
 
 TOTAL fXXNPAMY BZFBB818 919I|9M 
 
BROOKLYN. QUEENS COUHtT ft SUBURBAN RAILROAD COMPANY. 
 Based on Quantity Shortages Only and on Transit Conunission Valuation Burcait 
 
 T. C. Iwa 141,564 cu. yds. 
 should have 165,663 cu. yds. 
 
 ■hortage 24,099 cu. yds. #82,857 
 
 Ballast, CQBcrcte under 
 
 alMd Iks* eaiittad i;m en. yds. 12,860 
 
 gfllMtTAOB. . . . . 174,907 
 
 BAILS, RAH* yjUEnSNINGS JJIB XMWrBt 
 Bails: 
 
 T. C. hm mMt Ml taM 
 
 sliould liavs Ilyfit Ml tans 
 
 sWtage OOnet toM 0,107 
 
 BaQ FastMiags: 
 
 T. C. bas 10,842 cwt. 
 
 dMNild liaTC 13,019 cwt. 
 
 shottapi %lTi ewl I0»770 
 
 Jisiata: 
 
 T. a kM 1S,0S3 loiala 
 
 shoold km* 19,873 joints 
 
 skottafs 4,820 joints 30,462 
 
 SHOBTAGS. 47^ 
 
 8PSCIAL WORK: 
 
 T. C. has lt,80S llB. It 
 
 should have S4,737 lin. ft. 
 
 shortage 872 lin. ft. 7,403 
 
 TBACK LAYING AND SURFACING: 
 T. C. tea 080,003 lin. ft 
 shndd hKm 008,015 lin. ft. 
 
 shortage 1,322 lin. ft 1,124 
 
 PAVING OVER DUCTS: , 
 T. C. has 1,845 sq. yds. 
 
 akanld have 18,600 sq. yds. 
 
 Amiam . 10,066 si|. yds..... 101,602 
 
 (A) 1888,411 
 
 BBIMia tUSTLBS AND CDLVBBXB: 
 
 Two-lMdi dralm eaitled Igr T. 0. 4M 
 
 WINDING: 
 
 Omitted by T. C 60,000 
 
 BLECTRIC TRACK SWITCHES: 
 
 OMdMadtfT. 0 4^ 
 
 ROLLING STOCK: 
 
 Shortage in extra motors $141,816 
 
 Shortage in motor parts, car-body fittings, etc 44,084 
 
 180.600 
 
 04 
 
 SHOP TOOLS: 
 
 Shortage fll^BOQ 
 
 MISCELLANEOUS EQUIPMENT: 
 
 Oattted hy T. a 2,900 
 
 OOMSKNTB: 
 
 0 « m ailyT.a §1,000 
 
 nAXAjGOB: 
 
 <MMed liy T. C. 171^000 
 
 PROPERTY SHORTAGE f778,4Sl 
 
 REAL ESTATE AND RIGHT OF WAY SHORTAGE 2JtB»jm 
 
 flMoffi In c ao rt ii U l i B a rerh e ai hiiiv 6.00% of (A)i88e,ittl 14M 
 
 $2,884,789 
 
 TtABLB m. 
 
 SUMMARY OF SHORTAGES: 
 
 Track and Structiures. $267,109 
 
 Electrical and jfenhawinal 77,100 
 
 BeUiiig Stoek... 180^ 
 
 TOTAL PHYSICAL PROPERTY $530,709 
 
 Land and Right of Way 2,052,080 
 
 Consents. 91,000 
 
 Damages 171,000 
 
 GRAND TOTAL SHORTAGES .$8344.700 
 
STATBMBirr V. 
 wmoOESJnn, qvxens county & suburban railroad company. 
 
 COMPANY EXPENSES COMPUTED ON TABLE III. 
 Baaed cm Shortages in Transit Valuation Rq^ort. 
 
 ■xpENSEs dubupo omtmiocmKi 
 
 iNTBBBSTt 
 
 Oil Lmti mti Atefcf of Waf, axelwiva «f pwpitMl l ii wiat it 
 
 mjmjmi>mkxH w^Mw 
 
 $91,000 X 8%X2J 7«ara IMw 
 
 On DMMfc*: 
 
 §171^X8% X2i years HMO 
 
 Om esniraot Cot«, exclusive of RolUng Stoek: 
 
 |M«jMtX8%Xl y««r WW 
 
 |lSMMXS%Xi jwr. W30 
 
 SUB-TOfAL OF ABOVE INTEREST CHARGES 
 
 0» CmI o/ iVoeMrt«9 ¥oii«y (i. e., on item termed Brokera^p in Valuation 
 
 |nSll8X§%X2 jmn 33,939 
 
 loEM. nrmiBT — 9mm 
 
 Om lantf and BigM af W«f .* 
 
 IMn,flMXS.S«XS| |«afa 
 
 BnoniaEBiKO, Design and Inspection Costs : 
 
 tin C<Hitr»ct Coets, exclusive of Boiling Stoek: 
 
 $344,209X3% for 1 year IMM 
 
 gyg^ Administration, Exicimviy laott JJKB QmoB Oontat 
 WBr tin Contract Cost: 
 
 |S30,709X2% 10.gl4 
 
 TOTAL COMPANY EXPENSES DURINQ CONSTRUCTION... |«8S,00« 
 
 ■aCPINSES PRIOR TO CONBIBUCTIOiNt 
 
 •% of Contract Coat: ^ 
 |6a%70tXt%. • r- 
 
 coer OP pRocmtiHG Momf 1 
 
 (HMd Brokerage in VataatlMi Bapart) far tka failoiriag 
 
 Contract Coet ^ J^'JH 
 
 Land and al Way.. 
 
 f!ii»«Mi tM_ »1,UUU 
 
 i g gJTL. 171,000 
 
 BitmSitltMM («ic^ for iatarwt on coat of providing money) 494,083 
 
 Taxes ■• - V ^ A' * ^il'ltl 
 
 Engineering, Design and laqpMtion Owli JMM 
 
 Administration, Executian and 1^ - lyfi* 
 
 — ~ to MMM&Hilin. alaMI 
 
 TOTAIfc • ^^iMi|^M 
 
 |liitM»lX8%. • • • • • • • "''^^^ 
 
 TOTAL OOMPANT IXPIWnS.. 
 
 SOUTH BROOKLYN RAILWAY COMPAOT 
 AND LESSOR COMPANIES. 
 
 SOUTH BROOKLYI^ RAILWAY COMPANY. 
 PROSPECT PARK & CONEY ISLAND RAILROAD COMPANY. 
 PROSPECT PARE & SOUTH BROOKLYN BAILBOAD COMPANY. 
 NEW YORK k CONEY ISLAND RAILROAD COMPANY. 
 
STAT£1ISNT tL 
 
 "fHB iOUTH BROOUyil lAILWAY COMFAIIY. 
 
 mmwmt sxmmt cmmmmmnrnm l 
 
 EXPENSES DURING CONSTRUCTION: 
 
 On Land and Right of Way: 
 
 $3,157,080X 8% X2i years fill,«» 
 
 0» Omiirmct Cort, czduuve of RolUng Stock: mijim 
 
 $MlS»tr4Xt%Xl ymr Wifim 
 
 nJnSjmxmxi jmt ^^'^^^ 
 
 8UB-10IAL OF ABOVE Df DfTERBST ITIMB m»^l 
 
 On Coat of Proctirlnf JTm^ (4 c, «■ *i«m4 BNlBmfi i» Valuatioii 
 
 Report) : 
 
 iM^7itXB%Xl jmn • • ■ • 
 
 TOTAL niTBBEST $l,»«,8» 
 
 On lond and Right of Way: 
 
 $3,157,080X2.8%X2i year* • W^W* 
 
 EnouiiEUKO, Design and Insmccwoii Cmwb: 
 Ob Ckmtraet Coats, «wtativ« of 8l0cki 
 
 •s^iwxss. • 
 
 ADmNIBTRAtlON, EXBOPICTP, I-WUU. ATOOflWI OOMBi 
 
 On C<«tr«et Corts %mmaim 
 
 IMO^illiXt%. im^ 
 
 Stock, inniraUe buildiiin portion of buUdings and Substation 
 IM0MWX4B«. • 
 
 TOTAL COaiPANT iXfEHiKI DillllNO OOMirKKDCITIOII... H^ttMYi 
 
 BXPENSE8 PRIOR TO CONSTRUCTION: 
 •% of OoHtraet OmI: 
 
 tMOI.ii»xf%. • •^'^ 
 
 OOBT OF PROCURING MONEY: «i. Mkmin. lianu- 
 
 (Termed Brokerage in Valuation Rep<^) for tfcc fouoviiig itMU. 
 
 COKtraet l(OB» • • • t nan 
 
 hud «nd Right of Way. . . • — • — 3,157,080 
 Interest Items (excqit for latercrt on CMi of praeortag ^^^^^ 
 
 moneyK. wSl* 
 
 Taxes V- ins ^as 
 
 Engineering, Design and Inspection ^ • - - • \mimq 
 
 TOTAL. »1M«M«0 
 
 |10.1«8.I«>X6% "^'^^ 
 
 TOTAL COMPANY EXPENSES. .^^2 
 
 in 
 
 STATBIfBNT IIL 
 
 THE SOUTH BROOKLYN RAILWAY COMPANY. 
 COMPANY EXPENSES COMPUTED ON TABLE U. 
 
 Ctassified in Transit Valuation Report as " Not Used in Opermtion.** 
 
 &XP ENSE8 DURING CONSTRUCTION: 
 IMIBBBT: 
 
 On Land am4 Ul§ht of Way: 
 
 $12,800X8%X21 years 
 
 On Contract Coat, exclusive of Rolling Stock : 
 
 $157,325X8% XI year 12,586 
 
 SUB-TOTAL OF ABOVE INTEREST ITEMS $15,146 
 
 On Coat of Procuring Money (». e., on item termed Brokerage in Valuation 
 B^ort): 
 
 |1M1SX8%X2 yeurs 1,964 
 
 TOTAL IHTBBESf f 17,100 
 
 Taxes: 
 
 On Land and Right of Wof .* 
 
 $1MOOX&8%X2| ysars Sit 
 
 ExoiNBEBiiro, Dbsioh ano LfSPBonoN Costs: 
 On Contract Coat, eadiiiive of Rolling Stock: 
 
 $157,325X3% 4,710 
 
 Administbative, Executive, Legal and Office Costs: 
 Ob Contract Cost: 
 
 $167,826X2% 1.146 
 
 Irsubance : 
 
 On insurable portion <rf Buildings, equivalent to .05% ol Ccmtraet Cost: 
 
 4l6%Xf 167,626. 70 
 
 TOTAL COMPANY EXPENSES DURINO CONSTRUCTION. . . $28,940 
 
 EXPENSES PRIOR TO CONSTRUCTION : 
 6% of Oontcaet Cost: 
 
 fl6T,i26X6l|. 9^ 
 
 OOBT OF PROCURING MONEY: 
 
 (Termed Brokerage in Valuation Report) for the following Items: 
 
 Contract Cost $157,325 
 
 Land and Right of Way 12,800 
 
 Interest items (except for interest on cost of procuring money) 15,146 
 
 Taxes 896 
 
 Engineering, Design and Inspection Costs 4,710 
 
 Administration, Executive, Legal and Office Costs 3,146 
 
 Insurance 79 
 
 Company Expenses Prior to Construction 9,440 
 
 TOTAL. $203,651 
 
 $203,561X6% 12 ,216 
 
 TOTAL COMPANY EXPENSES $47,593 
 
 90 
 
 91 
 
 71 
 
STATEMENT IV. 
 
 TBB SOUTH WSmomLWU BMLWAT OMPAMt, 
 
 I Only and on Transit 
 PricMk M Staled. 
 
 CBADINO: 
 
 T. C. has 2,702 cu, yds 9ifil^ 
 
 ahMdd have 16^65 cu. |ds. 40,443 
 
 SHORTAGE $37^7 
 
 UK, RAILS, BAIL F18XINIMQS AMD MSmB, TRACK LAYING AND 
 iCRFACINO: 
 
 T. CbM 113,743 CO. ft. 
 
 hKm 154^118 «M> ik» _ 
 
 4MtS • m*0»* 
 
 T. C. has 12,387 lin. ft. 
 ■hMOd hmim 17,7M Iku it 
 
 mmmm^wMMammEmmi 
 
 T^haa. tjMg 
 
 SHORTAGB. 
 
 DOCKS AMD WHARVES: 
 
 SHORTAGB. 
 
 SUBSTATION: 
 
 'SAg° W ■» yia. ..... 
 
 Air lar WMiMflBaB^i lO^MO 
 
 , Tnrrrr imm 
 
 )US BUILDINQSt 
 
 T. C. baa 683,400 en. It.... " •IU'5S2 
 
 ahMild haTB 879,400 cm. ft MMW 
 
 SHORTAGB. 
 
 (A) $481,210 
 
 HOflB' mi imLDlliQSr 
 
 «. CL Modes the whole of 9th Ave. Car House in The Nassau Electric R. 1. 
 imilMl Part of this buUddng. «tiaiat«l at $350,000, beloags to thaPrw- 
 
 ■ONDINO: 
 
 Omitted hy T. C • 
 
 fRACK SWnCHBS: 
 
 Ortllii.%T.a flaltii l— mi ■ 
 
 ntOPERTT SHORTAGB 
 
 UKD AMD BIGHT OF WAY 
 
 IS 
 
 ^^^^■■lllllllll" 
 
 C»NSENTS: 
 
 Omitted by T. C. To be dfltorwiirad 
 
 DAMAGES: 
 
 Omitted by T. C. To be determined 
 
 SHORTAGE IN CONSTRUCTION OVERHEAD: 
 
 teii« S.M% of A ($Ml;211) 187,237 
 
 SBOBTAGB IK OONSTBUCTIOir OYBBHBAD: 
 
 Mag nj% of B ($14^)... 3,351 
 
 TOTAL SOOBTAGB $2,980,540 
 
 TABLE m. 
 
 SUMMARY OF SHORTAGES: 
 
 Track and Structurea $858,448 
 
 Bk mi riffiil aad y f«fiii t« |ii^ i 17,703 
 
 TOTAL SHORTAGE PHYSICAL PROPERTY $87$3il 
 
 Real Estate— Right of Way l,484^iMl 
 
 Consents — To be determined 
 
 Oamai^e — ^To be determined 
 
 GRAND TOTAL SHORTAGES.. $2,380,540 
 
 7S 
 
STATEMENT V. 
 
 THB tOOTH BROOKLYN RAILWAY COMPANY. 
 COMFAinr nPBNSBS COMPUTED ON TABLB lU. 
 
 est: 
 
 On L«iMl and Rukt of TTay: 
 il^ittJltxi%X«| jmn. 
 
 m ^mlmet C<mi, «zeiwi?» af' BoUtaf 'itodc: 
 
 iltlbMlXt«Xl jwur W» 
 
 8i».ioTii.ixrABmiirfBiiiriTiiiB niMit 
 
 BeptHTt): 
 
 |lllglWX8«XS| jmm • • 
 
 lOTAL INTEREST mMft 
 
 and J?»^A* of Way: 
 
 $1.484.299 X 2.8%X2J years lOMtl 
 
 Bii«iina»uie, Dbswh ajib Imbkction Costs: 
 
 Qli OMtHMt CiMtt 
 
 mihttixss. ••• 
 
 AOMIMStSATION, BM g UUM t l » 
 
 On Contract Oosl: 
 
 |gnkMixs%. — 
 
 On Insurable portion of BaUdiags, equiTalent to .05% of Cmitrnct Oo«t: 
 1876,241 X. 05% 
 
 1T,IM 
 
 4S8 
 
 TOTAL COMPANY EXPENSES DURING CONSTRUCTION. . . $643,220 
 
 iM74 
 
 PRIOR TO CONSTRUCTION: 
 •% of OMtzsot CosI: 
 
 iii«^ixt« 
 
 COST OF PROCURING MONEY: 
 
 (Tsmed Brokerage in Valuation Report) for tlie foUowing 
 
 Contract Cost S'om 
 
 Land and Right of Way • ^ • 
 
 Interest items (except for interest on ooat of procuring monej) 
 
 Taxes • 26^87 
 
 SfiSSSS^&JSL^S^ ]^^\ 
 
 Company expenses prior to tma^xwmkm.. ^2it 
 
 Insurance _____ 
 
 TOTAL. 
 
 HWitxi* 
 
 TOAL ooMPAinr ixpiirai.... — - mim 
 
 THE BROOKLYN HEIGHTS RAILROAD COMPANY 
 
n 
 
STATBMBNT U. 
 
 raS BROOKLYN HEIGHTS RAILROAD COMPANY. 
 COWAMY XXPSNSB8 COHPUTSD ON TABLE L 
 
 BIPENSES D0Bm CXHIBXKIIOflOlf t 
 
 In TEBEST : 
 
 0» Land and Right of Wa^, ttwlwiva of ]Mrpctiial BlMMnte: 
 
 frMWXtftXli jmn WMM 
 
 On Contract Coat, exclusive of Bolltaff BtodE: 
 
 $947,154 X 8%X1 jmr 16,179 
 
 Om MoUmt 8toek: 
 
 |UMMX8%X| JtU W9 
 
 SUB-TOTAL OF ABOVE INTEREST ITBMB. 11^141 
 
 Om Coat of Procuring Money (i. e., on item tcmfld Biutaflil li Valaatiw 
 Baport) : 
 
 |fr»ltlX»%Xt fwn • ^^^^ 
 
 mill mrwum — • 
 
 Xaxes: 
 
 Oli JLand Midi B^lpft^ B^i^jf* 
 
 mNtx&tftxsi jmm . . ■ 
 
 BnomEEUira, TJmtmm am Ihshection CkMm: 
 
 Om Cmtrmet Ooaty vxelvmir* d BoUiag Btoekj mjm 
 
 AmuifisnATioir, Exm!tl|||i|^^ OmOB Osimt 
 
 On Contract Cost: 
 
 «iMai»xs%. « • • 
 
 ****!fti^f K «- g Stock wai. hmnMU 'ftrtto tf BttUffiafi. g urtwI iM t to Mi% 
 
 «f Contract CobIs 
 
 ilJW,813X.05% 
 
 lOIAL OQMPANY BJOPENSBS DUBINQ OONSTBUCTION. . $174,8« 
 
 p nwmiiBB PBlOiB VO OOHBllIIOfKliri 
 •% «f OcmtnM!t Coat: 
 
 $1,302,813 X 6% WW 
 
 €OST OF PROCURINQ MONEY: 
 
 fl^TMA BNlnng* tai fatmlOm B«p«i) far Ikt MMm ItaBB: 
 
 Contract Cost '^''SSSii 
 
 Land and Right of Vfmj v: • • m: .• • JtR? 
 
 M«wtM«M fiaoMfft for tatonafc m cmI of fiucui'iag aoMgr) ^JJJ 
 
 S'^S lJi'w 'T ^ff i fw 'imi tiiiw^ Cnrts 28,415 
 
 AdSiXt«tioVl&ee«tlf% Lifd aad Omm OiMto 2«.J6« 
 
 Insurance ••• •■.'•«*.; i«« 
 
 UHifHy' B^pMMMi VMiV' to OihMnhImb* •••••• 
 
 loiAi.. wwers 
 
 HJlMllXtfl. . . • , "^'^''^ 
 
 mM. CCWAIIT B1M1I8BB — -iSSiil! 
 
 STATEMENT IIL 
 
 99 
 
 THE BROOKLYN HEIGHTS RAILROAD COMPANY. 
 COMPANY EXPENSES COMPUTED ON TABLE II. 
 
 ClMufied in Transit Valuation Report aa " Not Used in Operation." 
 
 EXPENSES DUBOrO OONSfBUCTIOHi 
 Intebbbt: 
 
 OmLami: 
 
 PttJtB»X9%XH ymn. 9tJSt§ 
 
 Om Coat of Procurim§ Mmtg (i on item termd Brafcuage to YaloatioB 
 
 Report) : 
 
 mmX9%X2 years 4OI 
 
 TOTAL INTEREST $6,97? 
 
 TA»i 
 
 9nj6WX2A%Xii years 2JMItt 
 
 TOTAL COMPANY BXPBKSES DUBINO OONBXBUCTION. . . mm 
 
 COST OP PROCURING MONEY: 
 
 (Termed Brokerage in Valuation Report) for the foUoiwing Items: 
 
 Land flS,8M 
 
 latarast on Land 6^76 
 
 Tiam. 2,S02 
 
 TOTAL $41,758 
 
 •«1,788X«% tJBM 
 
 30TAL COMPAMY EXWIBBS $11,784 
 
 ft 
 
STATBMBNT IV. 
 
 THE BROOKLYN HEIGHTS RAILROAD COMPANY. 
 
 BaMd on Quantity Shortascs Onhr and on Transit Commission ValuatiMi Banm 
 
 jMmi Mr, Wmmg* m fiaiiix 
 
 QRADINO: 
 
 EzcsTstion : 
 
 T. C. has 10,006 cu. ydi. 
 
 ■lioold bave 11,4»5 cu. yds. mmmn 
 ■hwti«s Igdlt ««. fik. iMn 
 
 KAILS, RAIL FASTENmGS AMD «KliKT8t 
 Bail FastoiiiigB: 
 
 T. C. kas 840 ewt. 
 ihMiM lim* 1.M7 cfwt. 
 
 daiiili' tiT «•*...... ■ *' fiiPw 
 
 skoold liaTS Ijm lointa 
 
 dHvM^ ait jotets 
 
 gBOBXAGOL 
 
 SraCIAL WORK: 
 
 T. a has 3,418 lin. ft. 
 
 slMNiMkaTa 1,730 lin. ft. 
 
 ■hortmge 312 lin. ft. 
 
 TRACK LAYING AND SURFACING: 
 T. C. has 25,834 lin. ft. 
 akottld ham 8MP Ua. It 
 
 PATOIO* 
 
 SSti.**^ SSSjSt... ••• 
 
 *^^aSt^'of S6J»% of ths vahM «l tha liMpa^ ©spot. r^»»J''T/"''?,:S* 
 Brooklyn Heights Railroad owns, tlw roMtladar owned ^ar»™)y»_^ 
 Railroid T. C. has inclndsd total talus in BwoWwi Ca^ fcmntsry. 
 
 ahouM ha li lad I* Braaldyn H a ltfrti BbIImmI iiOtiiuv 
 
 BONDING: .||og 
 
 Omitted T. C 
 
 8B(^ TOOLS; gailMI 
 Bkortaga. • • "*»*^ 
 
 HILLING STOCK: ^ 
 Shortags of wrtra tnMks. . — • • - v JJSi 
 
 ■mKWffPA^^^r 
 
 MliaOLLANEOUS EQUIFIODIT: 
 
 Omitted Ibjy T. C 
 
 CONSENTS: 
 
 O^mA ly T. C 
 
 BftllAGES: agSM 
 Omitted by T. C wm,^ 
 
 PROPERTY SHORTAGE •'!?'S5 
 
 1817^17 
 
 80 
 
 TAILS m. 
 
 SUMMARY OF SHORTAGES: 
 
 Track and Structures 9IS7,632 
 
 Elcetrioal and Mechanical. 40.200 
 
 Rolling Stock ig.igs 
 
 TOTAL PHYSICAL PROPERTIES.. §246,017 
 
 Land and Rfgkt ol Wagr UJBBO 
 
 Consents. 9,800 
 
 26,900 
 
 GRAND TOTAL SHORTAGES $317,917 
 
 81 
 
STATEMENT V. 
 THE BROOKLYN HEIGHTS RAILROAD COMPANY. 
 COMPAMY SaVBNSES COMPUTED ON TABLE UL 
 
 WamA m SliofftacM ia Tnuuit Vabutkm Report. 
 
 EXPENSES DUBim ooinamicfi0ii: 
 
 Ijitsbbst: 
 
 Om Lmmd mmd JUfht of W«y, OBeMrv of pcrpi*wl EhMMte: 
 
 taMWXS%XS| ywn..... 
 
 IMMX8%X2i jmn 
 
 ^%SSx8%X2J yeart • 
 
 On Comtntei Cott, czduuTC of Rolling Stock: 
 
 $227,8WX8%X 1 jmt 
 
 •l%lSiX8%X} jmt ^ 
 
 SOB-IOXM. OF ABOVE INTEREST ITEMS »32^11 
 
 On Co»t of Procuri»§ Mmtg (i o« item termed Brokerage in Valuation 
 
 Report): .iMii 
 |li.7MX8«XS ymm • • • • '''^ 
 
 TOTAL INTEBSST. 
 
 PMMXtJ»X2i years • 
 
 _„ , _mw Mm iKspwmoK Cobts: 
 
 0» CoHtTMt M, «ieli»iTe of Rollfi« Block: 
 
 1187^X3% for 1 year • 
 
 Mmmsnumm, Ezacimvs, Lcao. ak» Office Costs: 
 
 Om CoatsMt Ooot: •j an 
 
 |Mi^7X8%. *• 
 
 '**^£iraUe IK»tio« of Blllil.^ 123 
 |Mly817X.88%. 
 
 TOTAL OOMPAinrEXPBNBlBIWmiHO aMiBTlOCriOR... 
 
 EXPENSES PRIOR TO CXmSSBXSCiUM t 
 
 9% of CoBtraet Coet: lAjn 
 
 COST OF PROCLTllNG MONEY : *^ tM^mtmm IlMai 
 
 (T*mcd for Brokerage in Valuation Report) for tlie foUofWiSf Iti^i^^ 
 
 * Cost Oft OAA 
 
 IRightolWv 36,200 
 
 26,900 
 
 OMfuy " i^inim pttor tii OoMtracliM 
 
 TOTAL. WWl 
 
 |i|fy8ilXf%. • • * 
 
 i|^yy ^|>, fmumAirv 'MXMBUMB .,.......•«• #88,860 
 
105 
 
 STATBHBirr IL 
 
 CmmY ISLAND AND GRAVHWD RAILWAY CUKPANY. 
 COMFAMY BXnmtSt COMPUTSD OM TABLS I. 
 
 MSJ^msm WfmsMQ construction: 
 
 On Contract Cott, ex^Mivt «f BoiUag Stodci 
 
 |631,897 X 8%X1 jWir. •••• 1*2,568 
 
 On Rolling Stock : 
 
 1378,525 X 8% X i year 
 
 SUB-TOTAL OF ABOVE INTEREST ITEMS 950,122 
 
 On Ctmt of Proemrm§ Jfoncy {%. «., on item termed Brokerage in ValuaUon 
 
 wmjmxmxt jmn 
 
 JOTAL wsnoLMset. HMW 
 
 XawKBEUKC, Design and Inspection Costs: 
 
 Ob Contract Costs, exclusive of Rolling Stoclc: 
 
 $531 ,897 X 3% lIiMf 
 
 Administration, ExEctrmn, Lbsal ahv OffiOt OiMls: 
 Ob Comtract Cost: 
 
 |tlCM22X2% 
 
 """"SuSning Stock, •fdvsiart to M% of OMitract CsHt 
 
 ttlMltX ^ 
 
 fOTAL omPMm BXFBI8B8 noBmo ooHfifBDcnnii. . . •M.aw 
 
 BXPENSES prior TO OOMBfRUCfiOlf : 
 •% of Contract Coat: 
 
 $910,422X6% • ■ ■ MtWS 
 
 COST OF PROCURING MONEY: 
 
 (Itemed Brokerags ia Vatantkm Rqpovt) for tlw f«ikwii« Itow: 
 
 Contract Cost • ; ^^'^ 
 
 Interest items (except for interest on cost of procuring money) 
 
 Engineering, Design and inspection Costs. 5,957 
 
 A^uaiatrstioii, BMCUtiw, Legal and Office Coata 18,208 
 
 n^m^mTctelB wmiM' to GontrafltiMl 54,625 
 
 TOTAL.. $1,040.7M 
 
 $1,04»J8»X6% 
 
 TOTAL COMPANY EXPENSES 
 
 it 
 
 STATEMENT IV. 107 
 
 CONEY ISLAND AND GRAVESEND RAILWAY COMPANY. 
 
 BaMd OB QuaatiU StMrtafes Only and on Transit ConvniMimi VatantioB Bomm 
 
 Prices, Except as Stated. 
 
 GRADING: 
 
 Excavation : 
 
 T. C. has 16,062 cu. yds. 
 should have 20,286 cu. yds. 
 
 shortage 3,334 en. yds. 98,618 
 
 BAILS, RAIL FASTENINGS AND JOINTS: 
 Bail Fastaiinga: 
 
 T. C. has 1,382 cwt. 
 
 should have 1,728 cwt. 
 
 ■hnrtage 341 cwt. $1,698 
 
 Jd^ts: 
 
 T. C. has 2,136 joints 
 
 should have 2,599 joints 
 
 joints 8,047 
 
 SHORTAGE 4,745 
 
 TRACK LAYING AND SURFACING: 
 
 T. C. has 41,704 lin. ft. 
 should have 41,813 lin. ft. 
 
 shortage 109 Ifa. ft M 
 
 POLES AND FIXTURES: 
 
 T. C. has 434 poles 
 
 should haw 518 poles 
 
 shortaga 84 poles 7,683 
 
 (A)9ei,196 
 
 BONDING: 
 
 Omitted by T.C l^lfNI 
 
 BOLLING STOCK: 
 
 Shortage an trade parts, motor parts, ctMmpressOT parts, controller parts, cuT' 
 
 body fittings, etc 5,278 
 
 CONSENTS: 
 
 Omitted Igr T. C 12,800 
 
 DAMAGES: 
 
 Omitted hy T. C 24,400 
 
 PROPERTY SHORTAGE $69,774 
 
 Ebwtage In oonstnietioB overliead bdng iMM% of (A) $21,196 l;aM 
 
 TABLE m. ino 
 
 SUMMAKY OF 8H0BTA0BS: 
 
 Track and Structures $22,396 
 
 Electrical and Mechanical 6,100 
 
 Belliag Stock 5,278 
 
 TOTAL PBY6ICAL PBOPERTIBS. $33,774 
 
 OoBsents 12,800 
 
 - 24,400 
 
 GRAND TOTAL SHORTAGES $70,974 
 
 87 
 
STATEMENT V. 
 
 CONEY ISLAND Aim QKAmBND RAILWAY COMPANY. 
 COMPANY BXPSmit dMIPIITBD ON TABLB HI. 
 
 B LWHBBB mmsm oimwmjcfmmi 
 
 IPTEBEST: 
 
 On Content*: 
 
 flMMXlSXSI jmm • • IM* 
 
 |M,4MX8%Xti jmn 
 
 On OmOmet CoH, ezduiT* «f BoUiif Stoikt 
 $28,49«X8%X1 fMT... 
 
 Om Rolling Stock: 
 
 $5^78X8% Xi year 
 
 SUB-TOTAL OF ABOVE INTEREST ITEMS $9,828 
 
 Om cm 0/ PrfMmm§ Money («. 9^ on item tormed Brokerafe in Valuation 
 
 mm xt»xi MJJ 
 
 p WyVAb' IM Y B H i l i m ' « • ^l^i^M 
 
 SironiXEinro, Design akd Inspection Costs : 
 
 Ok CoBtract Costs, szelnsive of Rolling Stock: 
 
 128,498X 3% for 1 year 
 
 Abministbation, ExEcunvx, Lsa&L axs Omn Ooans 
 
 On Contract Cost: 
 
 188,774X2% «75 
 
 TOVAL CJOMPANY EXPENBI8 IVUIUNO C0N8TBUCIIQN. . . 118.188 
 
 RES PRIOR TO ccmsnujcnoaf : 
 
 •% of Contract Cost: 
 
 tSS,n4Xtft. WW 
 
 CXmr OP FROCDHINCI MONEY .- 
 
 (Termed Brokerage in Valuation Report) for the foUowing items: 
 
 Contract Cost $33,774 
 
 Consents 12,800 
 
 Bunages. 24,400 
 
 latowt Items (esBipl for faitenal oa eoit tf piw ii lWK — l y ) 9,826 
 
 Bi«iMerin«, a»l I>fPMti«i OmI> 8M 
 
 JUbiinistmtiom £iae«ti«% Le|nl * OOee ^ ffS 
 
 TOVAI** iBIwISi 
 
 wmM mmmt ixpensbs mm 
 
112 STATEMENT II. 
 
 THE BROOEIfTN CITY RAILROAD COMPANY. 
 COMPANY XZVBM8BS COMPUTED ON TABLE L t . 
 
 EXPENSES DUBOfO OONSIRUCfHHr: 
 Ihibbest: 
 
 ■0m Lmnd wd M^ki of Wmjf, cudmiTe of pcrpctaal Mm— to; 
 
 |3»17S^Xt%Xt| jmn fWiilW 
 
 Contract Coat, excluaiv* of ' 
 $30,209,706X 8%X1 jmt 8,416,776 
 
 On Rolling Stock: 
 
 $8,794^43 X 8% X J year 118,188 
 
 SUB-TOTAL OF ABOVE INTEREST ITEMS $3,227,368 
 
 On Co»t of ProeuriMg Money (i. e., on item termed Brokerage in Valuation 
 
 |B^ie6^X8%X8 jmn 478.888 
 
 TOTAL ornounr • •M»M«8 
 
 On Land and Right of W9§: 
 
 IM7S,888XtJ%X8} jmn. 111,118 
 
 draammnB, Dmeii hm Ihbpectiok Costs: 
 
 Ob Contract Costa, acelnsive of BoUiag Stock: 
 
 $30,209,706X8% 906,291 
 
 ADMndSraATIDK, EZECVTIVE, LEGAL AND OFFICS CoSTS : 
 
 Ob Ooalnct Cost: 
 
 On Boiling Stock, insurablo pmikm of BuiMtega, and F^drar Pteat mhI 
 Siiiistation EquifMl, mpMuA to .08% of CoirtnMt Ooiis 
 
 i88y888,M»X4l6«. ^^'^^ 
 
 TOTAL COMPANY EXPENBIB IWItllfO 00N8TSUCTI0N. . . 86,632,860 
 
 EXPENSES PRIOR TO OOESTBUGfiOillt 
 6% of Contract Coat: 
 
 |I8M8MX8«. .... M<8W 
 
 COOT OF PBOCDIUKO MONEY: . „ . 
 
 (Termed Brokerage in Valuation Report) for the following items: 
 
 Contract Coet '^S'^SS'SS 
 
 Land and Rigkt of Way 8478,888 
 
 iBteraai itena (exc^t for interest on coat of procurmg „„„, ..^ 
 
 Tnx^ '..*.!!!! r. . I 222,148 
 
 Enirineering, Design «M iMpoetloa Ooate ?25^i 
 
 Adminiatei^ &M«tbo wd Legal and Office Costs ... 780,079 
 
 , ^ , , , 19,608 
 
 ^gflOf OiUiMOltai. . . • • 2,340,237 
 
 mtAL. flMTl^W 
 
 ||%iyS41iX81b. 
 
 mm OOMPAJIY BlPEim ■ ■ »IM81,874 
 
 STATBlfBNT HI. 
 
 THE BROOKLYN CITY RAILROAD COMPANY. 
 COMPAMY EXPENSES COMFUTED ON TABLE IL 
 
 Classified in Transit Valuation as " Not Used in Opentkm." 
 
 EXPENSES DURING CONSTRUCTION: 
 
 On Land and Right of Way, exclusive of perpetual Easeaiaits: 
 
 $571,200X8% X2} years 1114,840 
 
 On Contract Cost, exclusive of Rolling Stock: 
 
 fl,»6,885X8%Xl ymt 
 
 SUB-TOTAL OP ABOVE INTEREST ITEMS $211^43 
 
 On Coat of Proemrimg Money (i. on item tenned Brdcerage in Valuation 
 
 Report) : 
 
 $130,393 X 8% X 2 years 20,863 
 
 TOTAL INTEREST. W^ISi 
 
 Taxes: 
 
 On Ltmd mud of Wisf .* 
 
 1671^X1^X11 7HU»- 38^ 
 
 Enoineebing, Design and Inspection Costs: 
 
 On Contract Costs, exclusive of Rolling Stock: 
 
 8i;818,288X8%. afl,488 
 
 AoMnnaTKATioir, Br n uu T iVi, Lmai. ard Onraos Gooib: 
 Ob Contract Cost : 
 
 $1,216,285X2% , 84,326 
 
 ImmAHCB: . 
 
 On inonnUo portion of BuOdingi, cquivslent to .05% d! Contract Cost: 
 
 81,818,186X^6%. 008 
 
 TOTAL COMPANY EXPENSES DURINO OONSTBtTCTION. . . fSSsilS 
 
 EXPENSES PRIOR TO GONSTIKJCTIONi 
 6% of Contract Cost: 
 
 $1,216,286X 6% 72,877 
 
 COST OF PROCURING MONEY: 
 
 (Termed Brokerage in Valuation Beport} for it3» foOodring ItcMS: 
 
 Contraet Cost $1,216,285 
 
 Land and Right of Wsgr 671,008 
 
 btereat items (exoept fdr intwest on oost (tf procuring money) 811,643 
 
 Taxes 39,984 
 
 Engineering, Design and Inspection Costs 36,489 
 
 Administrative, Executive, Legal and Office Costs 24,326 
 
 Insurance 608 
 
 Conpuy Eqiienscs prior to Construetkm 72,977 
 
 TOTAL $2,173,218 
 
 $2,173,212X6% 130,393 
 
 * TOTAL COMPANY EXPENSES $537,183 
 
 114 
 
 115 
 
116 
 
 sTAnmfT IV. 
 
 T»B WtOOKLYM CHY BAILROAD COMSIArr. 
 
 C»ADING: 
 
 Excavation: 
 
 T. C. baa 444^06 cu. yds. 
 BiMNild bave M8l,M8 ev. ydto. 
 
 118,449 en. 7^. 
 
 eoBcrete under steel ties omitted. 
 
 ftlSifM 
 
 11^ 
 
 SAILS, RAIL FASTENINGS AND JOINTS: 
 
 T. C. lias 
 
 S4,S49 net tons 
 
 
 ■hwild Iwve 
 
 34,900 act tou 
 
 
 dMtrtagB 
 
 
 
 Bail Fastenings: 
 
 
 
 T. C. has 
 
 37.727 cwt. 
 
 
 alumld have 
 
 45,504 cwt. 
 
 
 sh(Mrt«g* 
 
 
 
 Joints: 
 
 
 
 T. C. kas 
 
 44,107 mA 
 
 
 should have 
 
 64,000 eaeh 
 
 
 shortage 
 
 19,893 eaeh 
 
 186400 
 
 SHQRTAQE. 
 
 SPBCIAL WOBK: 
 
 T. C. hM 100,008 lia. ft. 
 should have 100,287 Mn. ft. 
 shortage 884 lin. ft 
 
 TRACK LAYING AND SURFACING: 
 T. C. kas 1^40,255 lin. ft. 
 should have 1,249,236 lis. it. 
 shortage 8,890 lia. fl. . . 
 
 PAVING INSIDE RAILROAD AREA: 
 T. C. has 1.053,180 sq. yds. 
 htm 1|061»761 s^ yds. 
 
 818^ 
 
 2,300 
 
 iUDQES, TRESTLES AMD OOLfBMXBt 
 
 EOMmcAii cmmmscmm nrcLi 
 
 Underground conduit?, ducts in place: 
 T. C. has 1,669,600 duct ft. 
 
 1,684,025 duct ft. 
 14^ dM( ft... 
 
 ^Mring over duetoi 
 
 T. C. has 88,228 sq. yds. 
 
 63,930 sq. yds. 
 18,708 8% yds.. 
 
 llltlM 
 
 * « « a «•'»'< 
 
 FURNITURE AND FIXTURES : 117 
 SHORTAGE $118,800*** 
 
 DOCKS AND WHARVES: 
 
 68Bd St. Doeic Appueatly T. C. has omitted the old dock which is 
 900'X260' with erib construction on piles filled with rock and 
 earth with cinder surface, and has only iBeiaded the new piff 
 
 which extends beyond the old dock $87,300 
 
 Sentli Sisth St Deck, slip uMl shelter, oiaitted tgr T. a 187*100 
 
 SHOSTAOE. 214^ 
 
 POWBE BOUSE AND SUBSTATION EQUIPMENT: 
 . Shortaffs of the valne of 52nd St. Power Plant, which T. C. has 
 iaclnded in B. S. T. Co. inventory, but whidi is owned by B. C. 
 
 R. R. This should be transferred toB.C.R.R. $88^ 
 
 Substation No. 1956 Hancock St.: 
 
 (Halsev) shortage 88^800 
 
 Substation No. 3-1430 Fulton St.: 
 
 (TtaipkfaB) 47,800 
 
 SHORTAGE. 225,200 
 
 BONDING: 
 
 Omitted by T. C 188,000 
 
 TRACK SWITCHES: 
 
 Oaitted hgr T. C 88,000 
 
 MACHINE SHOP TOOLS: 
 
 Shortage. 120,500 
 
 BUILDINGS: 
 
 T. C. Report includes all Maspeth Depot as belonging to B. C. R R. 35.29% 
 of the value of this building or $115,000 should be transferred to B. H. R. R. 
 
 lOLLING STOCK: 118 
 Shortage in extra tradn, cKtia nolora, extra eoailranen, eaetca 
 
 ogB^vssors, of $170,600 
 
 Shartafs te traek parts, wlar p«n% coKtroUer pacta, roaapressar 
 
 parta, he^y-fittiagB, ate . . 174^ 
 
 SBOBKAflfl^jii -aji'' • ».•..».».......•.••..•.••.»••.. 344^900 
 
 mSCELLANBOOS BQUIPMENT: 
 
 Oadtted by T. C 147,300 
 
 CONSENTS: 
 
 Omitted by T. C 888,800 
 
 DAMAGES: 
 
 Omitted by T. C 818^00 
 
 PROPERTY SHORTAGE $3,559,600 
 
 LAND AND RIGHT OF WAY 804,900 
 
 Oartace la eoaatnwtk» «fv«rhaad hahig 8.88% of (A) $784,500. 41,000 
 
 $3,805,560 
 
 Deduct Acoooat Maspeth Depot 115,000 
 
 (T^raasfarrad to B. H. R. B.) 
 
 TABLB ni. 
 
 SUMMARY OF SHORTAGES: 
 
 Track and Structures $989,200 
 
 Electrical and Mechanical 864,600 
 
 RoUing Stock 
 
 TOTAL SHORTAGE PHYSICAL PROPERTY $2,198,700 
 
 Real Estate aad Right of Way. 204,960 
 
 Consents. • • • • 368,600 
 
 9lBjm 
 
 GRAND TOTAL SHORTAGBS 
 
STATBMSNT V. 
 
 THE BROOKLYN CITT RAILROAD COMPANY. 
 COMPANY EXPENSSS COMPUTED ON TABLE lU. 
 
 BXPENBES DimiNO CXINSTIIllCTIQirt 
 
 On Lmid «Mi Miaht of Way, exclusive of perpetual Easements: 
 On Content* : 
 
 $368,000X8% X2i years 
 
 |918,9MX8%Xli Twrs 
 
 Oil Comirmet CotI, ajwhuive oi BoUiag Stodc: 
 
 fl^,800X8%Xl jmr 
 
 OmMoOmg Btoek: 
 
 |Si4,i00X8%Xi yMur. 
 
 73,799 
 
 em-iauL of above imERiBr items 
 
 42.164 
 
 TOTAL imsnsT.. 
 
 Taiks: 
 
 On Land and Right of Way: 
 
 |IM.9«XiJ%XSi TMH 
 
 BimirEEBiNG, Design and Inspection Costs: 
 
 On Contract Costs, exclusive of Rolling Stock: 
 $l,8SS,«»xa% tm 1 TMT 
 
 AaunvisTRATioN, Exmrufi* Lmiai* aiis Omn 'Ootn: 
 
 On Contract Costt 
 
 $2,I9S»7WXS% 
 
 On Power Plant and Substation Equipment, equivalent to .05% of Con- 
 tract Cost: 
 
 i2,188,70OX.05% 
 
 TOTAL COMPANY EXPENSES DI7BIK0 OONBTBUCTION. . . 
 
 UPBNSES PBIOE TO CONSTSUCTION: 
 9% <rf CoBtmet Coat: 
 
 $2,108,700X6% . 
 
 COST OF PROCURING MONEY: 
 
 (Termed Brokerage in Valoatloa Beport) tar Hm Mkmtag itoav: 
 
 Contract Coat $2,198,700 
 
 Land and Right of Way 204,960 
 
 CoBMBta...; 368,600 
 
 918.300 
 ) 453,574 
 14,347 
 55,«14 
 43,974 
 1,099 
 131,922 
 
 1,099 
 
 9S10b7a 
 
 IntcNvt Items (eiwpt for iBtciwI <m ««l of frmiiriaff 
 
 Taxes • ■ 
 
 Engineering, Desisn and Inspection Coats. 
 Adminiatratkm, £nenti<Ml m ' ~ 
 
 Insuranee. 
 
 PiIm' iv 
 
 TOTAL. 
 
 ii,3eijiifixt% 
 
 imm ooMPAmr costs. 
 
 $1,006,14$ 
 
 SUMMARIES AND PERCENTAGES OF OMISSIONS 
 OR SHORTAGES FOR ALL COMPANIES. 
 
 TABLE lr-BAS£D m OQNTBACfr 008T. 
 TABLE B-BASED ON OONTRAOT OOOT PLUS lA^. 
 
4*9 
 
SUPPLEMENT NUMBER ONE 
 OF REVIEW DATED JULY 29. 1922 
 FRANCIS BLOSSOM 
 
SUPPLEMENT NUMBER ONE 
 OF REVIEW DATED JULY 29. 1922 
 
 OF THE 
 
 Report by the Transit Commission Bureau of Valuation 
 dated February 15, 1922, and titled 
 
 "Valuation as of June 30, 1921, of the Physical Property of Rapid Transit 
 and Street Surface Railroads in the City of New York" 
 
 WITH SPECIAL REFERENCE TO 
 
 THE STREET SURFACE RAILROADS OF BROOKLYN 
 
 AUGUST 2. 1922 
 
 BY 
 
 FRANCIS BLOSSOM 
 
STATEMENT. 122 
 
 This statenofint and the annexed tables and explanatory matter constitute 
 Snpplmnat Kmnber One of the Beview dated July 29, 1922, made by the 
 undersigned of the Bepoit dated Fdmmy 15, 1922, of Vsliiation Biueftii 
 of the Transit Commission. 
 
 The objective of this Supplement Number One is to praseut certain modi- 
 fications of the figures given in such Review, and to summarize such modifi- 
 cations in the form of a new Summary Table to replace the table given on 
 page 49 of tocii Be^iew, lAdtk new Table contains also the oom{>arative figures 
 im each compo^ tak»n from the Valuation Bnrean Beport 
 
 There is also given here, folbwing the above-motioned revised Snmmaxy 
 Table, a detailed statement, also in tabular form, showing the method by which 
 the figures of the new Summary Table are computed. Explanatory notes are 
 given after the detailed table in order to make clear the character of each of the 
 items thereof. Bmk items comprise certain additions and certain deductions, jos 
 Tbe figures on page 49 of the Review are changed because some i>ropertj and 
 items that should have been listed were not included in the tables of su<^ 
 Review ; and somie property and items that should have hem omitted or redneed 
 in. amount were included in the tables of such Review. 
 
 FBAHOia BZdOMOlC 
 
 Augud 8, 1922. 
 
 103 
 

 
 
 
 
 
 
 Hi fiiwf Mmd mA liwitf ■ Ifiiliniil fVuMm 
 
 
 
 
 liiiwt||i% Qmnm Obibi^'* MburiMn .ffiiiwiiiil Cm 
 
 i^aH^« 
 
 
 
 
 
 8,307,628 
 
 14,322,822 
 
 H»BnK>klyn Heists Railroad Company 
 
 
 1,523,521 
 
 2,188,909 
 
 OoMjr Island A Gravesend Railway Company 
 
 
 977,318 
 
 1,231,066 
 
 
 
 
 
 
 
 iifi%iei»M7 
 
 
 S2 
 
 CO CP >0 1-4 IO T-) CO 
 l*»CP CO ^ O <-! 
 COOOOiQ 
 
 
 S : 
 
 3,485 
 
 3,485 
 1,227,581 
 1,231,066 
 
 The Brooklyn 
 Heighto 
 RaUroMl 
 Company 
 
 89,065 
 645 
 
 9,710 
 4,137 
 
 4,137 
 5,573 
 2,183,336 
 2,188,909 
 
 Sonth 
 Brooklyn 
 Railway Co. 
 
 $118,108 
 20,362 
 
 138,470 
 130,675 
 12,282 
 142,957 
 -4,487 
 14,327,009 
 14,322,522 
 
 Brooklyn, 
 Qneena 
 County Jk 
 Suburban 
 Railroad Co. 
 
 $94,618 
 11,640 
 2,052,080 
 2,158,338 
 74,699 
 11,656 
 86,355 
 2,071,983 
 14,316,426 
 16,388,409 
 
 The Coney 
 laland and 
 Brooklyn 
 Railroad Co. 
 
 $63,618 
 
 4,855 
 
 68,473 
 41,856 
 54,054 
 95,910 
 -27,437 
 
 16,815,948 
 
 The Naasaa 
 
 Electric 
 Railroad Co. 
 
 $125,735 
 7,884 
 
 133,619 
 50,597 
 65,564 
 
 116,161 
 17,4.58 
 34 31 S 24Q 
 
 34,335,707 
 
 s si 
 
 Ilk 
 
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 t>ts 
 
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 I 
 
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 l^gjj ■ 
 
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 104 
 
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