DETERMINATION OF THE VALUE OF REAL ESTATE 207 
right-of-way valuation for rate purposes. In Shephard us. 
Northern Pacific Railway Co. et al 184 Fed. 763, it is said the 
evidence was conclusive ‘ that every railroad company is com- 
pelled to pay more than the normal market value of property 
in sales between private parties for the irregular tracts it needs 
and acquires for rights-of-way, yards and station grounds. . . . 
The measure of the value of real estate is its market value for its 
most available use.’ ”’ 
California Railroad Commission on the Right-of-Way Value. 
— In discussing the valuation of a railroad right of way, the 
California Railroad Commission says (Stockton Terminal and 
Eastern Railroad. Decision No. 618): 
“ After ascertaining the market value of the property at the 
time of its acquisition, the department (engineering department) 
also ascertained the market value as of June 30, 1912, and then 
multiplied that value by 1.5. This multiple was applied for the 
reason that the investigations of the department throughout the 
State show that on an average it costs one and one-half times 
the normal market value of abutting property to acquire rights 
of way in country districts by purchase or condemnation for rail- 
road purposes. In the absence of more definite information as 
affecting this particular railroad, this average multiple was used.” 
The same commission again refers to and approves the use 
of this multiple in the matter of ascertaining the value of the 
property of the Nevada County Narrow Gauge R.R. Co. 
(Decision No. 1384).