ESSENTIALS OF VALUE 
TABLE 1. OVERHEAD COST ITEMS 
Railroads in the State of Washington. By H. P. Gillette 
W.and F.&S.[S.& N.| N.P. | O.R. 
CrLN.JGuN GR Rr | Rr | RE | & N. 
giz M., a " 8 M., 32M, 132 Whe, 1654 M.,, 501 M., 
cent. {_cent. = nh et. os. ots 
Engineering. ............ | 2.50 | 3-23 1 4.40 ' 3.56 3.50 | 5.51 | 2.83 
General expense. .........1 0.28 | 0.26 0.08 .... 1.00! 1.22 0.48 
Legal expense.............| APN CB, en | 3.550... ..lifo.01lifo.02 
Insavance. od lei Soils | 0.01 0Lob I wii TE TR. 
Interest on advances......l 0.93 1.23 3.250 xix Di. l  EE 
Bond interest during con- 
struction. .............. 002.240 3 .84 fo. i. s.25 1123.60) 2.61 
Bond expense............ Mo. 1olo. 18%... CIF TH TAT TER 
Taxes... liv asiiig  l 0.17 sewn lil Sl AE]F Wait folios 
Undistributed accounts... .... .... eo va. |... 80.01 | 2.64 
Totals....... ... 0... 6 27 5.74 | 7-91 | 7.17 | 9.75 l21.25 | 8.63 
i" Gt. N. = Great Northern. 
W. & Gt. N. = Washington & Great Northern. 
F. & S. = Fairhaven & Southern. 
S. & N. = Spokane Falls & Northern. 
N. P. = Northern Pacific. 
O. R. & N. = Oregon Railway & Navigation Co. 
In valuing the railroads of Michigan, Prof. M. E. Cooley who 
had charge of this work adopted the following percentages in 
estimating the reasonable allowance for overhead costs: 
Per cent. 
EE INORIINg or Ve ener ees tse re nena 4.00 
Lema) EXPENSE 1s J hl aise se tee cate vee aed n. 50 
Organization expense i. | ves ants nv sbos ob dav sn barat 56 
Interest during construction .......... 0. 0) Lins Tr 00 
.00 
The Wisconsin Railroad Commission on Overhead Allowances 
The following information is found in the records of the 
Wisconsin Railroad Commission: 
In Hill et al vs. Antigo Water Co. (decided Aug. 3, 1900). 
Overhead charges in the case of water companies are usually 10 
to 18 per cent. The staff engineers estimated in this case at 
10 per cent or the minimum (engineering, 5 per cent; interest 
during construction, 3 per cent; and contingencies, 2 per cent). 
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