experts. Chapter 593 of the laws of 1911 provided for further regulation of stocks and bonds, while physical connection of telephones was required under chapter 546 of the laws of 1911. The same policy pursued in the railroad commission law is carried out in the public utility act. Physical valuation is the foundation of it. It will be seen at once that if we have physical valuation we are getting at the basis of all regulation. The intangible assets can be separated and the same reasons which justify its use by the railroad commission justify its application to all public utilities. There is no feature in this bill more questioned than the manner of arriving at the valuation, for if the rates are to be based on value, what are its elements? Makers of the law had no greater difficulty than in trying to solve this question. "Going value," "Property used and useful," "Cost of the service" are technical and difficult to define. It will be a long time before all the points in this matter can be worked out satisfactorily to the accountants and the public. How fair the commission have tried to be is seen by the following excerpt from an address by Chairman John H. Roemer:—
