ing the net income, present and prospective, but have given the following conclusions, considering only the probable cost of reproduction new.
2. “As of Dec. 31, 1919, the aggregate amount carried as book cost of road and equipment by all classes of carriers reporting to the Interstate Commerce Commission was $20,040,572,611.
3. “In July, 1920, the Interstate Commerce Commission was called on to place a “tentative value”’ on all the roads, as per the Transportation Act of 1920, to be used as a rate base. They then estimated this value to be 18.9 billion dollars. They did not state how they reached their conclusion, but if from the recorded investment in road and equipment above quoted the amount set aside by the railroads for depreciation reserve of equipment be deducted this amount would be approximated.
4. “Testimony at rate hearings before the Interstate Commerce Commission, Washington, D. C. on May 26 and 27, 1920, disclosed that for 50 roads, aggregating 51,853 miles of route, the Interstate Commerce Commission reported that the cost of reproduction new (1914 prices) would be $3,203,782,543. For the same roads the recorded investment, as shown on the books of the carriers, in road and equipment was $3,158,275,156. The estimates of the Interstate Commerce Commission included the values of lands based upon an estimate of the acreage or square foot value of the adjoining properties. In the case of the Kansas City Southern vs. the Interstate Commerce Commission, the Supreme Court decided that the Commission must substitute for these figures these estimates of the cost of the land if it were to be acquired for the purpose of
