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The Valuation of Public Service

Henry Earle Riggs

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Book Excerpt: 
. . .lues; this the writer has endeavored to discover, and it is indicated in Tables 2 to 6. The use to which land is put can and does change its value. Farm land in a certain township may be worth $50 per acre for farming, but the discovery of oil would affect values, as far as oil purposes are concerned. The presence of a vein of coal would give a distinct value for mining purposes. Farm prices would not govern values for any special use, such as oil drilling, mining, or railroad operation.

In the case of city business property, farm prices cannot be applied, as the use to which the land is put and the buildings placed on it give it a greatly increased earning power, and hence increased value. Thus, with a railroad right of way, the continuity of the strip of land, the severance of lands crossed by it, the greater earning power it derives from the construction placed on it, in short, the uses to which it is put, give it a value far in excess of adjoinin. . . Read More

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