ABSTRACT
In dealing with engineering valuations, it is almost impossible to dissociate them from engineering accounts. The value of the works, whether for mere financial purposes on which dividends are based, for estimate for purposes of sale, or for comparison with other and competing factories, must be largely determined by these items of repairs, renewals, and depreciation which are recorded in the books of the farm. But railways differ from most engineering undertakings, both in the permanence of their character, and more particularly in the factors which govern their sale and purchase. When, however, provision is made, by the execution of ordinary repairs, for keeping the buildings and plant in good and sufficient working order out of revenue, it is necessary to ascertain some rate of depreciation which, by an accumulative fund, will prevent loss of capital to the shareholders.
