10 Jahre Wiederaufbau

Valuation, depreciation and the rate base

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Monograph

Identifikator:: 1768152721

URN:: urn:nbn:de:zbw-retromon-148079

Document type:: Monograph

Title:: 10 Jahre Wiederaufbau

Place of publication:: Wien

Publisher:: Wirtschaftszeitungs-Verlags-Ges. M.B.H.

Year of publication:: 1928

Scope:: 664 S.; Ill.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Der Verband der Krankenkassen Wiens, Niederöstrreichs und des Burgenlandes in Wien / von Adolf Zinram, Sekretär der Reichskommission der Arbeiterkrankenkassen Oesterreichs

Collection:: Economics Books

CHAPTER III FUNDAMENTAL PRINCIPLES WHICH CONTROL WHEN APPRAISALS OF PUBLIC SERVICE PROPERTIES ARE TO SERVE AS A BASIS FOR: FIXING RATES 1. The earnings of the public service property should be such that, within the life of the property, there will be returned to the owner, the capital which he has properly invested in it, and in addition thereto, interest at a reasonable rate upon such amount of capital as from time to time actually and prop- erly remains as an investment in the property. 2. The reasonable cost of each item which goes to make up a property may be returned to the owner during the probable or during the actual life of that item or it may be returned to him in a lump sum when that item ceases to be useful. In the case of items which are of sufficient importance to be individu- alized the amortization of cost may be progressive during a fixed term which is generally determined by the probable life of the item. In the case of numerous articles the amortization, with equal propriety, may be deferred to the end of the term of usefulness of each article. 3. During the early years of most public utilities the oper- ating costs will exceed the revenue. The business is conducted at a loss. When such losses are legitimate, they may be regarded as the cost of establishing the business and may be added to the invested capital. They may, as an alternative, be regarded as temporary advances which are then to be amortized within a reasonable time. 4. The owner of the public service property is entitled to proper compensation for assuming the hazards of the business and for establishing and operating the utility. 2s

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