La Situazione economica dell'Albania

Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 1826928367

URN:: urn:nbn:de:zbw-retromon-221398

Document type:: Monograph

Title:: La Situazione economica dell'Albania

Place of publication:: [Roma

Publisher:: Marzi]

Year of publication:: 1929

Scope:: 40 S.; Kt.

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: III. L'agricoltura

Collection:: Economics Books

18 VALUATION, DEPRECIATION AND THE RATE-BASE “ The capitalization of income, even at reasonable rates, can- not be adopted as a sufficient or satisfactory test of present value. But while not a test, present and probable future earn- ings at reasonable rates are properly to be considered in de- termining the present value of the system.” In this case, ‘“ Kennebec Water District vs. City of Waterville et al” (97 Maine 185; 54 Atlantic 6), the district was authorized by law to acquire the entire plant property and franchise, rights and privileges of the Maine Water Co. and the instructions referred to were issued by the court upon a joint request. According to the decisions of the courts, as the matter stands today, that which is to be ascertained and made the starting point when rates are to be fixed, is the present value of the property devoted to the public use. In this connection the Supreme Court of the United States says in the Minnesota Rate Cases (230 U.S. 352): “ The basis of calculation is the fair value of the property used for the con- venience of the public.” In San Diego Land and Town Co. vs. National City the Court says, “ What the company is entitled to demand, in order that it may have just compensation, is a fair return upon the reasonable value of the property at the time it is being used for the public.” In the Minnesota Rate Cases the Court also quotes with its approval from Smyth zs. Ames (169 U.S. 466). “Tn order to ascertain that value, the original cost of con- struction, the amount expended in permanent improvements, the amount and market value of its bonds and stock, the present as compared with the original cost of construction, the probable earning capacity of the property under particular rates prescribed by statutes, and the sum required to meet operating expenses, are all matters for consideration and are to be given such weight as may be just and right in each case. We do not say that there may not be other matters to be re- garded in estimating the value of the property. What the com- pany is entitled to ask is a fair return upon the value of that which it employs for the public convenience. On the other hand, what the public is entitled to demand is, that no more be

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