Full text: Valuation, depreciation and the rate base

200 VALUATION, DEPRECIATION AND THE RATE-BASE 
acquire property by eminent domain cannot be made the 
measure or market value is further made clear in: 
Tidewater Canal Co. vs. Archer (9 Gill and J. Md. 431; 22 
Md. 307). 
Gardner vs. Inhabitants of Brookline (127 Mass. 358). 
Burt vs. Wigglesworth (117 Mass. 302). 
Reading and Pottsville R. R. Co. vs. Balthasser (126 Pa. St. 1). 
Dorlan vs. East Brandywine and W.R. 46 Pa. 520. The 
Stockton and Copperopolis Railroad Co. vs. Vincent 
Galgiani (49 Cal. 130). 
Admissibility of Evidence Relating to Value for a Special 
Purpose. — The question relating to the admissibility of evi- 
dence bearing directly upon the value of a tract of land for 
reservoir purposes is quite fully discussed in Spring Valley 
Water Works vs. Drinkhouse (92 Cal. 528, 532; 28 Pac. Rep. 
681). The view expressed in that case that value of the land 
for reservoir purposes might be shown appears however to be 
controverted in the more recent case of ‘ Sacramento Southern 
Railroad Co. vs. Heilbron” (156 Cal. 408) which involves the 
condemnation of a strip of land for railroad purposes. It was 
contended in this case that the rule as laid down in California 
permits evidence of value for the use of the land for a particular 
purpose in terms of money. In reference to this contention the 
Court says: 
“Tt is seen, therefore, that this Court by its latest utterances 
has definitely aligned itself with the great majority of the courts 
in holding that damages must be measured by the market value 
of the land at the time it is taken, that the test is not the value 
for a special purpose, but the fair market value of the land in 
view of all the purposes to which it is naturally adapted; that 
therefore while evidence that it is valuable’ for this or that 
or another purpose may always be given and should be freely 
received, the value in terms of money, the price, which one or 
another witness may think the land would bring for this or that 
or the other specific purpose is not admissible as an element in 
determining that market value.” 
Apparently, if this rule is strictly adhered to, it will debar
	        
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