PREFACE TO SECOND EDITION 
In this revised edition of ““ Valuation, Depreciation and the 
Rate-Base,” several new chapters have been added and the 
tables at the end of the volume have been extended both in 
number and in the degree of accuracy to which values are therein 
given. One of the new chapters, appearing as Chapter XIV, 
deals with “ The Standard of Value;” another, Chapter XV, is 
devoted to some elements which deserve special consideration 
when rates of public utilities are to be fixed — such as obso- 
lescence, losses from fortuitous events, hazard, compensation for 
management, the relation of intangible elements of value to the 
volume of business and the like. In the introduction to Table 33 
(old Table 27) attention is called to the error in the formulas as 
ordinarily used for the determination of present value and of ac- 
crued depreciation — this error resulting from the non-conformity 
of the actual life of individual articles of any group with the aver- 
age life thereof. In a new paragraph on page 31 the use of the 
term ““ Natural Rate-Base ” is suggested. The general accept- 
ance by valuation experts of the term ‘ Rate-Base ”’ has been 
noted with much satisfaction. 
C. E. GRUNSKY. 
San Francisco, CAL., 
May, 1926.