DEFINITIONS
extracted from it for the use of a public highway than the services
rendered by it are reasonably worth.”
It is to be noted, too, that the U.S. Supreme Court holds to the
view that the value as a basis for establishing rates is to be the
present value. The Court uses the following language in Willcox
 vs. Consolidated Gas Co. of N. Y. (212 U.S. 19, 52).
“And we concur with the court below in holding that the value
of a property is to be determined as of the time when the inquiry
is made regarding the rates. If the property, which legally enters
into the consideration of the question of rates, has increased in
value since it was acquired, the company is entitled to the benefit
of such increase. This is at any rate the general rule. We do
not say there may not possibly be an exception to it, where the
property may have increased so enormously in value as to
render a rate permitting a reasonable return upon such increased
value unjust to the public. How such facts should be treated
is not a question now before us, as this case does not present it.
We refer to the matter only for the purpose of stating that the
decision herein does not prevent an inquiry into the question
when, if ever, it should be necessarily presented.”
The Court has apparently taken the view that the unearned
increment may generally be allowed to go to the owner of the
utility either as an offset in whole or in part to early losses or
as a reward for having undertaken the enterprise. The fact
should, however, not be lost sight of that any such increase in
value is, strictly speaking, a part of the aggregate earnings and
due consideration to this fact should be given in making
appraisals.
While these rulings of the highest tribunal in the country
seem to compel the valuing of a public utility property according
 to accepted standards at present worth, when value is to be
ascertained and made the starting point for fixing rates, we may
nevertheless be permitted, and we consider it a duty, to point
out the limitations of these rulings and the desirability of securing
 some modification thereof. This matter will be further
discussed in the chapter on depreciation.

IQ