Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter X. Notes on the determination of the value of real estate in eminent domain proceedings and for rate-fixing purposes

Collection:: Economics Books

202 VALUATION, DEPRECIATION AND THE RATE-BASE per acre and a determination of the land value from the net return resulting from growing such a crop is held to be too speculative and no doubt with reason. But the court should not be denied such information as would be collected by a pru- dent purchaser who neglects no source of information when he makes up his mind what would be a reasonable price to pay for the property sought to be acquired, and there should be no testimony excluded which will throw light on the circumstances which affect or fix the market value. The favorably disposed purchaser will not restrict himself to the questioning of those only who are supposed to have general knowledge of the market value resulting from every possible use. He will rather make inquiry along every possible line and will not neglect special adaptability to a particular purpose. He will want to know the strategic value of the property when made use of for the special purpose to which it is supposed to be best adapted. If the value for such a special purpose can be ascertained with due consideration of all elements involved — adaptability to special uses with due allowance for risk, the cost of development, the cost of operation, the immediate or deferred market for the output or service and the prospective net return that will result from the use of the property, — the knowledge so obtained will aid the purchaser in reaching his conclusion concerning what a well-informed public would consider such a property worth. The amount which a particular municipality or a person who is seeking to condemn a property can afford to pay cannot, how- ever, be made the measure of the market value. This may define an upper limit. More cannot be paid by that munici- pality or person. The purchase at the full amount determined by such necessity would deprive the person, who wishes to utilize the property for the special purpose to which it is adapted, of a margin of profit to which such person is entitled. In the light of the foregoing it would seem reasonable to exclude from the consideration of the courts in condemnation proceedings evidence relating to the value expressed in money for such special uses as can be exercised only by the person who

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