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 XI. The value of a water-right and of reservoir and watershed lands

Collection:: Economics Books

THE VALUE OF WATER-RIGHTS over ordinary values, i.c., over the value of grazing and farm lands crossed by the railroads and canals. In the case of rail- roads the excess is generally so per cent to 200 per cent. This would probably also be a fair assumption in the case of canal rights of way. In the case of reservoirs the value of the reser- voir site as compared with that of other land of similar location and quality may go to much higher limits, but not enough data are at hand to justify an attempt to give reliable averages. Where the site is large and the use one that may not prove highly remunerative, due to remoteness of location, high cost of con- struction, scant rainfall on the watershed or other modifying causes, such as the availability of alternative reservoir sites, a bare allowance to the owner for forced abandonment of his holdings may represent the limit of what any prudent purchaser would pay. In other cases a multiple of 5 or even more may not be unreasonable. When there is also a strategic value due to relatively large earnings that will result, perhaps, from rates that have been or that must be so fixed that they will yield a fair return on some other less favorably situated property, then there will be an excess of value determinable from the large present or pro- spective earnings, and a part of this excess would naturally be allotted to the person who owns the reservoir site, the rest thereof going to the party who actually makes the water de- velopment. Certain Increments of Reservoir Land Value. — It is gener- ally recognized that the problem of valuing reservoir lands is one of the most difficult that can be presented to the engineer. None of the facts relating to the availability of a reservoir site taken by itself determines its market value. But every such fact must have some effect upon the minds of an intelligent public and therefore influences the market value. Tracts separately owned which must all be combined under one ownership to be available for use as a reservoir will have less value in separate ownership than after being assembled in one holding. The value of reservoir lands will be less if there 221

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