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

222 VALUATION, DEPRECIATION AND THE RATE-BASE are other similar reservoir properties available for alternative use. The time when the utilization of the property is a neces- sity, if this time can be definitely or even approximately fixed, will affect its market value. The value will be higher after actual construction has demonstrated that a reservoir will hold water than before. If there have been any judicial determina- tions of the market value or of the value for rate-fixing purposes of the property to be valued or of similarly situated or otherwise comparable property or if valuations thereof have been made by authorities charged with the regulation of rates or by other public authorities, all such determinations will have an effect upon the market and would be given consideration by a prudent purchaser. They are also, therefore, proper elements for con- sideration by an appraiser. The cost of the lands In a site already acquired is a factor that should be given due weight with proper allowance for the circumstances attending the pur- chases. Appreciation or depreciation that may have taken place subsequent to such purchase may also have to be given consideration. ~The value of a parcel of land which is required in connection with others to make a reservoir site available is, as above stated, worth less by itself than it will be when united with other tracts into the one holding which makes the development possible. While the individual tract is reservoir land and due to this fact may have acquired a market value in excess of the value which it would have if not located in a reservoir site, this excess value would be estimated by a prudent purchaser at less than the excess value which it acquires when brought into the same ownership as all the rest of the lands which make the storage of water possible. Atihow much less it should be valued can- not be stated with any degree of confidence for general guid- ance. And yet it may tentatively be suggested that the party who assembles the property should get the benefit of at least one half and, in many cases, much more than this proportion of the excess of its value, in the constructed reservoir, over its value for ordinary uses.

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