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 I. Introduction and general notes

Collection:: Economics Books

3 VALUATION, DEPRECIATION AND THE RATE-BASE bodies. They will meet, too, the requirements of the owners of industrial and other properties, who owing to lack of such in- formation occasionally allow over-capitalization and excessive dividends, coupled with inadequate earnings, to cripple their enterprises. The Panama Canal and Fundamental Principles. — The neces- sity for a clear understanding of the fundamental principles to be followed when rates are to be fixed may be illustrated by reference to the case of the Panama Canal. Here is a great work representing an investment by the United States of about $375,000,000. Itis a type of canal which involves large oper- ating expense. In connection with this canal the question arises: What should the earnings be? The problem of the canal tolls may be broadly considered along the following lines: First: Who is ultimately to pay for the canal? Is it to be the user of the canal? Second : Has the canal been built by the United States as a revenue-producing investment or is the canal to be regarded as worth what it has cost for military purposes and as an instru- ment of general benefit? Third : What shall be included in the operating expenses? The ordinary citizen is under the impression that the $375,- 000,000 which the canal has cost is an investment similar to those which the United States has made in constructing the Eads jetties at the mouth of the Mississippi river, in constructing the Ambrose channel for access to the New York harbor, and in building the San Pedro breakwater for the protection of the harbor of Los Angeles and the Columbia and Eureka bar jetties for the improvement of other Pacific Coast harbors of more or less local importance. If this is the fact, the investment in the canal has been made as a non-revenue-producing investment for all time and there will be no need of recovering the cost of the canal from those who use it nor even interest on this cost. If the United States plans to collect the cost of the canal in in- stallments from the users of the canal, no matter how small

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