Valuation, depreciation and the rate base

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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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XVI. The rate-base and depreciation in recent decisions of the U.S. Supreme Court

Collection:: Economics Books

CHAPTER XVI THE RATE-BASE AND DEPRECIATION IN RECENT DECISIONS OF THE U. S. SUPREME COURT The following references to decisions of the U. S. Supreme Court in recent years, that is, since the publication of the first edition of this book, will give some idea of the present attitude of the Public Service Commissions and of the courts toward the problems involved in rate-fixing. Although not always clearly expressed in words the purpose to protect legitimate investment is clear. The time does not appear to be far off when all the Rate-Fixing Commissions will cut loose from the attempt to make © fair value” their starting point and will recognize the fact that they must take legitimate investment into account, and protecting this must also allow the public utility owner an income sufficiently large to create the “ going concern ” and other intangible values and to compensate him for hazard and manage- ment. The courts will then still have the opportunity to deter- mine whether the resulting rates are confiscatory or not. The demonstration made by the author of the fact that it may fairly be assumed that public utility properties ordinarily have unlimited life has been strongly fortified by the decision in the case of the New York and Queens County Gas Company os. Newton (269 Fed., p. 277) in which the District Court (1920) and later the Supreme Court approve the report of the Special Master who discusses present value and depreciation in the following language: “ In determining that the complainant’s property has a fair present value of at least the amount of the complainant’s actual investment therein as found by me, viz., at least $1,655,887.04, I have made no deduction for what is termed ‘ depreciation,’ in whatever way calculated. Under any basis of determining present value, the complainant’s property is now worth at least the amount of such investment therein, and the sound rule of 3I0

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