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.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter II. Definitions

Collection:: Economics Books

DEFINITIONS be coupled with all sorts of conditions such as division of profits; the fulfilment of all kinds of obligations; the limitation of charges for the service rendered or the commodity furnished. It may be nothing more than a privilege to occupy the public highways with rails for transportation purposes or with pole or pipe lines for the transmission or delivery of electricity, water, oil or gas. It may be a grant without cost or may have to be paid for at a fixed price or subject to competitive bidding. It is one of the intangible elements which may represent value and frequently appears among the items of cost. Going Concern. — The term “ going concern ” is applied to such business enterprises as are in actual operation. If in suc- cessful operation, the value of the “ going concern ”’ should be somewhat greater than the sum of the value of the physical elements of which the property is made up. Going Value. — The increment of value which is due to the fact that a business has been established and brought upon a paying basis is its “ going value.” By some appraisers the cost of developing the business, measured by deficient earnings or estimated on the basis of prevailing conditions, is included in the rate-base under the designation ‘going value.” But going value cannot be measured by any specific items of cost. If the early losses have been treated in the accounts as operating loss and not as invested capital it may be found that early deficien- cies of earnings have been fully made good. There may be “going value” despite this fact but the relation between actual cost and this value is lost. It will, in other words, be difficult to establish any generally applicable relation between the going value of any utility and the actual cost of establishing its business. Good-Will. — The term good-will” is closely related to “ going value.” It represents the intangible element of value in an ordinary business and is applied generally in those cases where there is competition with other like business ventures. The courts hold that where there is no competition there can be no good-will. 27

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