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 IV. Essentials of value

Collection:: Economics Books

ESSENTIALS OF VALUE 5 create. This can best be allowed him, not in estimating actual appreciation, which is more or less uncertain and irregular, and, therefore, not always dependable, but in a suitable interest return on the original investment. Interstate Commerce Commission Comments on U. S. Supreme Court Decision. — The difficulty of conforming to the decision of the United States Supreme Court in the matter of allowing the appreciation of real estate was felt by the Interstate Commerce Commission of the United States which says in its opinion in the Western Advanced Rate Case (20 I. C. C. Rep. 344, decided Feb. 22, 1911): “ Certainly if the Supreme Court may decline to lay down the absolute rule that ‘in every case failure to produce some profit to those who have invested their money in the building of a road is conclusive that the tariff is unjust and unreasonable’ (Reagan vs. Farmer Loan and Trust Co. 154 U. S. 412), itis a conservative statement of the law to hold that a railroad may not increase the rates upon a number of commodities solely be- cause its real estate has risen in value.” “ While it is evident, therefore, that each case must be decided upon the facts peculiar to it, the Commission believes it proper in this case to follow the general rule, as stated by Judge Hough of the United States Circuit Court (Consolidated Gas Co. vs. City of New York et al., 157 Fed. Rep. 849, 855), ‘ Upon reason, it seems clear that in solving this equation the plus and minus quantities should be equally considered, and appreciation and depreciation treated alike.’ . . . Thus land has been taken at its fair value and not at its original cost, and the annual ap- preciation of land has been treated as a profit. By this method all property is treated absolutely alike, as Judge Hough sug- gests. No difference is made, except that as depreciation represents a decrease in assets, it is placed as a debit against operation, while appreciation is placed as a credit because it is an increase in assets.” Treatment of Appreciation and Depreciation. — The real difference between the way in which depreciation and appre- ciation should be treated has apparently been overlooked by the courts but recognized by the Interstate Commerce Com- 72

Access restriction

Copyright

fullscreen: Valuation, depreciation and the rate base

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation