VALUATION, DEPRECIATION AND
THE RATE-BASE
CHAPTER 1
INTRODUCTION AND GENERAL NOTES
Conflicting Views Relating to Procedure. — The need of harmonizing
 the conflicting views relating to the best methods of
dealing with the establishment of rates that are to be charged
by public service corporations for the service which they render
or for the commodity which they supply is recognized by economists
 and engineers. This need is the more pressing in view
of the fact that the public, in exercising control over the operation
 of the utility through properly constituted authority, may
and no doubt frequently has established onerous and burdensome
 regulations, resulting at times in the confiscation of property.
 At any rate the limitations relating to permissible charges
have frequently been such that the question of the reasonableness
 and sufficiency of these charges has been taken into court
and the courts have reached certain conclusions from which
there is apparently no appeal but concerning some of which
the wisdom of permanent enforcement may well be called in
question.
Rapid progress is being made in recognizing the fundamental
principles which should control when an appraisal of public
service properties is to be made as a basis for the establishment
of rates for service rendered. This subject is, however, today
still in a controversial stage. The assembling of facts relating
 to such fundamental principles as will be of service to the
appraisers of operating plants of any character, whether used