INTRODUCTION AND GENERAL NOTES I§ 
appears from the various decisions of the courts which have 
been cited and from many others that might be referred to, that 
the majority of the courts are definitely committed to the idea 
of making the ‘fair ”” value of the property used for the con- 
venience of the public, that is to say the “ present value ” of this 
property the basis of all calculation as to the reasonableness of 
the rates to be charged by a public service corporation. 
If the general analysis of the fundamental principles, which 
must control when rates are to be fixed, as presented in this 
volume, contributes in any degree to the modification of this 
attitude of the courts, the author will feel repaid for having at- 
tempted the analysis. It seems to him illogical to make the 
earnings dependable on value which itself is the direct result of 
the earning capacity of the property for whose output rates are 
to be fixed. The real starting point is the properly invested 
capital and the volume of the business which is transacted. 
What consideration should be given to these elements and to 
other factors affecting a legitimate return to the owner of the 
public service property will be further discussed.