ELEMENTS DESERVING SPECIAL CONSIDERATION 300
invested. When the sum of all intangible values is thus determined
 (by capitalization of a part of the earnings) it will matter
little what name is used to designate them. But the increment
of earnings in excess of the ordinary interest rate on investments
in safe going concerns should be so fixed as to cover also any
amortization made necessary by obsolescence, or loss by fortuitous
 events, and to cover whatever allowance is to be made as
compensation for management and as a share in general prosperity,
 possibly in lieu of appreciation. When the limitation of
this excess by rate-fixing authorities is under consideration, it
can probably be more nearly standardized by bringing it into
some definite relation to volume of business, as already fully
explained, than in any other way.
The fact should not, however, be overlooked that compensation
 for management and for hazard must be deducted from net
income before the same can be capitalized to find value. It will
suffice to say in this connection that no new owner would deprive
 himself of the benefit of compensation for management by
paying to the former owner anything for the privilege of assuming
 the management. Were he unwise enough to do this he would
be making a financial sacrifice which would nullify the compensation.
 Likewise in the case of hazard. The assumption
by a new owner of a hazard for which some properly ascertained
return is in prospect has no capital value.