Full text: Valuation, depreciation and the rate base

ESSENTIALS OF VALUE ay 
¢“ Watertown. — Mechanical filters built in 1903; cost, $97,065; 
engineering cost, 5.9 per cent. 
“ Ogdensburg. — Sand filters built in 1910; cost of work 
$167,604; engineering charges, 7 per cent, excluding cost of 
preliminary report, which amounted to $500. 
“ Hudson River State Hospital. — Sand filter plant built in 
1904; cost $36,000; total cost of engineering, 103 per cent. 
“ Peekskill. — Sand filters built in 1908; total cost, $63,304; 
cost of engineering, 7.1 per cent. 
“ Yonkers. — Open sand filters, built 1903; total cost, $50,165; 
total cost of engineering, 7.3 per cent. Covered sand filters, 
built in 1907; total cost, $106,708; cost of engineering, 8.7 per 
cent. 
“ Ithaca, N.Y.— Filters built in 1903 on a percentage 
basis under rush conditions; cost, $192,114; engineering cost, 
7 per cent. 
“Springfield, Mass. — Water-works built 1910; construction 
of additional supply from Little River, including diversion 
works, reservoir, filters, and pipe lines; cost $1,465,393; cost 
of engineering, 10 per cent. The basis of computation does 
not include the sum of $268,000 paid for land, legal and other 
expenses. 
“ Springfield, Mass. — Ludlow filters; built in 1906 at a cost 
of $43,306, to meet an emergency, and requiring very rigid in- 
spection to secure proper grade of sand and proper sanitary 
conditions during construction; cost of engineering, including 
board, livery, cots, bedding, and provisions for inspectors on 
work, 17 per cent. 
“It is obvious that the cost of engineering varies with the 
character of the work. For instance, the construction of an 
important dam or aqueduct, built in place and requiring skill 
in designing and a careful inspection of every part of the work 
as it is built, requires a larger expenditure for engineering than 
a large cast-iron pipe line where the cost of laying the pipes in 
a trench is but a small percentage of the total cost of the line, 
and the work progresses so rapidly that the inspection cost is 
small in proportion to the total cost. 
“The cost of engineering varies not only with the class of 
work but with the character of the design and execution. For 
instance, works may be built with very little inspection, from 
crude designs prepared by unskilled engineers, with the result 
that the cost of works may be large although the percentage 
paid for engineering may be small. Works skilfully designed 
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