54 VALUATION, DEPRECIATION AND THE RATE-BASE
In City of Ripon »s. Ripon Light and Water Co. (decided
March 28, 1910) the staff allowed 12 per cent (5 per cent being
for engineering and superintendence, 4 per cent interest during
construction and 3 per cent legal expenses, organization expense
and casualties). The respondent claimed 6 per cent interest
during construction.
In Dick et al vs. Madison Water Commission (decided Nov.
11, 1910) the staff allowed 1o per cent instead of the usual
12 per cent because the plant is a municipal plant.
In State Journal Printing Co. vs. Madison Gas and Electric
Co. (decided March 8, 1910), engineering was estimated at
s per cent on the cost of the original physical plant, but not on
additions to the plant. The staff of the Commission assumed
that construction extended throughout one year and allowed
3 per cent for interest but subsequently changed to 4 per cent as
the construction period may have been underestimated. The
respondent contended for 6 per cent interest during construction,
claiming a 2-year period of construction.
In the tentative valuation the staff had allowed 2 per cent
for various items including contingencies, omissions, casualties,
legal and organization expenses but on revision allowed 3 per
cent. The respondent claimed through various experts 4 to 7
per cent, the larger amount being based on 2 per cent for omissions
and contingencies, 3 per cent for legal and organization expenses
and 2 per cent for casualty liability.
The Commission in this case says it is fair “ that rates charged
for the service rendered be fixed at a level that is high enough
to cover all reasonable costs.”
In City of Racine zs. Racine Gas Light Co. (decided Jan. 21,
1911) the staff allowed 12 per cent for interest during construc-
tion, engineering contingencies, etc.
In the application of the LaCrosse Gas and Electric Co. the
staff allowed 12 per cent while the petitioner claimed 15 per cent
for interest during construction, engineering and contingencies.
In City of Milwaukee vs. Milwaukee Electric Railway and
Lighting Co. (decided Aug. 23, 1912) 3 Cent Fare Case, the
