DEFINITIONS 
extracted from it for the use of a public highway than the services 
rendered by it are reasonably worth.” 
It is to be noted, too, that the U.S. Supreme Court holds to the 
view that the value as a basis for establishing rates is to be the 
present value. The Court uses the following language in Will- 
cox vs. Consolidated Gas Co. of N. Y. (212 U.S. 19, 52). 
“And we concur with the court below in holding that the value 
of a property is to be determined as of the time when the inquiry 
is made regarding the rates. If the property, which legally enters 
into the consideration of the question of rates, has increased in 
value since it was acquired, the company is entitled to the benefit 
of such increase. This is at any rate the general rule. We do 
not say there may not possibly be an exception to it, where the 
property may have increased so enormously in value as to 
render a rate permitting a reasonable return upon such increased 
value unjust to the public. How such facts should be treated 
is not a question now before us, as this case does not present it. 
We refer to the matter only for the purpose of stating that the 
decision herein does not prevent an inquiry into the question 
when, if ever, it should be necessarily presented.” 
The Court has apparently taken the view that the unearned 
increment may generally be allowed to go to the owner of the 
utility either as an offset in whole or in part to early losses or 
as a reward for having undertaken the enterprise. The fact 
should, however, not be lost sight of that any such increase in 
value is, strictly speaking, a part of the aggregate earnings and 
due consideration to this fact should be given in making 
appraisals. 
While these rulings of the highest tribunal in the country 
seem to compel the valuing of a public utility property accord- 
ing to accepted standards at present worth, when value is to be 
ascertained and made the starting point for fixing rates, we may 
nevertheless be permitted, and we consider it a duty, to point 
out the limitations of these rulings and the desirability of secur- 
ing some modification thereof. This matter will be further 
discussed in the chapter on depreciation. 
IQ