THE VALUE OF WATER-RIGHTS J 
“It seems clear from the expression of opinions thus made 
and from the general practice of engineers and other men in 
valuing water powers that the saving effected by the use of the 
water power over steam power, especially, measures the values 
of the water power. Other methods of appraisal are used and 
have been mentioned by the witnesses in these proceedings, 
namely, rental value and market value. These latter methods, 
however, are quite often open to objections which destroy 
their reliability and it appears that it is almost always neces- 
sary to fall back upon the method of calculating the saving 
over steam power and then by capitalizing this saving, arrive at 
the total value of the water power. The Commission has com- 
mented upon this and other methods of determining the value 
of water power in earlier decisions: 
“ ‘From a purely commercial point of view this method of 
estimating the value of water-power rights may, in the main, be 
sound. But it is not so clear that this can be said for it when 
the question is regarded from the point of view of public policy. 
. . . it appears to deprive a locality of the natural advantages 
it might otherwise derive from being located near such water 
powers. If water-rights are private property under the law, 
then all the benefits which accrue from these rights would 
probably go to their private owners. If, on the other hand, 
water-power rights are public rights rather than private rights, 
then it would also seem that the public ought to share in any 
benefits that may be derived therefrom.” Ross ef al vs. Burk- 
hardt Milling and Electric Power Co. (Wis. R.C. R., Vol 3, 
P- 139, 147).” 
On the subject of water-power value the Commission says 
further in the case of City of Rhinelander vs. Rhinelander 
Lighting Co. (Wis. R. C. R., Vol. 0, P- 424): 
“ While calculations of the saving produced by the use of 
water-power instead of steam-power are of much importance in 
private and public undertakings in showing the financial feasi- 
bility of hydraulic construction, the title of the owners in utility 
business to the entire savings so produced has not been clearly 
demonstrated. Indeed, the respondent’s claims seem to go so 
far as to preclude the public from any share in economical 
methods of service and seem to place upon users of utility 
service the burden of maximum costs of operation.” 
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