Public Utilities: Their Cost New and Depreciation

Portada
D. Van Nostrand Company, 1913 - 262 páginas

Dentro del libro

Comentarios de la gente - Escribir un comentario

No encontramos ningún comentario en los lugares habituales.

Páginas seleccionadas

Contenido

Cost and value
9
Value as going concern
10
Determination of fair present value
14
Figures showing value independent of purpose of valuation
15
Necessity of presenting all figures indicative of possible present value
16
CHAPTER II
18
Definition of replacement cost 18 17 Definition of replacement cost 18 Present or original conditions
19
New plant identical with old or one of modern design
20
Effect upon replacement cost of increased difficulty in placing plant
21
Period of construction
23
Unit costs
25
Mean unit costs developed from curves showing trend of market prices
27
Use of weighted mean prices during period of construction
28
Piecemeal vs wholesale construction
29
Piecemeal construction Effect of changes and enlargements on cost
32
Pavement over construction
33
CHAPTER III
35
Plant elements
36
Costs
37
Items included in unit costs
38
Units costs Costs of material
39
Unit costs Losses on tools and material
40
Unit costs Insurance
41
Overhead charges Interest during construction General consideration
42
Overhead charges Interest during construction Mean weighted time
46
Overhead charges Interest during construction Rate of interest
47
Overhead charges Engineering
49
Overhead charges Organization expense
51
Overhead charges Legal expense
52
Overhead charges Other possible costs
53
Promotion costs
54
Sale of securities
56
Contractors profit
57
Real estate
61
Cost of land affected by cost of hypothetical buildings
64
Cost of buildings
68
CHAPTER IV
69
Capitalization of profits
76
Analytical methods of determining value inherent in a live plant
78
Wisconsin method
79
Reproduction of net earnings method
83
Doubt as to inclusion of going value in rate cases
85
General consideration of value inherent in a live plant
87
Practical usefulness of methods of determining value in live plant
91
CHAPTER V
94
Good will
95
Franchise General consideration
96
Value of franchise in case of sale
97
Value of franchise in cases involving the equity of a statutory rate
98
Value of franchise in valuations for taxation
100
CHAPTER VI
102
Original cost required by court decisions
103
Neglect in past of figures showing original cost
104
Difficulty in obtaining original cost
107
Unit costs
109
79 Pavement over construction
111
Overhead charges
112
Overbuilt plant
131
CHAPTER IX
133
Authority for depreciation reserves
134
Current repair and maintenance
136
Salvage value
139
Importance of accurate determination of probable life of units
140
Creation of reserve fund by sinking fund method
141
Creation of reserve fund by straight line method
142
Mean life of plant
144
Danger of misconception of mean life
145
Adoption of sinking fund or straight line method of making reserves in practical cases
147
Sinking fund method
149
Reserves invested in plant
150
PAGE
152
Reserves for depreciation
155
CHAPTER X
158
Continuation of undertaking
159
Interest of public in operation of public utility
160
Interest of public in depreciation reserves
161
Maintenance and depreciation reserves
163
Life of a plant unit
164
Factors affecting life of plant
165
Wear and tear of plant
168
Obsolescence
169
Inadequacy Definition
171
Inadequacy Changes in financial policy
172
Inadequacy Engineering economy
176
Operation of factors affecting useful life of plant units
177
Probable life of various plant elements
178
Limited tenure of holding
180
Definition
182
Shall loss in value due to age be figured by straight line or sink
188
Loss in value of property consisting of plant and reserves
194
Loss in value of property consisting of plant built partly with
202
Cost new of property State investigation of rates
211
Cost new of property Investigation by court of statutory
217
Depreciation
223
fair return
227
Dangers resulting from making present value of plant alone the basis of fair rates
229
Working capital
230
Fair return
231
Fair rate based upon stock only or upon stock and bonds
233
CHAPTER XIII
235
Fair costnew
236
Increased cost of maintenance
237
Value of franchise
238
Investment of buyer must be full costnew of a public utility property
239
Present value in case of sale
240
CHAPTER XIV
244
Conduct of public utility undertakings
245
Avoidance of dangers of regulation
247
Obligations of public to public utility undertaking
248
Obligation of public utility undertaking to the public
250
Maintenance of the value of the stockholders investment
251
Treatment of depreciation reserves
254
Derechos de autor

Otras ediciones - Ver todas

Términos y frases comunes

Pasajes populares

Página 68 - But the value of property results from the use to which it is put and varies with the profitableness of that use, present and prospective, actual and anticipated. There is no pecuniary value outside of that which results from such use.
Página 246 - It is entitled to see that from earnings the value of the property invested is kept unimpaired, so that at the end of any given term of years the original investment remains as it was at the beginning. It is not only the right of the company to make such a provision, but it is its duty to its bond and stockholders, and, in the case of a public service corporation at least, its plain duty to the public.
Página 1 - If a railroad corporation has bonded its property for an amount that exceeds Its fair value or if its capitalization is largely fictitious, it may not impose upon the public the burden of such increased rates as may be required for the purpose of realizing profits upon such excessive valuation or fictitious capitalization...
Página 228 - There is no particular rate of compensation which must in all cases and in all parts of the country be regarded as sufficient for capital invested in business enterprises. Such compensation must depend greatly upon circumstances and locality; among other things, the amount of risk in the business is a most important factor, as well as the locality where the business is conducted and the rate expected and usually realized there upon investments of a somewhat similar nature with regard to the risk...
Página 208 - ... and we concur with the court below in holding that the value of the property is to be determined as of the time when the inquiry is made regarding the rates.
Página 131 - Before coming to the question of profit at all the company is entitled to earn a sufficient sum annually to provide not only for current repairs but for making good the depreciation and replacing the parts of the property when the}- come to the end of their life.
Página 122 - What the company is entitled to ask is a fair return upon the value of that which it employs for the public convenience. On the other hand, what the public is entitled to demand is that no more be exacted from it for the use of a public highway than the services rendered by it are reasonably worth.
Página 1 - And in order to ascertain that value, the original cost of construction, the amount expended in permanent improvements, the amount and market value of its bonds and stock, the present as compared with the original cost of construction, the probable earning capacity of the property under particular rates prescribed by statute, and the sum required to meet operating expenses, are all matters for consideration, and are to be given such weight as may be just and right in each case. We do not say that...
Página 121 - It cannot be said that a corporation is entitled, as of right, and without reference to the interests of the public, to realize a given per cent, upon its capital stock...
Página 246 - If a different course were pursued the only method of providing for replacement of property which has ceased to be useful would be the investment of new capital and the issue of new bonds or stocks. This course would lead to a constantly increasing variance between present value and bond and stock capitalization — a tendency which would inevitably lead to disaster either to the stockholders or to the public, or both.

Información bibliográfica