The witnesses for the Company confined their testimony to reproduction value, and in each case compiled an estimate of value on some theory involving the reproduction of a site similarly located and of equal area. Two of these witnesses assumed in estimating reproduction value that buildings would have to be removed in order to prepare the site for the Gas Company. The testimony of the assessors and of Messrs. Sherwood and McMahon was not confined to reproduction value, but was intended primarily to give the price which a willing seller not compelled to sell would accept from a purchaser willing but not compelled to buy. Much testimony was submitted with regard to allowances for "plottage" or assembly value. We have given this phase of the matter much careful thought and have made certain allowances which are indicated below. Certain items of land and buildings are used by both the Public Service Gas Company and the Public Service Electric Company. These items are divided in proportion approximately to the gross revenues of the respective companies. After due consideration of all the testimony with regard to land values, we have adopted the following as best representing the real values of the various items of real estate. Valuation by Witte, Boyle, Woods and McMahon, $5,575. On the whole, we believe that $8,500 is a fair allowance for land occupied by the Passaic holder station....... 5. Lot on the Erie R. R. in Passaic. This lot has been valued at various figures ranging from $8,500.00 McMahon at $1,100, and after considering the testimony 6. Ridgewood Station. This land was estimated at $3,000 by Sherwood to $5,970 $1,100.00 ...we accept the value of $3,000.00 Paterson office and shop location. We accept the valuation made by Sherwood of $22,400, and allow $15,000.00 TOTAL value for land as given above amounts to....... $111,160.00 and after careful consideration of all the testimony produced in this case, we accept the value for land of $111,160. Much of the testimony with reference to land values referred to the cost of reproducing a similar site, under conditions which we do not think would obtain, and did not purport to be an estimate of the actual value of present property. PLANT AND DISTRIBUTION SYSTEM. Much testimony has been given as to detailed costs of various items of physical property. Much of the testimony tends to show that we are not justified in accepting, without modification, any one of the several appraisals made by the various engineers engaged in making valuations of the physical property. Some items are demonstrably low; some others are equally high. In addition to valuations made by the engineers, we have available definite information as to the actual cost of constructing some items of the Company's property, and we have information as to the total amount expended by the Company during the past eight years. We are inclined to estimate the value of physical property by using all available information with regard to values; and especially are we inclined to accept as a measure of value for all of the physical property of the Company, the unit costs to the Company * See testimony pages 809-813. †See testimony of Forstall, pg. 2191 sq. for that part of the property constructed during the past eight years. We are not inclined to hold strictly to a valuation made up in this way, as testimony of certain witnesses has demonstrated that certain items cost less, owing to peculiar conditions governing, than would ordinarily be the case. It may be equally true that some items cost more, but on the whole we believe that recent records of cost are very important in deciding upon the value to be set for various groups of physical property. No. 305. General Structures. No. 307. Works and station structures. For the valuations for buildings made by the various appraisals and in view of all the testimony, we are inclined to accept the basis of valuation used by A. E. Schneeweiss of the J. W. Ferguson Company. He did not, however, set values on all items classed under structures. We, therefore, take a valuation based on Forstall's inventory and Schneeweiss' unit prices. Accounts Nos. 305 and 307 include a number of items, such as fences, paving, oil tanks, tar tanks and water tanks, which are not comparable with buildings and therefore it is not proper to apply to the full amount of these accounts a percentage difference obtained from the two sets of valuations of buildings. The comparison should be made as Office Bldg., Paterson Wks..... 6,052 without lighting and heating. Stable Boiler and Valve House.... For the same buildings Forstall & Robison originally gave the values which are included in the figures on the comparison sheet which were as follows: To obtain an accurate comparison between the two sets of values there should be deducted from Forstall & Robison's values the amounts included in them for the items not included by Schneeweiss. These amounts are as follows: Generator House Operating Floor..... .$ 2,392 Electric Lighting in Purifying House.. 176 Lighting and Heating in Works Office Building........ 82 Plumbing and Heating in Passaic Holder Station Boiler and Valve House 72 Plumbing, Heating and Ventilating, and Electric Wiring in the Ellison 2,336 $5,058 To follow the testimony exactly there should be added to the figures originally given by Forstall & Robison the corrections for omissions as made by Forstall, after the comparative table was prepared, which are given on pages 2191 to 2195 of the testimony. These corrections for the buildings under consideration are: |