TRANSMISSION LINES. See Electric Light and Power
Companies. Rules and Regulations: construction.
UNDERGROUND CONSTRUCTION. See Lines: removal.
UNIT COSTS. See Valuation of Property: basis of, various
items.
VALUATION OF PROPERTY:
basis of, in general:
allocation:
exchange and toll property, 75% to exchange and
25% to toll, assigned (Tenn.)....
jointly used property owned by one carrier to
be included in inventory of the owning carrier
(I. C. C.)......
toll property and rates are generally held to begin
and end at back of switchboard (See C. L. 142,
p. 637)
toll property, elimination of, same method as
employed in Minnesota Rate Case, used (S. D.)
appraisal, in making, 10% check of all property in
state made (Mont.)...
book value:
accepted for present rate calculation but not
approved for future rate making purposes
(Ala.)
considered
rate purposes, for, used as tentative value
reasonably representing fair value, used as rate
base (Wis.)
book value plus actual cost of recent heavy additions
to two exchanges, comparison with average book
values of similar sized exchanges built during lower
price level period unreasonable, especially where
less than that of recently built exchange (Wis.)..
court decisions as to, noted...
court review, adoption of value which clearly shows
that consideration and reasonable weight given to
all elements of value, not in danger of reversal by
court (Ore.)
economic conditions considered in making.
VALUATION OF PROPERTY - Continued:
basis of, in general — continued:
composite figure arrived at from consideration of
numerous factors, upon correction of figures in
reproduction cost and reproduction cost less
depreciation, found to be less than Commis-
sion's figure (Ore.)
found reasonable for testing proposed rates (Ill.)
former undepreciated value at certain date plus net
additions to date, where application for revaluation
never made and company recognized former value
as thoroughly and fairly determined, considered as
meeting requirements of court decisions (Ore.).... 1076-1079
1082-1092
important part in rate proceeding because of numer-
ous recent court decisions bearing on value, and
marked fluctuations in material and labor prices
during past few years (Ore.).
subject to change if found to be incomplete or in-
accurate (0.) ....
valuations, transcripts, exhibits and, to be filed
and considered part of record, ordered (O.)..
investment reasonable, given full consideration in esti-
mating requirements for depreciation and return
(Wis.)
method of procedure in making valuation, outlined
(Mont.)
original cost, impossible to obtain, because of in-
accurate records (Wash.)......
principles for determining, as stated in various cases,
fully noted
fixed........145-147, 203, 237-240, 319-320, 326-327, 372
387-388, 419, 457-458, 462, 506–507, 527-533, 536
830-831, 834, 850-853, 868, 875-876
made.....691-712, 982-983, 985-986, 1042-1043 1076–1092
cost of labor, materials, etc., at time of investi-
gation, must be accorded weight (Mont.)....667, 691–692
VALUATION OF PROPERTY — Continued:
basis of, in general continued:
reproduction cost-continued:
cost, original or otherwise, or value at time of
construction does not determine present fair
value (Mont.)
determination of rate base exclusively upon, re-
not sole measure for rate base, cases noted...... 1081-1083
present day costs cannot be wholly disregarded in
determining present fair value (case noted)
(Mo.)
time of investigation, at, important and to be
given due weight (Mont.)....
consolidation work, amount for, formerly disallowed
because of lack of proof, upon rehearing where con-
tract for such consolidation proven and items enter-
ing into work shown in detail, allowed (N. Y.).... 1050-1051
construction and maintenance by railroad of tele-
graph company's line under contract was partial
payment in advance for services, etc., and did not
make line part of railroad's assets; former order
including same in railroad valuation reversed (one
Commissioner dissenting) (I. C. C.)......
construction work in progress:
estimated cost less retirements, allowed for (Ill.)
not included in estimate of reproduction cost
(Ore.)
prices current since date of valuation, at, in-
cluded (Mont.)
going value:
allowance for:
company's figure in absence of any other
evidence as to item, allowed (Mont.)....668, 711-712
made (Tenn., Ill.)..
amount representing excess of expenses over
revenues after service started and prior to
completion of plant and development of fair
return on all expenditures, included (Mont.).
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capitalization of past deficits as:
disapproved (cases noted) (Ore.)..
rejection of, cases noted....
30% of tangible property included in esti-
mate of reproduction cost, in absence of
evidence that expenditure incurred, elimi-
nated (Ore.)
definition and appraisal of item with per cent.
allowances, numerous cases noted.......
lack of proper accounting system and failure to
understand problem in past, make it necessary
to assume expenditures and transactions which
may or may not have been part of (Mont.)..
organization expense, allowed in part by former
order, upon rehearing where additional testi-
mony given, company's figure permitted to be
capitalized on condition that amount be amor-
tized over reasonable period (N. Y.)......................
promoting, organizing and financing company,
preliminary and development engineering,
training employees for telephone work, attach-
ing business, developing routines, records and
instructions, and fair rate necessary to finance
undertaking, considered in determining (Mont.)
land not used by exchange, excluded (Kan.) . . . . . .
land, reproduction value allowed for (O.)...
materials and supplies, allowance made for....93, 326, 457, 531
metallic line reconstructed at expense of transmission
company by agreement where there was induction,
value of, included in telephone company's prop-
erty (Neb.)
new plant not yet fully in use because of advance
construction, allowance made in part for (Ore.) . .
non-operating", additional unused lines considered,
and excluded (Wash.)...
overhead costs:
allowance for:
7% of present value, made (O.) . . . . . . . . . .239, 417, 418
overhead costs - continued:
interest during construction:
judgment of company's engineer based on
years of actual construction and develop-
ment of telephone properties, considered
in fixing allowance for (Mont.)........
principles involved and representative allow-
ances for, numerous cases cited......
3.3% of depreciated value allowed for
(Mont.)
not included (Kan.)..........
omissions and contingencies, 3% of depreciated
value less land, allowed for (Mont.)...667, 701-702, 712
pavements, cutting and relaying, underground con-
duits including allowance for, in absence of show-
ing that paving was actually cut for laying of
mains and thereafter replaced, not properly in-
cluded in estimate of reproduction cost (cases
noted) (Ore.)
proposed additions, replacements and improvements
included in value (Neb., Wis.).....
rights-of-way, reproduction value allowed for (0.).
unit costs:
current at time of inquiry, use of, cannot be dis-
credited (Mont.)
"day certain" prices practically same as fair
prices extending over period of years, used
(0.) ...
downward price trend for one year not indicative
of changes that would materially affect value
at end of that year (Ore.). . . . . . .
fluctuation over period of years, discussed (Ore.). 1084-1085
present day costs:
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