Value for Rate Making

Cover Value for Rate Making
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Co. Vs. Love (C. C), 177 Fed. 493, 496; Shepard vs. Northern Pacific R. R. Co. (C. C), 184 Fed. 765, 810; Des Moines Water Co. Vs. Des Moines (C. C), 192 Fed. 193, 197; Pioneer Tel. & Tel. Co. Vs. Westenhaver, 29 Okl. 429, 118 Pac. 354, 38 L. R. A. (N. S. ) 1209.
"I am unable to perceive a logical difference between allowing 'going value ' in the valuation of a plant when it is to be taken entirely by the public and allowing the same element when valuing the same plant for rate-making purposes.
... In each case the thing to be done is the fair appraisement of present value. What difference in principle can there be because in one instance all is taken for the use of the public and in the 1 192 Fed. 197.
GOING VALUE 189 other the public limits the earnings? In the case at bar the Commission says it 'disallowed this claim in determining fair value. * * * ]Jut did consider it in fixing the rate of return. ' If so, there is no proof of that fact in the record. "^ The counsel of the New York Commission in arguing on appeal, before the Court of Appeals, in the Kings County Lighting Company case above referred to, criticises the opinion of ti»o Supreme Court of the State, and says: "A serious misconception appears in the following ciuotation from the opinion of the Court below (Vol.


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