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Public Utility Valuation - Cost Of Reproduction Theory And The World War, Edwin C. Goddard
Public Utility Valuation - Cost Of Reproduction Theory And The World War, Edwin C. Goddard
Articles
The very grave objections to the cost-of-reproduction theory of valuation of public utilities was pointed out at large in 15 MICH. L. REV. 205. The violent price changes following the World War have greatly increased the weight of these objections to calling anything a base which rests on such uncertainties and fluctuations as cost-of-reproduction. A base should be stable, but this has the stability Of a flying machine. There had been a rising curve of costs from 1893 to 1916, but since that date the rise has been almost vertical. The public utilities by- the thousands desire to take advantage …
Public Utilities—Franchise Rates As Affected By The World War, Edwin C. Goddard
Public Utilities—Franchise Rates As Affected By The World War, Edwin C. Goddard
Articles
The economic convulsions due to the World War are abundantly reflected in the relations between the public and their public utilities operating under franchises fixing rates for service. The enormous rise in cost of labor and materials has, in many cases, so reduced the net income of such utilities as to make it a negative quantity at existing franchise rates. The utilities are crying to be saved from bankruptcy, but the unfortunate suspicion bred by past dealings of many such companies has made the public skeptical, and perhaps in many cases entirely unreasonable. In some cases plain selfishness may explain …