Theoretical Depreciation A Menace To The Public And The Investor

Author : George N. Webster
Publisher :
ISBN 13 : 9781330514665
Total Pages : 40 pages
Book Rating : 4.5/5 (146 download)

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Download or read book Theoretical Depreciation written by George N. Webster and published by . This book was released on 2015-06-30 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Theoretical Depreciation: A Menace to the Public and the Investor The most serious menace to which investors in the securities of public service corporations are exposed to-day results from their failure to comprehend and to combat unsound and destructive theories of valuation, which, when employed in the determination of the value of their properties for purposes of rate regulation, operate to confiscate a very substantial percentage of their investment. The term "confiscate" is used advisedly. If an investor has expended, for example, $100,000 in plant and equipment devoted to the public service and has rendered service therewith for a number of years at legal rates, yielding a legitimate return upon his investment and nothing more, and has collected from his patrons nothing representing a return to him of his investment or any part of it, and if his property is then appraised and, as the result of the method employed, is found to have a present value of say $70,000 and the rates he is permitted to charge are adjusted so as to yield a return on only $70,000, then his investment, to the extent of $30,000, has been confiscated. When it is considered to what extent owners of property are protected by federal and state constitutions, federal, state and municipal laws, municipal and police regulation and a vast legal machinery, against the confiscation, expropriation, seizure or theft of their property and by what simple means these agencies of protection may be invoked in behalf of the individual or corporation, it is amazing to observe the extent to which property is confiscated under the guise of rate regulation, with hardly a protest being raised by the victims. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.