The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-10-13

deducted $50, 49,. Al for depreciation, his fig
ures being as follows:
Cost of reproduction. $491 1880
Going value Observation-Disclosures. 67.275.v0
Total sos, Ss 2 60
Balance. $46S. $50 -
Il have not attempted to ascertain
whether this estimate was probably cor
rect This could only be done by engineers
and others familiar with scuh matters and
who have special knowledge with respect
thereto nor am advised as to how much
more. if any. such work would cost at
this time than in October, 1900. The report
shows in detail the various items which
go into this estimate and reference can
lie had to such report, thereby estimating
the cash value of the plant at s4eS,35O.
THE other engineer estimated the go
ing value at $21s.TI.S3 and the deprecia-
ton S11. 80, his figures as follows:
Cost of observation-disclosures. $491 .107 so
Going value ACKNOWLEDGEMENTS. zls,IllS5
Deducting depreciation ---.--.---.-s II 5000
Thereby estimating cash value at $685., 1913. 10
Each engineer in his separate report
sets out in detail the various items and
the method used in arriving at results and
reference can be made to such reports.
The engineer employed by the city deduct
ed one per cent a year for deterioration in
the cast IRON distribution system ana lTOIIl
two to four per cent a year upon some of
the other property. He also deducted fifty
PEI cent from the cost of reproducing the
Harrison street station new. and made a
heavy deduction upon some pipes that
were necessary near the Harrison street
station when in use but are not now nee
essary. Upon some of the property he
made no deductions His dedecutions for
depreciation We're as follows.
Distribution system and force
west end plant is67i a5
Harrison street station ...--..-.-..- zl.750-00
Engineering expenses .--.-.....-.-. S,1S4-I1
Total. ACKNOWLEDGMENT 9oOs2. q
1T will be observed that the Si3. 46l SO
added for cost to duplicate plant new for
engineering expenses is reduced in deter
mining present worth to sS5. 279- SIS but this
amount still appears to me extraordinarily
large
The other engineer allowed 81, e93-3O for
depreciation. He allowed nothing for de-
probation at the Harrison street station
by reason of the charge of pumping
plants.
The theory upon which the engineers
employed by the city made these deduc-
lions was that during the life of the fran
chise the conditions changed that the
Harrison street plant had to be practically
abandoned and a new one put in and that
the Harrison street station was of little
or value TO the system at the present
time.
TT is also to be observed depreciation
for the last two years is not included in
this estimate
TT does not strike me that the amount
figured off bx the engineer employed by
the city for depreciation is more. or, per-
haps not so large as it should be for de-
probation at this time.
RESPECTING GOING VALUE"
las an Independent item of value, ire
/ spective of a franchise to be added to the
cost of reproducing the property new.
understand the theory IS this; that the go
/ ing value is such sum as a property which
4 IS completed and earning income is
worth more than it would cost to build
the property new. Thus, house which is
completed and occupied or ready for occu-
pancy. on this theory, is estimated to be
worth enough more than it would cost II
build the house to make up the net rents.
if the house is a tenament house, during