Evening star., 1907-10-31
Actual Cash Value.


Actual Cash Value.
Auditor Payne finds that within the
t'Irvtew OF the phrase "actTal cash valut
~ the plant as contained in the act of
Congress authorizing the appi cation o
ths company for an increase of stock. ar
10 b. included franchises rights anu
good Will Of the company Upon theS
ie places a valuation of sbb. .G5l
Mr. Payne explains how he rtyes at
this valuation
He says the account fled by the com
pany, taken from !ts books, shows the
E"t earnings for the first six moaths OF
IN" current year to be S13.519.JS. which
VIII make for the entire year So. T59. 1G.
This sum capitalized at : per cent equals
Ab13lS}, which, he contends. represents
better than the testimony of one of the
experts t~D.HDl the capitalization OF 10
tn! value of the physical or tangible prop
erty and of the Intangible assets of the
company
Dedu"ting from this the testimony of
tHe cost Of reproduction of the physical
property. SitsS. 80 leaves S6S esil as the
value Of the franchises. rights and good
VIII
In conclusion Mr. Payne advises the
court that as the result OF the proof SUB
United and considered by him the total
cash "alue Of the plant Of the company.
taken TO include It's property. physical and
Intangible is s4TO.777 30 He notes that
is s67.G0). He then gives detail figures as
u his findings OF value. which H. sum
nIar'zes: Land. $42. .S23 30. buildings $43-
505-3o. apparatus. $50 1Os 30; gasholders.
sf6,SG': street mains, Sl67 $50 80. 535 street
amp services. $3.50: 20 lamp posts
Sl5I3; consumers meters and connections
siS82S. working capital. $4,000: value OF
franchises. rights and good will. S6S6
Exceptions by Commissioners.
l'he District Commissioners through
corporation Counsel Thomas. in their ex-
ceptiouS fled to the report of the auditor
declare Mr.. Payne has not hit upon the
correct meaning of the word plant as
intended by Congress. They claim that Sh
auditor should have found that 1t was
the intent of Congress to restrict tn
meaning of the term in favor sOf the pub
lie ana to prevent valuation whiCl;
would allow an increase of capitalization
and defeat a reduction Of the price of gas
L. the consumers.
In reference to the finding as to thu
'onsumers services not being part OF
tie plant OF the company the Commis-
Sioners make no objection except as the
finding relates to the right of the District
10 tax thesa services against the COM
IanE- The auditor also erred. it is claim
td. IN not finding that there no legal
l. sufii lent evidence of the cash value OF
tie plant at the time the act of Congress
was approved and In not finding that
OY H.
rf the plant.
Mr.. Thomas also contends that the au-
iitor has failed to find facts from which
the court can determine whether 1t ought
to authorize the increased issue of stock
NhiCh the court is bound to ascertain be
fore making any final decree He also
claims the auditor has not found the ac-
tusi cash value of the plant and neces-
%sry cost of construction Of future exten-
sion. which Is the basis of the Jurisdiction
o. the court in the case.
Company's Exceptions.
TIL" exceptions of the gaslight company
Brt:
!. 70 the finding by the auditor that
the actual cash value of the land of the
petitioner Is only the sum OF S42 S23 90
whereas the actual cash value is at least
SIS.4l2. It is insisted that the auditor
erred In Ignoring entirely the testimony
OF the witness William b. Upton in re-
gard to the special value possessed by
the land In Question. He further erred in
giving greater weight to the testimony OF
the witness Jesse H Wilson than to that
OF the witness Joseph H Bradley.
- To the finding by the auditor that
the actual cash value OF the apparatus
OF the company is only the sum of $50
uS50. This exceptor urges that the true
cash value of the said apparatus as eS-
taniSned ny the sad stimony, is not
less than the sum of SOL. 195, and that
the auditor In fixing a less value disre-
garded the testimony in the case espe-
CtaiiN as TO the items OF interest and
engineering, in reducing, against the tes-
tirnony. the allowance for these items
from II to 10 per cent.
Declared to Be Undervalued.
s. To the finding by the auditor that
t!ie actual cash value of the gasholders
of the petitioner IS only the sum of $3b-
40. This exceptor insists that the tes
tiInony shows that said value Is not less
than $40 80. and that the auditor disre-
Eafded the testimony in the case, espe-
Cla!ly as to the items of interest and en-
sineerins. in reducing. against the tes
tinony, the allowance for those items
rom 10 TO 10 per cent.
f. To the finding hy the auditor that
the actual cash value of the street mains
OF the petitioner is only the sum of S167,-
o30.0 This exceptor insists that the tr,4e
cash value OF the said street mains Is
Hnt less than the sum of S2sT $50. being
an estimate based upon the price that the
District of Coun3ia Is now paying for
similar mains in position in It's water
service: and that the auditor dsIegarded
the testimony in the case. especially as to
the Items or interest and engineering In
reducing. against the testimony, the al
ioWance for those items from Is to 10 per
cent.
>. To the refusal by the auditor to al
lew the petitioner the actual cash value
ct the se.EiCe pipe connecting the mains
"T the petitioner With the houses of con-
Si;meFS. This cxceptOr insists that In law
and In fact the said service pipGs are the
property OF the petitioner and not of pri-
Nate owners II part of whose premises
the said service pipes are laid. This ex-
cep'"r also insists that the actual cash
value OF such service pipes is at least the
sum OF StSb@1 testified toby the witness
Miller II NIL appear from the testimony
or the witness Rurneli that estimate of
the prices now paid by the District Of
Columbia toT similar pipes In its water
service would Ilx said actua! cash value
sit about th" sum of SI3.l96
IN connection with this item this ne
ttttencT further excopts to the rcfusa! Of
tne auditor TO allow Is per cent for In
terest and engineering upor. the item of
so.95O for street lamp services and 81 575
fer street lamp posts
Physical Valuation of Plant.
"6 I, the finding by the auditor that
-'Ie total physical value Of the plant OF the
petitioner is only sioi.fiS.3c. your pet.-
toner insists that the said total physical
alue is. at low estimate the sum Of
$9i9.2's az appears from the testimony
OF the witness Miller.
:. To the finding by the auditor that
the total cash value or the franchise and