Pine Bluff daily graphic., 1914-03-14

were denied.
 c. Expenses preliminary to or
 ganzation, which were allowed.
 D. Interest during construc-
 ton. which was also allowed.
 E. Allowance for engineering
 and contingencies, which was al-
 lowed.
 F. An allowance for general
 contractors profit, which was de-
 nied.
 G. An allowance for working
 capital, which was included
 H. The sum invested in water
 meters: it being disputed wheth-
 CT the company had right to use
 them, which was allowed.
 I. The value of water service
 pipes laid at the cost of the pri-
 vate consumers, which was denied.
 J. The cost of reproducing the
 pavement over such service, which
 was denied.
 K. The cost of reproducing
 street paving over water mains, in
 streets that were not paved when
 the original pipes were laid, which
 vas denied.
 l.. The method of depreciation
 to be used-whether sinking
 fund.- or straight line" deprecia-
 ton, the latter being chosen in
 the estimation of values.
 VI. What allowance, if any,
 should be made for Going
 Value."
 The question of allowing goins value in valuing plant for rate mak ing purposes involved point upor which the Supreme Court of the Unit ed States, to which this case vii probably go, has never yet passed
 The finding of the standing master was in favor of allowing such { value, and that it should be determin ed upon the deficit in revenue plan.
 The ascertainment of the amount 0 the going value involved decisions ol points that have never yet been de cided by a court, and will be lead ing case on the subject when it ii nally passed the scrutiny of Judg, Trieber.
 After thorough study of the sub ject and long authorizations the mas ter presents in his report for the de cision of the court complete metho of calculating that value. This ques tion, when finally decided by tn court, will be the first judicial deter imitation of this question, and vii be of immense interest, inasmuch a the subject of physical valuation 0 public service corporations bids fai to dwarf all other matters of adjudi cation during the next decade.
 The master, in his report, passed upon 96 different items claimed tt enter into the fair valuation of tht Pine Bluff water plant. He found the total value of the plant as of May } 1913, after due depreciation from the time of construction to that date, to be $445,OO0,000.
 On this the master reports to the court his conclusions that an allow, ance of 1 1-2 per cent per annum fol repairs and replacements and to coy CT fluctuating income, should be al lowed, and an additional per cent as the net income on the investment
 The master further found that al no time had the company, under the old rates. earned within $5,00O a year of the amount so allowed to it. The highest net income earned in any one year, according to the undisputed evi- dence was $32,462.OO in 1912.
 On this showing of facts the master reports to- the court favorably to the granting of an injunction against the of the new meter rates which the evidence shows to be more than 30 per cent lower than the ole rates.
 The master further recommends tt the court that an injunction issue against the exercise monthly of al option as between flat and metel rates, on the ground that it would b' a fragrant attack upon the rights o the water company to compel it tt maintain constantly on hand a full stock of water meters with which t. supply it's 2,00O private consumer: at any time upon ten days notice, a' provided by the ordinances; that sucl a requirement would force the com pany to keep on hand and probabl. idle, some $3O,00O worth of meters that during the slack seasons of win