The labor advocate. [volume] (Cincinnati, Ohio) 1912-1937, 1916-07-15

sensation His valuation lower than had been claimed by
the municipal ownership forces -
between s2ooo and Our method was as follows
We had the valuations of Cleveland Detroit and Milwaukee We
of the and $4,000 per mile in Of the
gfs valuation We had had @ been in all these d es oe and ss d mot
pared avora with the condition of the properties in
lowest the valuations valuation for the Cincinnati
property of about eleven millions Using the higher valuations
"hat rough of getting at it. But didn't cost the
to Mr. Badwns figures it was not bad guess
But why should the State Commission guess that the Cincinnati
ohsF ys% e valuable '0P''''" s as TIE sSs's"
The writer had tip corporation
before made public Perhaps this lied Per
hot tip This law Office gave out
the States figure months before the information voucafed to
at interesting recall that Mr. William Cooper Procter
Henry Hunt urged that $3oOoo0Oo settlement would be
mi Proctor Mr. Hunt in City Hail.
that the books would show that it was earning dividends
SoOoO and that the company should therefore be presumed
Iha the kind Of bargain Mr. Proctor wanted Mr. Hunt to
the Mon kin of nd s %aG % ,Hng %n when % c M what is "g
r Proctor does to be much Of political economist
be made yield Mr. Proctor distinction between
we as the er should % be- valued not By the cost OF the pln but
by the produced That all right for soap factory But
subject aon not pctitve business The right
by The the
earning capacity capitalization of the advantage conferred by
the established That the property Of the company
To that the from given should be capitalized and
paid for by the that the should
reduce the But the franchise the city the right to
reduce
not right value public utility that public utility should
be valued by the actual investment that used and useful in the
business
he difference that may exist between the value of the plant
and its earning capacity may be illustrated BY the electric light
in the plant 1t cooperative enterprise the time, the
having the right purchase limited of stock and
to lieu of dividend twelve reduction their
bills Nothing invested this plant what the
pany per dividends
sin State Commission valued the basis earning capacity
100000 and found its physical property worth $SOOOO
"The city of Grand Rapids bought the property the latter fig
reduced about 80 below Cincinnati and
made $4,000 profit last
81" II be considered reasonable public utility
property the surplus this should have
reduction Of the amortization fund That would have
been good business for the and capital Thus the city
of Grand Rapids might by this time have owned 100000 plant
the to itself of but $15OO0
"t is the capitalization profits that does the mischief
Mr. Proctor the street riders SlSOO
600 than Mr. Baldwin the plant worth That extra
charge $1OSOOOO That a
the pockets the works the clerks The shrk
4 ride automobiles
"But they will get away with doubt That
lis because the think that the advise them
the who the privilege of collecting this and who
= wants to keep it.
at used be thought despecu the intimate
that Judge with railroad his pocket
person to railroad damage
at still bad East Hill society that mil
honae of stocks unfit advise the
I, city what for that stock.
1--WE finally decided that unreasonable
human judges, took their from them
The prudence should exclude interested from rapid