The Washington times., 1921-11-07
COURT UPHOLDS
ELECTR|CRATE
Of TEN CENTS
CONTINUED From First Pase)


quent TO that date and they entirely
ignored the evidence as To the in
crease in the value OF the property
forming the basis OF the valuation
Of July /, 1914.
THE trial court was OF the view
that the rule adopted by the commits
sion was correct. We are unable to
concur I'm that view.
The principal object of valuation.
OF cost, is to provide a rate base, and
the statute clearly contemplates thar
the commission shall ascertain the
value as OF the time OF said valuation
and not as of some anterior date. IL
has been ruled many times that. th-rc
must be a fair return TO a public util'
ity upon the reasonable value OF the
property at the time IL is being used
for the public.
Part Of Law Overlooked.
'In the present case the commis'
sion, In effect. declined TO find the
present value of the property because
not satisfied as to how long existing
conditions would continue. In assum.
ing this position, the commission must
have overlooked paragraph of the
statute. authorizing IL at any time, or
its own initiative, to make "A reValua-
ton of the property OF any public
utility. In our view because the dutV
OF the commission TO have considered
and given due weight TO the evidence
as to the then value OF the property.
"As conditions changed and values
were substantially affected II would
have been the further duty Of the
and revalue the property. The con
ditions existing were worldwide. and,
while their duration and future ef.
feet were problematic, there was no
| immediate prospect OF a return 10
normal conditions. 1t may he sug
gested, although the point was not
raised in the opinion of the com
mission. that practical difficulties
would have been encountered in an
attempt to ascertain the increase III
value of the property between July |,
| 1914, and December 81, 19iG. But
there was substantial evidence be-
fore the commission as to the rise
! in values, and a brief investigation
would have enabled the commission
TO determine. with substantial ac-
curacy, how much. in fairness. should
| be added TO the earlier valuation.
! trial court upon the language of for
mer Justice Hughes as referee in the
case of Brooklyn Borough Gas Com
| pany VS.. Public Service Commission.
| But we find nothing in the report as
we read it justifying the action of the
commission here in entirely ignoring
| the evidence as to value at the time
the finding actually was made. The
! contention there was that the rates
oh he. hae 10,
ton simply representing a hypotheti-
cal cost of reproduction at a time
of abnormally high prices due TO ex-
! ceptional conditions.
Substantial Difference.
There is a very substantial differ
'asa in between considering the pres
= 1J cost OF reproduction as one OF the
Nant.al and important elements in
/ tl5' det"rnination of present values,
! a' EJEC acceptance as conclusive evil
urN""tgf such value, of mere experts
rSitna IS II present cost of reproduc-
y his dissenting opinion, Chief
Just" Smyth reaches the conclusion
! that ne POtCIuH, fHoCtric Power
| CompalE has uol Jon -. 'anguage of
the statu clearly sGa 'sfactorily
shown that no FINDINGS .. e Com.
mission is inadequate. q >uable
and unlawful. H. UovfN hat
the majority OPP. un #ae- at. ...- n
prove the findings nc 'gwusa-.uu
with respect to the v...- al 'N" a..
| erty on July !, 1914, n". t.l's ~
effect that since that IT, was sI-
stantial testimony that /. .m.. u,
! reproduction had greatly ......ad
between that date and Decen 30
! 1916, the fair value of the prL .r
must also have increased and IL -.
fore that the Commission erred w
not having given effect to that in
| crease.
He poipts out that his associates
impose on the Commission the duty
Of saying how much should he added
| to the earlier valuation instead of
telling them how much in the courts
view should be added. The Chief
Justice expresses the view that there
should be no increase because such
increase is not due to any investment
by the company but results solely
from the world war which has de-
moralized market conditions and
rendered property values unreliable.
To accept such an increase as
standard of value would he to adopt
an unstable measure which would