"Capitalization of earnings will not, because that implies continuance of earnings, and a continuance of earnings rests upon a franchise to operate the water-works. The original cost of construction cannot control, for original cost and present value are not equivalent terms. Nor would the mere cost of reproducing the water-works plant be a fair test, because that does not take into account the value which flows from the established connections between the pipes and buildings of the city. * * * A complete system of water-works, such as the company has, without a single connection between the pipes in the streets and the buildings of the city would be a property of much less value than the system connected as it is with so many buildings and earning, in consequence thereof, the money which it does earn. The fact that it is a system in operation, not only with a capacity to supply the city but actually supplying many buildings, in the city—not only with a capacity to earn but actually earning—make it true that the 'fair and equitable value' is something in excess of the cost of reproduction." The foregoing authorities cover practically all the older cases in the Federal Courts. These cases have been examined, and such of the subject matter has been quoted as would show the conclusions of the Courts as to what constitute the various elements of true value. The latest Federal decision bearing on the subject, and in many ways the most replete with argument, is the case of Consolidated Gas Company _vs._ City of New York (157 Fed., p. 849), which was decided in December, 1907. In this case the valuation was determined by the master: 1.—A valuation of tangible assets, consisting of real estate, plant, mains, services, meters and miscellaneous equipment, and the property of subsidiary companies, the whole aggregating $63,357,000. Of this an allowance of $3,616,000 was made by the master for working capital, and this entire amount was treated as tangible property. 2.—Finally, an intangible value of 0,000,000 was assigned by him to the franchise and good will. Objections were raised, as follows: (_A_) Land values represent no original investment by the Company, do not indicate land especially appropriate for the manufacture of gas, and increase the apparent assets without increasing the earning power. (_B_) The values of physical property are not original cost, but are cost of reproduction less depreciation. (_C_) Some of the property cost more than new articles of the same kind at the time of inquiry. Some are of designs not now favored by the scientific and manufacturing world. The disputed questions involved, as far as tangible property is concerned, were: 1.—Whether the values ascribed to the several enumerated items are based on competent and persuasive evidence.