The Valuation of Public Service Corporation Property: Transactions of the American Society of Civil Engineers,; vol. LXXII, June, 1911, ASCE 1190Riggs, Henry Earle
General
The Valuation of Public Service Corporation Property: Transactions of the American Society of Civil Engineers,; vol. LXXII, June, 1911, ASCE 1190
Assuming, as apparently the propounder does, that the proposition is
uncomplicated by any questions of franchises, public rights in the land
on which the bridge and its approaches are built, etc., then there is no
question but that the owners of either bridge have a perfect right to
charge what toll they please. On the other hand, suppose the permission
of the War Department, or some other governing body, had to be obtained
in order to build piers in the river, or even to build the bridge at
all; the argument used in asking for this permission is that the bridge
is needed as a public convenience; or it is desired to occupy certain
streets for the approaches, again is used the argument of public
convenience, and so on. These privileges are granted on the tacit
understanding, at least, that the public convenience is to be served,
and the Courts rule that, in such cases, in consideration of the equity
which the public has in the property by reason of the rights granted, a
fair return on the value of the property, but no more, should be the
basis for establishing the rates of toll. Would the _Sun_ claim that the
value of the rights and franchises given by the public in such a case,
be included in the value of these bridges, and that a higher total
income should be derived from one bridge than the other because the
value of the streets on which the approaches had been built is greater
in one case than the other; or that a greater income should be derived
in one case than another because the cities furnish more people than the
villages? Is there any particular reason, except for the slightly larger
depreciation and cost of maintenance, and, bearing in mind the fact that
both bridges cost the same, why, if there is ten times as much traffic
on one bridge as on the other, the toll should not be proportioned
accordingly, to provide the same income on each?
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