Issue 15 and Volume 57.

SOME ECONOMIC ASPECTS OF WATER WORKS VALUATION* The valuation of utility properties for rate making purposes has become an important problem in recent years. It will no doubt soon prove to be an important problem for all the privately owned water piants in Illinois, for the recent act, creating the Public Utilities Commission places all such properties under the control of that commission. This act apparently gives to the Commission the power to regulate, change or re-adjust the water rates at any time it may choose to do so, in spite of the fact that many water companies are operating under franchises previously granted by municipalities, which give the right to make a certain charge until the expiration of the franchise period. This act apparently repeals and annuls all such outstanding franchises, and so the Commission holds. Therefore, the question of valuation becomes of importance since the Commission, in the…

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