REDUCTION OF BEAVER COMPANY’S VALUATION.
That was a sweeping reduction made by the Public Service Commission recently at Harrisburg, Pa., in the valuation of The Beaver Valley Company’s water property. The press report says that in the first decision, in which it has enunciated the physical valuation principle, the Public Service Commission has decided that the property of the company was valued at $985,000 for rate-making purposes. The company claims a value of $2,598,361, while the complainants asserted that the value was $669,835. The company operates a number of supplies in Beaver County, and extended hearings were given the complaints of Solon C. Thayer and others. In the decision of the Commission, which was written by Chairman VV. D. B. Ainey, it is held that the company was overcapitalized and that it was entitled to an annual return on its investments of $135,950. At the time of the inquiry, the company had an outstanding capital stock of $1,000,000 and bonds of $1,063,000, with notes of $184,000, no evidence being presented of sales. In the Commission’s decision a 7 per cent, rate of return is allowed, $53,000 given for operation, maintenance, taxes, etc., and $12,000 for depreciation. It is not known whether the company will make appeal from the Commission’s decision, which, as it now stands, is so big a reduction on the valuation that such action may be necessary.