1.9378
82
51.6601
2.0144
58.8957
2.0935
65.1577
2.1083
70.4949
2.0734
83
49.6457
2.0950
56.8022
2.1983
63.0494
2.2348
1 68.4215
2.2186
84
47.5507
2.1788
54.6040
2.3081
60.8146
3.3689
66.2029
2.3739
85
45.3719
2.2659
52.2959
2.4235
58.4457
2.5110
63.8290
2.5400
86
43.1060
2.3566
49.8724
2.5447
.55.9347
2.6616
60.2890
2.7179
87
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40.7494
2.4508
47.3277
2.6719
53.2731
2.8213
58.5711
2.9081
88
38.2986
. 2.5489
44.6558
2.8055
50.4518
2.9906
55.6630
3.1117
80
35.7497
2.6508
41.8503
2.9458
47.4612
3.1701
52.5513
3.3395
90
33.0989
2.7568
38.9045
3.0931
44.2911
3.3603
; 49.2218
3.5635
91
30.3421
2.8671
35.8114
3.2477
40.9308
3.5619
45.6593
3.8119
92
27.4750
2.9818
33.5637
3.4101
37.3689
3.7756
41.8474
4.0788
93
24.4932
3.1011
29.1536
3.5806
j 33.5933
4.0021
87.7686
4.3643
94
21.3921
3.2251
35.5730
3.7597
29.5912
4.2423
33.4043
4.6698
95
18.1670
3.3541
21.8133
3.9477
25.. 3489
4.4968
28.7345
1
4.9967
96
14.8129
3.4883
17.8656
4.1450
20.8521
4.7666
! 23.7378
5.3464
97
11.324t)
3.6278
13.7206
4.3523
16.0855
5.0526
18.3914
5.7307
98
7.6968
3.7729
9.3683
4.5699
11.0329
5.3558
12.6707
6.1311
99
3.9239
3.9239
4.7984
4.7984
5.6771
5.6771
j 6.5496
6.5496
100
0.0000
0.0000
0.0000
0.0000
100.0000
100.0000
100.0000
lOO.OOOO
VALUATION OF PUBLIC UTILITIES
1557
APPENDIX II.
Some Examples of the
Expectation of Life of So-Called Permanent Structures.
When one examines records of the life of different kinds of so-called
permanent structures, the actual life of such structures is frequently
found to be much shorter than the life usually estimated, and probably
much shorter than was anticipated when the works were new. For
the purpose of illustration, this subject has been investigated along
two lines: (a) the actual life of railway stations, and especially of
terminal stations; (b) the life of water-works sources, reservoirs, and
pumping stations.
TABLE 5. — Life of Eailway Stations.
Location.
Remarks.
Grand Central Station and Predecessors, New York City,
241 Bowery, at Prince Street
Tryon Row (Municipal Building)
Fourth Avenue and Twenty-sixth Street (Madison (
Square Garden) t
Forty-second Street
Forty-second Street. Extensive enlargement
Forty-second Street Station. Entirely remodeled /
and three stories added for offices t
Construction of new terminal started
Present station first used for electric service
Present station in full use
Boston and Albany Eailroad, Albany, N. Y.
Wooden building at Colonie and Broadway.
Brick and stone building at Maiden Lane. . .
Existing stone station
1866 (^
1873
1900 1
Boston and Albany Eailroad, Boston, Mass.
Original station
Kneeland Street Station
South Station (Union Station) .
History between
these dates not
known.
Boston and Providence Eailroad, Boston, Mass.
Original station
1834
1874 1
1899 \
25
History not
Park Square Station
known.
South Station
1558 VALUATION OF PUBLIC UTILITIES
TABLE 5. — Life of Eailway Stations. — (Continued.)
Location.
Year when
Life,
built or
in
enlarged.
years.
New York and New England Eaileoad, Boston, Mass.
Original station
Station burned and rebuilt
Station extensively remodeled.
South Station.
1872 )
1880 i
1893 f
Causeway Street Station
Station burned and replaced by brick building
North Station
1854
1863
1893
Remarks.
Boston and Maine Railroad, Boston, Mass.
Havmarket Square Station
1846 1
1893 1
47
North Station (Union Station)
Eastern Railroad, Boston, Mass.
FiTCHBURG Railroad, Boston, Mass.
Causeway Street Station .
North Station
1848 I
1893 f
Boston and Lowell Railroad, Boston, Mass.
Minot Street Station
Causeway Street Station
Causeway Street Station rebuilt
Merged into North Station, with minor alterations. .
1835 I
1852 )'
1873 (
1893 *
Boston and Albany Railroad, Worcester, Mass.
Original station 1835
36
History not
Union Station 1875 1
New Union Station 1911 f
known.
Average life of all stations
24
The Forty-second Street Station, in New York City, although cred-
ited with a total life of 34 years, had that length of life only for the
part built in 1883. The extensive enlargement in 1884 had a life of
23 years and the remodeled station of 1899, had a life of but 8 years.
VALUATION OF PUBLIC UTILITIES
1559
Life of Water-Works Structures.
The average life of the sources of water supply given in Table
6 was shortened by the introduction of a general system of water
supply for the Metropolitan District, which made the further use of
small local supplies undesirable.
Lake Cochituate, the original source of supply of Boston, has
been in use 65 years, and the Sudbury River, the second source of
supply of the city, has been in use 36 years, but both these sources
are now used only to a limited extent to supplement, when necessary,
the supply from the Wachusett Reservoir, the newest source.
TABLE 6. — Sources of Supply.
Massachusetts Metropolitan Water District.
Source.
Period.
Years.
Life,
in
years.
Remarks.
Boston, Mystic Lake source, supplying
12 000 000 gal. daily in the last year of its
life.
Maiden, Spot Pond
Maiden, ground-water source
Quincy, ground- water source
Quinoy, storage reservoir
Hyde Park, ground-water source, near Nepon-
set River
Hyde Park, ground-water source, near Mother
Brook
Medford, Spot Pond
Medf ord, storage reservoir
Revere, ground-water source in town
Revere, ground-water source in Cliftondale.. .
?4elrose, Spot Pond
Watertown, ground- water source
Arlington, storage reservoir
Arlington, ground-water source
Swampscott, ground-water source
Lexington, ground-water source
Lexington, storage reservoir
Average.
V 1864-1898
1870-1898
1890-1900
1884-1898
1888-1898
[ 1885-1913
[ 1899-1912
1870-1898
1894-1899
1884-1898
1891-1899
1870-1898
1885-1898
1873-1899
189.5-1900
1885-1899
1884-1903
1894-1903
Abandoned on ac-
count of increasing
pollution.
Reservoirs.
At the time of the completion of the original works supplying
Boston, in 1848, there was a reservoir of 23 acres in Brookline at the
end of the brick aqueduct. The pipes from this reservoir led to three
distributing reservoirs: one of them, on Beacon Hill in Boston, was
a large elevated masonry reservoir supported by arches; the other
two were earthen reservoirs on hills in South Boston and East Boston.
The Brookline Reservoir lost a large part of its value at the end
of 22 years, when it was superseded by a larger reservoir, but it had
a life of 52 years before its use was discontinued. The use of Beacon
Hill Reservoir was discontinued in 23 years; of the South Boston
1560
VALUATION OF PUBLIC UTILITIES
Reservoir in 24 years; and of the East Boston Reservoir, except for
the purpose of emergency use, in 32 years.
As in the case of the sources of supply, the life of pumping stations
in the Massachusetts Metropolitan Water District, has, in many cases,
been shortened by the introduction of a general system of supply. The
oldest of the five existing pumping stations in this district was built
26 years ago, and the building was extended 11 years after it was built.
A study of other water systems shows that sources, pumping sta-
tions, reservoirs and other works are frequently abandoned for various
reasons, such as the pollution of sources, the growth of population at
higher elevations than those originally provided for, and the general im-
provement and enlargement of the water system to meet changing con-
ditions.
An instance of an extremely short life of a reservoir and pumping
station was observed in connection with a valuation for rate-making
made in 1909. The rates in question were those of 1904 and 1905.
The pumping station and reservoir did not appear on the inventory
for 1904, because they had not then been built. They did appear
on the inventory for 1905, but could not be seen by the appraiser in
1909 because they had been superseded and removed. The cause of
the short life was a great influx of population which settled on elevated
land and required a more complete system of high-service works.
TABLE 7. — Pumping Stations.
Period.
Years.
Life, in
years.
Boston, original high service
Old East Boston
New East Boston
West Roxbury
mv^tio i Worthington Pump
Mystic ^ Leavitt Pump*
Somerville
Maiden, Spot Pond Station
Maiden, Webster Park Station
Chelsea
Everett
Quincy
Hyde Park, Neponset River Station .
Hyde Park, Mother Brook Station..
Medford, Spot Pond Station
Medford, Reservoir Station
Revere, Town Station
Revere, Cliftondale Station
Melrose
Watertown
Arlington
S wampscott
Lexington
18T0-18H8
1880-1889
1889-1898
1886-1913
186-1-1898
1896-1898
1890-1900
1883-1898
1800-1900
1886-1900
1888-1899
1884-1898
1885-1912
1899-1912
1892-1898
1894-1899
1884-1898
1891-1899
1886-1899
1885-1898
1895-1900
1885-1899
1884-1903
•This pumping engine was transferred to another pumping station when the Mystic
Station was abandoned.
VALUATION OF PUBLIC UTILITIES
1561
On the other hand it is not to be inferred from Table 6, that the
average life of sources of water supply is but 17 years, or from Table
7, that the average life of pumping stations is but 14 years — for the
life history of the majority of water-works will show that such is not
the case. These examples have been cited merely to indicate that
functional depreciation is an active force to be considered and given
such practical, weight as circumstances and experience may indicate
to be fair.
Thus, by comparison with Table 7, there might be cited the
experience of the Spring "Valley Water Company, of San Francisco,
Cal. Out of eight pumping stations (excluding the centrifugal booster
and ground-water supply stations, recently erected and still in service),
all but one are in active service — and this one was an emergency
station, and not one of permanent construction. The age of the
oldest station is about 30 years, the mean age of the investment in
the eight stations, 15 years.
Table 8 is a statement of the pumps in these stations.
Table 8.
Fly-vheel pumps.
Black Point 1-30 years.
" " 2-22 "
Belmont. ...'.['.['.'.'.'.'.'.'.'.'.'. '.'.'.'.'.'.'.'.'. 2-28 "
3-15 "
Merced 2-25 '•
Millbrae 1-18 "
Central 1-18 "
Clarendon 1-15
Direct-acting pumps.
Ocean View 2-18 years.
Precita 1-17 "
" 1-8 "
Centrifugal pumps.
Ravenswood 1- 4 years.
Pleasanton 1-3 "
1- 7 "
Crystal Springs .3-3 '•
No pumps have been discarded, except three small double-acting
low-duty pumps at Bald Hill emergency station, used in two or three
dry years for a few months only.
This comparison is made merely to indicate that each problem
must be thoroughly studied in the light of the local past, present,
and probable future conditions.
1563
VALUATIOX OF PUBLIC UTILITIES
APPEIS^DIX III.
Some Examples of Actual Overhead Cost.
In presenting these data as to actual overhead cost, the Com-
mittee desires to lay stress on the need of using all such figures with
caution. Items entering into overhead cost of different and similar
works are rarely alike, and many of the expenses, and even classes
of expense, incurred on one piece of work, might not be incurred on
another. It is impossible to forecast all the conditions and items
of overhead cost which will develop on any work. Were it otherwise,
no separate group of overhead cost would be necessary, for every
expense would be included in the unit costs.
Experience has shown, however, that indeterminate or indetermin-
able expenses always occur, and in such amount that they frequently
aggregate like, or similar, percentages of fixed unit costs. Hence, the
mere amount of those percentages, developed on other works, has a
bearing on the problem. Their segregation aids in forecasting
probable developments the more accurately, and they furnish a back-
ground of comparative experience which is useful.
Moreover, in valuing properties, years after their construction,
grave uncertainties generally arise as to the conditions which actually
developed during the construction of these works, and records are
virtually never in sufficient detail to eliminate them. Therefore,
the evaluator, as the designing and constructing engineer, must
make reasonable allowance, to cover the effect of these xmcertainties,
if justice is to be done.
To the evaluator, the records of greatest value are those developed
on work, with all the details, conditions, and surroundings of which
he is personally familiar, as these he is in a position to use most
intelligently as a yard-stick, and is least likely to misapply. The
evaluator should not attempt to figure the value of property with
the construction costs of which he is not familiar.
With reference to the data submitted, the details presented to
the Committee were so voluminous as to be impracticable of publication.
(a). — Examples Showing Cumulative Engineering Costs, with
Varying Volumes of Work.
Compiled from printed reports, under the supervision of Alfred
Craven, M. Am. Soc. C. E.
Year.
New York State Barge
Board of Water Supply-
Canal.
New York Aqueduct.
1905
ToOJj-
1906
98
167.0O/O
1907
40
174.0
1908
25
81.3
1909
14
32.9
1910
13
19.2
1911
9
14.5
1912
9
12.5
1913
9
11.86
VALUATION OF PUBLIC UTILITIES
1563
mS
Year to which
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1568
VALUATION OF PUBLIC UTILITIES
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