George Sutherland

“ Upon this valuation, the estimated net earnings under the rates fixed by the 1919 ordinance was shown to be in excess of a fair return to the extent of over $21,000. The estimated amount of income under the 1919 rates is based on the amount of business done under the 1918 rates, and consequently is largely a matter of prophecy. An actual test of these rates may result in a larger return, by bringing about an increase of business. ”

“ The testimony as to depreciation was conflicting and speculative-the estimates ranging from 15 per cent. to 40 per cent. of the value of the plant. The master fixed it at 28 per cent., making the present depreciated value of the depreciable property $534,818. To this he added the value of various items, including intangible property, real estate, and office and utility equipment, bringing the total up to $800,000. ”

“ The appellant for many years has been operating an electric light and power plant in the city of Galveston, under a franchise reserving to the city the right to regulate rates.
In 1918 an ordinance was enacted increasing the rates then in force. By a subsequent ordinance, passed in 1919, these 1918 rates were decreased. ”