251 Pa. 95 | Pa. | 1915
Opinion by
This was a proceeding to ascertain the value of the
As the method of ascertaining the value of the system consisted in ascertaining the cost of reproduction less depreciation, it is difficult to understand why the court below rejected certain offers of evidence, by the plaintiff, which tended to show depreciation of the system at the time the plant was taken over. If the disposal plant was not then in good working order and required reconstruction, that would certainly be an item of depreciation. If the condition of the manhole bottoms was such at that time as to require repair, that would also be an item of depreciation. Offers of evidence as to these matters were clearly relevant, and should have been admitted. They were offered as separate items, and apparently to make clear the claim for depreciation of the system; if the amounts were included in other general statements that could have been shown by cross-examination. The second, third and thirteenth assignments of error are sustained.
We see no merit in the sixth and seventh assignments of error. The testimony, of which complaint is there made, is that of witnesses who were all apparently well qualified to give evidence as to the matters of which inquiry was being made.
In the eighth assignment of error complaint is made of the admission of testimony as to the amount of money which the company had borrowed and was owing for development work. This was an immaterial matter. The question to be ascertained was the value of the sys
In the tenth assignment of error, complaint is made that the court below erred in refusing to strike out certain testimony as to expenditures for betterments. The trial judge was evidently in doubt as to the propriety of ádmitting the evidence, the witness being uncertain as to the application of the money, but he finally stated that he would allow it to remain for the time being. Had the request for its exclusion been renewed, it might have been granted. In the absence of such a renewed request, we do not feel that the trial judge should be deemed to have erred in this respect.
In the nineteenth assignment, of error, complaint is made of the answer of the court below, to defendant’s eighth point for charge, which point and the answer, was, as follows: “If the jury believes that the sewers were constructed by the company eleven years ago, and were operated at a loss for about ten years, since when the system has been operated at a profit, and that the company has incurred an indebtedness of about $13.5,000 to pay the cost of construction, operation and the development of the business to a point where the revenue derived therefrom is sufficient to pay operating expenses and return a profit, then the jury may consider such facts, and determine whether or not the company has suffered additional loss by being deprived of a growing business under such circumstances.” The point was answered as follows: “If the jury find from all the evidence the facts as presented in this point, then the point is affirmed.” It is contended by counsel for appellant that there was not sufficient testimony upon which to base this point, and that under it, the jury was permitted to include the amount of deficits, or losses in the busi
In the present case the defendant company was undoubtedly entitled to compensation for the value of its business as a going concern and for whatever its franchise could actually be shown to be worth. But it must be remembered that it had no perpetual privilege and permission to operate was granted to it only under the express provisions of the statute which empowered the municipality to become at any time the owner of the sewerage system, and to take over the property of the company, by paying the actual value at the time of taking. The sewer company had the right to carry on its business in the borough only until such time as the municipality chose to exercise its right of purchase. It is difficult to see how there could be any appreciable amount of value in such a determinable franchise as that. The company must be regarded as having accepted the privilege of constructing and operating a sewer system, upon the condition that it would sell that system and the property used in connection therewith, to the municipality, for its fair and reasonable value, at the time when the municipality should see fit to take it over. The point in question ignored these features, and they do not seem to have been brought to the attention
The judgment is reversed with a venire facias de novo.