1. Gas @=14(1) — Cutting and replacing paving over mains not part of cost of reproduction of plant.

In valuing' the property of a gas company for rate purposes, the cost of cutting and replacing pavement over mains held properly excluded in estimating the cost of reproduction.

2. Gas <@=14 (1) — Franchise not included in property valued for rate purposes.

The franchise of a gas company to use the streets of a city, which was not exclusive, and for which nothing was paid, and where the company was subject to municipal regulation of its rates, held properly excluded in the valuation of its property in a rate suit.

3. Gas (I) — Going concern value allowed in valuation of property of gas company.

In the valuation of the property of a gas company for rate purposes, the addition of 12 per cent, to the value of the physical property for going concern value approved.

4. Gas

Patent rights owned by a gas company, by the use of which cost of manufacture is lessened, not included in property valued for rate purposes.

5. Gas <£=14 (1) — Reserve allowed company to cover insurance risk held reasonable.

In determining reasonableness of rates of a gas company, which carried no insurance, an allowance of a reserve to cover fire risk of a sum largely in excess of its losses through a series of years held reasonable.

6. Gas

In determining reasonable rates which a gas company is entitled to earn, it is not entitled to an annual allowance for efficient management.

7. Gas <@=14 (1) — Rates not invalid because nonremunerative in case of small consumers.

That gas rates fixed by municipal ordinance require a company to supply small consumers at a loss does not render them invalid, if as a whole they produce a fair return.

8. Gas <@=14 (2) — Rates fixed by municipality set aside by courts only when clearly confiscatory.

In determining what aro fair and reasonable rates to be charged by a gas company, a city council exercises a discretionary power, and since ' there are necessarily many elements of uncertainty in the valuation of property and in respect to other items to be taken into consideration, a court is authorized to substitute its judgment and declare such rates invalid only when they are clearly confiscatory, taking into consideration the fact that what is a fair rate of return on the investment differs with time and locality.

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