Capitalization of technical performance

Five papers have been read before The Institution within recent years dealing with capitalization or the economics of engineering. The authors of all these papers were in agreement upon the fundamental principles and differed only in their application. On the other hand, not only were the discussions vigorous and comprehensive in commenting upon the different views of application, but also, and surprisingly, they sharply criticized the principles themselves. As a final result, the present position of capitalization is in a cloud of confusion. Its importance in affecting the finance and economy of electrical engineering operations is such that the matter should, if possible, be clarified. The purpose of this paper is to summarize the present position and therefrom to make new suggestions regarding the interpretation and application of the principles involved.