Water-Rating. 421 



revenue from all house property was just over 20/- per supply per 

 annum. 



In many towns special consideration is not given to the poor or 

 small consumers. In Portsmouth a trade consumer, who takes by 

 meter 30,000 gallons per quarter, is charged 1/6 per 1,000 gallons; 

 a customer who takes 500,000 gallons per quarter is charged iiid. 

 per 1,000 gallons, the former being 50 per cent, higher than the 

 latter. In Germiston many customers take less than 600 gallons 

 per month, for which they pay the minimum charge, 8/- (being 6/6 

 for water per 1,000 gallons and 1/6 meter rent), whilst a customer 

 taking 4,000 gallons per month is charged 27/6. The former rate 

 is 1/4, and the latter 8jd. per 100 gallons, i.e., the former is about 

 100 per cent, higher than the latter. 



It will be advisable first of all to look into the ordinary 

 expenditure, to see what the revenue must be made to cover. The 

 expenses may be given as : — • 



Interest on Capital borrowed. 



Redemption. 



Management. 



Secretary. 



Accountant. 



Collectors. 



Stationery, etc. 

 Maintenance.' 



Water Rights. 



Rents. 



Rates and Taxes. 



Engineering. 



Reservoirs. 



Mains. 



Pumping. 



Filtration. 



In valuing Waterworks undertakings, which already have had 

 a long life, it is customary to consider that such a sum is being spent 

 annually on maintenance, as will keep the works in first-class order, 

 so that not only repairs, but also renewals, are included. The main- 

 tenance is consequently high. Depreciation and Redemption are then 

 not considered, as the works are taken to be at any time of full value 

 for earning revenue. A new undertaking is, however, different, and 

 it is right that Redemption should be allowed for, as during the 

 first few years maintenance is likely to be small. In the Pretoria 

 published accounts, Depreciation is included, but on the Capital 

 Expenditure interest only is paid, and not Redemption. 



How the revenue to cover these expenses is to be obtained, and 

 from whom it is to be collected, is the matter under discussion. So 

 long as the money is obtained, it is immaterial to the Corporation 

 from whom it comes, and the easier it is to collect the lower do the 

 Management costs drop, and the less has to be collected. The payer 



