FOR SMALL METERS 83 



The total charges in the four cases are about the same, but 

 the distribution is different. 



With the service charge the rates per 1000 gallons are less 

 and in the aggregate they are less by an amount that corresponds 

 to the total amount that is realized from the service charges. 

 There is a collection from each service in any event, whether 

 water is drawn or not, which prevents its becoming a loss to the 

 department, and in this respect the service charge serves the same 

 function as that performed by the minimum rate. 



If the charge is properly adjusted to the cost of the service, 

 the use of the service charge straightens out the irregularities 

 of the minimum charge system and provides a more accurate 

 adjustment of the bill to the cost and probable value of the service 

 to each taker. 



There has been some little discussion of the principle that 

 should be followed in determining the amount of service charge. 

 Some have held that the service charge in the aggregate should 

 suffice to pay the interest and depreciation on the entire water 

 works plant. This principle has been sometimes followed, but 

 when this has been done it sometimes results in placing a heavy 

 and unfair burden upon the smallest consumers. This phase 

 of the matter will be referred to again in Chapter XIV. 



The method for estimating fair service charges used by the 

 Committee of the New England Water Works Association leads 

 to more moderate amounts, and as a general method it is believed 

 to be safe. 



The following development of the procedure for both small 

 and large services is taken almost in full from the several reports 

 of the Committee. 



Method of Calculating the Amount of the Service Charge 

 for a f-inch Meter.* The service charge may be naturally made 

 up of several parts. The Committee suggests that the procedure 

 to be followed in determining the amount of the service charge 

 be as follows: 



First, that the average amount of money invested by the 

 works in the service pipe and meter be ascertained. Where the 

 * Jour. N.E.W.W. Assn., September, 1914, pp. 203-205. 



