84 THE SERVICE CHARGE 



works furnish the service pipe to the curb line, and the meter, 

 the normal cost seems to be about $25 per service. Where the 

 taker pays for the service pipe and the works furnish the meter, 

 the normal cost seems to be about $10 for a f-inch meter in 

 position. The Committee suggests that 10 per cent of this cost 

 be taken as the first part of the service charge. That is to say, 

 that $2.50 per annum be used where both service and meter are 

 paid for by the works; $1.00 per annum where the meter only 

 is furnished by the works, and that this part of the charge dis- 

 appear where both pipe and meter are paid for by the taker. 

 The Committee believes that on the whole 10 per cent is a fair 

 allowance for the depreciation in the service pipe and meter, 

 and for the interest on the money invested in them. The 

 structures are not long-lived, and occasional repairs are needed. 

 A reasonably approximate figure is sufficiently close, and 10 per 

 cent is used in this way. 



The figures mentioned for cost of service and meter are 

 believed to be representative, but they should be increased or 

 decreased according to the ascertained average costs under local 

 conditions. Round figures should be used in all cases as a mat- 

 ter of convenience, and because precision is unnecessary, and 

 because it cannot be reached in most cases. For meters larger 

 than five-eighths domestic size, correspondingly larger figures 

 should be used. 



Second, a sum per annum representing approximately the cost 

 of reading the meters, keeping the meter records, making bills, 

 and collecting the money. The amount of this item depends 

 upon the frequency upon which meters are read, and upon local 

 conditions ; for ordinary domestic services where meters are read 

 once a quarter, $i per annum may be a sufficient allowance. 

 This figure may also be used without substantial injustice for 

 services of all sizes, because when meters are read monthly 

 the quantities are usually larger and the cost of meter reading 

 becomes an inappreciable fraction of the bill. 



Third, an amount which will represent the approximate 

 average value to the works of the water that passes a domestic 

 meter without being registered. The normal service of a 



