OWNERSHIP OF METERS 107 



The advantage of this procedure and the disadvantages of 

 having the meters owned by the takers are so great and so well 

 known to all practical water works superintendents that there 

 should be no question upon this point. The works ought to own 

 the meters in all cases. 



With respect to the ownership of services, there are no 

 correspondingly strong reasons for ownership by the works. 

 It is principally a matter of finance. If the works furnish the 

 service pipes they are entitled to earn a return upon the amounts 

 invested in them and the water rates will be higher than they 

 otherwise would be. If the taker pays for the service pipes, in 

 the natural course of events he will enjoy a rate that is lower 

 by an amount corresponding to the annual value of the invest- 

 ment in his service pipe. 



In comparing meter rates of different systems, especially when 

 comparing the rates for small quantities of water, it is necessary 

 to take into account this divergence of practice with reference 

 to service pipes in some way. The annual interest and depre- 

 ciation on the value of the service pipe and meter is large 

 enough in proportion to the amount of business done by a small 

 service to make it a matter that cannot be overlooked. 



The Committee on Water Rates decided to make an allowance 

 for these differences in conditions which would bring all the water 

 rates on the same basis. The Committee's procedure was: 



To deduct 10 per cent of the average cost to the works of each service 

 from the amount computed by the schedule for each quantity. This course 

 is followed and . . . the annual rates that follow are thus reduced by an 

 amount equal to 10 per cent of the works' contribution to the cost of each 

 service. Obviously in applying any rates deduced from these figures to a 

 particular case, it will be necessary to add one-tenth of the corresponding 

 contribution to the works to the cost of services in that plant.* 



And the Committee later on carried 10 per cent of the cost of the 

 service and meter, as far as that cost was borne by the works, 

 into the service charge. 



The 10 per cent used in this calculation is an approximate 

 round figure, believed by the members of the Committee to be 



* Jour. N.E.W.W. Assn., Vol. XXVIII, 1914, p. 203. 



