156 SHOULD SCALE SLIDE OR NOT 



of whatever water may be lost as leakage or as tmder-registration of 

 meters. 



The distribution in the cases that have been taken is com- 

 paratively easy, because they represent plants at times when 

 valuations were made and when the costs or values of each part 

 of the plant have been carefully estimated in detail, and these 

 figures serve as a basis for distribution of the interests (or 

 profits) and depreciation charges. 



Distribution of most of the operating expenses is compara- 

 tively easy, but after most of the items have been disposed of, 

 some items remain, such as a part of the taxes, salaries of general 

 officers, etc., which are not associated particularly with any one 

 of the three parts, and the best that can be done with these is 

 to divide them pro rata in proportion to the amounts of the 

 items that can be directly distributed. When this is done, the 

 whole cost of the water service will have been divided into the 

 three parts. 



Let us now see what is to be done with these three parts. 

 How shall they be distributed in the form of bills among the water 

 takers? It will be more convenient to take them up in a dif- 

 ferent order from that in which they were first mentioned. 



Let us consider first the service cost. This includes the 

 interest on the investment in each service pipe and meter; 

 the operating expenses, including repairs; meter reading; 

 the office expenses and cost of collections. It may also include 

 the value of the average amount of water lost per service or 

 failing to be recorded by the meters. 



The easiest, simplest and fairest way of handling all of 

 this part of the cost is to distribute it on the services as 

 service charges. As between the large meters and the small 

 meters it should be distributed somewhat in proportion to the 

 carrying capacity of the meters, so that the larger services will 

 carry a proportionately larger amount. This distribution is a 

 fairly simple and definite proposition and it can be worked out 

 in a way that is fair and equitable to every taker. There seems 

 to be no question of the procedure so far. 



To take up next the first division of the cost of the water 



