COST OF DISTRIBUTION 157 



delivered at the central point. The cost per 1000 gallons 

 may be ascertained by dividing the total annual cost by the 

 total annual output. The result is a price per million gallons 

 or per thousand gallons. This price is the basis of the meter 

 rate. It is not the whole of the meter rate but it is the first part 

 of it, and it is a part that ought to go with every drop of water 

 that is sold, and so far as the meter rate is made up of it, it 

 ought to go in exactly the same measure with every bit of water; 

 that is, the smallest taker should contribute just as much to the 

 price of water wholesale as the manufacturer and no more. 

 This step in the procedure also is simple and definite and there 

 seems to be no question about its soundness. 



This leaves the second item in our classification to be dis- 

 posed of. This is the cost of distributing the water in the 

 streets including the value of the water lost by leakage from the 

 mains. This is much harder to handle. It amounts to quite 

 a large part of the whole cost of supplying water. Where the 

 source of supply is near at hand and cheap, it is often much the 

 largest part of the whole cost. Where the source of supply is 

 remote and costly, it is smaller relatively, but it is always an 

 important part of the whole cost. 



In the first place, a subdivision of this cost of distribution 

 may be made. Some of it represents the cost of furnishing 

 fire protection; the rest of it represents the cost of distributing 

 water to consumers. Fire protection is furnished by practically 

 every American water- works system. Furnishing fire protection 

 is an important function of the plant. The value of fire protec- 

 tion is very great. The cost of furnishing fire protection is a 

 substantial part of the whole cost of furnishing water. Per- 

 haps on an average it amounts to one-third of the whole cost 

 in American cities, but this is not to be taken as a fixed or 

 definite ratio. 



The method of ascertaining the approximate cost of the 

 fire service, from the data that are best suited to general use, 

 is that proposed by Messrs. Metcalf, Kuichling and Hawley.* 



This method is one of several that has been proposed, but I 

 * Proc. Am. W.W. Assn., p. 55, 1911, 



