CHAPTER XVII 

 A MORE DETAILED ANALYSIS 



Let our aim be a generous use of water, but no waste, and each man to 

 pay for what he gets. Hazen, " Clean Water," p. 153, 1907. 



In this chapter an effort will be made to illustrate by means 

 of a typical case the principles described in Chapter XIV and 

 their application to a particular rate problem. The figures that 

 follow represent an actual plant at the time of valuation and 

 classification of the accounts by a very well qualified account- 

 ant, and the figures and the values used in that examination 

 will be used. However, the case is used here as an example only 

 and some liberties will be taken with the statistics to make it 

 better serve the purpose of illustration. 



The estimated cost of reproduction of the entire plant, 

 classified into the three divisions, is as follows: 



Supply works $520,923 = 23% 



Distribution system 1,524,951 = 68 



Services 202,669 = 9 



Total $2,248,543 =100% 



There were 14,200 services, all of which were metered. The 

 consumption was 5.05 million gallons per day, being 56 gallons 

 per capita for a population of 89,000. The gross income was 

 $305,000. The net earnings, after deducting all operating ex- 

 penses, taxes and depreciation, amounted to $149,907, equal to 

 6.68 per cent of $2,248,543, the estimated cost of reproduction. 



The water registered by the meters was 75 per cent bf the 

 output, equal to 3.78 million gallons per day. The remainder 

 of the water is assumed for this purpose to be accounted for as 

 follows: 



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