186 A MORE DETAILED ANALYSIS 



The additional cost of distributing water to intermediate 

 and domestic takers, 65 per cent domestic, and taking one-half 

 of the 15 per cent intermediate, making 72^ per cent in all, 

 would be as follows: 



One-half of $90,060 ^0.725 -=-3.780 -1-365=4.50 cents per 1000 

 gallons. 



The manufacturing rate will then be made up as follows: 



Cents. 



Cost of water 6.22 



Part of fire service carried by meter rates i . 84 



Distribution of water for manufacturing purposes at 



one-half the average cost 3 . 27 



Sum, being manufacturing rate per 1000 gallons n-33 



Add for domestic rate the balance of the cost of distri- 

 bution 4 . 50 



Total domestic rate 15-83 



The slide in this scale is in the ratio of i to 1.40. 



The intermediate rate will be found to be 13.48 by the rule 

 suggested by the Committee that it be one-half way between 

 the average, which is 13.58, and the mean proportional, which 

 is 13.38. 



For the service charge the sum of $52,260 is to be divided 

 among 14,200 services, making an average of $3.68 per service. 

 This being a private company no service charge can be col- 

 ected where services are shut off. Assuming 8 per cent of the 

 services are shut off on an average, this will have to be increased 

 to $4.00 to cover this loss. 



The application of these rates should produce the same 

 gross revenue as was actually received under the old scale. 



As a practical matter, the fractions reached in the above 

 computation are not to be recommended for use. Instead, ap- 

 proximate round figures producing substantially the same 

 amount of gross revenue, would be preferred. For the three 

 rates, 16, 13 and n cents may be used. This will need to be 

 checked by the preparation of a full trial schedule, which may 

 be afterward adjusted to produce the required amount. 



