A FURTHER ADJUSTMENT 187 



Such a schedule in outline is as follows: 



Service charges $ 52 . 260 



Fire service collections 51 . 208 



276 mg., at ii cents, manufacturing rate 30.360 



207 mg., at 13 cents, intermediate rate 26.910 



897 mg., at 16 cents, domestic rate 143 . 520 



$304.258 



This checks within one-fourth of one per cent the present 

 amount of revenue and the proposed rates may be accepted as 

 equivalent to the present ones, but as giving a more rational 

 distribution of the burden among the different classes of takers. 



Further Adjustment of the Manufacturing Rate. In the 

 above calculation the manufacturing rate carries one-half of 

 the whole average cost of distribution of water, but those takers 

 classed as manufacturing pay on an average more than this 

 proportion of the cost of distribution, because the first part of 

 the water that each draws is charged at the domestic rate and 

 a further quantity is charged at the intermediate rate. 



It is possible to make the calculation so that the whole quan- 

 tity of water sold to manufacturing takers will carry only one- 

 half of the average cost of distribution. This may be most 

 conveniently done algebraically. 



Let D = the domestic rate, 



M = the manufacturing rate, 



= the intermediate rate (not exactly but closely 

 2 



enough for this calculation). 



The average sale price for all manufacturing water is to be 

 11.33 cents per 1000 gallons. Referring to the quantities that 

 make up the total draft of those to be billed at the manufacturing 

 rate, stated on page 183, this may be put in the form of an 

 equation. 



9600 +86,400 - -+276,000 M = 372,000X11.33, or 

 52,800 +319,200 ^ = $42,300 



