GREATER COST OF SERVICE 205 



water than for low service water and to establish the differential 

 carefully at so many cents per 1000 gallons, arranged to pay as 

 nearly as it can be computed the additional cost of supplying 

 water in the high service districts. The differential should be 

 subject to revision from time to time, as the conditions of ser- 

 vice change. Often it would be higher at first with few takers, 

 and less as the output from a given district increased. 



The same principle applies to districts separated by long 

 distances or by physical obstacles, such as difficult and expensive 

 river crossings. As an illustration, there is no reason why New 

 York City should sell water at the same price per 1000 gallons 

 in the northern part of the city, where the water enters, and in 

 Staten Island, the most remote point that is reached. If the 

 price charged is a fair one in the Bronx, it is inadequate in Staten 

 Island. The cost of transportation for many miles through the 

 city and under the East River and under the Narrows is an 

 important part of the cost of water delivered on Staten Island. 

 The price of water was formerly much higher in Staten Island 

 than in other parts of the city, and equalizing the rates 

 throughout the city in reality means that water takers in the 

 northern parts of the city must all pay more so that people 

 on Staten Island may have water at less than cost. 



It is not necessary to pursue the matter to extremes. If 

 that were done, it would result in unduly complicated rates and 

 no corresponding advantage would be secured. But wherever 

 any water-works system is divided by natural barriers or con- 

 ditions, so that some parts of it are fairly distinct from other 

 parts, and so that the differences in cost of service in the several 

 parts can be ascertained with some degree of definiteness, and 

 where these differences are substantial, it would seem to be in 

 the interests of justice and equity to establish approximate 

 differentials in rates between those districts. 



The principle of higher charges for high service water has 

 been recognized in the new rates fixed by the New Jersey Board 

 of Public Utilities Commission, for the Hackensack Water 

 Company. The area served was divided into three districts, 

 for which rates were graded according to the difficulty and esti- 



