214 COMPETITION OF LOCAL SOURCES OF SUPPLY 



than can otherwise be justified. Up to a certain point there may 

 be merit in this procedure. There may be reasons why it is 

 worth while to seek and get certain lines of business even at 

 some sacrifice. On the other hand, it is easy to overdo the 

 matter. There is no good reason why many of the local supplies 

 that are good and fit for the service demanded of them should 

 not be permanently continued in use. If the water from them 

 is really cheaper than water can be sold from the water works 

 plant at remunerative rates it is best for all that they be con- 

 tinued in service. 



There is no use trying to make rates so low that all of these 

 supplies can be displaced. To do this does injustice to those 

 other takers who cannot so easily secure independent supplies, 

 and who thus are not in a position to secure the advantage of 

 competitive rates. 



The plant, as a whole, must be made to pay its way, and 

 making rates below cost to some customers necessarily means 

 that excessive rates must be charged to others. 



The whole question of local supplies presents endless vari- 

 ations. It is of fundamental importance in considering the sta- 

 tistics of the water-supply business in different communities for 

 differences in the amounts of output per capita and of rev- 

 enue per capita are often accounted for in whole or in part 

 by these differences in local supplies that are available and 

 that are used. 



In the past efforts to meet this natural competition have 

 been one of the most potent influences in bringing about the 

 adoption of unbalanced and unreasonable meter rate schedules. 



