Omaha daily bee., 1907-04-23
Mini Incnme Can sunport.

Therefore II is computed that the gross
income with no deductions for inactive
services for water can support total
valuation scarcely in excess OF $3.50 also
that the probable gross income under the
proposed schedule of water rates OF U.s.
5000
The operating expenses of SS9,O8s, as es-
tmated in my report and as considered
in the above showing embraces 1855 for
state and county taxes. II, however, these
taxes should be proportioned upon valua-
ton Of $4,000, they would amount to
should then be increased s., $50, or to 81, 298.
The gross income OF 1926 can then sup
port a valuation Of about $685. GOO; II the
proposed schedule of rates then, with
operating expenses as stated, the valuation
which 1t could support would not exceed
In view of the fact that these valuations
must embrace the value of extensions In
nonproductive property, at least to con-
value OF the present physical property
which can be supported by the present in
come derived from the proposed schedule
500 500. Coo ''''''O' D-.' .
The question, therefore, resolves itself
into one Of accomplishing the best results
under the present earning capacity or
the water works property, and In the &C
cOmplishment OF this result little mutual
yielding OF demands will no doubt facili-
tate an agreement
New Construction.
The construction of the reinforcing main
from Glen avenue to the warehouse district
is necessity which Is believed the water
company comedies and which 1t should
speedily carry out.
The estimated cost of the high-service
construction is S26,O42 and II the investment
is made 1t will yield nothing of itself in
compensation for the expense OF operat-
ing the high service
The cost of operating a high-service sta
ton and of supporting the investment es-
timated would amount to about Oh cents
per 1000 gallons on all water consumed
In the high service district, and II pro-
vided for in the earnings would necessl-
tate the metering of the entire high SER
vice district, and of increasing the pro-
posed water rates about II per cent when
applied to the consumers under the high
service.
In view Of the fact that at the present
time there are comparatively few con-
sumers beyond the reach OF water service
II is suggested that for the present the
several high districts where there Is made
quate pressure be independently provided
with high service insofar as II Is possible
TO do so, leaving the complete development
OF high service district to later date. .
The extension OF the pipe lines into new
territory where there is demand for
water service should be made as promptly
as possible.
II the water company would agree to
expend now, $4,000 to $4,000 in the improve
ments in the three directions named and
therefore follow up the improvements out
lined in my report in connection with the
water supply works fast as practicable
TO do so-there need be no hesitation in
entering into new contract based upon
the schedule OF water rates herein offered
for your consideration, and recommended
for adoption.
The schedule Of water rates, as well as
other matters relating to an adjustment
of this matter have been fully discussed
with Mr.. Hart, the superintendent Of the