Los Angeles herald., 1910-05-11
BLUFF IS CALLED;
WATER RATES CUT
Utilities Board Finds Union Holly
wood Company Is Big
Winner, Not Loser
TAKES PEEK AT THE BOOKS
Inspection of Long Beach Water
Company Shows Rates
Are Too Low
AXES PEEK AT THE BOOKS

Figures may not lie but the board
of public utilities has found something
in the Iigures submitted by the Union
Hollywood Water company that looks
very much like hyperbole, at least.
On the figures submitted by the pri-
vate water companies the board of pub
lie utilities fixes the price the water
companies will be allowed to charge
for their product SO 1t Is not to the
financial interests of these water COM
panieS to be too Conscientious about
the truth.
The Union Hollywood Water COM
pany took the board of public utilities
into its confidence and whispered that
its gross earnings for the last year
were $97, ,120.51. 1t even insisted on put
ting in that extra one cent, just to
show that it was anxious that every
penny should be accounted for. The
total expenses, for the year, were $685.
992.40, said the Union Hollywood Water
Company, making its net earnings $685.
128.11. That $4,000 odd dollars would
appear to be comfortable income for
a little plant like the Hollywood con-
cern, but, No! The Union Hollywood
Water company is actually In hole,
according to it's own figures, for it
figures it's plant deprecated $4S,205.10,
the 10 cents being for wear and tear
on Its conscience presumably, and the
net earnings deducted from the depre
citation leaves a deficit of $15,07699.
sHERLoCKs BUSY
But softly! Engineer Comstock and
some other pussy feet of the board of
public utilities went sleuthing around
the Union Hollywood Water company's
plant and found some other things.
This Is what the experts of the board
of public utilities found: Gross earn
ings for the year, $113, ,511.88; allowable
expense, 42,242.89; net earnings, $71,-
26S.99; depreciation. $11, ,96O.34; net over
all, $59, 9,30S.65, or net gain of 1927 per
cent on present value as against a de-
ficit of $4,000, found by the company
itself. No, figures don't lie, but
, AS a result of the investigation of
company will have to reduce its rates.
The minimum rate of $1.60 for any
amount less than 5000 gallons in a
month must be cut to SLIPS and the
present rate of 161a cents a 1000 gal
Ions for all over 600 gallons must be
reduced to 13 1-3 cents per 1000 pal
Ions. The minimum for the high pres
sure service is slightly higher. AT these
rates the board says the return will
plant and net return, outside of de-
probation of more than per cent.
The figures of the Long Beach Water
company, which supplies water to Will
mington, San Pedro and Terminal is
land are not at such wide variance with
what they should be but this company
attempts to bolster up it's plant valu-
alton by including some book balances
and 1t also figures depreciation too
high.
RATES TOO Low
The figures for this company show
that the net earnings for last year
were $3,956.25, which the board of pub
lie utilities says seems to indicate that
the rates are too low but it is con-
vinced that by an adjustment of water
distribution on fair basis to all
classes of consumers even lower rates
will yield a fair return. The board rec
ommendS that the rates applying in
the ordinance governing the city water
distribution be made to apply to the
Long Beach company, which will re-
duce the fiat rate, so cents thousand
cubic feet, and that the company put
in meters for all large consumers and
charge the regular meter rates. This
will more equally distribute the cost
of the water and bring larger returns
from the large consumers and lower
from the fiat raters.
The same recommendation is made
for all the sixteen private water COM
panies furnishing water to various
portions of the city. Most of these
private companies are little one-horse
plants that exist for the sole purpose
of supplying water to purchasers of
lots In the tracts in which the little
plants exist.