El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-26

equipment Every item in these esti
mates has been carefully considered in
the light of the testimony bearing upon
it, and the master believes, and so rec
ommends, that the sum of s965,128
should be held as the present value of
the property for rate making purposes;
and, even if it should be provided that
the further sum of S442,736 shall Be eX-
pended to enable the company 10 comply
with the requirements of the city or
dinances and TO furnish to the city and
it's residents an adequate supply Of mesa
water, the master further recommends
that the value for rate making purposes
be fixed at s1,4O7.S64.
g. Upon the question of rates the
railroad commission of Wisconsin in the
cases cited, says: If the rates of public
utilities are kept at so low a point as
TO offer no chances of any kind for any
returns to the owners above those which
are absolutely necessary to keep the
plant running. it is also almost certain
that all progress in these industries
will be greatly retarded. and that the
interests of the public will be less well
served in the end than if a more liberal
policy had been adopted. But the Gus
toners OF public utilities should also be
fairly treated.
Adequate Service.
The customers are entitled to ade-
QudI6 service al reasonable rates IH6X
should not be charged with monopoly
profits nor be burdened with the bad
and mequitable results of discrimina-
tory rates" And: Industries gen
orally including corporations, should be
fairly treated. State or communities
which do not do this. will soon have
occasion TO realize that they are pur-N
suing the wrong policy. A state COM
mission, especially when dealing with
70 0c nf 10 Oh
deavor to reach results that are fair
and equitable and in line with the best
public policy. This is as true when con-
sidered from the point of view of the
public. or when looked upon from the
point of view of the utilities" and ''pri-
vate industrial enterprises which are
exposed to the full force Of both active
and potential competition and to the
far reaching effects of Industrial de-
preston are undoubtedly entitled to
charge such prices as are fixed in the
open market. and TO all earnings and
the fruits thereof that their business
Will bring. Such undertakings are ex-
posed to enormous risks and are con-
sequently entitled 10 large profits. Pub
lie utilities, on the other hand, as said
already, are largely relieved from such
competition. They are also, as a rule
much less seriously affected by fluctua-
tions in industrial and commercial con-
ditions than private business. Such
utilities are therefore exposed to much
smaller risks than the latter, and for
this reason are not entitled to as high
a rate of profit
The Obvious Answer.
TO these expressions from so authori-
tative source, and verified by the OBJ
servation and experience of every
thoughtful man of years. what are the
answers that are given? The city replies
by insisting upon its contract with the
company. though it appears to be be-
yOnd question that. the company cannot
discharge its obligations to the city
under its contract, because of its inability
to raise money under the present
rates
Counsel for the defendant contend
that only by allowing the follow ing rates
can the stockholders obtain what will
be fair return upon the investment:
"A minimum rate of $3.50 for each con-
sumner taking less than $500 gallons per
month. Forty cents flat rate for all con-
sumers other than these using wafer for
steam and elevator purposes, including
all public purposes other than those for
which the water Is free. and other than
fire ilydrants, and Is cents flat meter
rates to persons using water for steam
production, and elevator service. The
rentals forf fire hydrants to remain I'M
In the event of a sufficient increase In
business, and that is a fair rate for this
The manager of the company CIV. z.
Anderson says that the rates should be
sufficient to insure annual earnings
amounting TO S257,3SO upon an invest
ment of practically $1,500.000, and he
supports the statement with an item
lied expense account as follows:
Estimate of the annual expenses and
the extended property which will serve
the city of FL Paso as it should be with
mesa water and which will represent an
investment of practically s1.500.0 600.
Operating Expenses.
Pumping plant. fuel, labor, lu
bricants and supplies
pumping of LOO 100000 gall
longs at cents per 1000. IS 100000 |
plant repairs 100000 100000 !
Relift pumping ..&.. $4,000 |
Office salaries - 100000 |
Office rent .L 10000 |
expenses -. $4,000 I
Legal. accident and damage. 10000 |
Turning off and on water - 100000 /
Inspection and meter reading 100000 |
Preparing for street paving 100000 |
Repair and replacement of