The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-12-08
WATER COST AND RATES.

How much does it cost The city of
Grand Forks to deliver a. thousand
gallons Of water to one of it's citizens:
At what rate should water he sold?
These arc two questions which arc
continually being asked. and to which
:, variety of answers arc given. In
I'LL cases the answer is based quite
largely on guess work. for in very
few cases is the question discussed by
those Who are familiar with all the
facts. and even among those most IA
rliliar with tho subject differences of
opinion exist as To what charges
should ic made against the water
works piant, and what credits should
le allowed it.
Naturally. the answer to the second
u'lcstioM depends ON the answer TO the
iirS;, for The business Of providing wa
ter for Tho consumption of tho citizens
is g commercial business. and ought to
Inc piece! on tho same basis Will, 9TH
er commercial enterprises, With the
exception that While tbs private husi-
ness il operated for profit. the clement
of profit is Il secondary consideration
in the handling of u municipal plant.
IT. may be that it is permissible for a
municipal plant to make Il profit:
that is q debatablc question . Eut the
first consideration is that Of providing
adequate service.
Three main items enter into the
cost Of q product, namely. interest
on invested capital. whether bonded
ar otherwise, depreciation, and OPP
Grating expenses. The first thing to
ascertain, therefore. in connection
with the cost of water is the invest
.ment in the plant. 1t ma seem easy
TO ascertain this. We have q pump
ing plant. a filter, and a system Of
mains. The o 8 of these is a mat
ter Of record. But right here ID where
We strike our first snag. 1t is stout
ly maintained, on the hand. that
the city owns all the water mains, and
should charge interest on their value
and depreciation on them. 1t is just
as stoutly maintained on the other
hand that the city owns no mains, and
is entitled to no charge for their use.
It IL pointed out by those who hold
the latter view that the mains are
paid for by those residents whose
property they serve, therefore the city
has nj interest in them.
II tho waterworks system had been
Il private enterprise it would have
laid its W mains and owned them.
Gas mains. light wires. telephone
lines and steam heat mains are laid
owners are not expected to share in
the expenes. If the city had heen
financially able to do so when it began
laying mains it would have pursued
tho same course that is followed by
private concerns. but public funds
we're scarce. and it was not possible to
bond for the Improvement, hence
there was adopted the expedient of re-
curing property M to loan mon
ey to lay the mains past their own
property. In other words, the prop
erty Vine was required TO pay the
cost OF the water main past his
property, and water certificates, re.
deemable at their face in payment for
water. were issued to him for a like
sum. When he had used up the
amount Of water represented by his
certificate he had received the value
Of his money hack. and in those cases
there can DO no doubt that the city
has an actual cash investment in the
mains. and the individual has no in
terest in them.
Dihlnculty was found in the opera
tion of this plan. for while the oper-
alton of the plant had to. he paid for
in cash. n large share Of the rentals
came in the form Of OF water certi-
Gates. and it was necessary to dip into
the general fund to raise money
enough to operate the plant. The