The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-10-06

Ctty's Revenue Small.
1t is set forth in the petition that
the City of Richmond did not con-
tribute as much to the revenue Of the
company as had been anticipated and
that. furthermore. the city refused to
pay rental on intermediate fire n.y.
drants.
1t is also claimed that the taxes Of
the company this year were $4,000
more than anticipated and that they
will be higher next year. II Is set
forth that during the past year perma-
nent improvements to the plant have
been provided which were not con-
sidered when the rates were estab-
lished last year.
President Bavis of the board Of pub
lis works today interpreted that Sec
tion of the water works company's
petition suggesting that the commiss-
ion might relieve the company by
some other plan" than suggested by
the company. to mean that 1t would
be acceptable to the company to have
an order issued requiring the city
pany's revenue as to insure the profit
vestment.
Cause Of Loss.
He pointed out that last year when
the existing rates were established the
commission anticipated that revenue
of $4,000 would yield the company a
return of six per cent upon the in
vestment. The commission figured
that the civil city and the school city
Shnnld nnnfrih,,t0 of hn
anticipated revenue. the general con-
sumers the remaining 5S per cent. BY
contributing AZ per cent of the antici.
pated revenue 1t was figured that the
civil city would pay out approximately
SIS, 900 for metered water and hydrant
rentals. and the school city approx.
imately $4,000. The estimate on the
water the school city would use was
rigorous economy, the civil city was
able to shave it's water bills to ap
proximately $4,000. or $1,000 less
than anticipated. For next year the
city has appropriated only $4,000 for
water. of which amount $4,000 is for
fire hydrant rentals.
Il believe" commented Mr.. Bavis,
that the company would be pleased
to have the commission increase the
company's return on it's investment to
seven per cent. after its plant valua'
tion had been increased. and then
require the civil and school cities to
contribute in full AZ per cent of the
necessary revenue"
Opposes Increase.
Mr.. Bavis then added that the city
will contest any effort on the part OF
the water works company to have its
plant valuation increased, except to
include legitimate plant additions.
He said that the commission had
been requested to give no considera.
tion to the petition until City Attorney
Bond had had ample time to take
action to safeguard the city's inter
ests.
Referring to the company's petition
Mr.. Bavis remarked that lit was es
sential that the city should be fully
satisfied that the cost of operation oi
the water works company had not
been padded with the end in view OF
obtaining the results desired by the
company"
I'VE will contest the right of the
company to charge the city for inter
mediate hydrants," Mr.. Bavis added
From information We received subse
quent to the action of the commission
last year in establishing local water
rates we have been assured by the
commission that it was not its inten
ton for the company to secure any
revenue from the city from inter
mediate hydrants. of which there are
80. | believe.
1T is more than passing strange tC
me that when the company supplied
free water to the city it only charged
the general consumer 25 cents pei