The Republican journal. [volume] (Belfast, Me.) 1829-current, 1915-07-22
A Question of Water Rates

| To THE EDITOR OF The JOURNAL:
Noting that The Journal of July 9Th con-
tains an editorial criticizing the ''sum-
mer rates" of this company as resulting
in comparative charges which do mot
seem just or equitable, we deem it but
justice to ourselves, and at the same
time in the real interest of the commun-
ity, to call attention to the Gust and co.
uitable" reasons which underlie the
establishment of said rates, as we'll as
some other considerations, not infre-
quently overlooked by customers, upon
rates in general.
1t Is we'll established principle that
public utilities are entitled to earn a
reasonable return upon the fair value of
the property devoted to the service,
and this principle underles the existing
Public Utilities Law of the State of
Maine, under which we are required to
operate. 1t should be Obvious that pri-
vate capital, generally speaking, would
not be found available for such enterpri-
ses except upon expectation of such ulti-
mate return. Unlike money invested in
private business, capital when once in
vested in a public utility cannot be re-
moved to a more promising locality, nor
can it be applied to any other profitable
activity.
The purpose of said law, as in other
States, is not alone to gain proper and
adequate service, but to do so at rates
which should satisfy both the public and
the utility. Whether or not the service
of this Company has been reasonably ad-
equate to the needs of Belfast, the man.
ifest lack of reasonable returns during
the twenty-seven years it has served the
community has been clearly set forth to
every City administration for several
years past.
AS to said summer rates: So long as
such services were few in number, the
returns therefrom were comparatively
inconsequential. In the last few years
they have increased to an extent that re-
quires attention.
One fundamental reason which Under
lies said schedule is the very principle by
which, as your editorial says: ''The pro-
perty of summer residents is taxed (by
the City, the same as other real estate.
No deduction in tax is made by the City
because of more or less non-occupancy.
or from the fact that summer residents
do not make use of school or sundry other
privileges involving City expenditures.
They are taxed simply because of owner
ship, and the right to full enjoyment of,
their proportion of the entire taxable
property of the City.
Another analogy is found in the case
of tenant who hires house: The an
nual rental paid is for the privilege of
use of the house and is not at all affect
ed by more or less occupancy thereof.
Summer residents using the water sup
ply of the Company are taxed at annual
rates because it costs substantially the
same amount to supply them as to supply
other customers Cost of the service, it
must be remembered, includes interest
on the cost of the entire plant, which must
be of capacity to meet the maximum re-
quirements of all would-be customers,
also maintenance of said plant. Labor
and other operating costs, including mu
nici pal and other taxes, are not decreased
by termination of supply to summer resi-
dents. In fact, there is no saving to the
Company from such termination except
in the practically negligible difference in
fuel used in such portion of the winter
season as we may lack water-power for
pumping, and this possible exception is
considered to be fully offset by expenses
incident to summer services alone.
We may add that the above considera-
lions and principles have already been
su bstantlally endorsed and approved by
the chairman of the Public Utilities
Commission.
We can but believe that if all these
facts be considered it will be agreed
that as matter of justice and equity,
the propriety of said summer rates will
be fully conceded.
Very respectfully yours,
BELFAST WATER Co.
Ebert WHEELER, Treasurer.
Boston, July 10, 1915.