Daily Kennebec journal., 1916-04-14
STATUS OF BANGOR WATER
BOARD DEFINITELY SETTLED

|; The Bangor Water Board ON March
IL submitted a list Of questions to the
public utilities commission and on
Thursday the commissioner answered
those questions.
The report Of the commission is as
follows:
Some Of the questions submitted in
dicate q misconception of the status
Of the board and Of the relations to the
city and other municipal departments.
II these are cleared up, the rest will be
much simpler. - ~
The Bangor Water Board as such
does not own anything. 1t has no
separate and independent existence.
It is department Of the city govern
ment Of Bangor, created to perform
certain administrative functions re-
lating to property and duties Of the
city. 1t is in the same class as any
other department entrusted with the
discharge of specific division Of gov
ernmental duties in city-whether a
fire commission, police commission.
a board Of health, or any similar
branch Of government.
1t has no proptry rights and collects
no revenue in which it has any inter-
est substantially different from that of
tax collector. Whatver it does, it
does for the city, and as an agency of
the city.
1t owes no debts funded or other
wise. All obligations incurred in the
acquisition and construction Of the
plant are direct obligations of the city,
like bonds for the construction of a
city building or a schoolhouse, and are
not a lien especially upon any part of
the water plant. The city does not
even guarantee the payment of the
bonds. 1t directly promises to pay
them. They are its debt, not the debt
of the water board or Of the water de-
partment.
The city. and not the water board, is
bound to. furnish pure water at rea-
sonable rates. The water board Is the
agency through which this is accom-
plished.
measured by the cost of rendering the
service, which would include operating
expenses, interest or cost of money
expended in providing the plant. and a
reasonable charge for depreciation.
This burden should be distributed
among the customers in proportion to
the service rendered.
The water is to be. of Sufficient for
the use Of said city and the inhabi-
tants thereof, for all municipal and
domestic uses" (Section 1, water act).
The domestic" users. the private TAX
ers, shall be charged only in proper
tion to the expense of serving them.
The city as the owner of the plant
uses its owner product for municipal
(its OWN purposes. If it pays water
rate, it does not pay the water board; !;
1t pays itself through the water board
as collecting and operating agency.
1t is therefore immaterial whether it
bears that part Of the total expense
due to its use Of the water for NUM-
cipal purposes by the nominal pay
ment Of a water rate Substantially a
bookkeeping fiction), or by an item in
the tax assessment for interest, or
OPCA dI1lS CAPCI1SC, VI any apply IA tS
title, or incurs a deficit in its general
income. It is its own property. and
so long as the service is adequate and
the rates reasonable, the city performs
its legal duty. This does not mean.
however, that it would not be better
practice to charge against the city, as
though it were a separate entity, rates
commensurate with the service rem
dered for municipal purposes, to be
met by an appropriation for that pur-
pose This is so, because to the extent
that the city furnishes water for do
nestle purposes it deals with the TAX
ers as its individual customers in a
matter in which they have right te
know, not only what they are paying
but just what part Of the whole bur-
| den they are carrying; and if the
schedules and accounts give this in
! formation at all times, such misun-
derstanding and suspicion may be
! avoided. But this is a question Of
management, which the utility itsel1
must determine.
The rates must not be discrimina.
tory within the limitations fixed in the
utilities act. But this does not re-
| 4QiIc tHdI dA CAPACoS CAAdA sc OC AloNS
for water used for any municipal pur'
pose. 1t is it's own water, used in its
own departments; and cannot preju:
dice any private taker. SO long as the
private taker pays only his share OF
the. aggregate burden.
Some of the questions involve mat
| ters that should be passed upon by tn
city legal department, and not by thi!
commission. Others raise questions or
which the consumers, in case Of com
plant. would have a right to be heard
We will not undertake to answer sucf
questions except as they are presented
in such manner that all parties in in.
terest may be heard. All persons have
a right to expect us to give due weigh,
to precedents established by ourselves
and not to deviate from them withou,
substantial reason. Otherwise ordi
nary business would be attended witt
damaging confusion. But we cannot
establish such precedents without the
"other party" has his day in court. Il
the utility in any given case is ir
L = o.