The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-07
GROWING DEFICIT
CAUSES WATER CO.
TO BOOST CHARGE
Local Department Officials
Vote to increase Rates
About 0ne-third Effective
September First.

With a deficit of $4,000 piled up so
1ar this year and prospects of a much
heavier Indebtedness for the ensuing
year, the Memphis Artesian Water de-
partment decided at the meeting of the
commissioners, late Tuesday, to in
crease rates to consumers. about 33 13
per cent, effective September ]. The
increase was declared absolutely neces-
sary to clear running expenses and the
new rates will still be lower than most
other cities in proportion to population
and consumption. according to officials
of the department.
Walter H. Harrison, general superin-
tendent, states Wednesday that the de-
partment was the only one in the Uni
ted States that had not increased it's
rate from one to four times in the last
10 years. Enormous increase in the
cost of operation, covering labor, fuel,
equipment, etc., during the last five
years make the raise necessary, Har-
rison declared.
Under the new rates proposed by the
commission Tuesday, the service charge
for the meters VIII be increased from
60 to so cents per month, as well as
the charge for water in excess of the
amount necessary to cost the consumer
80 cents. The annual increase on the
meter charge would be $2.40 per year.
AS the meter rent is based on the aver
age consumption of the consumer. OF
about 800 cubic feet or 1850 gallons
per month, this consumer with such
small amount will feel the increase
only slightly, Mr.. Harrison declared. -.
Attention to the detailed cost OF
equipment and production was called
coal formerly was about $4,000. Now
it is about $100,0 The cost of labor
in the last five years has increased
nearly 400 per cent, Harrison stated,
and iron pipe that could be purchased
for 500 per ton formerly now is quoted
or g7O fn 97A nnonifa fhaSa hIQP in
creases, Harrison insisted, the water
rate in Memphis has remained un-
changed.
"The increase is absolutely necessary
for the successful operation of the de-
partment," he added. THE small con-
sumner will feel the increase only slight
ly, and the railroads and mills will
feel 1t only slightly more. Yet the small
increases from al the customers of the
department will go to make up the sum
necessary to. cover up the past and
approaching deficit
The water department recently asked
the city commissioners for an appropria-
tion of $50,000 to be incluied in the
budget, ]. Thomas Wexford, chairman
of the water department, stated We'd
nesday, which will be necessary to clean
out the deficit of $4,000 already suf-
fered through the retention of old rates
and the deficiency which will accrue un-
til the new rates go into effect.
NO action mas been taken on this
request. Wexford stated, but indications
are favorable for the amount to be rec
commended.
"One of the big items of loss to u.s."
Wexford said, lis the free water given
to- city buildings and offices. amount
ing to 100000 per year Cost of Civ
ing this water to the city must be
borne by the other consumers. We also
furnish free water to hospitals and
charitable institutions.
Another big item of expense was
incurred when we entered and cleaned
out several of the departments tunnels
this year"
Wexford stated that while the exact
rate of increase had not been decided
upon, 1t will range close to one third,
and will be decided upon within 80
days.