The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1920-05-06
Railroad Commission in Decision of Rates
Holds that the Position of the
Nity Is Peculiar.
NO BOOST FOR AVERAGE USERS
Commission in Granting Rate Increase Shows Sugges-
ton of Commission Is Entirely Reasonable
and Should Have Been Granted

The railroad commission of Wis
consin in its decision granting gem
eral increase in the rates to be charged
for water by the Kenosha water com
pany gently raps the city for its
peculiar relationship" with the water
company and declares that the city ex-
poets the utility to make its own way
without any permanent investment on
the part of the city. This feature
is worked out pretty clearly by the
commission. The commission also
shows that the new rates granted for
the company will not increasee the
cost of water to the average customers
of the water company. In the decision
copies of which were received by the
water company on Tuesday by the com
mission, says:
ut will be noted that neither the
minimum charge nor the rate for the
first step of the schedule are changed.
All ordinary domestic and small com
mercial users of water will be ex-
empted from any change in the sche-
dule. Large commercial users and
industrial users will be the only ones
affected, with the possible exception
of some of the use for the city Of Ke-
nosha itself.
"In our decision of April 81, 1918,
we estimated the direct expenses of
operation at $43, 40g per ar, which es-
innate was exceeded by about $1,000
during the year ended June 80, 1919
During the year ended June 80, 1919,
however, the revenues were substan-
TALLY as estimated in our decision of
April IL, 1918. It appears, therefore,
that the increasing rate of expense
had already operated during the year
ended June 80, 1919, to make the rates
fixed by our order of April 27, 1918,
somewhat inadequate,
Expenses Going Up.
During the six months period,
ended December 81, 1919, the expenses
as reported amounted to S33,427.1G, and
the revenues, not including any charge
for fire protection, amounted to $780,
$500; that is, the direct expenses
were incurred at rate of about $23, :
900 per year above the expenses which
were recognized in our decision of
April 81, 1918, and the revenues were
accruing at somewhat smaller in
crease over those estimated in our de-
eision mentioned above. The city calls
attention to the fact that on February
/, the scale of wages on the entire
pay roll was increased so per cent
and to the fact that other expenses
have likewise increased.
Criticizes City's Attitude.
at calls attention to certain needs
in the financing of its plant which
needs arise largely from the peculiar
relationship which exists between the
city of Kenosha and its water de-
partment The attitude of the city
apparently is that the water depart
ment must, in the long run, finance
all its extensions, so that the city, as
entirely distinct from the water de-
partment, will never have a permanent
investment in the water utility. Need
less to say, such policy followed by
private company would lead to
great deal of criticism and rates de-
signed to produce such a result would
not be considered reasonable.
However, in thrs case the amount
of the principle of the debt which
the city wishes to have paid annually
out of the earnings of the water de-
partment does not exceed the inter
est on the surplus shown on the balance
sheet of the water department, which
surplus, of course, is the property of
the city of Kenosha. Consequently,
although the financial poll is open to
criticism in theory, the practical APP
plication of it is not serious.
Charges Not Excessive.
"The city estimates that the total
expenses for year under conditions
such as now exist, including taxes at
the rate charged on general property in
the city, and including an allowance
of per cent of depreciation, interest,
and profit, will amount to s157 1861.
The allowances for fixed charges GER
tainly cannot be considered excessive
and the only element open to ques-
ton as we see it is the estimate of
the city that expenses will be, % per
cent above those incurred during the
last half of 1919.
Big Deduction for City.
Gas offsetting these expenses, the
city sets up the payment of hydrant
rental amounting to $4,000 per year,
the payment for street sprinkling
amounting to $347.35, and an additional
amount not actually paid, but which
it considers chargeable against the
city of $24, 5000. In other words, in
arriving at the amount of expense to