Ellsworth American., 1921-04-20

duties to carefully scrutinize all of the
existing rates of this company. We
shall cause to be prepared a schedule
of domestic rates and require the COM
pany to put the same in effect, with
the right upon the part of the company
to submit a revision in case the ex-
pected result is not obtained.
With reference to the so-called pub
lie rates or the rates for fire service,
we find the company is receiving for
this service the sum of $2030 per year
for fifty-siX hydrants and that the
company's schedule of rates calls for
$50 per hydrants. We have several
times had occasion to say that the
price per hydrant was not the true
measure of the value of the entire ser
vice but that the gross revenue needed
and the area and value of the property
protected We're necessarily to be care
fully considered.
1t is delicate matter, we realize, to
attempt to in any way criticize the
taxes levied by a municipality, but we
do feel that we have a right to sail at
tention to the relation between the
taxes paid by a public service company
and the amount which it receives for
services rendered to the municipality
levyng the taxes. In the city of ELS
worth, this company paid in 1920 a tax
of $3,237.06, of which the sum of $2.-
9SS.60 was upon water property. The
company received from the city the
sum of S2030. 1t is of course true that
the use to which the company put the
property upon which it was paying
n a
vice, but as we have had occasion to
must be ordinarily paid for public fire
protection is about 80 per cent. of the
gross revenue needed. Surely the
gross revenue needed by this company
is not less than the amount of it's
operating expenses, and 80 per cent. of
this amount would be considerably
more than the amount paid for public
fire protection plus the proportion of
the tax which may be said to be levied
| upon property devoted entirely to this
public service. If to these operating
expenses there should be added some
| thing for return upon investment, this
| amount would be very materially in
| creased and the SO per cent. would
| have to be figured upon this increased
|
| cannot at reasonable rates provide
| anywhere near fair return upon the
| fair value of the company's property,
| We can. however, treat both the COM
| pany and it's customers more fairly
| than either group is treated under the
| existing rates.
| We have found that in some in
stances where we have undertaken to
| justly establish rates for public fire
protection, the municipality has very
promptly increased the taxes to be paid
by the company in an amount almost
| identical with the increases in munici-
| pal rates. This practice does not re-
| suit in justice to the company and if
| permitted would entirely neutralize
| any effort of the commission to give
| the company and the customers fair
| treatment. In the present case we are
| satisfied that the company should be
receiving at least $4,000 more than it
| now receives for this public fire pro-
| order that the increase in public fire
protection shall be $4,000, resulting in
| the rate for this service in Ellsworth
being the amount of $4,000, in addition
to the sum of s29Ss.60 assessed as
| taxes, and that said amount of $4,000
shall be exclusive of any amount as
sessed as taxes in addition to said
S298S.60, the idea being that the COM
pany is entitled to receive for public
fire protection $4,000 in addition to the
amount which it is required to pay in