Determination of a Reasonable Return for Public Fire Hydrant Service

Determination of a Reasonable Return for Public Fire Hydrant Service

Folowing is an abstract from a paper prepared by Messrs. Metcalf, Kuichling and Hawley, and read by the former at the meeting of the American Waterworks Association in Rochester:

水厂公司通常的收入derived from the performance of two distinct services, first the supply of water for public fire protection service, second, the general supply of water for domestic, industrial and public uses. The sum of the receipts front these two sources should be sufficient to place the corporation on a sound financial basis within a few years after the completion of the works, or after about two-thirds of the population of the community have become permanent consumers. The basis for the determination of the reasonable or legitimate return for public hydrant or lire protection service has. so far as the writers are aware, never been outlined or passed upon judicially by our courts in such a manner as to be of general applicability. Not only has intelligent discussion of this subject been neglected, but commercial considerations and off-setting allowances for public franchise, or the right to build and operate waterworks, have too often controlled, and have made the actual resulting payments for hydrant rental of little value front a theoretical standpoint: without relation to the cost of the service rendered, and therefore of little significance in a consideration of the cost or value of public lire protection service. As is well known to waterworks operators, one of the two following considerations has usually controlled in the negotiations leading to the establishment of waterworks : First, what might be termed the "method of averages,” that the hydrant rental and water rates should not exceed the average rates paid in the surrounding district or state, or perhaps in the learest large city, which has found application in the larger communities: and second, what might be termed the "guaranty basis,” that the hydrant rental should be substantially equal to the interest charges upon the necessary investment, leaving the water rates to meet operating, maintenance and depreciation charges and profit, which has found application in the towns and smaller cities. In the early history of waterworks development therefore, the demand for water service has controlled rather than any equitable consideration of the cost or value of the service rendered. This paper outlines a rational mode of determining how much income should be derived yearly from the general public fire protection service rendered by the works through the public fire hydrants, and does not consider the value of the kindred service rendered by supplying water to special apparatus for extinguishing fire that may be placed in public or private buildings, such as private hydrants or standpipes, sprinklers or other automatic devices. It is assumed that Ihe quantity of water and extra capacity of distributing pipes required for the public hydrant service is always somewhat greater than that which is needed for the special apparatus referred to, when it is brought into action. It has been generally claimed that the yearly cost of this extra capacity for fire protection should be borne by the community as a unit, and when this principle applies. no large additional revenue for special fire protection service can be expected. In support of this principle, it is claimed by the makers of special automatic apparatus for extinguishing fire that a discharge of from 750 to 1,000 gallons of water per minute for a period of 10 to 15 minutes, has been found by long experience sufficient to overcome most incipient tires in mercantile and factory buildings, whereas from two to 10 times this rate of discharge is usually required to extinguish a fire in such a building after it has got beyond the control of the special apparatus and requires the attention of the public fire department. It may also be said that the capacity for fire hydrant service in even the smallest industrial community should not be less than 1,200 gallons per minute, and should increase in some ratio with the population.