Profits of the Oakland Water Plant.

Profits of the Oakland Water Plant.

In a letter to the stock and bond holders of the People’s Water Company, of Oakland, Cal., issued by President Frank C. Havens, the existing conditions of the company’s plant and business are shown. According to the statement issued there is a surplus profit of $107,887,58 for the nine months ending September 30. It also shows the company’s ability to keep pace with the growth in and beyond the year 1032. The letter is, in part, as follows:

“To the Holders of Stocks and Bonds of the People’s Water Company—The People’s W ater Company, after five years of construction of a high order and at great cost, has now completed the plans w hich it adopted when it acquired the system, and the company has to-day the most perfectly appointed and compact water system in the United States The water-bearing properties lie in high lands parallel to and immediately adjoining the communities which arc served therefrom with as good water as any on sale in any city in the United States. The economy of this situation is in striking contrast to the great cost and maintenance in all cases where water is brought from a great distance. Its distributing system is 50 per cent, greater than that of any other system on the Pacific coast. Its property holdings are double the entire area of the city and county of San Francisco. The annual increase in value of this land is enormous. The People’s Water Company enjoys the unique distinction of being almost the only large 100 per cent, metered system in the United States. During the process of metering the water consumption has been reduced from over 150 gallons per capita to less than 50 gallons per capita. This ideal condition is due to the total elimination of waste. The artesian supply is constantly increasing in new areas, and on October 16 the People’s Water Company’s main storage supply. Lake Chabot, contained 77 feet of water. This is sufficient for two years without rainfall. The maximum capacity is 85 minutes 6 seconds, a quantity which is over five times the present storage capacity of Los Angeles and several times that of almost every other large city in the United States. Brooklyn. N. Y., with over 1600.000 inhabitants, holds in storage less than one-third the quantity in Lake Chabot at this date. The reserve storage capacity of the properties now owned by the company equals four times the present storage, and the usual rainfall on tributary watersheds will maintain such increased capacity. Six billion five hundred million gallons of water passed through the wasteways of Lake Chabot into the Bay of San Francisco in the period of January 21 to February 21 of this year. There is no object in storing this water at this time, as it will not be required for some years. Density of population increases with the growth of cities, but water consumption per capita decreases as the density of population increases The company now supplies 300,000 people at a rate of less than it) gallons per capita. When the population reaches 500,000 the per capital consumption will be less than 13 gallons; at 750,000, it will he less than 38 gallons per eapita, and at 1,000,000 it will he less than 31 gallons. basis of a normal growth of 62-3 per cent, per annum, in five-year periods, a population of 1,000,000 will be reached in the year 1932. 1 he amount then required will In 34,000,000 gallons per day. These figures are all based on the experience of metered cities. When it is necessary to supply this amount of water, the company can readily do so from the present watersheds. Careful engineering estimates show that with a moderate expenditure the storage capacity can be increased to over 40,000,000 gallons per day. The year 1911 began with the new policy requiring all new consumers and owners of tracts to hear all the cost incident to piping. In the month of Tune the heavy expense of installing meters ended. Beginning with the month ot April there has been a profit over all outgo, excepting betterments, and since July this income has exceeded all outgo, including betterments, resulting in a consequent steady decrease ot liabilities. The gross earnings of the company for the nine months is $131,163 61 excess of that for the same period for 1910. The net gain in new service is 2,150. The surplus profit for the period is $107,887.58 for nine months ending September 30; gross earnings. $1,169,842.40, operating expenses, $ 17,000 50; bond interest and taxes, $586,954.32: surplus profits, $107,887,

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