Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1870-05-19
WATER WORKS.
Propositions and Explanations Of
the Water Works Company.

Following are the propositions and ex-
plantations of Colonel 7. w Brown,
President of the Water Works Company,
addressed to Aldermen Dryer and Cart
wright and Councilmen James, Prescott
and Hewitt, joint committee Of the City
Council, and which were referred to a
Special Committee on Water Works last
evening" J
There seems TO be an inclination in
your minds against the company, because
it was supposed that we had a monopoly.
Our charter is not monopoly We
have grant of the exclusive privilege
for thirty years of supplying water to the
inhabitants of Memphis by means of
public works. This is not monopoly
nor is it within any inhibition of Cons-i-
tutions, State or Federal. Well-advised
counsel will so inform you
There is no injustice or hardship in
such a grant 1t has long obtained as a
matter Of public policy as well as neces-
sity to invite private capital to the con-
struction of expensive public works by
comforting on it such exclusive privileges
when so invested as will certainly secure
it against loss and guarantee profit.
This principle was recognized in the Con-
stitution of Tennessee Of 1884, in section
I, of article XII.
An impression likewise peryades the
minds of some, and perhaps may to a
partial extent be entertained by you, that
the concurrence of the city authorities is
absolutely necessary to the enjoyment of
our exclusive privileges. This is a mis-
take. Our franchises in this particular
are especially and competently granted
in the Legislative charter They have
passed into grant If more was re-
quired, money has been invested on the
faith of the charter 1t has therefore be-
come contract and vested right be-
yond even Legislative control I
1t is because the city can facilitate
and expedite our enterprise, not because
it is in the power of any person or cor
poration to defeat it, that we ask co-ope-
ration and harmony in our work on the
part Of the municipal authorities. In
what we ask we feel that the interest of
the public and the city is not less con
suited than our own. We then approach
you entirely on business footing, and
desire that the city shall make such a
contract with us, without taxing its
means or credit, as will hasten us in the
erection of water works and diminish
their cost 1t will be presently manifest
that besides that general public interest
which impels your corporation to sub
scribe to railroads, the city has an es-
pecial interest in cheapening the cost of
these works.
LIST. We then propose that the city
shall contract with us as to the rate of
taxation at which we shall be assessed,
so as to secure us the most favorable
terms in this regard.
ID We ask that the authorities dis
tinctly undertake to abstain from all in
reference with us in the use of the streets
and alleys for the laying of the pipes,
and in the conduct of our business OF
supplying water to the inhabitants,
so long as we do not violate our char
ter.
Sd. If the city, either during the pro-
gress of our works or subsequently
should desire to construct sewers, and
the construction of these sewers should
either delay our company or impose adj
dtional expense on us, the city shall re-
imburse the company the additional ex-
penses so incurred, and compensate for
any loss occasioned by delay.
4th. We ask that the city make with
us such contingent contracts for the
thro,oinq of water on fires, the public
supply Of water over and above that pro
vided for in the charter, and for clean.
sing sewers, as may be consistent with
the interest of the city and public. We
believe that the expenses of the Fire
Department may be reduced one-fourth,
and the rates of fire insurance reduced
one-half by the system of water works
contemplated to be introduced by our
company.
II may be asked why we propose a
contract with the city If we are so well
assured CT our rights under the charter?
We answer frankly that we expect to
obtain the money for immediate use in
the construction of our works by bonds
of the company, as is usual in all such
enterprises. When the bonds of com
pany are offered in the market, the bur
dens likely to be imposed on the com
pany-ans threatened litigation, how
ever unsubstantial for any want of har-
mouy between the corporation and the
public where it is located-are all con-
sidered by the capitalist, and his dis
count is in proportion to his apprehen-
sion of these contingencies and his fears
resulting from any uncertainties. The
legitimate capitalist charges interest for
the slightest FISK, and he imagines a
risk on the slightest prsteXt, The three
first propositions, if granted, relieves Us
of ali embarrassment in this direction. II
there was no motive to impel. the city
to accommodation with us in these
regards besides the great benefit TO the
public resulting from water works, there
ought to be no hesitancy In coming to
terms with us. :.
1t has ever been deemed expedient
and proper for cities to take stock In
and loan their credit to railroads, on ac-
count of the great public benefit of these
epterprisas. Water works cannot be
plsced at q lower point 10 this regard
than railroads. We, however, in the
three first propositions, ask neither a
dollar of money nor credit We only ask
sucb stiuulations as will enable us to
borrow money a. the lowest rates.
But the city has an interest, oyer ana
above that of the general public. nature
already maptioned, in facilitating tins
company in las enterprise. BY the
seventh section Of our ehaFter after
twenty years it has the right TO beeeBe
the owner of the works at an appraised
value The cost of the works will al
WAYS be q certain quantity in the est
mate. The more interest we pay for the
money used in construction, the greater
a - .ba moro the CITY Kill haVe