Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-05-19


be commenced forthwith for that purpose
Received and adopted by Council.
MEMPHIS, TENN, May IA, 1870.
To Messrs. Dryer and Cartwright, Com
mittee on behalf Of Board of Aldermen,
and Messrs. James, Prescott and Hew-
lit, Committee IN behalf Of Board Of
Councilmen:
GeHtIeHen-You terminated the confer
ence had between yourselves acting as
Committee for the Board of Aldermen
and Councilman respectively, and the
representatives of the "Memphis Water
Company" with a request that the com
pany state in writing the PROPOSE
lions, TO which we desire to call the at
tention of the municipal authorities, with
such reason in support of them as might
occur to us. In obedience to that request,
we submit the following:
There seems TO be an inclination in
your minds against the company, because
1t was supposed that we had a monop-
oily.
Our charter is not a monopoly. We
have a grant Of the exclusive privilege for
thirty years of supplying water to the in
habitants of Memphis by means Of public
Works. This is not a monopoly; nor is il
within any inhibition Of Constitutions,
State or Federal. Well-advised counsel
will so inform you.
There is no injustice or hardship in
such a grant. It has long obtained as a
matter of public policy as we'll as neces-
sity TO iHvlte 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 a profit.
This principle was recognized in the on
%stitution OF Tennessee of 1884, in section
Z, of Article XI.
An impression likewise pervades the
minds of some, and perhaps may to a par
tiaI 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 required,
moHeU has been INFESTED on the faith Of the
charter. It has therefore become a con-
tract and a vested right, beyond even Leg
islative control.
1t is because the city can facilitate n
expedite our enterprise, not because it is
in the power of any person or corporation
10 defeGt it, that we ask cooperation n
harmony in our work on the part of the
municipal authOrities. In b we ask,
we feel that the interest of the public and
the city is not less consulted than our own.
We then approach ~you'entirely on a bust
ness footing, "a desire that the city shall
make such a contract with us, without
tGring It's means or credit, as viii hasten
US in the erection of water works and d.
minish their cost. II will be presently
manifest that besides that general public
interest which impels your corporation to
| subscribe to railroads, the city has an
especial interest in cheapening the costs
of these works.
LIST. We then propose that the city shall
contract with US as to the rate of taxation
at which we snail be assessed, so as to Sc
cure US the most favorable terms in this
regard.
ID. We ask that the authorities distinct
" undertake to abstain from all interior
ence 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 charter.
Sd. If the city, either during the pro-
gress of our works or subsequently, should
desire to construct sewers, and the con-
struction of these sewers should either
delay our company or impose additional
expense on US, the city shall reimburse
the company the additional expenses so
incurred, and compensate for any loss &C.
casioned by delay.
4th. We ask that the city make with rs
such contingent contracts for the hrOa0-
ina OF water on fires, the public supply of
MaNEA ON6L aAA INV bA&A RLghA y
in the charter, and for cleansing 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 o~ne-fourth, and the rates of fire
insurance reduced one-half by the system
Of water works contemplated to be intro
duced by our company.
1t may be asked why We propose a con-
tract with The city if we are so well as
sured of our rights under the charter?
We answer frankly that we expect to OBJ
tain the money for immediate use in the
construction of our works by bonds of the
company, as is usual in all sach enter
prises. When the bonds of a company
are offered in the market, the burdens
likely to be imposed on the company
any threatened litigation, however I'M
81 bstantial-any want of harmony be-
tween the corporation and the public
where it is located-are all considered by
the capitalist, and his discount is in pro-
portion to his apprehension of these con-
tingencies Gnd his fears resulting from
any uncertainties. The Legitimate capt.
talist charges interest for the slightest
risk, and he imagines a risk On the
slightest pretext. TheS three first
propositions, if granted, relieves us
Of all embarrassment in this di-
rection. If there wasf lo motive to inn
pei the city to accommGati 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.
It has ever been deemed expedient
and proper for cities to take stock in and
loan their credit to railroads, on account
of the great public benefi of these enter
prises. Water works cannot be placed at
a lower point in this regard than rail-
roads. We, however, in the three first
nrannGfffnna agk nathan a dollar of
money or credit. We only ask such stip-
ulations as will enable US to borrow
money at the lowest rates.
But the city has an interest over and
above that OF the general public nature
already mentioned, in facilitating this
company in its enterprise. By the seventh
section of our charter, after twenty years
il has the right to become the owner of
the works at an appraised value. The
cost of the works will always be a certain
quantity in the estimate. The more in
terest we pay for the money used in con-
struction, the greater the cost, and the
more the city will have to pay when it
proposes to become the owner of the
works. Is it not, then, evident that the
city has a direct and an especial interest
that these works shall cost as little as pos.
sible7 Therefore, not asking for n dol
lar of cash or of credit, 80 far as your mu-
nicipal corporation is Cd &cerned, but only
asking such contracts as will facilitate us
in our enterprise and enable us to obtain
money on the best terms, is there any
reason for refusal or delay2
The fourth proposition asks you for no
money or credit. The contract embraced
therein is contingent on our success;
moreover, it proposes to reduce the ex-
penses of one department of municipal
government one-fourth. 1t is confidently
believed that the rates of fire insurance
may be reduced one-half. You are asked
to contract for no supplies of water but
such as the health, cleanliness and safety
of your city naturally and properly de-
mands. If UGH contracts would aid us
and at the same lime be profitable and
advantageous to the city, may we not
reasonably solicit them, in view of the
great public enterprise, which will be for
warded thereby.
We, at the same time, propose to take
the maps, surveys, ETC., for which the
city has expended a considerable sum of
money, on the terms and conditions spec
flied in a written proposition to the city
authorities, heretofore A These maps,
surveys, etc, will be of little if any use in
our work. Nevertheless, we are willing
to take them and pay the city for them.
1t is represented to us that there is
great u-neasiness at the absence of any
restrictions on our charges for water.
This is an idle apprehension. We must
compete in c~heapness of supply with els
terms and wells. If we cannot supply
wMer as cheap or cheaper than it may be
done by cisterns, nobody will take it. In
this particular we have not the advan-
tages of a gas company. Gas cannot be
manufactured by private individuals for
home use at a reasonable cost. Hence a
gas company has a control that a water
company cannot have. Yet we are will
ling to bind ourselves not to exceed the
maximum charges Of other Southwestern
cities.
we submit these views and this proiect