Morning journal and courier., 1881-08-30
The New Haven Water Company.

Report of the Special Commtttee-Facts
 and Fig ures Presented-Shau the City
 Make the Purchase. 1
 The special committee on water of the l Court of Common Council, appointed to en- quire and report regarding the propriety of purchasing the rights and franchisers of the New Haven Water company by the city, reported to the Common Council last even- ing, and was read by Coun cilman Twiss. The report, which occupied half-hour or more
 in reading considered at length the rights
 and franchises of the company, the cost to
 the company and the cost to the city if they
 purchased on basis as fixed by the com
 pany. These figures as presented showed,
 as presented, what the cost to the city would be- As has already been stated, the right of purchase expires in Feb ruary, 1882 The committee, after examin- ing the company's books, agree in regard to
 the amount of capital stock issued within $500. The total amount is $1 ,000 as shown by the company's books. Deductlng
 the amount of capital stock not paid in by | subscribers, and that sold for default of pay | ment of calls, it leaves the amount of capital l at $l, ,1O2, ,615. The committee think that further deductions should be made to a con ! siderable amount, but do not at this time go into exact queries as to this point. The construct account from the com- pany's ledger states the amount expend- ed on construction in all ways up to July l, 1881, to be $1 ,221, ,5O3, 31. This includes a
 change of $125, 900 on account of guaranty
 bonds of the Fair Haven Water company given on the purchase of the works of that
 company in 1876 which will not be payable until 1895.
 The amount of dividend claimed by the company up to July 1, 1881, is $622, 937. 5O l The outside amount which the city would be liable to pay should it vote to make the purchase is as follows as in the judgment of the committee
 Capital stock paid in as
 claimed the
 Less ps9g eTror found in in post post ''iO1'oi' O' ing journal. ....:......$ 297 60 ! Unpaid notes for stock
 subscriptions in drawer 2,750 % $1,Oss 567 40 Add 10 per cent. interest
 figured by the com
 Less psng Interest allowed by 1s'0'''% ~ company the S3,o47.
 60 deducted by commit = = tee as above. .......-. 5786 97 99O, o61 2o s2oso,1s4 ee | ciared ..... 622,937 50 Balance payable to com I pany.. SA'4of'ZS' ID | The items claimed by the company show | the total amount to be $2;222, 236. Il. The | principal difference between the amont of ! this claim and the sum already reported by | your committee lies in the addition of the ! charge of nearly $75O, ,O0O for compound ln- I terest, and to this the committee demur. It is provided that in such case the matter can be referred to the Superior Court, who can | appoint three disinterested free holders of | this State to determine the matter in con | troversy, and if the court accepts their find ! ing itshall be conclusive. AS no final deter mination can be had by the court before De- | cember next, it is advised that no proceed | ings be commenced until after a vote by the | freemen has been taken on the advisability of l the purchase.
 The committee further say that should the l city buy out the company it must pay 10 per ! cent. on this capital, and it is evidently for
 the interesttof the city to exercise it's right | of purchase as soon possible, for If the company's claim as to the amount of it's cap- l ital be correct, every months delay costs the l city nearly g., ,O00-that is one-twelfth of the difference between eight and ten per cent. year on $1, 100000.
 The committee say that it has been sug- gested that the right of purchase may be ex- | tended under the contract for twenty years more. Such an extension the committee say
 would leave the city in position much1es
 favorable than it now enjoys, since the 7 per cent. year on the capital of the con- pany would keep running against the city l and add at the end of another twenty years perhaps $45O OOO to the price at which it can
 buy on or before November 1st, 1881.
 In conclusion the committee recommend l that the matter of purchase be submitted to
 the voters of the city on the first Monday in | October 18S1