The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-07-10
TaB WATER SUPPLY GU 1sTION AGAIN.


THH WATER SUPPLY gu GsTI0N AGAIN.
In yesterdays issue we presented some
figures In tho matter of tho income, ETC., of
the Water WORKS compsny. These data
were furnished to US by one of the aldermen,
a. stated, no having procured them from
source replete with facilities for complete
information. The HERALD. in accordance
with Its usual custom and promptings, desir-
ing to do no iojuslice TO any
ono but to treat with the
most perfect fairness each side In the contro.
versy, obtained from the president Of the
wster-works company, y statement being, as
he observed, a transcript from its books In
round numbers, which tells quite d ffsrent
tale from that furnished by the stockholders.
It appears that their capital stock was
originally $50 00O that this was subsequently
enlarged to 100000. The HrRALD's logic
was entirely accurate, and its deductions
have been borne out by the presidents
figuring as TO the proportion of expenses to
Income, etc, and ws distinctly stated in the
article that wo then pro, eeled upon the
assumed accuracy Of tho figures furnished
ex'psrte to us. The company, however,
assert that those figures are wide Of tho truth,
and submit tho following: From the city
their receipts, in round numbers per con-
tract, have been SO 400; from the Texas e.
Pacific railroad company 81 $780, from the
Houston & Texas Central railroad company
$500; from the Howard oil works
$500; from private accounts $4,000;
making q total receipt of say, $4,000.
They say further that their expenses
account fer salaries, renta, taxes, labor, etc.'
foots up some $4,000. This leaves q net
profit Of $4,000 to the company for use as
dividends, II so desired, surplus for improve
ment acct, accidents, wear and tear. or
general depreciation, etc. If now wa assume
that Of the $50 900 paid In some five years
ago, that as much q $1,000 was extravs.
gausly or iujudciously expended, the outlay
amount might properly be considered as re-
duced to $4,000, but to this II Is only fair to
add reasonable rate ofinterest, let US say 10
per csnt.per snnum for tho five years uncom'
pounded, and We have 80 per cent or total
valuation of the works to-day of $50 900. 4
net profit hereon Of so 600 would show
dividend and reserve result oil 10 per cent. per
snnum. This Is no. by any meaps excessive,
considering the present value of money and
the nature of the enterprise. And most un-
S8-stlepshlyis 10 a very different exhibit
from that which was rendered to us on yes
terday, and wo only do simple justice
when We present 1t to The
public as beng thu other
aide. Beside this tho Water Works com
rany cay that they did not propose to charge
this year to The city S62 80 per hydrant, but
that tho proposition submitted TO the coun'
Gil was $50 90 por hydrsnt which ia a reduc'
ton over lust year of nearly 500, aud by just
this much is their earnings account reduced.
The correctness Of all the foregoing IL subs
iect to veriacston by tho counci through
personal inspection, il desired, of the comps'
ny's books. In this light we cannot SEQ tbs,
tho proposed tax of $50 is excessive. We
still incline 90 the belief, nevertheless, that
city should own and control the water
works, aud for the reason stated in yester
days article. Whether amuuicipslNgov
ment can administer Ms fairly, rs efficiently,
rs ecor omically as private corporation or
Individual IL another matter In the exist,
ING case with US, i! might do for Dallas to
own certain portion of the
stock. with a due representation
In tho directory, to tho end that the council
could at oil times be best advised ofthe
status Of aflsirs and tho city's true interest
whsther as part owner or as patron. 10
settling tho business now az issue, each and
every member should be guided by but one
motive, and that Is fairness to the city, fair
ness to tho contracting parties, listening to
and Influenced by no popular clamor OF
prejudice that Aads its origin or It's con.inu-
anoe In absence Of information. An
odRclal strong In tho consciousness Of
hA intelligence about any subject.ms'teI
Of discussion or settlement, strong 10 biz
resolution 70 do what Is strictly right and
he Immortality thereirom BY any consider
zion Of the fear Of ono aide or favor from
The other, d an Independent ins.rumen. fo
permanent good 10 any position. II invc,ti
CATION show that the Water Works compan,
arc earning profits In excess Of what h ccn.id
srod fair average ono 10 mercantile pur
suits, Then there 10 abundant reason for III
city 10 ask an Abatem mt; lion the other hAnt
u DO domoasrased that they arc eNnin
merely customary net profit, and ID
requested reduction dsbascs beyond the
eoasrAl average ths stock Of the shMshol,
q he request b not sustalnsd By thstoucl
slens d equitable dealing. Every council