The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1889-12-24
THE CITY'S BARGAIN
II Takes the Spring Hill Water
Pisaf for 1852. 265.67.
TERMS or THE BIG TRANSFER.
The EstInaas@a Net Tnssuse for Foar
Years. All she Real Estate and
the TEans Iaeiudea.

The purchase Of the Spring Hill Water
Companv's plant ~ the city was
practically cgnsHmn4ted At JOINT
useeting Of the council in commit
tee Of tIe whole and officers Of the
water company held between the hours Of
and 10 O'Clock lat nighs In the Puget
sound National bark. Ehe consideration
hesng ss5s. a3s67. This includes the com
panyss plsns, real estate ard. in short.
everything RESTING 70 iss property, fran
chi-e and equities.
Negotiations for the purchase Of the plant
have BEEN "a progress for ever two months,
i,ss il is only sitain the past week that any
thing like an agreement has been arrived at
The spring Hill Water Company estimated
is plant. franchise and equities to be woTth
sssoasn. hat IN its first proposition 70 the
council which proposition vas kept q se-
eret until after negotiations we're con-
Guided last hsght-oifered 20 transfer
everything to tne eity for stE0,00 A
Second proposition was afterwaFd made
upon tne basis Of ssai90 and third for
s.S On. The city first ofFer was $52i 7 -. 49,
being based upon the value Of the plant TO
the city as portion Of the Rock creek
system, the appraised value OF other
properly NOT necessary 70 the Rock
creek system. and The estimated
net income 81 the company for
the unexpired four yearsof their franchise,
less per cent interest on the purchase
price OF the plant and property and per
cent discount on the estimated annual in
come This proposition vas practically
adhered to upon the part OF the city, the
only increase allowed being for property
and portions Of the plant not included in
the original schedule and for an increased
ratio OF net ineone.
At the meeting last night every member
OF The council. Mayor Moran and City At
torney Alhestson were present on behalf Of
the city, and Mr.. Bailey Gatxert and Mr..
Jacob Furth ola behalf of the Spring Hill
Water Company. of which they ara
spcctiveiy president and secretary, and
who were clothed with full authority to
act in the matter Negotiations had so FAR
progressed AZ former joint meeting that
IL was only question OF making calcula-
lions, and the matter was settled with
comparatively little difficulty upon the
basis above stated.
The three months ending December IS
were taken IN ascertaining the net earn
ings. which by ibis means were
icend TO be $te,765.0s per year.
This sum was discounted ~ s per cent. per
annum. and allowed upon that basis. The
value Of the plant aad property were al
lowed as appraised bv the council. less q
per cent interest for the city's investment.
Upon careful computation this was found
20 aggregate ssas ,ssh.67. and the purchase
was accordingly made at this figure.
As before stated. the purchase includes
oil The property Of the Spring Hin Water
Gem pnny. its plant, real estate and equi-
ties The real estate was included in the
purchase at al estimated value of 81 $50
Ii consists of the reservoir block, fifty lots
In South Seattle, two lots on the corner OF
Broadway and Terrace streets, one lot at
Minor tank i've acres at the pumphouse
on Lake Washington. thirty-two lots in
Barko's second addition near the pump
house. and one or two other small parcels OF
land. The realty Is estimated TO be worth
At least SIS 80.
The committee of the whole will report
the result of their negotiations to the ceun-
Gil at the regular meeting Friday night
and thc purchase viii then be officially con-
6rmed. The lasster Of paying for the works
viii be arranged IS soon as possible. The
company has $4,000 in bonds now out
standing and these may possibly he trans
fefsed 60 the city unit! such time as munie-
ipsl water bonds can be issued In their
stead. The income from the work at the
peseat rate viii pay interest on bonded
Indebtedness sufficient 10 cover the pur-
chase price aud leave surplus for extend
ing the system
Members OF the council are very we'll
pleased over the happy results of the nego-
siations, 10 which they have devoted much
Of their time during the past ewe months.
over twenty meetings have been held with
efilcers Of the Spring Hi Company, ma.
naeroas propositions have been considered,
aBd many intricate calculations have been
made. They think the terms Of the par
chase will be recognized by the PEOPLE as
very reasonable one and promise lhat ID
will he followed hy improvements which
wlI give Seattle = fairly adequate water
supply until such aims ~ the Rock creek
system Is Completed
Mayer Moran sill tosay notify Engineer
Benisette Williams. who Is now Ia Chicago.
~ the Purchase, - that be can prvpare his
rlaas EoE Incorporating the system in the