The Portland daily press., 1890-12-02
THE WATER COMMISSIONERS REPORT.
They Present an Exhaustive Discus
sion OF the Subject.
Investigations Into the Cost Of Sup
ply In Other Cities.
What The Commissioners Say Of the
Portland Water Company.

The citizens of Portland have looked with
more than ordinary interest for the report OF
the Water Commissioners recently appointed,
and last evening it was filed with the City
Council. 1t is Ito be printed, but is too
lengthy for our columns, now unusually
pressed for room.
1t opens with statement of the powers OF
the board, conceded to be limited to Investiga-
tion of facts accompanied by remarks peril
nent thereto, having no power to compel dis
covery Of those within the exclusive knowl-
edge OF the water company, and being void
Of jurisdiction to decide any question.
The embarrassments attending the inves-
tigation were great, and were specified.
In order TO arrive at material facts a series
Of interrogatories was addressed to the pres
ident Of the company, who has been con-
nected with 1t since its origin, but to them he
made no replies, having turned the subject
over TO Mr.. Wescott, the treasurer. These
replies, so far as made, were given from th
standpoint Of vigilance for the extensive in
tereStS of nhe company. In connection there
with, the treasurer had two conferences with
the Board, and was afforded all the 0pportu-
nifty asked for explanations and enlsrge-
ments.
A summary history of the company was
next given, showing the difficulties at first
encountered by the present managers by
reason Of imperfect construction and the use
of bad materials, the financial condition at
different times, the contracts made with the
city for supply OF water, and ending with
that Of June 1887, which fixes the rate Of
taxation for twenty years from that date,
and extends for the same period all prior
agreements, including that for annual pay
ment by the city of $4,000 for water for GER
tain specified purposes.
The sources of information were then par
ticularized, embracing wide field, including
the books and archives Of the company, but
which were not open to inspection.
The next point OF inquiry was directed to
ascertaining whether the company has fur
nished all the water for specified purposes
for which $4,000 annually is paid. Mr.. Wes-
colt claimed that far more has been fur
nished than was required by contract OF Sep
tember "a, 1870. and of great waste for which,
but for the contract, the company would have
received at its rates much larger sum than
the city has paid for 1t.
But it was shown that during its history
the company, accustomed to complain Of
the burdens of taxation, has received from
the city in round numbers S25,000 more than
has been paid in taxes.
The next branch related to the company
and private consumers. The published sched-
ule Of rates was issued In 1877. The rules
and regulations before that. The rates for
dwelling houses are said to have been some
what modified ut that time, the maximum
rate for any house being now $40. The
meter rates for manufacturers were reduced
25 or 80 per cent. in 1886. In fixing these the
city has not participated, as 1t had right to
do.
That feature of the published schedule
which determines the amount Of the family
Nn I.wvAh Ahsnw wtal.r of thn NH
to a certain point, and there stopping, the
board discusses, as also that recurring pay
ment before water is consumed. The matter
of rebates was also taken into consideration.
in connection with which IL was inferrable
that there has been lack of uniformity Of
rates, and that as respects the modification
of rates the public Is not advised.
Comparison of rates with those CT other
companies, to a wide extent, was then made,
concerning which a large number Of exhib-
its were annexed to the report, embracing
maximum rates, embracing 16 companies,
the family rates of all the companies in
Marie, 16 in number, 15 companies In various
parts of the country OF like population with
that of Portland. the averages of all In New
England. and the meter rates OF 10 other
companies.
These exhibits show the rates of the Port
land Company to be highly inflated as COM
pared with those of other companies. But
two days before the report was to 60 in Mr..
Wescott presented quite number, which it
required more than two weeks to prepare,
and which IL was impossible for the board to
scrutiniZe and verify, and are rot, and could
not, be reported on except in supplemental
report. The intent of these exhibits was to
show that the companies to which these ex-
hibts relate are not self-sustaining Accord
ing to their lower rates charged.
The next branch was cost Of the company
works. the aggregate of which was stated to
be $2.S27, ,902 n. The elements which enter
into this sum the company, though request
ed, decline to disclose. In their absence 1t
was impossible TO obtain data for compari-
son with other companies, and to show how
much the cost of works has been largely in
creased by early imperfect construction and
the use of unsuitable pipes and material.
The amount of income from the city was
stated to be $4,000 annually, and from con
sumers in Portland at Sl43, ,lO23 81. That re-
ceived from other towns and villages, though
called for, was withheld, the company claim
ing the Board were limited to investigating
income from Portland, Notwithstanding all
consumers outside of the city share in the
benefits Of the entire cost OF construction up
to the point of their accommodation.
The report closed with a remark that no
satisfactory statement could be Given as to
the present financial condition of the COM
pany because of inability to obtain from its
officers material facts. II a.so added a caveat
as to apprehension of danger of depreciation
Investigation and the report thereon as fol-
lows:
THE company enjoys a very valuable
and liberal franchise, which Is practically
monopoly, and derives large and increas-
ing revenue from suburban towns and viii
lagos.
2-lt Is under the control and management
of men whose vigilance, skill and energy are
unsurpassed by those OF other companies.
3-Since the discontinuance Of the old
sources of supply, Sebago water las become
almost a universal necessity in Portland, and
this necessity is perpetual ore, and will
continue to grow in magnitude In proportion
to the increase of our population.
At is highly improbable that the con-
servative managers of savings banks in this
community would invest trust funds in the
securities of the water company, and that
men iD closest relations with 1t, and others
among us known to be distinguished for
their shrewdness and caTefulness in selecting
safe Investments, with all the contingencies
surrounding this company, should invest
largely in its stock commanding from ITO to
113 in this market, If there were not some
rose cOlored facts behind, which the board
with its best endeavors has in vain sought to
ascertain.
5--The number of meter customers in
Portland alone is already 1913, and the num-
Der of taps constantly increasing Is about
5000
6-The company works are conceded to be
in excellent condition.
THE credit of the company is first class.
This was shown by quoting the best author
titles showing the high prices brought In this
market for the company bonds and stock,
giving facts and figures, and exhibiting the
public confidence in the corporation and its
managers.
The report closed with expressing thanks
10 All who have furnished information, and
regret thatCommissioner Kent was precuded
from signing IL, by reason Of enforced abb
sence, but who in all the early consultations
made valuable suggestions, concurred In the
mode of procedure and the basis on which
the report should be made, and from whose
aid large number of reports from other
companies, and other valuable sources Of
information were obtained.
1t is impracticable to give an adequate
idea Of the report and an abstract OF the
large number nf exhibits, which constitute a
valuable and essential portion Of 1t, but our
citizens will soon have ample opportunity TO
see it and judge for themselves.
The report is signed by Geo. F. Emery aud
III. II. Burgess.
WATER RATES.