The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-03-08
WANTA SCHEDULE OF RATES
Franchise Committee Sends the Water
Contract Back to the Board.
The City Attorneys Observation-Disclosures
Asked For-Annexation 0rdinance-Dead
Animal LaW-Much Minor Business

w men TIC lTHuc01so cOIuHIlitcc WIS
called upon last night for o report Mr.. Ryan
passed over to the clerk most vOlumlnous
document. The report stated that City
Attorney Bailey's opinion regarding the
right of the Coancil 20 fix prices. to be
charged private consumers was included.
In fact. it was the prospectus of the report.
After quoting all the sections OF law bear
ing upon the case. and citing sections OF
the city charter in point. Mr.. Bally sums
up his conclusions as follows:
Primarily, the Common Council, by general
ordinance. has the right and power to fix water
rates 10 private consumers which will be bind
ing upon all persons and corporations not oper-
ating under contract, and which VIII likewise
attach end apply TO any company now possess
Ing c0ntractual rights, should a time ever be
reached when such agreement has expired !t
Is the sole province or the Board or Public
Works 10 negotiate all contracts relative TO
water furnished TO the city, a corporation,
and to fix rates to private consumers, within the
terms or existing ordinances, which contracts
must be approved by the Common Council.
There Is a contract now In existence
bet the e,,, city OF Indianapolis ana mo
supply furnished to the city ITSELF and in terms
adopting and making the ordinance OF 1870
part OF such contract which provides that the
rates To private consumers shall be fixed by
agreement or arbitration, within the limitations
hereinbefore indicated. So long, therefore, as
u "a
tween the parties thereto, the city by Its Com
mon Council cannot fix water rates 10 private
consumers which will be in violation or the
terms OF such contract.
Under and pursuant TO the terms OF the exist
Ing contract, 1t Is the duty OF the city and tho
water company, annually, to agree upon the rates
failure between said company and the city TO so
agree, the question shall be submitted to arbitra
ton In the manner elsewhere herein set forth.
These rates TO private consumers are not now
Incorporated in or fixed by the present proposed
contract made by the Board OF Public WORKS,
and In view OF the present law governing the
city, am or the opinion that IL Is the duty
OF the water company to submit Its rates to
said board, and, in d supplemental contract
made with SAID board. TO agree upon sucn rates
covering one year from the date OF its adoption,
which should be approved by ordinance or the
Council, and in case of failure TO make such an
agreement, the question must be submitted to
arbitration.
AS TO the validity of the terms, and especially
OF Section OF the ordinance OF 1870, L would
respectfully suggest that, under the power dele
gated by the State in the act of 1865. it is made
the duty or the Council to impose such restrlc-
tons upon the water company as shall protect
said city and its Inhabitants from undue or ex-
cesstve charges for water provided such restrlc-
tons shall not reduce the income or said COM
pany below dividend OF 10 per cent, after the
payment OF repairs and expenses, ana that, I'M
der this language the city had, and has, no right
whatever to delegate such authority TO arbitra-
ton or to limit the city in its power OF imposing
such restrictions to an agreement which must be
essented TO by the company. While
the State las given the city pow
er to impose such restrictions, not
only ia it beyond the power of the city to dele
gate such authority, but in making such restrlc-
tiOns they should he definite, unambiguous and
certain. Accordingly, the limitation which pro-
vides that the rates should not exceed those OF
other cities OF the same population having as
efficient water-works, is so impractical and un-
certain as, i'll my opinion, TO be void. As ques-
ton OF practical benefit to private consumers,
however, IL Ia very APPARENT that, with the 10
per cent. limitation placed upon the Council by
tha.o Of ola tr rod IN
rates Is absolutely destroyed. Indeed the COM
pany itself long ago placed 1t rates far below the
lowest point In view OF the 10 per cent provision
referred TO. which the Council itself has the
right 10 fix. L am informed, upon authority
which regard as altogether worthy and reli-
able, that the present company during It's ex-
istence has mover reached even a per cent.
dividend. Therefore 1t would probably be III
advised to change the method OF liking rates
from that provided in the contract and &c
Quiesced IN Dy the company.
l wish, also, to express a doubt as to the
power OF the city TO grant charter to any cor
poratiOn which may be considered In the nature
of a perpetual grant, incapable OF amendment.
The franchise In question, however, Is limited,
FIST, BY the original statute OF 1863, under
years, and its rights will expire in 1915
and, secondly; by "a. a provision n I'M IN the
purchase the plant OF said company within
twenty five years from the company's organiza-
ton. which is well-nigh expired. and by the
language OF the ordinance OF 1870. where 1t is
agreed that the city at any time on giving six
months notice. shall have the right TO purchase
said plant at such price as may he agreed upon
upon between the city and the company. and,
In case of disagreement, that the price shall be
fixed by arbitration. so far as the term OF the
contract be concerned. therefore, L see no
ground upon which the franchise could be de-
clared void. unless it might be regarded
reasonable, q decision which l would consider
as altogether imprObably.
Aside from the conclusions above given. wish
to call attention TO the desirability of incor-
porating at full length in any contract now
made with the water company every rlgnt
given. or duty imposed. which may relate TO the
subject, $50 that such an instrument shall stand
In lieu of all other ordinances or contracts what
soeyer, heretofore passed or agreed upon 10 the
end that the cfty, the water company ana the
public may knew where, in what document, and
within what limits these rights and duties are 10
be found. BY that the use or that dangerous
and uncertain clause, "and thereafter until ne W
contract shall be made" heretofore employed,
may be avoided, and the city be left, at the
expiration of such period. in an attitude OF ex'
act equality with the company.
In conclusion the committee recommend
ed the return of the contract to the board.
TO be amended III two or three particulars.
First. that clause should nix the max
imum rates to private consumers, and be
suject to change from year to year; second.
that the clause which says the contract
shall be In force until Its expiration and
thereafter until new one shall be made
should be- modified by adding: Provided
further that this contract may be termi-
nateu Dy tDt DOaTO vi uDuC w VI hS az any
time after the expiration of the hxed term
OF years for which IL Is made by the said
board giving to said company written
notice of thirty days"
These are about the only changes recon-
mended by the committee.
The report was adopted without discus
sion.
Will the Dive he Regulated?
Once again the Legislators of this city
have been called upon to wipe ont an evil,
but instead of doing tins they stand on the
brink of the precipice and shake hands
with the "old boy"
A majority and q minority report ema-
mated from the Iabarynthine recesses of the
committee on sewers, streets and alleys
last night regarding the ordinance intro
duced by Mr.. Young TO annex Kissel's place
north of the city.
Messrs. Costello and Young recommend
ed in the majority report, that the Ordi.
nance be passed, while Anton Schmidt SUBJ
mItted minority report. Dir. Schmidt.
who is in the dive" business himself. did
this for reasons best known to himself,
His report consisted of an elaborate remOn.
STRANGE. signed by 5. I'll. Wright. William
Selklng and Z. Fred Kissel Or these gen.
tlemen. Schmidt included. three. at least.
are in the liquor business. The remon-
STRANGE tries TO tell the citizens of In
dianapolis why 1t would be q
detrimont to the city to annex
been read the liRhtnlng-chenge Olser
moved that the minority report be adopted
A few weeks ago Dir. Olsen made speech
favoring the annexation. HIS motion was
lost. when put TO vote, and the majority
report was adopted. 1t is surmised that