Great Falls weekly tribune. [volume] (Great Falls, Mont.) 1894-1???, 1895-09-06
FIVE HUNDRED THOUSAND
Dollars Is the Price for Which tn,
Great Falls Water Works
VIII Sell
Its Belongings to the City-President
Phelps Makes the Offer to
the Council.

The city council met Tuesday in the
office of the Great Falls water works tc
consult with President Phelps of the
water works concerning his proposal to
sell the plant of his company to Che city.
Mayor Webster was absent, but all
aldermen were present. The city attor.
ney and Attorney Leslie, representing
the company, President Phelps and Sec
rotary King of the water works and re.
porters were present.
Mr.. Phelps stated that, in order to
show the basis for the proposition which
he submitted at Saturday nights meet
ing of the council, to sell the entire plant
real estate, franchises and good will of
the Great Falls water works to the city
of Great Falls for such sum as the reve-
nues Of the company latter deducting
the actual operating expensee) viii! pay
6 per cent interest," on, payments to be
made in cash or bonds of the city at par
in such manner as may be hereafter
agreed upon, he had taken from the
books of the company figures showing the
revenues of the company. the ratio oil in
crease in revenues at the present time.
and the operating expenses. These rev.
enues he did not expect to remain the
same; even if the population of the city
does not increase, the will in
crease, without additional expenses, az
lawns are made and homes are fitted
with better water facilities, go that ia
five years he would enjoy an annual rev.
enue OF 100000, Every year increased
the revenues from the plant and. as
every court will consider the revenues in
determining the value TO be placed upon
the plant. delay would cost the CITY
thousands Of dollars.
His books showed that the revenues
Of the company in force at present are
&-5,932: revenues from irrigating con-
tracts, a~l,9S6.95; annual hydrant rental
from the city, 3l1,73O; approximate reve-
nues, building purposes, $500; approx
mate revenues, tapping mains, Sl0O;
total, S46,o9o91 operating expenses. in
Guiding taXes. 5l2,J00; profits, $34,098.9J.
AS he could sell his securities at 6 per
cent, he estimated the profits, 334,098 %,
at O per cent Of the value Of his plant,
S5G8,315.S3. However, he would
sell to the city for 100000.
Thus the city would save 6 per
cent o n 5~G3.3lJ83 or $4,000. The city
would also gaYe $500 yearly on taxes,
which the company paye; $500 on IL
censes; 5000 on rent, by the wRterworks
superintendent Of the city having the
samo offices rs other city officers, and 5000
attorneys fee per annum, all Of which
the w~ateTwCrks now includes in oper-
ating eXpsnsea. This would be a total
of $1,000 saved, enabling the city to re-
ducc the rates TO consumers 20 per cent.
In many cities the chief Of the fire de-
partmsut la also superintendent If the
waterworks. If this plan was followed
in Great Falle, the salary Of the euperin-
tendent, an item which Mr.. Phelps did
not include in the amount the city would
save, would be saved.
The annual revenues have increased
since Jan. /. 1895, 6l,52l30, and the pro-
portionate increase would be greater in
the future.
After Mr.. Phelps had stated his prop
%osition, he spent several minutes in re.
peating items for the benefit of the
aldermen and in calculating the
methods by which a saving TO the city
would be effected if the sale was made,
after which the council adjourned to
meet Wednesday evening in the council
chamber.