Great Falls weekly tribune. [volume] (Great Falls, Mont.) 1894-1???, 1895-09-06
WATER WORKS PROPOSITION.
1t Is Read at Il Special Meeting of the
Council-Discussed by the AL

~ v "caAS 80
answer to the request of the council.
stating the terms and conditions on
which the company would be willing to
sell to tue city its plant and franchises.
l.. G. Phelps, president of the com
pany, stated that his company did not
wish to sell, being we'll satisfied with the
investment, but as the city council had
expressed IA desire to buy, and the people
had the right to condemn, he was willing
in order to avoid litigation to make the
following proposition, which he had
placed III writing:
GREAT FALLS, Mont, Aug. 81, 1898.
TO the Honorable the Mayor and City
Coulcll, Great Falls, Mont:
OBSERVATION-DISCLOSURES receipt Of
your resolution III which you set forth
that it is The Wisn and intention of the
city to purchase the plant and fran
chises of this company and that you
wish to have US name you terms and
conditions uu which we will sell the
same TO the city, we beg leave TO state
DIS follows:
The present owners of the Great Falls
water works plant and franchises pur-
chased tbs same about three years ago
and paid for the plant nearly double
what it had cost to construct it up to
that date.
The purchase was made based upon
the earning capacity Of the plant at that
tint and with the expectation that Great
Falls would increase very rapidly in pop
ulation and hat the revenues of the
plant in the near future would make the
purchase of the same d safe and profit
able investment.
In order to keep pace with the rapid
growth Of the city and to place the plant
in such shape that it could, beyond a
doubt, meet all Of the requirements Of
the franchise and the wants of the peo-
pie and city, the present owners have
purchased a new pumping engine and
boiler and have erected them, laid a new
eight and ten-inch main out into the
Boston and Great Falls addition, and
have purchased the pipe necessary to
lay a sixteen-inch main from our pump.
ing station to connect with the mains in
the city.
With the completion of the above i'm
p~rovements and the purchase OF a High
Duty pumping machine, the plant will
have a capacity sufficient to supply a
population of at least 10000 people, with
no further expense for betterments ex-
cept the laying Of a few small lateral
mains as the city increases in size.
Up to this time the plant has not paid
one cent of dividends, the profits having
all been invested in extensions and bet
terments to the plant. Now that the
Improvements are about all completed
and the plant is on a sound paying basis
and the fact being assured that Great
Falls is destined to become a large city,
it ls no our wish to dispose of the
property.
Bur, as experience has shown, it is
best for A municipality TO own and con.
troll It's own water supply as soon as It's
finances ard future prospects will per
init, and as it appears to be the desire of
the council and Il number Of the tax
PAYERS that the city should now purchase
our plant AMI franchise. we herewith
submit the following proposition:
We will sell the entire plant, real
estate. franchises. and good wilt Of the
Great Falls Water works 10 the CITY of
Great FHiis for such sum as the rye
nues of the company (after ~deduciing
the actual operating expenses will pay
d per cent interest on. payments to be
made ia cash or bonds Of the city at par
IN such manner AS may be hereafter
agreed upon. Respectfully submitted,
GREAT FALLS WATER WORKS.
BY f. W. KING, Secretary.
In further explanation Mr.. Phelps
said that in the present offer be bad
made no account Of the value Of the
franchise or the increase in profits,
~ ,i,I, ~ 81. "a, nHapt, ~, lIl an
tract in tho years to come before its ey-
piratioD. 1t was HE desire TO make an
offer that would commend itself 10 the
people who you'd finally pass On it, II
it was accepted b could open up his
books for the ilsl ion of the council.
tie wound eLOw To ,.,em that they could
save in taxes and licenses, which the
company has to pay but which the city
would be free FROM, R sufficient sum to
make IA deduction Of 10 per cent in water
rentals, and still have sufficient revenue
to meet the interest on the bonds for the
purchase price, leaving all gains in
revenue DIS net profit, If the council met
him IN good faith on the basis outlined
10 hle proposition ho would meet them
half way. Unless this was done he would
not however bo willing 10 show up his
BDb.S 40 Ilt tDiUcli or COIiliILitlHt.
Considerable discussion cnsucd Matt
Damn desired the appointment Of the
| whole council as Il committee 10 talk
over The matter with the company, Al
doaman Fitzgerald Thought tine propo-
aition airouII be made in the shape of a
lump sum. Aldermen Young and
Holmes Thought that a committee of
three should be appointed to ascertain
more exactly what sun would be in
VOWED in the cOnpany's proposition and
report to the whole council later. On
vote the motion Of Alderman Dunn to
investigate the matter by q committee
composed OF the whole council prevailed
over the amendment of Alderman Young
to have a committee undertake the task.
Mr.. Dunn, in supporting his motion, re
marked that there Wae 4 whole lot of
money at stake and there would be less
chance for chargcs Of bribery il
the entire council acted in the matter.
This brought out a rej0inder from Al
defman Young, and the remark from Mr..
fhelps that the council had little to do
with it, except to decide whether il
ehoul1 he aubmittel IL the vote of the