The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-24
TO BUY WATER WORKS
COUNCIL LEGISLATIVE COMMITTEE
TAKES FAVORABLE ACTION.
Will Recommend that the Council Ask
the Legislature for the Necessary
Power to Issue Bonds.

Messrs Young, Rauh and Allen. of the
Council legislative committee, met last
night at the Office of the City Clerk and
discussed the proposition for the city to
purchase the plant of the indianapolis
Water Company. The result of the meet
ing will no doubt be a surprise to many,
for it was decided that the Legislature
should be asked to allow the city to issue
the necessary bonds with which to make
the purchase. All three members of the
committee were of the opinion that the city
should own its water works plant The
only question that arose was regarding the
steps necessary 10 make the purchase pos
sble.
In the franchise which was granted the
water company by the city there is a Sec
ton which provides that the city can pur-
chase the plant at any time. The method
of fixing the valuation of the property is
the provision for three appraisers, one
chosen by the city, by the company,
and the third agreed upon by the company
and the city. For several years past the
advisability of the purchase has been gen.
orally agitated, but the meeting last night
is the first decisive step having that OBJ
ject in view. Be it remembered that the
action of the committee is only primary as
report will have to be made to the Coun-
Gil, and the recomme ndations will have to
be made to the Legislature by that body
Neither member of the committee expresses
any doubt but that their report to the
Council will be received with favor and the
recommendation made to this session of the
Legislature.
Councilman Rauh presented to the com
mittee an estimated statement of the value
of the companys plant and of the sum
necessary to the purchase. He estimated
the value of the plant at 100000 or $500 600,
with a bonded Indebtedness of about 81 OO0-
oo0 The city, at present, is very near it's
constitutional limit of indebtedness so if
would be impossible to make the purchase
under the present conditions Councilmen
Young and Allen raised the question, would
not the city have to assume the bonded in
qeDtednesS or million of dollars in buy-
ing the plant. Mr.. Rauh thought that such
would not be expected. He cited the pur-
chase OF the plant Of the indianapolis Cabi-
net company, which was heavily mort
gagef The plant was sold at a forced sale
by order of the couit. The purchaser did
not have to assume the indebtedness of the
establishment, as the price paid was re-
garded as all the plant was worth After
talking this point over, the committee
pany had f1oated these bonds of indebted
ness for the express purpose of frightening
the city from trying to negotiate a pur-
chase.
Mr.. Young enumerated a few of the de-
tails which would amount to "a saving t.
the city and the property owners, should
the plant become public property There
are at present about ], 200 water plugs in. the
city, upon which the city pays a tax upon
each of $50 annually. If the city owned
the plant, it would result in a saving of
something like $4,000 a year. Under the
same conditions. the city would not have
to pay for water used for sprinkling and the
sprinkl:ng contract could be let at a much
lower price. The city could also flush the
improved streets, an operation which the
present management objects to, except on
the payment of a goodly sum. Under the
present rates charged on private contracts
1T is thought the city would pay off the
purchase price and then run the works for
the benefit of the residents of the city,
making material reductions in the rates.
All three councilmen thought it would be
advanta geouS for the city to own the
plant, and the next question raised was
the power to issue the necessary bonds.
In its report to the Council the committee
will recommend that the Legislature be
asked to grant the city the power to issue
bonds for the proposed purchase. 1t is to
be clearly understood that the bonds are
constitutional indebtedness is not to be
increased beyond the limit for any other
purpose. The amount of bonds will, of
course, be determined by the price placed
on the plant, should the project be carried
will do all within their power to push the
scheme and thereby bring Indianapolis in
to the ownership of it's water works