The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-25
PROPOSED PURCHASE OF WATER
WORKS..

WORKS.
The proposed purchase of the water
works by the city involves several con-
siderations. The first question to be de-
cided is whether, if all the conditions
favored, it would be desirable for the
city to own its water works. The
Journal believes that it would be. The
objections that lie against the munich
pal ownership and operation of some
other kinds of property, such as street
railroads for example, do not apply in
the case Of water works. In this case
the number of employees is small and
the danger of making the property
political machine is SO slight that it
may be said not to exist at all. The
sentimental argument in favor Of
municipal ownership of water works is
strong Water, like air, is an essential
of life and health. and there seems to
be an obvious improperly in allowing
the supply in any city to pass under the
control of a private corporation or to
be source of private gain If it can
not he made as free as air it should at
least be owned by the people in their
corporate capacity and furnished as
nearly at cost as possible. Finally, the
Journal understands that in every in
stance where municipal ownership of
water works has been tried it has
worked well. inuring to the benefit of
the people in their individual as we'll as
their corporate capacity. For these
reasons, if it were original question
without any entangling alliances. the
Journal would say the city ought to
own it's water works.
The other considerations relate to the
feasibility of the proposed purchase.
first, whether under existing conditions
it can be accomplished at all, and, sec
ond. whether it can be done on terms
that would commend it to the judgment
of conservative business men and tax
payers. And here it is to be remarked
that the city is master of the situation
to the extent of having an option on
the water works at their appraised
value at any time after six months
notice. This provision is in the COM
pany's charter. which further provides
that in case of such proposed purchase
the city shall select one appraiser, the
company a second and these two "a
third, whose valuation of the plant
shall be the price at which the city may
take it. There is, therefore, no trouble
on this score; the city can practically
force the company to sell If it wishes to.
And it should be added that, consider
ing the present price of iron pipes and
other equipments, it is probable the
plant would never be appraised lower
than it would be now.
A more formidable difficulty is in the
city's Indebtedness. Under the consti-
tutional per cent. limitation the maxi
mum of debt which the city may incur
is about $2,000,OOO It's present debt is
s1,Ss4,50O Really it is $500, 200 less than
this, because this statement includes
the Belt railroad debt for which the city
holds that amount of Belt railroad
bonds which are as good as gold and
would be paid tomorrow if the city so
desired. On it's face, however, the city
debt is within about $4,000 of the con-
stitutional limit. The water works
plant is estimated to be worth from
100000 to $500, 200, with a bonded in
debtedness of about $1,000,000. There is
some doubt whether. in case of pur-
chase the city would have to assume
this Indebtedness or not, but in any
event special legislation would be re-
quired to authorize the city to exceed
the constitutional limit of indebtedness.
No doubt. however, this legislation
could be obtained on a proper showing
that it was the desire of the people and
to the interest of the city that it should
be granted.
There can be little doubt that the
purchase would be a good financial
transaction for the city, and that the
investment would prove more and more
valuable with passing years. The city
is very large patron of the water
works. The recent report of the con-
troller showed that for the four months
from Sept / to Dec. 81, 1894, it paid
for water $27, 29O, or at the rate of $S1,S70
a year. During the sprinkling season
the average would exceed this. The
saving of the city's water bill would
pay the interest on a large investment
and if it owned the works it could make
good use of much more water than it
uses now These and other points in
volved are worthy of careful considera-
tom