Kansas City daily journal. [volume] (Kansas City, Mo.) 1892-1897, 1896-08-06
the CASE OF THE WATER surrLY
ron KANSAS cry. KAs.
RIDICULOUS RATE PROPOSED.
An OFFER or ONLY ONE-rouRTH OF
THE PRESENT PRICE.
The Hoard Of Public works said To lie
Considering IL Hate That Wouid
he - Loss to the City--CRsc
Deferred for the Cnun-
scfor's Opiuiou.

The board OF public works held an exec
utivc session yesterday to consider the
| question of reducing the rates paid by the
Metrtuolitnn Water Company for the Kan
sas City. kas.. supply The whole matter
was again deferred until the return OF city
| Counselor McDougai from the West.
under the terms OF the decree OF the cir
cult court OF appeals the company now
| pays $50 per million gallons OF water. This
| contract Is to be in force for five years and
| Is not to be annuled BY the company with
| out wears notice to the city OF such In
ten,ion. The company has offered TO pay
tIio or one-fourth the present rate The
board OF public works has so far refused
to consent TO such a reduction, but 1t Is
stated that the board has practically
agreed to lower the rate to $3.50 per mill
ion gallons. The difference between these
two rates amounts to about $4,000 per year.
The city now resolves about $500 per
month from the company at the $50 rate.
II this rate is reduced to $3.50. the city Will
receive less than $3.50 per month, and II
the company's figures are accepted the city
would receive but $500 month.
At the meeting OF the board yesterday
sentat!ves OF the company were present.
They repeated their offer of $50 per million
gallons and threatened that II the rate was
not made the company would build sys-
tcm OF IT'S own and deprive the city of Its
present revenue.
Chief Engineer Pierson, OF the city's
plant. was called in by the board. lie
demonstrated that the actual cost OF fur
nIshirg the water was 1926 per million
gallons, and that the city would lose money
even at sl.jo TO say nothing of the COM
pany's offer of $3.50. Mr.. Person answered
the threat 10 build a system by showing
that the interest on the amount of money
necessary 10 construct such system as
would be required would amount to far
more than the difference between the city's
and the present rates.
C. 5. Squier, assessor and collector OF
water rates. submitted a strong letter, In
which he raised an interesting and I'M
portant point. He entered into the details
OF the contract between the company and
the city, as laid down by the decree OF the
circuit court OF appeals, under which the
city got the works. lie pointed out that
II the city reduced the rates al all without
the consent OF the court II would be an
nrlling the contract and grave legal COM
plications might arise by this abrogation of
lHf uttT't OF inc tflDUHul OF Tllll resort.
After considering Mr.. Squier's letter the
board deferred action in the whole matter
until City Counselor McDougal returns
from the West. when he Will take up the
legal questions entering into the matter
y prominent official OF the water works
department said last night
y am at a total loss 10 understand why
the board should be so desperately bent on
reducing the rates to the water company
when there Is not the slightest necessity
Of 50 doing. The decree of the court of
appeals says that for ilye years, unless
one years notice of annuling is given, the
city SHAH collect $50 per 100000 gallons
from the company. Now the board has
than half, and 10 furnish water for Sl2.5O.
Mr.. Pierson stated To the board to-day
that II cost the city Sl3.s6 to furnish the
water. The price might be shaded IA few
low as Sl2.5O, which Mr.. longwell claims
can be done. But granting that this is so.
and that the board can lower rates with
out vitiating the decree of the court. and
out the consent OF the council-will some
one tell me where is the sense of the city
furnishing water ut cost, II not at an ac-
tual loss? Why Is the board bent on tax
ing money out of the city's pocket?
The board seems TO 20 on the SUPPOSE
ton that II can reduce rates without con-
suting the council. ! doubt IL the decree
of the court is thoroughly understood by
ful whether the city can chanre the con-
tract without vitiating II, and endanGering
the security furnished by the company that
u new system will be constructed. Mr.
I.ongwcll the superintendent, figures that
water can be furnished for $3.50 II the
principal and interest on the water works
debt is not figured in, on the ground that
the business OF the city, with the city con-
meet all these expenses. That does not
sound like business to me-