The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-12-28
IT OFFERS TO SELL OUT
Great Falls Water Works Makes
Tender to the City.
THE BASIS OF THE DEAL
Phelps Thinks the Proposition Eminently
Fair and Disproves the Charge That
the Stockholders Have Made
1900 Per Cent.

Great Falls, Dec. 2T.-There was
full attendance at the city council meet
ing tonight. w. III. Sutherlin, Mon
tana's commissioner to the Omaha eN-
position, by letter requested a sample /
of Great Falls building stone. The re- I
quest was referred to the city engineer. |
The ways and means committee re-
ported in favor of Great Falls join /
ing the American Municipal league as |
the best means of obtaining valuable |
information on city government from |
time to time. The committee embodied
it's report in the form OF resolution
which was passed. The auditing COM
rnittee reported favorably on a claim
for $4,000 in payment of the sem-an-
nual interest on city bonds. The city
engineer reported the cost in his ONCE
of the improvement in district No. /.
The amount was $500.
L. G.. Phelps then appeared before
the council and made the following pro-
position to sell the Great Falls water
works to the city:
ITO the Honorable Mayor and City
Council, City of Great Falls, Mon
tana:
Gentlemen: Your different COM
munications are received. The Great
Falls water works will sell its plant
to the city, the value to be determined
as hereinafter stated. Taking the in
vestment of L. G. Phelps, made in Oc-
following propositions:
''First-An accounting shall be made
of the cost of each block of stock
bought of the original owners by the
Phelps interests. and the amount paid
for the same proved. with the excep-
tion of one block Of stock of $4,000
which shall be understood to be worth
par.
"Second-From the date of the pur-
chase of this stock 10 per cent semi
lixr hon hn nc
the investment. and a salary of $4,000
year shall be paid for the services
rendered by l.. G.. Phelps since he took
hold of the company in October. 1872
''Third-All revenue received by the
present company shall be accounted
for, and the money so earned inure TO
,lre benefit of the city from the date of
II he purchase by Phelps ct al. and the
ommittee to whom shall be submitted
1he price to be paid for the water
plant shall have authority to accept or
reject items charged except attorneys
fees. which in their judgment are not
clearly shown to have been spent for
the purpose Of protecting the property
and contracts of the company. The
committee, however, shall accept the
accounts of the Great Falls Water COM
pany at the date of the purchase of the
stock of that company by Phelps ct al,
In 1892, 1t being just. however, to the
old company to say that their affairs
so satisfactory that the present owners
We're content to buy.
..Fourth-All moneys received by the
stockholders from the sale of bonds of
the Great Falls water works, together
with interest at 6 per cent, to the
date of the sale of such bonds. to be
deducted from the cash shown to have
been invested In explanation, the
stockholders received upon assuming
the debts of the old company, bonds and
IA EkaFs
to account for the proceeds Of the sale
of bonds is meant to further show that
all money is to be absolutely accounted
for. and the present owners are only to
receive their cash with interest now
shown to be invested in the plant.
..Fifth--It is proposed that in order to
arrive at an agreement as to the
amount due the company, committee
of three shall be appointed, one to be
named by the water company. one by
the city council and q third by both.
The two failing to agree, that the judge
of the eighth judicial district shall be
the third man.
"Sixth-The only condition attached
to this offer is. that the council agree.
that upon the receipt OF the report Of
the committee as to the amount held to
he due to the water works. the sum so
agreed upon be submitted to the tax
payers without any other question
concerning water works for their &C
tees report asserts that the stoekhold-
ers of the company have made about
1900 per cent on the investment. With
out even replying to the utter absurd
tiles of the report. the company's ten
der to the city of its property at its
actual cost. with 10 per cent interest
forever sets at rest such mls-state-
ments
Briefly put in order that no chance
may be given to the city to ever agair
with any show of fairness claim thai
the water company is unreasonable, II
has now shown its willingness to par
with its property. and offers to act ir
the capacity of agent, giving the city
the benefit of the bargain; accounting
for bonds sold at the price they brought
crediting interest on such bonds from
the date of sale to the present time
at per cent, and in fact. giving tn,
city the benefit of all profits from fht
date of purchase. receiving in return
only the money invested with 10 pc
cent interest. and the compensation a.
stated for the services of the president
This offer is made to avoid the DOS
sibility of ever saying the company ha
refused to sell on fair terms. and |
possible to reach all understanding
Failing IN this the company feels tina
it has discharged its duty to the com
munity. and that the responsibility VII
rest with the council.
aGREAT FALLS WATER WORKS.
L. G. Phelps. President.
The council then went into the com
rnittee Of the whole When 1t returned
it recommended referring the PROPOSE
ton to the special committee on IN
water works question composed OF tn
mayor and Aldermen Jarl. WadsWortl
and Mcdonnell and as representative
of the taxpayers. r. s. Ford. q. "
Rinker of the Tnwnsite company an
J. n Bridges with instructions to Re
port i'm one week. The proposition ]
made in answer To the city's offer @
s34o 900 The council then adjourned
Toughie's New Bed.
Great Falls. Dec EFF dogs hay
.-,r ,,.1.,,7rx- fcr dates AT all the