The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-06-14
THE OFFER IS REJECTED
THE REASONS ARE GIVEN
Ths City WIN Not Pay 100000 whsn
Thsy Oan Duplicate the Existing
Piaus for o2l6,Ooo : Advan-
taGss Of the City Plant.

Great Falls. June 13.-At 7:3o this
mittee of the whole, when the report
drawn by h special committee was
read and on motion Of Alderman Jarl
approved. 1t rea as follows:
ITO the Honorable Mayor and City
Council, Great Falls. Mont:
your committee of the whole reports
that the offer Of the Great Falls Water
Works. made through its president to
h council on the night of June 2. to
sell the city the plant of the company
for the sum Of $500, 900. a been duly
considered n its rejection determined
upon.
1T will be remembered that the report
OF the original water committee, COM
posed OF the mayor, three members of
the council and three taxpayers, ad-
vised, after taking all phases OF. the
question into consideration, an offer for
the existing plant In franchise of
$340, 900, and. at the same time, gave
at some length the reasons for It's opin-
ion. The original estimate Of the cost
OF duplicating the existing plant new
was Sis 900. while the actual value of
the existing plant. allowing a small an
nual per cent. for depreciation. was
given as @200. 900. The city has discov-
cred no reason for doubling the entire
accuracy OF these figures.
The action OF the council in deter
mining to ask authority for the ISSUANCE
of $3.50. 900 In bonds for the purpose of
constructing an independent water plant
contemplates, not the duplication of the
existing plant alone. but, in addition,
among other improvements, the con-
struction Of q altering system and
standpipe, both of which improvements
would be as necessary to the existing
plant. should II be purchased by the
city. as to the new plant which h city
proposes to construct.
That the local papers have seen fit
to denounce this as an increase of the
city's original estimate, with the evil
dent intention of misleading the public,
Is an action. under the circumstances,
entirely to hav been expected.
THE new plant proposed to be con-
structed by the city at a cost Of $3.50, GOO
would possess the advantages Of being
new, of having suffered no depreciation
whatever. of being designed according
to the most modern ideas, to serve most
efficiently, and, at the same time, most
economically, not only the present but
the future expected demands Of the city;
OF supplying absolutely pure, clear
water, the clearness of which could not
be distinguished by the naked eye from
that of the Giant Springs. The stand
pipe in the Boston & Great Falls addi-
tion would not only greatly improve the
service In the addition and at other high
points. but, acting as a cushion, would
In large degree save the plumbing of
the city from the great strain to which,
under existing conditions, 1t must be
subjected; while. instead of paralleling
several miles of the existing systems
with wholly useless mains, the same
mileage of mains could be laid where
extensions are now, or will shortly be,
needed. In short, the new plant, as con-
templated, would be thoroughly mod
ern In design and equipment. planned
to meet future as well as present needs,
and would deliver to the a
most excellent quality of water.
ITO bring the existing plant, II pur-
chased by the city, to the same stand
ard, 1t will be necessary to expend for
filters and standpipe, in addition to the
original cost of $400, 900, some $33, 200. Ex-
tension Of the present mains will ave
to be made, and every hydrant now in
use. will. with its connections, have to
be thrown out a. old Junk and replaced
with new whenever the city purchases
a steam IRE engine, which any increase
In the city's growth will make neces-
sary., A conservative estimate of the
alterations. improvements and repairs
needed to make the existing plant con-
form to the standard of h contem-
plated new plant may then be given as
not less than $50. 200. We entirely ignore
the facts that h existing plant has
suffered 10 years Of wear and tear and
consequent depreciation, that its general
design 10 not modern and can greatly
be improved upon, and assume that the
expenditure Of $50, 900 will cover all Of
the improvements, alterations and ex-
tensions needed to place II upon an ex-
actly equal basis with the proposed new
plant. We ind the first cost of purchas-
ing the existing plant win be $3.50. 900,
as compared with 500 900 for the new
plant.
with the present comparative cost to
the city Of the two plants We must,
however, equally consider the respective
ultimate cost Of each at the expiration
Of the 10 years remaining Of the present
company's franchise and contract, and
for such purpose we will assume that
the present contract will continue in
force, together with the condition Of
Of the contract period. neither Of which
assumptions are by any means certain.
Under independent construction the
condition 10 years hence will be then as
follows: independent construction-Re-
ceipts: Seventy-five per cent. OF pres
ent rental from private ave-
rage for 10 years. $50. 500; city taxes on
present plant. at assessed value of so
per cent. Of price now asked by water
company. 81, 900: city license from exist
Ing company. 500; annual tax levy for
hydrant rental to existing company,
81. es2. Total receipts per annum. $40.-
932. Expenses: Interest at 5 per cent.
on cost Of $3.50. 900. $4,000; operating ex-
penses. 5000: hydrant rental to existing
company. S17.6s2. Total expenses per
annum. 33s. $50. Annual net revenue.
81, $50; net earnings for 10 years. So. 500.
Under city ownership of existing plant.
purchased at the price asked. 500. 900.
Z to which add for improvements imme-
diately necessary. $50. 200.
Receipts: Present gross income. ac-
cording to Mr.. Phelps written state
ment OF Feb. is. 1886. $45.0 0o.
Expense: Interest on $3.50. 600. bond
ed debt. at 5 per cent. $22. 500; operat-
&c ma yo~. an 40. - IA