The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-07-20
THE WATER WORKS QUESTION.

There are indications in some quarters of
disposition to rush the water works pur-
chase scheme through without careful in
vestigation of the various questions in
VOWED. This disposition should not be al
lowed to prevail. There is no emergency in
the matter and no occasion for hasty or
precipitate action. Municipal ownership of
the water works is only desirable if it can
be accomplished on terms advantageous to
the city, and any proposition on the subject
should be thoroughly investigated as TO it's
legal and financial aspects. The pending
proposition, formulated and submitted by a
New York lawyer, really emanates from the
company and doubtless covers a large mar
gin of profit both to the company and the
promoter. The city is not obliged to ac-
cept that proposition nor any other the
company may make, and should not without
being thoroughly satisfied that the terms
are the best obtainable. The company's
charter contains the following provision:
Section Z. At any time, on giving six
months notice, the city shall have the right
TO purchase from the company all the build
1ngs, machinery and pipe of said water
works, and ali its corporate rights and
privileges (but not including any franchise
herein granted or that may hereafter be
granted to the company, nor including any
estimated value of this charter) at such
price as may be agreed upon by the Com
mon Council and the board of directors of
the company. In case of disagreement be-
tween said parties the price shall be ascer-
tanned by five dsintereSted persons, nom
residents of the city, two of whom shall be
chosen by the Common Council, and two by
the board of directors of the company, and
the fifth by the four thus chosen. Said as
certained price shall be subject to the ac-
ceptance or rejection of the Common Coun-
Gil. The company shall not be allowed to
sell to any person company whatever
without first giving the City Council the re-
fusal to purchase at the same rates as
offered to others: Provided That no pur-
chase shall be made by the City Council
until the terms agreed upon or settled by
arbitration. as aforesaid shall be ratified
by majority of the legal voters of the
city at special election to be held for that
purpose.
This section provides one mode in
which the water works may be purchased
by the city. If the proposed plan of acquir-
ing the property is a, purchase it is illegal
in that it disregards all the provisions of
the foregoing section. If it is not a pur-
chase it leaves the door wide open for future
litigation. There is a provision in the city
charter under which the Board of Public
Works is empowered to purchase or hold a
majority of stock in such company, an
ii is understood that the city authorities
propose to secure possession of the water
companys plant under this provision, ignor-
ing the conditions set forth in the company's
charter. Such action might possibly raise
questions that would lead to extended
litigation. The financial part of the
pending proposition and the physi-
cal condition and money value CT
the plant demand equally careful con-
sideration. The section above quoted pro-
vides a better means of ascertaining the
value of the works than the ex parte action
of the company or the judgment of a New
York promoter. There is nothing in the
past history of the companys dealings with
the city to justify the city in accepting any
proposition it may make without rigid in
vestigation in every part and firm assertion
of the rights of the city. In short, the situa-
ton Is one in which, as far as the city is
concerned, there should be great delibera-
ton and thorough investigation of every
point by competent and disinterested ex-
pertS.