The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-03-02
MET FOR THE LAST TIME
The Special Water Works Com
mittee Makes It's Report.
|MR. PHELPS PROPOSITIONS
to Analysis and Rejection Ad-
-..Vised-The Two -Erec-
sas- ton of an Independent
Plant Recommended.

Great Falls, Mafcn l.-1eStefady
evening the special committee which for
nearly year past has been considering
/ tha question of water supply to be
owned and controlled by the city, met
fof the last time. All of its members
were present and, while the session was
L secret in so far that the public was ex-
1 Guided Judging from the results it must
have been one in which there was much
Z careful deliberation. 1t adjourned short
ly before the meeting of the city coun-
1 CHI and a copy of its report was FUR
| niehed to the Standard. The full text
\ of. the latter is as follows:
Tosthe Honorable Mayor and City Coun-
ell of the City of Great Falls, Mont.
Gentlemen:-Your committee would
report that in pursuance of its instruc-
lions it has carefully Investigated the
4 proposal of the Great Falls Water
Works company, submitted to 1t for IN
Spection and report.
Feeling that this offer of sale could
not be seriously considered, for the rea-
son that the purchase price was,
through the nature of the offer left
complete uncertainty, and for the fur
Their reason that the value placed upon
the plant and franchise of the company
by Mr.. Phelps at the time of his pur-
chase from the old company is certainly
no more a basis which the city could
accept as -infallible in its estimate OF
the present value Oh tHdl pldll dhu
franchise than would the price paid Tor
city lots or machinery five or ten years
ago serve as an accurate basis upon
which to estimate their present value,
your committee asked of Mr.. Phelps
more explicit offer and has received
from him the accompanying communi-
cation
This communication embraces two al
tentative offers. The first, virtually
duplication of the offer submitted TO
this committee by the city council, but
made more explicit through the state
mept that the purchase price would, un-
der such offer, reach the sum of $44b,oOo.
This offer also further provides that If
the management OF the water WORKS,
after purchase by the city, be left in
the hands of Mr. Phelps, as chairman of
the board of control, but who, as chair
man. is to have absolute power to reg
ulate the policy and management of the
water works. he will guarantee that for
7 the first year the net return above m
terest and operation charges snail
amount to $1,000 and that the net re-
turn of each of the two subsequent
years shall amount to $1,000.
The second offer agrees that If the
city will pledge itself to cease all agi-
tation of the water question until the
expiration of the present franchise and
contract. and will Furthermore consent
and request that the assessed value OF
the property of the water works shall
more, then the Great Falls Water
Works company will reduce the annual
hydrant rental, as it stands to-day, by
$2,6S2.
Before entering into a discussion of
these two offers your committee de-
sires to state that under its former re-
port it gave. with the reasons for its
belief $4,000 as the maximum figure
which the city would be justified in
paying for the property of the water
mo- n nral4 a +
ter most careful and exhaustive in
vestigaton of the whole situation, and
your committee has discovered no rea-
son for any change in the opinions then
given.
The first Of the two proposals now
submitted by Mr. Phelps calls for a pur-
chase price 100000 in excess of the
amount which we have already stated
we believed to be a liberal offer. II
would mean the payment of sum fol-
the plant two and one-quarter times
the amount for which Mr. Phelps has
himself admitted before your commit
tee that plant could to-day be dupli-
Gated, namely, 100000.
Assuming that the estimate given by
Mr. Phelps of the net revenue of the
plant. In the event of the city's pur
chase at the price named, S445,000, /!
correct, it must be borne in mind tina
the taxes and license now paid annual
ly by the water works would cease, or
ceding to the water works the mos
favorable aspect of its franchise anc
contract, S1,960 per annum during thu
remaining years of the life of that fran
chise. and contract, or total of S21 $50
This. IT must also be remembered, is oil
the 1897 assessed valuation of s130,000
while in reality the property should
certainly not be assessed for less thai
100000. in which event the taxes pay
able to the city would be corresponding
~ increased
At the expiration of the IL years then
the city will find itself in this position
The net revenues of the plant Woul'
have been, according to Mr.. Phelps
IS 900 for the first year and $1,000 TO
the remaining ten years, or a total o
$4,000. The city has. during this time
lost at least 1860 per annum in take
and licenses. or a total Of $2l $50. 1t
net return may Their be regarded a
tthe difference between the net revenue
OF the plant, $11s,000 and the loss i
taxes and licenses. $21,560,) 1854
Deducting the net return, $96,440 fror
the purchase price $445.000, the cit
would then. at the expiration of the l
remaining years of the franchise an
contract find itself possessed of a plan
for which it had paid the net sum @
$34S, $50, but which, without making an
allowance whatever for depreciation
could be duplicated for 5000 600.
These figures it should also be born
in mind, contemplate no reductlo
whatever in the hydrant rental. or tn
rates TO be charged private consumer
nor. in view Of the necessity undo
which the city would be placed or pro
vidine q sinking fund for the redemI
ton of the s4450o0 in bonds given fo
the plant, would any such reduction }
for one instant possible.
All of the foregoing figures are, mor'
over. based upon the suppositien tina
the existing plant i complete ana al
quate and that no alterations, improve
ments or betterments will be require
during the coming II years, whereas. ]
reality. te do away with the prese-
most objectionable feature Of eXceedns
~ dirty water with which the privat
consumer is now served for a period
not less than three months out Of eac