The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-04-27

city of New Haven could buy it out at
the end of certain period, for the
amount of money actually invested in
the enterprise at the time of proposed
purchase. Later on, the general assem-
bly, unwisey Incorporated the Fair Ha-
ven Water company, and gave it a right
4 to compete with the New Haven Water
/ company. The struggle was long and
bitter. The Fair Haven company could
get money only at the rates of hazard
GUS competition; its stock was all iva
ter" ditto to great extent its bonds.
Finally, after years of struggle, the
Fair Haven company got its line of pipe
into the city of New Haven as far as
the Insurance building on Chapel street,
and was ready to do very little some
thing towards supplying the citizens
OF New Haven with water, from its en-
trance into the city at West Chapel
street to the Insurance building at the
corner of Church and Chapel streets.
Then occurred the inevitable combina-
ton. The Fair Haven Water company
was absorbed in the New Haven Wa
ter company, and the 'watered" stock
and bonds received due recognition in
the combination.
Time went on. The stock of the old
company was bought and sold in New
Haven, held by widows, minor children
and estates-a gilt-edge investment,
holding the savings of great many
people. The time arrived when the city
could buy the property Of the New Ha-
ven Water company on the terms pre-
scribed in the charter. A committee
was appointed by the superior court,
consisting of the present Chief Justice
Andrews, the present Judge Hammersly
and one other person, whose name I
cannot recollect. Upon investigation
they found this water and it's extent,
IN the operations, of the Fair Haven
Water company, and that the New Ha-
ven Water company had never replaced
this water by property, in any man
ner and that the city of New Haven had
the right to buy out the entire property
for sum several hundred thousand dol
lars less than the face value of\the stock
and bonds of the company
What happened? For years the stock
had been selling in the market at certain
rates. A great majority of the citizens
of the city said that, no matter what
their technical right under the charter
might be, the mischief Of the watered
stock was beyond remedy. 1t seemed
wrong to take from the then holders of
the stock sum which, If I recollect
rightly, was equal to about one-fourth
of its face value. BY decisive majori-
ty, the citizens of New Haven voted not
to buy the property of the New Haven
Water company at the price for which
1t, could be bought, and in the confusion
the whole matter was relegated to pos
terity.
If there had never been a Fair Haven |
Water company; If there had never been
a question OF water in the stock or OF
injury to honest, unsuspecting holders
Of stock of the New Haven Water COM
pany, the city of New Haven would |
probably have awaited itself of its char
tered rights and taken the title to the
works Of the New Haven Water compa-
ny.
The lesson of this Illustration is too
obvious to need further comment.
7. With reference to what is the poll
cy of the Southern New England Tele-
phone company, commend this Ian
guage of President Tyler:
II do not think that telephone COM
pany any more than any other quasi
public corporation, should be allowed to
make extravagant profits. T think they
owe duty to the public in response to,
Or in acknowledgment of the fact that
they are enjoying very large public
franchises. | think that company
making fair return upon its capital,
with an income sufficient to enable it to
keep its plant in condition which will
make it sufficiently remunerative, to
BRING in the new capital for expenditures
hat the development Of the business re-
luires, Is doing all that is required Of it.
That has been the theory upon which
our company has been managed for the
asst ten or fifteen years."
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