The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-11-23
Mr.. SCRANTON ON
WATER QUESTION
QUOTES FIGURES SHOWING
RATES ARE FAIR.
Meters Were Put on, He Says, to
Check the Waste of Water, Which
Had Become Enormous-Compar-
isons with other Cities--Willing
to Consider Further Reductions if
1t Can Be Shown That Present
Charges Are Unfair.

The following letter, received for
publication yesterday, explains itself:
Editor of The Tribune.
Sir: So long as misstatements con-
cerning this company were confined to
idle street gossip, 1t did not seem worth
while to notice them. But when such
papers as the Truth and the Times, and
such a respectable body as the board of
trade misrepresent us to the public, the
matter deserves our consideration and
reply. AS 1 understand them, the
charges against us are, in brief:
First-That, thinking we now have 1T
in our power to squeeze the public we
have suddenly begun doing so without
mercy.
Second-That our dividends are ex-
cessive.
Third--That by our rates we are driv-
ing manufactures away from the city.
Every one of these charges l EN-
phatically deny.
First-To the first l reply that it is
pretty safe to judge the disposition and
policy of company by its past. The
present management of this concern
has been in control twenty-one years
During that time the price of gas has
been reduced by successive steps from
SO 80 to $3.50 to 1920 to 81 to $3.50 to
$1.60 to $3.50 to S140 to $1.30 to $l.25 to
81. 20 to $115 to S1.1O, with discounts
which bring the present price of gas to
80 cents a thousand feet to large con-
sumers, and $1.0412 to the ordinary Gus
toner.
During the same period we have re-
duced the price of water for domestic
uses from SIG per annum to $12 to so
to IS to $6. Though we have had met
ers in use but a few years, yet our
maximum rate has been reduced from
25 cents a thousand gallons to 20 cents,
and our minimum rate from 10 cents to
8 cents to cents.
The price of electric street lights has
been reduced from 25 cents to 90 cents
to % cents to 20 cents.
In no instance have we ever advanced
rates on gas, water or electric lights
nor have we done so now Our water
meter rates remain as fixed in 1897.
Every one of the above reductions
has been unforced. unsolicited. and en-
| tirely voluntary on our part and in
! pursuance of our policy, advertised
| again and again, to "reduce rates from
| time to time as may be warranted by
| increased consumption" If this does
| not show continuous and steady pol
| Icy of reducing rates as fast as could
/ he afforded, what does it show? If we
I had wanted to squeeze the public, why
! didn't we begin long ago?
| l assert with emphasis that we have
| not the least objection to having our
| water rates, whether meter or other,
! compared with those of other cities of
| the same size, similarly situated, and
| dependent on equally small streams,
/ compelling equally enormous reserved
| storage.
Second--As regards dividends, the
KlOndike value of our stock, etc. the
stories in the papers are, of course
silly nonsense.
! For some years the company has
been paying dividends of to 4 per
cent. per annum, but is at present pay
/ ing at the rate of only 2 per cent pei
| annum. Our capital stock is S2,50 900
but, as the cOmpany's plant has cost
! between six and seven million dollars
and could not now be duplicated fol
that. it will be seen that our stock
holders are really getting at presen
| hardly one per cent on the cost of thell
| property. 1t is true that, year or 81
ago we increased our capital stock one
| million dollars, doing so on the prin
ciple we'll understood by business men
that it is not wise to have the stocl
and bonds of a concern too far below
its actual cash cost.
But, what of it? Who was hurt b!
it? Certainly not the public, as there
was no duNdllCc III rates, anu the tbIl
pany's earnings were not increased b.
it, but, on the contrary, diminished by
$4,000 increased state tax. The prop
erty remained exactly as before and
stockhOlder owning One-tenth of tn
concern, still owned only one-tentl
thereof, whether the capital stock wa
one figure or another.
Third now come to the charge tina
bv our rates we are not only driving
1pr ne OF, md nt1 1np n
from the city, but are preventing simi
lar ones from coming here. Especia
reference has been made to the Della
ware, Lackawanna and Western an,
the Lackawanna Iron and Steel com
pany. 1t is said that meters will rails
Delaware, Lackawanna and Westerl
from $4,000 to $4,000 per annum. Like
. wise, much other nonsense.
, Now, as the Delaware, Lackawann
/ and Western own a controlling inter
est in the Providence Water Compan,
and can supply themselves with waite
from their own concern at any tim
they see fit, I don't think the publ
need agitate itself about the Delaware
LaCkawanna and Western.
AS to the Iron company, which is be
ing driven to Buffalo by the Wate
cOmpanys eXtortions, I have now be
fore me figures made by its presen
, general manager Mr.. Wehrum, in Jan
uary, 1881, before the Scranton Stee
, company was founded. giving tn
amount Of water used by the Iron CON
pany at that time, in its mills furnace
and steel works. There is no reason I
believe that 1t is using any less waite
now. These figures estimate over 90
l 900, 900 gallons daily, part of which the
a get from us part from Roaring BrOol
So far as they get 1t from us they pa
1000 year. If in Buffalo, they wer
to get 10000, 900 gallons from the cit
: water works, at the famous cent RAJ
of which we have heard so much,
would cost them si00 per day, or owe
$4,000 year, even though their bias