Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-07-10
WATER COMPANY'S PROPOSAL,

enue, and not less tan per cent on
the new capital invested.
In presenting the above to the COM
mittee Saturday evening there was
considerable informal talk both by
president Van Worst and the members
or the committee. The facts were
brought out that there are outstanding
Sl50,000 of first mortgage bonds and
$350,000 of second mortgage bonds
against the property of the water COM
pany. This sum represents cash put
into the plant and the holdings are
widely distributed, largely among peo-
pie who cannot afford 70 lose their in
estment. The yearly earnings of the
water company are about 1000.
After paying expenses of operation
and the absolutely necessary better
ments and repairs, and interest on the
first mortgage bonds of $150,000, there
ing for the holders of the $350,000 in
bonds OF the $4,000 income, all ex-
cepting the interest on the bonds and
less than $1,000 expended for salaries
and expenses of general officers, re-
manned in Ottumwa, being expended
for labor, fuel taxes and general op-
Grating expenses. The salaries of the
general officers last year amounted al
together to $482. Nearly 100000 of
the $150,000 of first mortgage bonds
represents the expenditure which was
made three or four years ago for the
new filter plant and other improve
ments which were made by the COM
pany at that time, relying upon the
good faith OF the city of Ottumwa.
These Improvements were put in at
the request of the city and certainly
no one would suspect that the COM
pany should consider seriously the
city's proposition of $65,000 for the
whole property, which does not repre-
sent the amount actually expended for
repairs so recently, as noted above.
In reply to the question of mem
ber of the committee as to what
would be the lowest price that the
water company would name for it's
property, Mr.. Van Worst said the title
to the company was III such condi-
tion that no sale could be made with
out the consent of all he bond hold
ers, unless the city wishes to pur-
chase the property subject to the in
debtedness of practically 100000 now
standing against it or thru the med
ium of another foreclosure. 1t was
practically impossible for the COM
pany to make proposition to sell un-
der existing conditions, but the COM
pany stood ready and willing to meet
any reasonable demands that the city
council may make with regard to spe-
cific Improvements and extensions of
the system, provided reasonable time
be given to do these things. In gen.
eral way, the company's ideas upon
this matter, were outlined in the COM
munication which is publishd here
with. Mr.. Van Worst stated that
where the provisions were indefinite it
would, of course, be- necessary for the
council committee and the engineer Of
the water company together with Mr..
McNett, the water companys attor-
ney, to reach definite conclusions so
that everything can be specifically
stated in the franchise
So far as the city council is con-
cerned the matter resolves itself to
one of four propositions.
1. ~ dSiSc upon Satisfactory
terms and extend the franchise of the
present company for twenty-five years.
2. For the city to purchase the ex-
listing plant.
g.. For the city to grant a fran
chise to new company which will
agree to erect new plant.
4. For the city to erect it's own
plant.
The whole question is an important
one ,and one that should be determin-
ed with reference to fairness, justice
and the best interests of the public.
1t looks as if the present company
were disvposedto do all they can reas-
onably be expected to do in the mat
ter. If such is the case they undoubt-
edly will have the preference in the
matter. The council certainly will
give their proposition and the whole
subject such careful consideration as
it deserves.