Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-05-07
IMPORTANT HEARING
Kennebec Water District Asks
Instructions from Law Court,
Maine Water Co. Asks Directions How
to Value Its Plant.
Preliminary Steps Taken, Yesterday.
Before Justice Whitehouse.

Another step has been taken in thf
case of the kennebec Water District
against the city OF WaterVille and The
Maine Water Co., to determine the
methods by which the former NAV ac-
ouire the plant. property and fran
ChiSeS of the latter company A hear
ing was held before Associate Justice
Whitehouse at the Court house. in This
city, yesterday, at which the counsel
for both parties We're present The
r&pers in the case We're presented but
nc arguments were made and the whole
rlatter goes to the law court for set
tlement
Harvey d. Eaton and George X.
Boutelle of Waterville, and Storey.
Tborndike. Palmer & Thayer of Ros-
ton appeared for the Water District,
and Symonds, Snow, Cook q Hutchin-
son Of Portland, ana H. NJ Heath and
q. d. Baker OF Augusta, for the Water
90.
1t is understood that two OF the three
appraisers have been agreed upon.
Associate Justice Frederick A. Powers
is to represent the legal side of the
rlatter; Hon. Frederick II. Appleton of
Bangor, the business end, and the Sc
lection of the engineer has been de-
fcrred until such time as both sides
may agree, provided it is done prior
to the arguing of the case before the
law court. In case of failure to do so.
the appointment must be made by the
court.
And now comes the Kennebec Water
District, plaintiff in the above en-
titled action. ana requests the court t.
instruct the appraisers as follows:
% The appraisers are directed to
state separately in their report what
part of thu amount fixed by them as
the valuation Of the plant property and
franchises Of the Waterville Water
Company ana the Maine Water Com
pany is fixed as the value of the plant
and property and what part is fixed as
the value Of the franchises, and fur
Their to state what property and what
franchises, they have considered in
fixing these values.
- Upon the question Of the value Of
the companies plant and property the
actual cost of said plant and prop
erty together with proper allowances
for depreciation is legal and competent
evidence. and for the purpose of fixing
this actual cost the companies are
directed to produce before the APP
praisers all book accounts and docu-
ments containing entries which bear
on the subject.
60 Under no circumstances can the
value OF the plant of the companies be
hold I,a
the present time plant of equal
capacity and modern design.
ca The Waterville Water Company
and the Maine Water Company are
public service corporations and as such
have the right to charge reasonable
rates only. What would be reasonable
rates can be determined only after
and by means of valuation of the
companies property. Accordingly the
actual rates which may have been
charged by the companies, and their
actual earnings, have no bearing on
the value either of the companies
plant Or property or of their franchises
and are immaterial.
90 The selling value Of the capital
stock in the companies has no bearing
VA Inc dluellioil VI Tie ilp6tlicS
plant. property or franchises, and is
immaterial.
90 The quality of the water furn-
ished by the companies and of the SER
vice rendered by them and the fitness
of their plant to meet the reasonable
requirements of consumers in the pres
ent and future are material questions
in fixing the valuation of the COM
panies' plant and property.
"a The franchises of the Waterville
Water Company are fixed by chapter
as amended by chapter so, Private and
Special Laws of 1887, and chapter II,
Private and Special Laws of 1891.
80 The franchises of the Maine
Water Company material to these pro-
ceedings are those of the Waterville
Water Company and those granted by
Private and Special Laws of 1898,
chapter 352, and no others.
go The appraisers shall regard the
franchises of the companies as emitting
them to continue business as a going
concern. but subject to all proper legal
rules governing public service com
panies: it being further understood
that said franchises are in no way ex-
elusive. The franchises shall not be
otherwise appraised or valued.
10) Upon the question of the value
of the companies franchises the ques-
ton of the fitness of the source of sup
ply granted by these franchises with
reference to the reasonable require
ments of the consumers in the present
and the future is material and COM
petent
I'D In fixing the value of the COM
panies' franchises the appraisers may
give such regard as is demanded by
ample and fair public policy to the past
investment, risks and services of the
companies. and to the reasonably just
expectations which those who made the
investment had in mind when so in
vesting, and also to the faithfulness or
unfaithfulness shown by the companies
in the performance of their public
duty and obligation to furnish pure
water at reasonable rates.
G2) Competent evidence may be re-
ceived by the appraisers tending to
prove or refute the allegations con-