The daily morning journal and courier., 1902-01-20
TWO REPORTS ARE PROBABLE
FROM THE COMMITTEE ON THE
 WATER CONTRACT MATTER.

ton of the Continuous Contract
 Signed by the Three CounctlmaniC
 dermanic Members win Probably Re-
 port for n Modified Thirty Year Com
 tract.
 At the executive meeting of the wa
 ter committee Saturday evening the
 fact was shown that there is differ
 ence in the commit tee over the report
 to be submitted to the common council
 at the meeting of the aldermen tonight
 and it was made evident that there will
 be two committee reports, a majority
 and minority report.
 Before the committee went into exec
 utlve session Saturday evening Charles
 Gay appeared to urge the recon1nenda-
 by a meeting of citizens held in Music
 hall few nights ago. The committee
 then went into executive session in
 which the proposition of the Water
 company were considered and then a
 report recommending the adoption of the continuous contract proposed by the
 company was signed by a majority of the committee, Councilmen Kehoe, Hos- ley and Coyle. The two aldermanic members, Aldermen Fertman and Me Gill did not sign this report and it is said that they will present a minority report favoring some other contract, probably the thirty year contract with some amendments of the proposition for such contract, submitted by the company.
 The majority report contains among other things the following:
 At the hearings, the sentiment was almost universal that the city of New Haven should receive water for munich pal purposes free To secure this great benefit for the city of New Haven, with a guarantee of reasonable rates in t. future to the users of water in the city, has been the great aim of your com mittee in all their negotiations with the New Haven Water company
 In the opinion of your committee, public ownership of the property of the New Haven Water company is in- advisable, and 1t was conceded by ev- eryone at the hearing, that the city at the present time was in no condition to purchase. To purchase the property of the New Haven Water company under the old contract will require an outlay to-day of something more than six mill lions of dollars and it Is not expedient, in the opinion of your committee, that the city should go to this vast outlay, in view of the very liberal terms that they were able to secure from the com- f pany.
 As is seen by the company's commun- ication, it absolutely refuses to enter ! into a contract with the city of New Haven for a period of less than ten years. That leaves three propositions to be considered: CD The renewal Of the present contract under the same terms and conditions, for another ten years, CD A contract for thirty years, giving water in exchange for taxes, with the option of purchase at the end of thirty years, (3) A continuing con
  dinary taxes, and with free water for municipal purposes in lieu of fran chise tax; lower rate for water to the inhabitants of the city; guaranty that there will always be a full and adequate supply of water that the dividend rate on the stock of the company will not be greater than at present; that the rates for water may be adjusted every five years by arbltra tion and the right on the part of the city to purchase the property at any time, if the fails in it's obligations under this contract. As between these propositions, 1t seems to your committee that there can be but one choice, and that is, the ac- oeptance of the third proposition, for q contract. The manifest ad- offered by this proposition over the other two, are so great that your committee, without hesitation, recommends that the city adopt 1t, It secures to the city the same income that it has always received by way of axes; it also secures to the city free water for municipal purposes. and to he inhabitants of the city lower rates I or water than they are paying at pres- ( snt. { The company states to your commit I ee that they can make no further con- I ,essions than those contained in this ( contract | This contract secures to the city the ' benefit of it's own growth, by providing C hat as the income of the water con- | )any increases, the rates to be charged i or water to the inhabitants of the city V Ire to be lowered. If the company I loes not lower the rates, the city has c he right to resort to arbitration. If r he company does not abide by the re- 4 ults of the arbitration, or if the terms f the contract are not observed, and l he company does not furnish a full | nd adequate supply of water to the + ity, then the city has the right imme- c lately to purchase the company's J roptry, as provided in the present con- ract This proposition appeals to us as be- t lg a favorable and just contract for he city to enter into with the New Ha- en Water company, and we recom- lend that the city enter into such con- ract with the New Haven Water com- any for supplying itself and its in- abitants with water, and the passage ' the following order: " Ordered, That the citv of New Haven D