The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-09-11

fNTROnrCToRy nr1IApKs

Taking Into consideration the phenomenal
growth N the city OF Houston from the
year 1875. when 81 contained Ali5 in.
habtants up to the present tme. Whom lt
contains sIIS3 people. the question turM-
/ ly comes no whether the efficiency ~ the
water works system has grown With or kept
| pace with the growth of the city.
Attention rs hereby called To- the element
oI rsk attached TO the building mp of q
successful water works property Alr
kerstcd. In his valuation OF the Klaus I
CllE water works property, lays plru ullr
| stress on this item as follows.
The possessor Of 2 water works fran
chise expects to derive some pecunlarv nd.
vantage from the operation ana maiuten-
! ance 81 n water works conducted n pur.
suancc of the terms and rcuUirefauets of
| the Franchise ur contract AT fine outset
he car not anticipate with amy degree OF
magnitude OF the expansion of his pro0ertv
( lhat Wlll depend very much upon The COM
s w. nnpofJsnes eventually attained by
Ihe city IN which he cNerrags his franch se
or contract rights. He realizes TINT II ne
pullds at Tho outset only for the present
and progressively expands The plant 10
the plant In its eutircty wiz cost n,ars
money than would suffice TO lupllcsta l m
single process Of construction He FL o
!SallLes' on the other hand, thar spccula
lions as 90 future requirements ans ev m.
uhlif prove erroneous, aud fhar Invest
mgnts "a meet future d"naH5 mgs IS
. . VI
rs nct expenditure ne may ID eorr rass.
saf@. watcher be Revenues 0eugaug f.ou
the operation of the pHm nr 6r rof Ia
alalinhle FOR thlt purpose
tndcr most circumstance the business
policy governing private inv. s,meats witch
gre attended With The lssst financial rsE
Investment De restricted 20 a comngrltlye.
" snort term OF years. would canfnn me
i nl,1sJ ne largely 10 the actual require
But the risk does not end here FOR
eeIore the franchise shall have expired The
deNcl0pmetns OF q city and It's Immediate
uitions which may compel as thev some.
Times DC. the selection OF new source ~
Mnler SUNNY auu modification ot the
ditnres.
Enforced changes Of this character ANA
magnituae' wholly pnantcinated. DIS they
ont proportionately Increasing Revenues
ihey may even requlre the abandonment
90 portions of existing worka ANA are
ana Incidental expenses Such 4 hazard AZ
described can scarcely he avoided and
his hazard. together with the 6irr,,Tn
stances nnder which Il Is Assumed. shonid
Dc considered In connection With the nro.
its S 81 Hslung a water works property In
The same authority quotes various war.
% which TO base a valuation, first ~
cantahz'ng gross earnings less operatlng
Salninss 80, ssu sas, oy eapltalzng gross
tenanee expenses; third east ~ dpnitcatt1n
ot works less depreciation. Now the ones.
non 81 depreciation OF materials OF con-
strncuon, whenever considered IN connec-
ton With valuation admits a wide raNre
~ judgment, The useful age Of cast iron
plne has heen varlously Estimated from
tWehtf,nYe to sixty years. or even fno-e
lrobehly the basis Of estimate In the sev
eral instances was experience In tho nse
or cast Iron pipe In az mnny Localities
however this may be, dehnite period -
nsefuiness can not be arbitrarily flxed ~
partiallty or error 'As
II Is certain that some soils WIFI ..rs.
more rapid deterioration Of cast lrer cSno
than others and that inferior working -
epa materlals or manufacturo also lncrohae
tae rate OF oeterioration. In some Instances