The daily morning journal and courier., 1902-02-13

l
 nished by the company. This was re- garded by the company as implied III 1 the draft first submitted and has been added to avoid any misunderstanding | of the citys power to establish plant ! of it's own, The company will not con cede the right of the city to establish | it's own plant. as the city might then refuse both to save the company harm l less from a franchise ax and to pay 1 anything for water. Also the part or | Section defining more clearly the pro- cedure to be followed by the city 1T It shall have cause for annulment of the contract, and that part of Section z providing that in case of such annul- ment the right of purchase provided by Section shall not be thereby preJu-
 diced.
 The adoption of the continuous con- tract will insure the annual saving Of | $20,000 now being paid by the city, ana
 a still larger saving to private con-
 sumers by the proposed reduction in
 tariff rates offered by said contract.
 The minority report signed by Coun-
 cilmen Frederick and Elliott recom-
 mends the acceptance of the first propo-
 sition os the New Haven Water com
 pany, which is a renewal if the present
 contract for ten years, to furnish the
 city with water for all municipal pur-
 poses, including Springside Home, for
 $20,000, with a reduction of the stable
 rate from $6 to $3 and of meter rates to
 accord with those in force.
 The report contains the following:
 The third proposition or perpetual con-
 tract, while alluring in the rates for
 water for municipal purposes, contains,
 in the opinion of the undersigned mem-
 bers Of your committee so many pit
 falls that it would be unwise for the
 city to enter upon it. The term during
 which said contract would run is 'all
 time" It is absolutely impossible for
 any representative of the city to pen
 citrate the future to the end of said
 term and determine whether the condi-
 tions of the proposed contract would
 not at some time become oppressive.
 But without peering into the future
 we believe said terms to be unfair and
 unjust now, and liable to operate in-
 equitably against the city.
 The Water company makes some slight reductions in it's schedule of rates to private consumers and agrees that said rates shall at all times be fair and reasonable, and subject to ar bitration; but the arbitrators are bound by limitation which takes away all their powers.
 No adequate provision is made to in- sure the purity of the water, and the city is given no control over the same.
 The city would guarantee to save said company from any franchise or other tax, except that upon it's tangible prop erty, or pay $20 per hydrant for fire protection and 75 per cent. of retail rates for other services"
 This is an unqualified lottery; the contingency is the happening of the franchise or other tax; the stake put up by the Water company is q supply of water to the city; the stake up by the city is the payment of the tax. To secure the Water company's stake, tie city would take long hazard.
 Aside from this feature it would be seen that the conditions to be perform ed by the company are definite and limited; those to be performed by the city are indefinite and unlimited. It is impossible to foresee what may be included in that expression "other tax during the long term which the con- tract would run. It is entirely within the bounds os probability that the mode of taxation may be entirely and that there will be no taxes levied upon property, and in this case the city would have to pay all the taxes os the Water company, and it is not at all improbable that in the early future taxes will be assessed up- on incomes. In this case the city would pay all the taxes of the com pany. The duty of paying the fran chise tax would make every citizen of the city an opponent of a franchise exercise and enjoy special privileges will be held to paying therefor
 The city reserves the right to con- sider the proposition of purchasing once in twenty-five years; the right of purchase is of avail as a check only when it may be exercised continuously 0r at brief intervals.
 The city would waive it's right to sup 1 ply itself with water notwithstanding It some future time it might be found and desirable to do so.
 The inducement of free water" is | it may be free to us, but fu- | .ure generations will pay for it, and i with a heavy accumulation of interest | The only safe course in business is a | strict observance of the law of compen- ,ation; pay for what we get and de- hand payment for what we give from | mother view point the moral effect # receiving presents, in the course of business transactions, from private public utility corporations with whom We have business relations is a dan ,erous proceedings; we cannot do so without placing ourselves under obliga- ions to them, or feeling that we are indebted to them and sooner or later he debt will be demanded
 In the course of an opinion submitted ,y Corporation Counsel Daggett to the pecial committee there Is the follow ng: Tn my opinion, no contract can ,e made between the city and Water which can deprive the state of he power to acquire the property and ranchises of the Water company by he right of eminent domain: in other worlds. the city and the Water com any cannot, by agreemnt make it im- possible in the future for the city, if it l as legislative permission so to do, to