The daily morning journal and courier., 1902-01-13
PROPOSITIONS SUBMITTED
BY THE WATER COMPANY FOR 4 NEW CONTRA CT WITH THE CITY.

NEH CUNIHAtL WlIH LII F Jtl 1s
 Presented to the Water Committee al
 Saturday Nights Meeting-Three AL
 formative eProposttions-The Company
 Refuses 10 Consider n Three Year Con-
 trnct-Reductions in Rates to Con-
 sumers Under Long Term Contract,
 At an executive meeting of the water
 committee of the common council held
 Saturday evening Attorney James T..
 Moran, representing the water com
 pany, presented three alternative
 propositions from the company for a
 contract between the company and the
 city to take the place of the present
 contract which expires February 20.
 The committee had requested terms for three year contract and in reply to this the company stated that it would respectfully decline to consider
 such a contract or any contract for a ptIlOu u ltSS llidl lCil ySdlS' LII lilC statement accompanying the reply there is the following:
 The company's plans for the devel- opment of it's plant in the near future, so as to provide water in greater quan- tity and of purer quality though with out additional revenue to the company, must, of necessity, come to standstill without such assurance against uncer- 1ainty as would come from a long term contract. On the other hand, with this assurance for a longer period than ten Q0) years the company would feel safe in going forward with it's plans for the extension and improvement of its plant"
 committee the company submitted a draft of contract to run thirty years from February 20th, 1902, and draft of contract for term continuing so long as the Water company faithfully observes it's terms.
 The contract for thirty years pro- vides in substance that the city shall have it's water absolutely free in return for eXempting the company from paying taxes during that period. In other words the company offers to give water for public purposes free in of paying no tax either upon it's franchise, or upon it's proper ty in the city of New Haven.
 It is also provided that in case of a failure of the company to perform it's obligations at any time during the period of thirty years. the city may +l<, as are provided in the present con tract; and the further provision giving he city the right to purchase upon these terms at the end of the thirty | years.
 In both the thirty year contract and | the continuing contract the company has submitted a new schedule of rates to private customers, to take effect | May 1st, 1902, provided either contract | $ accepted This proposed schedule | makes a number of substantial reduc- ions in the rates for dwellings, tene- nents, st ores, offices, warehouses and [ ,thers. The reductions and changes are explained in detail in statement at ached marked Exhibit A."
 The company on December 20th, 1901,
  enew the present contract between the ity and the company for ten years rom February 20th, 1902 upon the erms and conditions provided in the ntract and a draft of such contract vas submitted Saturday night, being duplicate of the present contract, ex- ept that it is so drawn that the an- ual payment of twenty thousand dol ars includes all water used at Spring idle Home, which in 1901 paid the conf any a revenue of s1,425.40.
 The right to correct clerical mis- akes, if any, in the proposed contracts reserved,
 The continuing contract proposed is ne under which the company pays axes to the city as at Tt, the city. owever, to have free wa -er in lieu of axes upon it's franchises. A lower rate 1r water is given in this contract than l the thirty years contract, and in it ne company agrees that it will never ay any greater rate of dividend upon s stock to it's stockholders thar it does [ present, and also that it will reduce, s frequently as the increase of it's in- ome will permit it to do so. the rates 1arged for water to the inhabitants { the city. If the rates at any time ( re not satisfactory, they are to be titled by arbitration between the city f nd the company, and that arbitration ,
 to be binding upon both the company , ld the city. If the company does not i ode by the arbitration award or if it , 1es not observe the terms of the con- { act. the city has the right to pur- I lase on the same terms and condi- ( ons as exist in the present contract. ' The compensations given by the com , thy to the city under this continuing ( ntract, to wit: an adequate supply t
 water for all reasonable public and e purposes free of cost-pay- g ent of taxes to the city on it's tangi- S e property in the city of New Ha- i n. the reduction of the rates to the lbic to take effect on the next pay. | ent date May 1st, 1902 the right to i we these rates revised by arbitration c periods of five years, the right of the O .y in case of a failure on the part of l; e company to perform it's contract ! I legations to annul the contract and to Q mediately purchase the works, taken O
 together warrant your committee J d the court of common council in is ving this contract the most careful D The company's state a ent contains the following: $ The contract has been drawn with @ a greatest care in the effort to fairly il