Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-09-15
WATER HEARING.
Continued from page ~

tiC pNSiiiCoS, IlON uiueh "oNtA N'>'N -
delivered for which we shall secure
financial return. If, as we believe,
the business of these works has
reached it's maximum, are we 10 be
loaded with burden because or the
assumption that their possibly may be
an increase somewhere in the future.
Men, women and children drink water,
not wealth, and we are losing in popu-
lation, every day. 1t is a source of re-
greet that the industrial and CONNER
cial life, here, have not kept pace win
the beauty and desirability OF Car
diner as place of residence, uhflV-
allied in the State of Maine. The orig
inators of the company reluctantly ad-
mjtted the depreciation in the value OF
real estate here Mr.. Gardiner has
given unquestoned testimony as to
the fall in market value of this water
power. Fourteen industries have con-
soIdated into five since 50; what does
it mean? Men owning the hVe 1--we
elsewhere; the number of hands en-
ployed has decreased. the amount OF
money put in circulation, and out of
the life of this city. commercially
been taken. Men have WITHDRAWN their
money from business here and put it
away in the various banks at interest
as is shown by the figures of the banks
| themselves. There are only 40S people
| here to be reached by reasonable eX-
| tension of this system and as to eX-
| tension to South Gardiner that has
be on reported us practically improbable
| of suitable return for the expenditure.
| The element, of future growth is of
| very little value for our consideration,
as we all see signs to justify every
| rosy hope in that direction. None of
| the exports here Introduced have been
able to explain why they made their
! mind jump from $115,000 cost, to the
| 100000 they ask for the plant-simply
| this is their method-thc net earnings
Of the company have been $4,000 in
recent years; that is 5 per cent. of
| 100000, ergo, that is what should be
paid for the plant. AS to future re-
! turns for the business, they assume
/! that their own excessive rates will be
lperpetuated by the Water District
With us the fair value of the property
lmusts be the basis upon which we must
| figure our rates. The tribunal has a
| riShtat to determine the price to be paid
Tor this plant from any basis you
| plcase, but l submit to Your Honors
| that in view Of the evidence here pre-
sehted, .thc testimony of men intro
duced here to figure times 5 equal Is
Ito find the capitalization of the plant
goes out of the case. | hope the Maine
fW2ter Co was not organized to over
fca pitalize these plants, but whatever
may be the case, expenses should be
enuaIZnJi among all the individual COM
ranjes composing it. II capitalization
we're to, be the basis of reckoning them.
All expenses and depreciation of the
plants must be reckoned in the same
way, cuttings down the amount of net
earnings If based upon capitalization
| then it must be demonstrated that the
IGapital can be preserved unimpaired;
| but here There is no Vestige Of a sink
ms fund.- $50 Ter share were paid Mr..
| Davis for 400 or 800 shares, Onc-fifth
of the rapitat stock. l don't know what
he paid Mr.. Darling for those shares.
stock gamblers arc, always beyond us,
values change in Kaleidoscope fash
ion too fast for any mans comprehen-
SION, perhaps i'll view of the excessive
rates. which, in Il certain way. is 1e-
|
charge until they have reached the
Point where their pressure is unbcar-
able, the sale of this stock prestlp-
posed their ability to charge the same
Unfortunately. Testimony as to val
uation does not materially diffe" in
controversy. l hope to be entirely
frank in dealing with this whole mat
ter throughout my argument. The
engineers Oh the other side have
charged in their figures 10 per cent.
for engineers. legal services, etc, but
We know that in buildings of the kind
lin possession of the Water Co, no such
elements enter into the question. Only
TIE testimony of men who have APP
praised such buildings many times
| in the course of business demanding
Il fair and just valuation. can be con-
siGcred material. We submit that this
1WaterpoWcr must not be valued upon Il
LASTS of consideration dependent upon
tn" cost of replacing the power with
steam. There is no if here, here is the
| power and there is no shadow of Il
treason to believe it will ever have to
| he replaced with steam. All alternative
propositions are done away with by
| the fact of tho presence of practically
unlimited WaterrOWer which the water
company has ana has undertaken to
deliver to us. This tribunal cannot
throw out of their consideration this
iact. there is no contingency, the DOW
Ter is here, and every alternative prop
Iosition is done away with perfectly.
| Any such course of reasoning as has
been rcsortei to, to prove the value of
THIS horsepower by comparison with
,stcam is prcposterous. What do we
iCare If the question is raised what
would be the consideration of this bow
Ter were it located in-(what is the
name of that placc-Goi forbid 7
should forget any of the beautiful in
'isfiring names OF parts of this local
litO PuTgatoTy? The power is not
there. 1t is here. Facts are good
henoCSh for us.
Four thousand dollars was a fair
market value for the dam at No s. 1t
twculd not be right for these gentle
men. Mr.. MaXcy and Mr. Richards. to
tperpetrate a fraud by buying from an
estate. which was controlled by them.
III piece of property ut less than its