Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-10-17
More Expert Engineers Give Their
IDEAS on the Subject.
Water District Will Open Its Case,
Monday Afternoon.


alton was finished before the short re-
cess. which the court takes each morn
ing and afternoon and his cross-exam-
nation by Mr.. Thayer, began.
Mr.. Wheeler is an exceedingly I'M
portant witness to the Maine water
Co. because he is practical engineer
and in addition is connected with 10
water works systems IN the capacity
Of owner and director. Owing to his
wide experience, the range of the ques-
tons put to him was also wide. He
was questioned on building and oper-
ating steam power pumping plants ana
testified to the somewhat greater ex-
pense of installing such plant over
the installation of a water power plant
to the more rapid deterioration of the
machinery and the far greater expense
of operating. He prepared fgureS 10
show his estimate of the value or the
physical plant and also two papers to
show his opinion Of the value OF the
entire system, what d conservative
buyer would be willing to pay for it un-
her existing conditions.
Mr.. Wheeler said the the present con-
ditions and future prospects must be
taken into consideration in setting
value upon such a property and that he
had looked into the matter and consid-
cred the prospects for future growth to
be good, perhaps as good as in any
city in the State"
Questioned about the cast iron pipe
suitable for fire service and the hy-
drants of the system he said that there
were about 10 miles of the former of SIX
inches and upwards and the latter
numbered 104. He went on to tell the
number of hydrants per mile in suffi-
GENTLY supplied system and to give the
proper location of such MIGRANTS He
said that in a straight line there should
be IL MIGRANTS to the mile, but that
where pipes we're run on adjacent
streets ana hydrants placed at the cor
ners there need be no more than six
or eight per mile When asked about
, the silstnblity ana efficiency of the sys-
tenn for fire service he said that the av-
erara static head at the hydrants is
high, being about IS pounds. The res
ervoir is at the opposite side of the
city from the pumping station and that
is the best location for fire purposes
Mr.. Wheeler criticised the waste of wa
Of the company would be improved by
the installation of meters.
Mr. Wheeler had prepared two pa
pers to Illustrate how he arrived at tn,
valuation which he placed upon the en-
tire business and the first of these
which caused the sharpest contest OF
intellect which has thus far taken place
in the hearing is here given in full:
VAUDEVILLE DIVISION. MAINE WA
TER CO.
Value Of Entire Property wv. w.
Projected net income for 1904. s % Vh
Allow for administration cX-
penses and contingencies &C" Oh
Reduced net for 1904 .......... $34, $50. O.
Representing a gross value based
on that income alone. OF say. $50. 0W. o.
From this should be deducted the
depreciation in the physical
plant that has accrued to date
which I have estimated at ST.,
l<667, say .........................:3 80 500 n
Leaving Observation-Disclosures. 1851 500. 0,
This would in my Judgment. repre-
sent the approximate value of the prop
erty, without the expectation or assur-
ance of any considerable future in
crease in earnings. In this case, how
ever. the business and not income oil
the company have shown a steady ant
unbroken growth. which considered il
connection with the growth in popula-
ton, new buildings, etc, point inevita
bly, to the continuance of a substantial
Increase in earnings indefinitely.
With such extensions and develop.
ment of the plant as ordinary prudence
-
piled may require, the net income
should. in my judgment. increase b,
more than $500 per annum for an in
DEFINITE time. Assuming it to increase
at that rate for 10 years only, and tina
such additional income be maintained
for. or will cease after. 40 years only
and waving all consideration of adj
ditional earrings discounted at 5 pei
cent. would be $200.620. and discounted
at s per cent. would be $160,250.
Taking $4,000, which I consider tt
be conservative. for the value of ths
additional business to be acquired il
the next 1 years. there remains to bt
considered the present value of the adj
ditional construction that will be re-
quired to provide for the corresponding
growth in the needs of the Water Dis.
trict during the said period.
For this I allow $4,000 annually fol
the first three years. $4,000 annually fol
the second three years. and $500 an.
nually for the last four years of thai
period The present worth Of these
sums discounted at S per cent equal.
$4,000. which deducted from the above
sum, Of $4,000, leaves s110,04O-sa,
$110.000-as the sum to be added t.
the value based on present earnings
$657,500, making a total of $767.50O.
Mr.. Thayer was not satisfied to le
this table pass without the most minute
and searching examination. This tool
mp about half Of the morning session
and extended into the afternoon. il
was fine exhibition of cross-examina.
tion, both on the part of counsel ant
witness.
After this cross examination was fin
lghed Mr.. Lewis was recalled and stat,
ed. what he considered the system
worth. Mr.. Lewis figures are from
$685. to 100000, the last figure be.
ing the highest which has so far beer
mentioned.
Mr.. Lewis has been on the stand be-
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