The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-06-17
THE MASS MEETING.
Resolutions Adopted Declining to Buy
Waterworks at the Price Named by
the Owners.


Stuckey to consider the purchase Of
the water works under the sixty day
option given by the owners of the sys,
TEN was held in the Opera House, at
e.15 o'clock yesterday afternoon.
The meeting was called to order by
Mayor Stuckey who stated in few
words the object of the meeting.
Mr.. Altamont Moses was elected
chairman and Mr.. S. n. Edmunds was
made secretary of the meeting.
Mr.. R. D. Lee obtained the floor
and offered the following resolution
which was seconded by MI. Edgar
Skinner:
Resolved, That the City Council be
requested to inform the Sumter Water
Company that its proposition to sell
the City of Sumter its water works
at the price of $1,000 has been re-
ceived and considered and is respect
fully declined.
Furthermore. they are requested to
say that the only basis upon which
the City of Sumter will treat with
said company for the purchase of its
water works will be the actual cost of
the same, with a reasonable profit
upon the investment, and with ali
proper deductions. for deteriorations.
Mr.. Lee made a lengthy argument in
support of his resolution.
He said that, in the first place the
price demanded for the water works
is utterly unreasonable, both in res
pect to the actual value of the system,
based upon its cost, and also in res
pect to the commercial value, which
he took to be not the valuation the
owners may place upon it when they
undertake to sell it to the city, but
the price it would bring if placed on
the market and sold to an investor.
In the second place the city is not in
a position to pay the price demanded,
for the reason that the city cannot be
bonded for s11O, 900, as that would ex-
ceed the limit fixed by the constitution
of 1895. That if the attempt should
be made to issue bonds to the amount
of sl10, 900 or in any amount exceeding
the constitutional limit, any citizen
could 60 into the courts and prevent
the issue by legal process.
Referring to the real value of the
water works system, he stated that
the valuation placed upon it by the
owners is on its face shown to be
fictitious, by the fact that it is return
ed for taxation to the county auditor
at valuation of $1,000, and that
the assessment was raised to $4,000
at which it stands That this return
made under oath by the representative
of the company shows the valuation
placed upon it by the owners. On the
other hand the company has issued
s75, 900 of 6 per cent. bonds and $50, 600
of AZ per cent. bonds. That the in
terest on these bonds amounts to s6, $50
annually, while the total net income
of the company above operating ex-
penses is stated to be only S., 500. If
the. bonds of the company were bona
ide issue and in the hands of general
investors, the company would have
defaulted on its bond interest, having
an income insufficient to pay the in
terest, and would have been in the
hands of a receiver at the suit of the
bonds holders before this time.
Therefore, the bond issue is evident
iy fictitious and does not fix or estab-
! lish the commercial value of the sys-
tenn.
When the city comes to purchase the
water works the value will be fixed
at the real value of the system, with
a reasonable and fair allowance for