Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-06-20

Auburn for the necessities of life they
are luxuries in Augusta single
faucet, a bath and a closet would cost
you SIS in Augusta. That is nine days
Il work for most men, one-'third of a
month, one thirtysixth part of a year
l-you work to contribute to the surplus
fof George p. Wescott of Portland. You
tdoubt the propriety of municipal
.fownership. In Auburn under the
I leadership OF Judge Savage they had
this fight for purer and better water
! While the matter was pending, George
s, p. Wescott appeared on the scene and
thought the plant. He put into that
long fight every legal objection that he
could think of. He employed the best
lawyers in the State. He carried the
matter from one court to another.
Why? That he might throttle at the
very threshold on the State of Maine
the attempt Of the people to extricate
themselves from slavery. But he was
beaten. Now what has been the result
in Auburn? The population of that
city is 1880, ours 1900. Their
valuation is about 100000. Ours,
such as it is. 100000. They have
no State House, no Insane Hospital, no
Post Office such as ours, no Togus
| Home, no big contracts. 1t is simply
Il country city. The three referees
| appraised that plant at $25O,O0O. The
question came to the city of Auburn
! whether they would filter the Andro-
scoggin river water or go out into the
country and use one of Gods filters
They decided on Lake Auburn. They
have spent 100000 in improving that
plant. Their water works are managed
p by water commission. They repre-
sent the people. Their rates went
down single faucet from IS to Sc, bath
from So TO So, closet IS to 50; under
municipal ownership what had cost
them SIS now costs $40. The gross
earnings are $30,1S4.S6 operating ex-
pcnses $S.5+3.SS, making the profit
2l,64198
The report of their water commits
sioners shows a large increase in the
number of water takers in that city
SO that the total revenue has in
creased in spite of the large reduction
in rates since the people got control of
the plant. The reasons a plain one,
it is just the difference, gentlemen,
and n street. Make your service fire.
quent and your fares cheap and more
> people will travel. Make your supply
Of water pure and reduce your water
rates down to a living basis where it is
within the means of everybody and the
increased use of water and your
larger number of takers at smaller
price brings up your total revenue.
That accounts for it. Makes quite n
difference to the working men of Au-
burn whether they are to be taxed SIS
year for a single faucet, etc, by a
private water company of whether they
pay so Il year for the same blessing and
necessity Of life to the people who are
doing business at cost with no hope of
getting profit any more than would be
sufficient to meet the interest from the
bonds and lay aside 1 per cent. a
year to meet the bonds in the future.
1t may seem to you a complicated
process that we have to go through in
purchasing these water works. Take n
little time to read the Water District
bill through. Gentlemen, the differ
er1ee Is right here. If the constitution
al limit could be thrown down and the
city of Augusta could issue bonds and
buy this set of water works, the city
would have to resort to taxation to
support those works and city govern
ments are sometimes not az wise as
they might be. $50
This scheme Of n water district, gen.
tlemen. is of the very essence of what
every thinking man today realizes is
the great principle that in the future is
to batter down the barriers between
labor and capital. The principle Of CO.
operation. The water district has no
power of taxation. 1t cannot tax n
man cent.
The interest on the bonds, the
operating expenses of the plant, the
annual rundown and depreciation, the
1 per cent. set aside for a sinking
fund, this will be taken out of the
money paid in by the water takers. If
/ a man Is not water taker, he doesn't
contribute anything. Those of us who
drink water are the ones who are go
ing to pay the bills. That takes in Mr..
Lynch and myself and leaves out the
mayor Qaughter).
/ have one more suggestion. The
financial question. 1t is 4 we'll known
fact with the water works men that
| they are carrying on business on what
is known as five per cent. basis.
Bonds are issued at per cent. They
expect that their net earnings will be
capitalized upon a per cent. basis.
Making due allowance for the bad
supply of water, the overcharging OF
rates, etc, there should be a lawful net
annual profit of $4,000.
Now, gentlemen, private ownership
means doing business on per cent.
basis. Rates must be high enough to
yield it. The whole business must be
managed so as to yield 1t, and per
cent is not a bad return for investment
in property. This Water District will
unquestionably, unless there Is panic,
sell it's bonds at par for 31s per cent,
and If there should be q temporary
panic. this summer or fall. there will
doubtless be found three trustees who
will carry that load as they can. The
Dover and Foxcroft people had an ex-
: perience similar to this. When the
time came for the payment on the
water works it happened to be at
bad time for securing money, and
seventy men or whereabouts in Dover
and Foxcroft signed note for $135,000