Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-04-08
DISTRICTS CASE.
CONTINUED from page 50

continued from page o.
to the capital stock in the one matte
of obtaining a pure water supply from
a lake, for our people will never drink
the sewage of Wateryiile diluted ana
+. strained through sand or through any
other kind of filter.
Deduction for this, in addition to all
other due deductions. must be made In
the award, or the intent and purpose
OF our charter is nullified.
In other respects the plant is lame.
!. The Water Company owns no
power or pumping plant, and for rea-
song which VIC shall show. 1t is highly
uroba bic that at the end OF three years
the present favorable lease of the
humping station and power VIII be
terminated, and that we shall thea be
obliged either to pay largely increas-
cd rent or to build and maintain a
steam pumping plant at great expense.
both for construction and operation.
This while adding to our capital in
Vestment will also largely increase
our operating expenses and cut down
our net income and borrowing capac-
ity.
The rent paid for power under the
present lease is phenomnally low ana
therefore makes the net revenue alb
normally large under conditions which
in the nature of things can not long
continue.
Just at the time when our expenses
are pretty certain to be largely in
creased our revenue from city ny
drant rental will be diminished by
s1500. This is certainty, contract OBJ
legation.
2. The main extending from Water
street across the bridge to the Insane
Hospital and Togus. a distance of
more than five miles is insuffcient to
carry the water required by these, the
two largest consumers. The authOri-
ties of the National Home are cOn-
planning because the Water Company
has not been able the past winter to
maintain the fire pressure required by
it's contract. This contract expires
within few months. and it is not to
be expected that it will be renewed on
the same terms, unless the required
pressure can be assured. which means
either a heavy loss of revenue or the
expenditure of . large sum to replace
the present Togus line with larger
mains; the cost of which will be stated
by our engineers.
z. Practically all the % city ny
drantS are Improperly set 50 that they
freeze, and must all be under-drained
at Il proba BILE expense of $500 or $1,000.
which falls upon the Water District.
4. There are other matters depreci-
ating the value Of this property NOR"
properly to be discussed in closing ar
gumcnt.
The Water Company asks you to
base your valuation on the present net
income, without rcgard to any of these
considerations: claiming that the flu
turo will take care of itself, aud that
you ought to assume that pure water
will hrinG Il sufficient increase Of rev.
enue to compensate all expenditures.
But where is this increase Of revenue
to come from?
There is practically no element OF
unused franchise here; very little field
is left for growth or development OF
the business in til" city as it is.
That nearly all the 5000 people with
in tie limits served by the pipe lines
ar" supplied by aqucduct water. is
shown by the fact that Mr.. Getch"ll
and Mr.. Williams could find only 40
houses not 50 supplied within this ter
ritory. The pipe lines have been cX-
tended rs far as it would be profitable.
w" shall show that tn" city has had
slow growth. especially In the last eight
wears. and that the managers of the Wa
ter Company have developed the revenue
producing end of their business with a
degree of enterprise which leaves almost
no fold fer future increase.
1t can not he supposed that all the 80
unsurrlicd houses will ever he supplied
even after plr" water is substituted.
The 40" people who now are supplied,
pay the Water Company fun pure water
rates, and most Of them supply them
selves with drinking water from some
other source, paying over $3.50 year for
spring waters. Now while the substtu-
tIon II a popular pure water supply
wcula save the people this 5000. il would
not incrCaS" tho revenue of the Water
District: because we could not raise the
rates. already too high and up to the
limit fixed by contract with the city
With our water power largely developed
aud the balanc" of it leased for "a long;
term of Years, and with city tax rate
"f = mills and on top OF that a school tax
rat" Of from T.. tn , mills. there is little
II amy prospect Of increase of popuia-
ton or of buildings.
None Of tho public institutions will pa!
ANY more than now for water II made
pure. All have pure water aqueduct sup
plies Of their own.
TO sum up the situation the Water
Company has most wonderfully develop
al the revenue end Of its business. on
comparatively small investment. hy
means; of very defective and inefficient
plant, with Il polluted water supply and :
temporarily cheap operating power. Also
il has nearly escaped taxation.
No wonder IL shows q large net revenue.
l'ut this is not sound substantial
> profit either from legal or Il business
Stlndpoint. Its apparent net revenue i
Cphcmcral and fictitious.
The company has reapcd this u;la wful
harvest. and now that We are compelled
to take its lame and inefficient works
and cxpend about as much as the original
cost of the plant to bring ii up to the
legal and business standard of efficiency.
the owners demand compensation based.
not on the efficiency of the works. but
ON the income produced by their unlawful
method of management ON which the Log
isature stamped its disapproval by grant
ing the Water District charter
We must take their imperfect plant ard