Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-05-02

ues melt under the counsers liquifying
touch! Mr.. Aliens estimate is $780,
465, Mr.. Shedd's about $294,OOO, the ag-
gregate of bonds and floating debts
s296.O00.0O; all striking combinations
of the correctness of the results
reached.
Now as to the question of title.
Those matters divide themselves into
certain groups. Rights of way we have
treated. Materials on hand have been
inventoried. they are in our possession,
they are to be turned to the district.
If there is any question of title involv-
ing outside parties that is not a ques-
ton that can be raised by the district.
The addition to the pumping station is
admittedly the property of the Edwards
Company. The original pumping sta
ton plant. house and shed, bridge over
the canal ard pump foundations, are
clearly ours, since the property under
the original lease and all the buildings
put on remains the property of the
tenant, but the tenant has the full right
TO remove the same while the lease is
in full force. We turn over to them
the free use of the buildings worth
somewhere from $4,000 to $4,000
There is, the free use of tho.e building,
during the term of the lease. which
lease is but a conditional limitation.
1t is absolutely indeterminate in it's
duration and may last indefinitely ac-
cording to the interests of the parties.
The whole absolute use and perpetuity
remains in us and is turned over to the
district unless the contingency happens
of a cancellation of the lease. The test
of that is what will be the natural in
terest of the parties. The Edwards
Company is getting the entire water
used, all the hydrants, and the reduced
water rate on all the tenement houses
outside of their mill property. The
amount of water used is at least
$1,000. the cash paid s11OO more, in
dependent of the abatement on the
tenement houses. The mutual interest
of the parties conserves and secures the
lease. The district has what we do not
have-the power of taxation. They
need have no fears upon the subject of
a lease.
pass next to the going concern val
ue. 1 beg to read from the charter of
public rights as to precisely what is
going concerning value, then we will
show the court by the exact application
to the facts of this case Of the exact
principles there laid down, what those
going values must be here. 1.-The ap-
praisers should consider among other
things the present efficiency of the
system" that is to say, the degree to
which the system has been developed,
'the length of time necessary to con-
struct the same de novO, the time and
cost needed after construction to de-
velop such new system to the level of
the present one in respect to business
and income, and the added net income
and profits, if any, which by its ac-
quircment would accrue to a purchaser
during the time required for such new
contraction, and for such development
of business and income. We think this
instruction should be given And it
was given. Now under that we are to
determine first what is the length f
the construction period. One year,
everybody says. Next, what length Of
time is necessary after the plant is
completed to develop the business to
the level of the present plant. to the
level of s30,000.0O. The only difficulty
as to this is to determine what length
of time would be required to develop
the plant under the conditions right
here to that level, and second the rate
at which the supposed new plant would
increase from year to year until It
reached it. Those things cannot De
solved automatically. but are submit
ted to the judgment of the appraisers.
During the construction period the
builder of the old plant will receive
100000. the builder of the new plan
will receive nothing. Applying that to
the facts, and adding six months inter-
est at the end of the first year, there
would be a difference, of $4,000 in
round numbers.
The next question is. what will be the
time required to develop a plant under
the conditions here to $4,000 income
basis. Mr.. Shedd tells you that six
years he has found by his experience to
be a minimum period. 1t depends on
the local conditions. Mr.. Allen says
from about six to twelve years. Coun-
sci says four years absolutely without
evidence. We submit it to the APP
praisers. What will be the actual
earnings of that first year of the six?
Six years to be added to the one of con-
struction. Mr. Shedd, again on expert
ence, says one-quarter, and then he has
made a rapid rise from there until, at
the end of the six year period, he has
brought the earnings up to the level of
where the other started. On this basis
Mr.. Shedd places the value at $4,000
The actual going concern value made
up on the principles laid down by the
Supreme court of this State would
make at least Sill 100000. Now if the
court please, as throwing some light
upon this situation, it is fair to say un-
doubleday that the largest consumers
would take the new plants water first.
If we glance at the history Of the past
as to the biggest consumers, we shall
be approaching the subject from the
fairest possible standpoint to the dis
trict and the most unfavorable stand
point to the water company. Take
Togus 1t was IA years after the big
gest consumer Of all began to take wa
ter before they reached the present
maximum. 1t was five years before the
Insane Hospital reached their present
maximum, which is now wholly made
fa, ho