The Corvallis times. (Corvallis, Or.) 1888-1909, 1904-09-28
WHAT IT Is.
Mountain Water Otter Another
Engineer Made Estimates-Some

tain water system. The proposition
was published in full in recent is
sue of the Times. 1t is known that
there are substantial interest behind
the offer, and that the city is now
in position to negotiate with a
prospect that mountain water will
be brought to town in the near fu-
ture. This makes interesting the
question of what are the terms
proposed in the present offer.
Concerning the offer, there is a
general opinion that it is the result
of the recent investigation of En-
gineer H.V.Gates. 1t is positi
known that this is not the. c
It is known that the offer Wns
preparation, if not actually framed,
before Engineer Gates came to
town. 1t is also known that it is
based on the investigations of
still another engineer from abroad.
who came secretly to Corvallis dur
ing the summer. and in a stay of
several days, visited Rock Greek
and made such Investigations as en-
abled him to give parties interested
| an estimate of the approximate
cost of the system. Upon the re-
port of this engineer. sent to Cor
Wallis some time after he made his
investigations. the present offer
was made. 1t is further known
that Engineer Gates investigation
were wholly Independent of and
had nothing to do with the present
offer, and that there is likelihood
that he and people identified with
him may make a proposition.
Whether or not a bid from that
quarter will actually come to pass,
remains to be seen. Meantime,
the present offer. which is in the
hands of the council committee for
examination and report, proposes
terms as follows:
WHAT THE OFFER IS.
I. The city is to loan the water
company about $4,000 and is not
to receive any interest on the same,
but instead thereof is to be supplied
by the company with water for fire
protection, sewer flushing and fo,
city hall use during the 80 years the
franchise is to exist. That is to
say, if the city should sell its bonds
at four per cent. its water for city
USES would cost $1,000 per year; il
at 4 I-2 per cent, $I,125 per year:
at five per cent, $I,25o per year
1I.-Tbe company for security on
the loan is to give the city a second
mortgage on the plant, the frs
mortgage to be some sum not fixed
in the cffer, and entirely optiona
with the company, up to half the
cost of the plant. This first mort
gage might be either the capital oi
the company, or money that il
should borrow.
III.-The company, after complet-
ing the plant, is to set aside a Ger.
tain per cent of the profits for q
sinking fund to be used at the enc
of 90 years in paying off the first
mortgage; and if, at the end of &c
years, the city does not wish t
purchase the plant under the option,
then a similar per cent of profits is
to be set aside for sinking fund
to be used in paying back the sum
loaned by the city. which payment
shall be made at the end of 80 years
Under the arrangement. the city s
second mortgage on the plant would
become the first mortgage at the
end of 20 years, and, provided the
plant had not from decay or lack oil
proper repair become bad security
the whole of the city loan would be
repaid in cash at the end of &c
years.
1v.-At the end of 20 years, the
city may. if it desires, buy the
plant by paying a purchase price
to be fixed by multiplying the net
income by 10, the original loan tc
apply as part OF the purchase
price. 1t is not, as in the case ot
the Dallas arrangement, made bind
ing on the city to purchase the
! plant at the end of the 20 years.
v. The offer is made contingent
on the question of whether or no
arrangements can be made to sup
ply the agricultural college with
water.
! OBJECTIONS OFFERED.
1t is not probable that the com
pany expected the council to &C.
cept the present proposition with
out change. 1t is notprobable that
the present offer is the best the com
pany will make. A certain pre-
liminary dick kering is always Incl
dent to a water works deal as vel
as in a horse trade. Numerous
Corvallisites, however, are taking
the offer as final, and are prone to
regard the proposition or auy othe]