Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-03-24
WATER HEARING,
Mr.. Baker Opens the Case
for Water Company.
Engineer GetcheI| Explains the Sys-
TENS Construction.
A Summary of the Second Days Arqu-
ment and Testimony.


ne three appraisers of the Augusta
Water Company was devoted to the
presentation Of the case by Hon. o. d.
Baker, the attorney for the company.
ana the examination of the maps show
ing the property of the company which
, the appraisers had visited in person Oh
the previous day. Only Il few were pres
ent beside the Interested parties though
half IL dozen ladies We're in the court
room in the forenoon to hear Mr. Bak-
, q ; able opening argument. Two of
the commissioners of the district, Gov
eirur Hill and Thomas J. Lynch, ESD.
, were present and sat with their lawyers
Messrs. Heath, Goddard and Bumpus.
behind them were Il dozen engineers
: ami experts on water purity who will
later be Gil the stand. rhe four official
| photographers, MeSSrs. Estes. Miliiken,
! Small and Clay, worked in relays of
; two for half hour periods. At 10
O'Clock the appraisers We're ready for
business and Mr. 4i;tker spoke from then
/ until 1l.3O, opening and outlining the
! case. He spoke in substance as fol-
| lows:
! TIE process by which the property
| of the Augusta Water Company is TO
be taken by the Augusta Water Dis
| trict is that known as eminent domain
and is in Il general way determined by
constitutional provisions These pro-
vide that Just compensation must be
made. ard the highest courts have held
that just compensation is full compen-
sation, no other and 10 less. All values
| taken under eminent domain must be
taken as an entirety and its parts can
not be segregated. Attempts have been
made to take property apart from the
! franchise. but the United States ST.
preme Court has ruled that this cannot
! b" done, as it IS cOniiscatiOn and not
compensation. Every element and as
! lect of value to the company must be
! paid for. No part can be taken and an
/ other left, no part taken and another
i eXtinguished.
! The property can be distributed in
| TO three classes or groups Of values. %
| The physical plant or structure, includ
/ ing cVerEthin" visible or tangible used
or disable by the company: CD the go
) ing concern value" meaning the COM
pany'S business, all established and lu-
/ c:&tivc: 60 the franchise values which
4, depend almost wholly on earnin" power
considering these different values.
| what is the entirety worth to its
! owners to keep and reap the income Of?
! The ultimate value must include al!
/ others There is Il two-fold value i'll
every Investment: % the amount OF
money which would be its equivalent;
/ (2b the income of the equivalent thus
given in comparison with what is taken
away. The company must be made
, whole in both aspects. so that the new
capital with decreased earning power
, shall be the equivalent of the present
property with its augmented earning
power. The income of the property is
now assured and the purchaser will
reap the benefit of the experiment OF
those who took risks in the past. hay
ing faith i'll the future. Every year will
increase the revenue ana the value and
those who take it get a high and safe
return on their investment. The COM
panv must be compensated for that
getting an amount whose return as a
forced investment snail be a full and
lust equivalent for what is taken away
The testimony will show in detail
III" value Of this property which is
taken away. When the attempt was
made to agree upon the terms Of pur-
chase the District offered the company
s25O,0oo. We declined this offer be-
cans" the plants physical value alone
is equal to that. The company was
formed by its present owners in 1885
buying the old franchise and property
for $1,000 ana building a new system
In 1889 the n"vin- system WAS secured
not by purchase. hut by a lease for -
Yeas. The reservoir was built. the
IL
adequate fire protection given the civ
50 there is now a complete system will
an eXhaustless supply. The value Of
the plant itself is about s35O.OOO AS 20
its income thore is first the Devine sys-
ten under Il % year lease. For this an
annual rental of $1,000 is paid and the
income is about $500. The gross in
come of the company. apart from the
Devire system. has been S3S 900 or
$50. 600 yearly, and the net annual in
come about $4,000 for the PAST few
years. The not earnings for the first
| year OF the new District will be be-
tween S3l, 900 and 49,. 900 These have
steadily increased since 1856 and will
continue to increase. The net earnings
of this year will be $1,000 more than
those of the past year. 1t would take
a new company at least Il year To con-
struct the plant. and many years t.
establish Il good paying business. In
general. it can he said that the going
concern value" is about % per cent. OF
the value Of the physical plant. With
these different elements Of value con
siderad we ask the commissioners 10
give us a full equivalent.
The abundance and quality of the
water are to be- c9nsidered. There IS
no dispute as to the abundance. The
quality is that common to the river of
Maine. no better. no worse. l drink it
daily and do not find it Injurious A
year ago there was n typhoid fever
epidemic in this city which was proba-
Div the cause and origin OF the Angus
ia Water District. 1t was commonly
Thought that river water was the cause
of the outbreak: but the same cause,
\ if il be a cause. does not seem to oper-
ate frequently or regularly. 1t cannot