Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-04-28

lions mere, 4 new company would De
getting an income equal to that of the
present company. and on this basis
he put the going concern value at $780,
$50. This, added to the present value
of the physical plant. gives $241.56S as
the maximum award which can be al
| lowed. This is based on the assump-
| ton that the water is pure and the
income lawful. But the water is not
pure and taking Mr.. Fuller's estimats
| of $1OO.534 as the cost of n slow sand
filter plant, as the falrest of those
made by five engineers, this is to be-
subtracted from the $247.56S, giving
S14. ,G33 as the present value of thu
plant for pure water purposes.
| 1t is hard to get at the exact oper-
ating expenses of the company. since
some of them have been put in the
construction account and others vari-
ously accounted for on The books. The
property has escaped large share Of
its just taxation. but for the future
It must be assumed that the plant will
be taxed as other property is under
the requirements of the constitution
and the law. The just tax must be de-
Quoted from the income. and the lust
tax would be about $4,000 annually in
stead of S1315 as il is now on a valu-
alton of $4,000.
Mr.. Heath dwell upon the illegality
of capitaliZing the income as a mean,
of getting the value of the property,
showing that the court has specifically
forbidden it. Upon the company's the
DRY the cheaper plant is built the
greater it's franchise value. The great
uncertainty whether the present pump
ing station can be used after 1907,
when the lease runs out, was dwelt
upon at length. 1t would cost at least
$500 more to operate a steam pump
ing plant. should one have to be built.
than it now costs to pump the water.
Another element Of great uncertainty
is the TOgus Home, which is likely to
be deserted in Is years. The present
contract is from year to year, and at
any time the government may put in
an Independent plant at a cost of $780,
600 which can be operated at from
$4,000 to $4,000 annually. No man or
company. as a business proposition.
would build n line to Togus now rs
was done in 1887. When the income
from Togus fails. as it must in few
years, it means the loss of fourth
Of the present net income Of the COM
pany.
Touching upon the offer of $3.50. OOO
which Mr. Baker said in his opening
had been offered the company by the
district. Mr. Heath declared that if
such an offer was made it was made
before the district had been allowed 10
the hnn1sC hafnrn ha T.,
scheme had been considered; before TIE
Devilie matter had come up: before it
was known that services to the extent
of 100000. the pumping station. 100000
and defective titles, $4,000. did not be-
long to the company; and before the
district knew the real facts as to OPP
Grating expenses and income.
AS to the future Of the city which
some witnesses for the company had
painted in such glowing colors, Mr..
Heath could not feel that their op-
timism was justified. The manufact-
uring power here is all utilized, and
Augusta cannot safely expect more
than the l per cent. q year gain in
population which has been the rate Of
the past so years. This would give 4
population of about $1,000 in 1884 when
Mr.. Shedd's curve showed that the IN
come of the Water Company would be
$4,000 yearly. In 200 years Mr..
Shedd's curve would complete the cir.
Gle and come back to starting poin..
a curve based on exact conditions
would show income Of $4,000 in 1894
which looks more reasonable.
The district will not put in a flltra-
ton plant. declared Mr.. Heath. With
such an abundance of pure water in
the beautiful ponds near by, it will go
to them for its supply. The cost of a
filter plant which is to be deducted
from the value Of the plant is but a
small part Of what the district will
have to pay to get pure water. In con-
Guiding. Mr.. Heath argued that the ex-
istence of the Devine franchise is =
cloud upon the value of the property:
that the loss to the bondholders is not
to be considered if the award is put
at less thar $685.. 900; that the excessive
awards Of other boards do not change
the law or the truth here; that the
present income is not assured; that
the bondholders and the public have
been wronged; that there is no vested
right to rob people or to take filth and
death in their homes, and that the
wronged people Of this city ask only
justice ut the hands of the commits
sion. Mr.. Heath's closing word was