Arizona republican., 1907-01-10
WAFER CONTRACT
 FINALLY AGREED UPON
The Contract Will be Taken to Los Angeles Today for the Signature of General Sherman.

After numerous delays and unavoid-
 able waits in considering the different
 points embodied in the contract of safe
 of the plant of the Phoenix Water
 company by that company to the city
 of Phoenix an agreement was finally
 reached last evening whereby the con- tract will in all probility be signed
 by both parties by the middle of the coming week. MT. Chalmers who has represented the Water company in the negotiations will leave for Los Angeles today with the contract for the purpose of securing the signatures of NJ. H. ! Sherman the president of the company and B. N. Pratt the secretary. As soon as 1t is returned to Phoenix a special meeting of the city council will be called and a resolution adopted author izing and directing the mayor to sign the contract for the city of Phoenix and the city recorder to attest his signature to the same. The preliminar-- part of the securing of a municipal water plant by the city will then have been completed
 The terms of the contract provide for the immediate dismissal of the suits now pending before the court in Ham, ilton county. Ohio. and other suits in the territory. Following the dismissal of the suits application will be made to congress for the passage of an act approving the contract and authorizing the expenditure by the city of a part of the money to be derived from the sale of the bonds voted some months ago in carrying out the terms of the contract. If this act is not passed by congress prior to March 4th. 1907. the contract becomes void except as to the right of the water company to re new the suits now pending which suits under the terms of the contract cannot be revived.
 The consideration to be paid the water company for the plant is $15O.- 900 a part of which s9O.OOO is to b. paid in cash and the balance $60,00 70 be paid by the city assuming bonds to that amount now outstanding against the water company. Some weeks ago Todd and Co. of Cncinnatti. who bought the city water bond issue of $300.000 released from their con tract to buy $60,0OO of the city's bonds in order to relieve the city from pay ing double interest on that amount. The bonds released will either be solJ by the city council and the bonds of the water company called in and paid or if a better advantage can be gained by the city through the securing of a premium for their bonds the water company bonds will be allowed to re- main out until maturity and the city issue used at a later date in the pay ment of the same.
 The taxes on the water plant will be paid by the water company up to the date when the city secures control from which time the city will pay the taxes. At the power plant of the water company there are three boilers the plant being used and run since it's erection jointly with the Phoenix Street Railway company. There was for several days a disagreement as tC the number of boilers at the plant which would become the property of the city under the agreement. At present the title to the boilers stands | in the name of the street railway con- l pany but a deed from that company will be put on record today transferring | the two west boilers to the water com | pany and these boilers will later be- | come the property of the city if the | contract is finally completed.