The semi-weekly messenger., 1907-09-13

the city, in its purpose TO have NUM-
cipal ownership of the water supply,
would be much better served by pur-
chasing the existing plant and max
ing the necessary Improvements and
extensions to it, than by building au
entirely new and Independent plant
with the present plant continuing An
opposition service. Such condluon
of affairs is a most deplorable one In
cities of moderate size and, presumlng
that the existing plant can De acQulr-
ed at any reasona BILE valuation, can
never be fully justified except where
the Old works is Of such a character
/ that it should and readily could be put
out of business, condition that rare
Fly exists and certainly does not in
this instance. Hence my recommen-
dation would be that the present plant
be purchased if it can be done upon
reasonably fair and equitable ba-
sis"
At the same time that the city en-
nIoyed Mr.. Ludlow to make an expert
examination of the plant with view
to determining it's value, the Clarendon
company also secured an expert engi-
neer, Mr.. Allen Hazen, of the firm Of
IHazen and Whipple, New York, to
make an examination for their own
use. This report too deals exhaustive
ily with all the questions in connection
with the plant, it's value, the cost OF
replacement, deterioration by wear anC
tear, ETC., and the figures he gives are
interesting for comparison with those
of Mr. Ludlow.
Mr.. Hazen's estimates are as fol
lows:
Replacement value of physical pro
perty at current prices less deprecia
ton, s19S,oOO.
Additional value of the propert,
as it forms part of a going concern
r as defined in the Kansas City case
= by the Supreme court of the Unitet
, States and in the Gloucester and New
$ berry-port cases $4,000.
4 The present value Of excess earn
f. ings to be reasonably anticipate
d during the remaining life of the con
e ract $45, 900. Total $275, 1000. But MI
TO fazen recommends that the plant
OF sid for $25O,OO0.
ar Mr. Hazen estimates that with a
Of Investment of 100000, the presen
le 1Iant could be put in satlsfactor
,e codition to serve the city for sever
le al vears to come. This amount coul
e. be lsed to improve the service, e1
" tendthe mains and make more attraf
tive he water service to takers.
he In us report the engineer says n
~ believs if the city would buy tt
Dv plant tr 100000 and manage it in
x businesalike way and invest all tt
OF additiona naor>no needed to put 1t
~ frst-cIa.as condition, that it could eal
five ner cent on che INV +ment Tt
" oIr4o of the, rerort was Lot
in collclo0lol' "a e-J.U0O would serve
a cohsloVly" the owners for what h
ITS comp~4iSSse iSSeo+ed IN r,o n1on. .nd :
ms th~c may fairly and reasonably be e
NJ pected to come from it.
l. With the report OF Engineer Lu
low as its means Of determining fac
= the city offered the Clarendon compal
,e $125, 900 for their property. This off
was refused and as counter-propos
lie ton the company offered to sell f
" $198, 900 the present value of the pla
e. as given by Mr. Hazen, plus $3.50
le which the company thought Mr. Lu
low had estimated the value of tt
1 plant as a going concern, (the figur
s. were really 17,056.48) forming a tot
!" of $214,000. The company through 7
Of counsel Hon. John D. Bellamy, furth'
e. offered to arbitrate the matter IN tt
1e method called for in the contract tn
Id exists between the company and Il
s. city, or to take the reports OF Ludfo
and HaZen and come to a conc1usit
I from the figures contained in the
le reports as to the value Of the pro
r. erty.
to The above appears, to be the prese
et status of affairs and the city's answ
Y. to the counter-prOposition will pro
2 ably be decided on at the joint met
&C. ng Of the boards of aldermen and aut
no and finance, which will be held SOC
~ FUNERAL THIS AFTERNOON