The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1907-08-08
SPECIAL COMMITTEE
SUBMITS REPORT.

A sixty day option for acceptance OF
formal offer for purchase of its plant has
been given the City by the ManitowoC
Water Works Co. in communication
that was attached to report of the
council s fire and water committee which
recommended acceptance of the Offer
and which was filed with the council
Monday night. The offer of the compa-
ny provides for transfer of the property
January t. 1908, if accepted.
In brief the offer is for sale of the
equity of the company for $50, 600 and
the city is to assume $50, 600 of the 5000,
600 bonds on the plant and pay these
bonds before January /, 1910, in two
installments, $4,000 January /, 1909
and $4,000 on January 1, 1910. The
mortgage bonds of $500, 600 on the plant
are not to be affected by the sale except
the $50 600 which the city will assume
to pay in 1910. and will remain an in
debtness on the property, and will fall
due in 1922. The company officers, how
ever, promise to use their best endeaVOrs
to secure an amendment to the trust
deed that will permit the city to retire
the bonds, in installments, ut times
when the interest is due and paid, which
is semi annually on February l and
August Of each year.
Extensions which may he made by the
company after July |, 1907 are to he
paid for by the city, except that no
charge is TO be made for materials which
the company may have on hand and
(which is to be established by actual in.
voice to be taken by the city. The city
is to cancel the taxes of the company for
| 1907 and must assume all contracts of
the company for furnishing water to
patrons. The sale is to be subject to
the inventory which was Sled for the
| appraisal.
c. E. Gray, president, and T. w.
Gray, secretary, sign the commuuica-
| ton containing the offer and it is explicit
as to what the deal involves, all real
estate pipe systems, stand pipe pump
ing station, supplies, etc, owned by the
company.
In its report submitted with the offer,
the committee, Aids. Thorisen, Wenn-
dorf and Hempton, says the committee
have given much time and study to the
water works question and to investiga-
ting the value of the Water Cos. prop.
erty. The building of Il new plant was
never feasible, says the committee, and
! is not a business undertaking A new
appraisal is not advisable, because if the
city purchased under this plan it would
| be necessary to issue bonds for the entire
amount and it would bond the city to
almost its limit There would be little
chance of u lower valuation than the old
appraisement and it would likely be
| higher. the report pointing ont that
materials have advanced the cost Of iron
in the plant alone being SIP 600 higher
than at that time.
| Condemnation under the new utility
act of the last Legislature is not favored
by the committee report and it is cited
that IN this event the city would virtual.
ly be forced to accept the determination
and value fixed, and there would be no
advantage because the price could not
| be expected to be lower than the former
appraisement. There would be delay
of at least eight months if not longer.
In closing the report the committee eX.
presses the opinion that the plant of the
! Water Co. is adequate to the needs of
| the city, or can be made SO with small
extension of mains in the Seventh ward
| The committee emphasizes the fact that
| by accepting the offer to purchase the
equity, now made, the city need not be
bonded to any great extent
Resolutions have been prepared by the
committee for the acceptance of the of
fer Of the company and will be present
ed at the next meeting. The report was
given to the city clerk and no action
was taken but it will probably be dis
cussed at the special meeting Thursday
ght.-Mantowo Herald