The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1907-04-28
REACH COMPROMISE
SELMA TO TAKE OVER WATEI
Plant.
Company Agrees To Drop Litigation
and Central City Will Pay One
Hundred and Seventy-Five
Thousand.

Selma, April 27-(Special. )-On May
/. the City of Selma will take charge
and begin to operate its own water
works plant.
This was made possible by an agree
ment having been reached this after
noon between the management of the
water works plant and the Finance
Committee of the City Council.
The papers of transfer will be fixed
UP Immediately and the actual trans
fer of the plant to the city will be made
during the early part of next week. A
session extraordinary of the City Coun-
Gil was held tonight and at this meet
ing all steps that have been taken by
the Mayor and the Finance COMMITTEES
in the matter of purchasing the water
plant were ratified.
An ordinance authorizing an issue of
$3.50, 900 bonds for twenty years at the
rate of per cent. was passed. This
ordinance also repealed the ordinance
passed some months ago for this bond
issue, flaw having been found in
that ordinance.
Resolutions authorizing the Finance
Committee and Mayor to take charge OF
the plant were also passed and many
other measures adopted pertaining to
the operation of the plant were adopt
ed.
The Finance Committee will have
charge of the water plant until the reg
ular meeting of the Council in May.
when very probably a " ter Works
Commission will take charge and man
age 1t in the future In coming into
possession of the plant OF the Selma
Water Company. the city will nay in
actual easn $165. 900 and will give two
notes of $4,000 each at the rate OF 6
per cent
The first of these notes fall due on
1Q0Q Sha caNnnn
November OF the same year. The
agreement OF purchase stipulates that
the city shall pay all Indebtedness
II now owes the water company for the
past quarter. and up 10 Nay 1, and that
when the present quarter expires that
q, e water company shall be paid that
part of water rents due for its third
Of the quarter, and all back water rents
which the city has collected. All fines
and penalties which the city has i'm
posed against the water company, and
which are now standing. are also an
nulled.
The matter has been hanging fire
for some months past, ever since an
Injunction was gotten out some time
against the first issue of the water
works bond. This injunction will re-
main permanent as that issue of bonds
have been found to be Illegal
While It has been known FOR some
days that the deal for the water plant
was nearing an end no agreement was
reached until about 4 o'clock this af-
ternoon. The water company has been
holding out for 100000 while the city
has been equally as persistent in Of
fering $150,000 for the plant. But
this afternoon both sides gave In and
1t was agreed that Selma should pay
S175. 900 for the property and holdings
of the Selma Water Company.
A few DAYS ago the water company
stipulated that r A. Farson Sons &
Co of New York and Chicago the pur-
chasers of the bond issue should de-
post 10000 as guarantee that they
would purchase the bond issue. Today
that company deposited this amount
with the Commercial National Bank of
Chicago and Mayor Atkins Immediate
Iy telegraphed them to have new
bond issue for $4,000 printed
Concert mt Pickett Springs this after