Arizona republican., 1907-07-18
CITY SEWER SYSTEM
MAY BIT ACQUIRED
A Current Story of Tentative Prop
osi.ion That Is Being Informally
Considered.

1t is reported that a proposition has
been made unofficialiy. to the mem
bers of the city council by the owner.
for the lease OF the Phoenix sewer
system. 9th a privilege of the city
buying II whenever 1t choose to do
so. under the terms Of the franchise
ordinance. and with the further priv
ilcge of surrendering the lease when
should. The information comes from
personal acquaintance of the owner.
F. It. Flack of Los Angeles, who
bought the plant few months ago
and the proposition is rather an inter-
esting one whether anything comes OF
il or not. Whether il is merely a pre-
llminary suggestion to the council or
whether II is proposed to make a for
NAL offer of the property has not been
fully verified.
According to what was learned yes
terday. the property is at present a
fine investment for the owner and
might prove to be for the city but
there are reasons why the owner
might prefer To unload II even in the
light Of its present money making
power. which reasons will be mention
ed below The monthly revenue of the
plant is now about $500. and the ex-
penso OF its maintenance is the en-
ployment of one man 10 keepthe books
and collect and one Mexican to look
after the sewers and keep things in
repair There are probably some in
cidental expenses but these are the
fixed charges The owner proposes to
lease the plant to the city for $500 per
month. BY maintaining the present
rates and methods the city would
have a profit of $500 per month. less
the fixed charges and incidentals. I,
will be provided in the lease that
whenever the city dislikes the bargain
Il can turn the property back to the
owner. or ii may buy the property on
the findings OF an appraising board.
provided for in the franchise ordi-
nance. and the assuming of the bond
ed obligations of the company. which
Is also provided for in the ordinance
The question arises. why does Mr..
Flack desire 10 lease or sell and the
answer follows. Ii is understood that
he bought the property for approx
mately $50. 900 and that il is now hy-
pothecated for approximately 100000.
the money loaning value placed upon
II by those who hold the bonds in that
amount. Under the franchise. in the
event Of purchase. the city will have
TO pay the bonds or assume them and
the difference between the bonded val
Ne and the cost of the plant would
represent a profit Of about $4,000 to
rMr Flack At least It would be the
margin of profit those interested
would be assured Of in the transact
ton.
But it is understood that the city
could not buy without Issuing bonds.
which IL might not care to undertake
TO do at the present time or until Its
water works project is further along,
hence the leasing proposition is made.
The question then arises. why does
Mr.. Flack want to lease for $500 per
month Mntn ne ~ fioN StNAhib a -
enue OF $500? That is answered IN
this way The city cannot force
householders to connect their proper
ties with a private corporation. henoc
the patrons of the company are only
those who choose to pay for Its SER
vice Complete sewerage is very de-
sirable in the central part of the city.
covered b. this system. but there Is
no way of forcing the issue and WITH
gu. il the result is not entirely satis-
factory even to those who do patronize
the company. One man is connected
and keeps his place in sanitary con-
dition at considerable expense. whiis
his neighbor refuses to do so ana no.
! body can make him. BY leasing the
Plant 10 the city for $500 per month
Mr.. Flack Is assured of a revenue that
navs the interest on the bonds and the
! city is assured of a profit of 5000. less
the small expense of fixed charges
which would be even less than now
by consolidating the collections with
the water department. Being under
municipal control the city could force
the patronage Of those not now con-
nected and residing within the sewer
district. which it is argued would add
materially to the revenue and conse-
quent profit to the city.
The chief object of the lease. In the
mind of Mr. Flack, would therefore De
to give the city an opportunity to ex-
pertinent with the system. he being
confident that 1t would not be many
months. at least not many years. be-
fore the city would satisfy itself OF
the profits of owning the system and
would be willing TO assume the indept-
edness against the plant in order 10
get control Of 1t.
| HE SEEMED 20 BE SANE.-The
examfnatio of Thomas Robertson VINO