Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1908-06-03
Tonopah Sewer and Drain
age Company Presents the
Matter to County Commits
sioners-- $4,000 the Pur-
chase Price.

The proposed purchase by the town
of Tonopah of the sewer system nov
owned by the Tonopah Sewer ana
Drainage Company, was presented to
the board of county commissioners at
their meeting yesterday morning,
through Attorney Hugh H. Brown,
who gave a detailed account of the
company's history in earnings. as well
as a method of procedure governing
the sale of the property to the
county.
At the meeting were County COM
missioners Cuddy, McQuillan and
Lindsey, County Clerk Landquist,
Hugh H. Brown, and w. B. Pittman,
who, with Mr.. Brown, are attorneys
for the company, ]. Grant Crumley
representing the owners of the sewer
system; r. M. Boykin, superintendent
of the Tonopah United Water Com
pany; County Treasurer Gilbert and
Chief of Police Ed Malley.
Attorney Brown presented an ex-
haustive review of the company's S
property, it's earnings and the LAYS
governing the proposed purchase. An
informal discussion brought out many
interesting facts. The company is an
Arizona corporation, with capitali,-
alton of 100000, and the plant rep
resents an outlay of $51, 1,349. III
1906 the company issued 100000
worth of per cent bonds, TO mature
in ten years. Three thousand dollars
worth of the bonds have been volun
tarily redeemed The present earn
ing power of the plant is $14 4,265.
The net income after interest on the
Lends has been deducted is $685..
The stockholders have fixed the value
OF their stock at forty cents share
a total valuation of $S0,0O0. The
statement reads:
IF the property of the compa u
we're acquired by condemnation uu
der the statute, and its value fixed by
a board of appraisers they could moi
possibly go under this figure, wher
the fact appears that the property car
earn per cent of the value of the
total capitalization. Ten per cent o.
the sale price TO the stockholders
plus the outstanding bonds, and IL l.
per cent to the stockholders alone az
praised valuation upon the basis O
legal interest, would put the propert,
at $4,000"
To pay for the system and 10 kee.
it going it was stated that tax &
one-half of one per cent on Tono
pah's valuation plus the nominal f9
for use of the sewers would be suffi
cient.
Mr.. Brown stated the sewer com
pany basis the authority for the com
missioners to make the purchase o
section 5, page 109 of the laws o
1908, State of Nevada, which is 4
follows
I'm cases of great necessity !.
emergency, the board of commission
ers, by unanimous vote, oy resolutio
feeiting the character of such neces
sity or emergency, may authorize
temporary loan for the purpose
meeting such necessity or emergenc.
but such resolution shall not TAX
effect until it has been approved b
resolution adopted by majority
the State board of revenue"
During the discussion that ensue
1t was suggested that it might be har
to float a $4,000 loan, when NJ
Crumley remarked. 81 can raise IL
loan for you easily enough" NJ
Crlmley also said in response to
statement that times were hard. tn
that was the reason the plant W,
offered so cheaply to the municipal
and made very strong point tn
the price at which the property
offered is exactly the money Il
stockholders will get for their share
as there is no commission to al
one.
Superintendent Boykin said t
water company was desirous of sc
ing the sewerage system taken ov
by the town and remarked that t
water company would make concf