The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1908-09-26
Made by
T. CHlLKLEY HATT0N
Consulting Engineer
for 80 wears term ..... S,9S9sI


14.75Oe4
Net earnings --.....--..S o-S.lt
$500 10 represents a capital at Id
ne. cent. with sinking fund IL per
cent. for so years of S10.25O-O0. which
may be said to be the present proht
to the city il the works are purCndSe'l
al the value fixed in this report mat
is. the profit plus the increased ad-
vantage of the additional fire protec-
ton provided for in this financial state
ment As herein stated If the salaries
Of the president and secretary OF ina
present company were cut on, as they
would he under municipal control the
profits would be much in excess or
the SO ESQ 90, and the decreased opeF-
atine expenses oCCasioned by the cut
ting of of these salaries would per-
init of decided reduction to the pres
ent water rates. which Is very deslr-
able. because the number OF consuni-
eTS can be greatly increased by de-
CreaSing these rates.
In considering the purchase Of ths
water plant. the writer would re-
SpeCtfully suggest for your thoughts
the following general principles, pre-
Stunning, of course, that II Is your de-
sire TO deal justly
Your city granted the right to con-
struct. operate and maintain water
works for protection against fire ana
for public comfort to parties VINO
were willing to undertake the business
and invest therein their money when
there was a fair prospect of getting
but little return theTefTOm- and when
the city itself. although needing sucn
advantage for its present and future
| progress was not in financial COndl-
tion TO secure the funds for construct
! ing its own plant That, while the
grantees expected to derive some Pc
cuniary advantage from the operation
of the water works, still no such ad-
! vantage was assured. and there was a
I great element of risk attached TO the
| proceedings.
| 1t should also be considered that.
| while from the time of the inception
| of the works until the present time,
the stockholders have struggled hard
/ to make the plant a paying one, and
| in this endeayOr nave spent most or
| their time and talent. still up to the
present time the plant has never earn
ed sufficient money to pay A dividend
OF the capital stock.
| II should further be considered that
| the franchise which the city of Pen
saeoIa granted to the water company
is a valuable one, and the contract for
! fire hydrants, which became a part
! Of this franchise. is also quite valu-
able and that so long as the company
| cares out its part of this contract
the city cannot and should not desire
to get out OF it, as she gave It herself,
ard it is presumed she did so with the
| hest judgment of her authorities, as
| they were then constituted.
If this franchise had expired, the
! physical value of the plant would pre-
! dominate in determining the value o.
the plant, but this franchise has yet
| so years to run
You should also consider that the
distribution mains, hydTants and
valves of the present plant have A
special value to Won, in the fact that
they are now doing service and can
| be made TO do service for many years
to come, and should the city determine
/ to build competing plant IL would
have to parallel these mains, and du-
| plicate these hydrants and valves,
with the likelihood of having to puT-
chase them in the end. as the city OF
Mobile has been forced to do, or a.
least. its authorities have recommend
ed doing
| Should the city build its own plant it
would thus destroy property values 10
Gated within its own boundaries, which
| is never political economy. and has al
| ways heretofore resulted in disaster TO
the city which attempted IT.
| The quality OF the present water
isUppv should he carefully considered
| IT is hardly likely that the city can Sc
cure a source OF supply equal in quail
| ity to the present one. To find under
ground water in sufficient quantities
/ to supply q city Of your size is rarely
accomplished, only four other cities in
| the United States having done so.
Should you seek il in Pensacola you
must do so without in any way inter-
| Continued on Fifth Page)