Rogue River courier. (Grants Pass, Or.) 1886-1927, 1908-07-31
Water system Discussed.

Editor Courier Since writing the
letter of last week | have given the
water question further consideration,
and believing that this is a matter OF
general interest to all the inhabitants
Of our city, will again ask your per-
mission to use your valuable PAPER to
present my views.
From the information that have
been able to gains from various
sources l beieve that the Rogue River
Water Company has between 700 and
800 customers who buy water, and it
il safe estimate that the average
amount paid to the Company by each
will average 50 per month. IL we
take the lower figure this viii make a
monthly revenue Of S2lO0 per month
aud the city pays an average of $50
per month for the 33 hydrants now
established, and considerable amount
for water to flush sewers, which,
taken altogether. gives the water COM
pany gross revene of close to s236O
per month during the summer Of Say
six months. equal to $l4, 100 and il We
assume that the customer pays the
flat rate of 81 each for the winter
months. making s700 per month OF
$4200 for six months we have q grand
total for the 12 months of s1S. 300.
The company is now operating this
plant with about monthly outlay oi
$500 or $500 per year. This taken
from the gross revenue will leave
q neat gain of over Sl2, 900 which
means i2 per cent on 500, 900 In
vestment. l shall assume that thi,
plant is not worth more than the lat
tor figure and believe that the plant
can be- duplicated new for said sum
Then We say that i2 per cent is 9
handsome rate on the investment.
A large number of our citizens are
without water, because the wateI
company will not lay down pipes e
connect them with its system.
Great sections of the important
residence districts; have no hydrsnt
within half mile of their property,
and in case of fire have no assistance
from the fire department which the
tax payers have furnished with costly
equipment, because the water com
pany refuse to establish hydrants over
cert ain distances from their mains.
There il no reason for this mig
gaTdly policy except that the company
is unwilling to extend its plant to
sections that are sparsely settled,
where the revenues will not result il
mig returns for the outlay. but it ii
not the best policy for this city, be
cause it retards population and keeps
back development. should the city
own it's system il would be wise
policy to extend the water mains tC
every available section within tht
corporate limits, because city doe'
not look to this shortsiRhted policy
of quick returns on the money in
vested, but rather TO the future, snd
the upbuilding OF all its parts.
Oar counoilmen should reopen thi,
water question for more extended
Investigation, aud should go intC
II with the determination that Grant,
Pass is going to own its water system,
either by purchase or by construction
Ii would require an election to yot,
bonded debt, but all this is entirely
possible of accomplishment, and the
bonds would be taken at a rate of in
terest not exceeding five per cent fol
long term of years.
With half of this profit rising from
the sale of water which the present
company now annuity pockets n
profits. divided among the oonsu umeri
by way OF substantial reduction il
water rates. and the other half retirot
rs sinking fund out OF which interest
on the bonds could be more than met
and the prospect Of doubling the mum
her Of consumers by a more liberia
policy in extending the system, ther,
is every reason to believe that a heavy
burden might be taken off the people,
aud more efficient service established
under municipal control than the
present system. which sis Unsatisfactory
in many respects