Daily capital journal. (Salem, Oregon) 1903-1919, 1910-07-12

After reviewing the advantages
and disadvantages attendant upon
the purchase of the present water
plant from the Salem Water com
pany, and contrasting in connection
with them the advantages and dis
advantages connected with the in
stallation of a competitive system,
the special committee on mountain
water in a report submitted to the
council last evening declared that it
was in favor of the purchase of the
plant of the company, and that it
will support that proposition.
The committee several months
ago secured from the company a
purchase price, but before it was de-
eide to call an election. upon the
subject, it was decided to have the
committee again wait upon the COM
pany and learn if better price
could not be obtained. This the
committee was unsuccessful in do
ing, but it says for all that when all
things are considered, that it will be
cheaper to purchase the plant at the
original price than install an inde-
pendent system, and its report last
night was unanimously adopted.
The report is as follows:
Cost of Plant.
Your committee on mountain wa
ter begs to report that it has COM
pleted it's work of negotiating with
the Salem Water company for
price upon its plant. The amount
reported by the board of engineers
employed on the part of the city,
the water company and the state, to
appraise the plant, with some modi-
fications, was submitted by the wa
ter company some time ago as it's
proposal to the city. The water
company elected to make no addi-
tional or amended proposal to your
committee, and the terms of their
proposal were Incorporated in the
proposed charter amendment filed !
with the city recorder at the last
meeting of the council and upon
which the people are to vote at a
special election August Is, 1910. !
The items contained in the pro-
posed charter amendment, are segre-
gated as follows:
Price of plant, net, to
water company. $205, 500 +
Price of water power. 80. $4,000
To take up outstanding
per cent bonds of water
company. ..... ~. $4,000
Estimated additions to sys-
tenn from appraisers re-
port to January 1, 1911. 30,5004
Future extensions after
purchase. ,......... $4,000
Total. ..............$ 100000 /
In addition to the above authority
is given to assume $4,000 of per
cent bonds, now outstaning against
the water plant, making the total
amount of bonds authorized for the
purchase of the plant and for main
extensions to be AIDED by the city of
$3.50, 600.
In its offer above referred to, the
Salem Water company agreed to
keep the water power used for pump
ing. deducting $4,000 for the same,
and to lease the use of it to the city.
Your committee saw fit, however, to
include provision for the purchase OF
the water power in the bond issue as
above because of the enormous cost
of operation by steam, but, not, how
ever, before the officers of the water
company had assented to a lease of
the power to the city with the op-
tiOn to buy at a valuation of S44, 900
as appraised by the engineer en-
ployed by the city. Mr. Cunningham.
Should the city undertake to install
a gravity system the water power
viii be Of no use, hence, If the peo-
pie vote to purchase the water com
pany's plant Il was the idea OF your
committee that the city should lease
the use OF the water power until
such time as the people settle the J