Daily capital journal. (Salem, Oregon) 1903-1919, 1910-09-20

to lease the water power and rights
for a period of three years, at $4,000
per year. payable in monthly INSTALL
ments, and, at the expiration of the
three-year period the city had the
option to purchase such water power
and rights outright for $4,000.
All of this seemed in accordance
with the original understanding had
with the company concerning the
proposition made by the company to
sell its plant to the city.
But when it came to the clauses
covering the lease of the water pow
er, rights, easements, etc, providing
that the "city is to bear and pay all
taxes, assessments and public
charges and assessments of every
nature that may be assessed or lev
led against the same, and all ex-
penses, repairs and needed renewals
thereof during period of said lease.
Said city is also to assume during
the period of said lease, all the
obligations of sa n Salem Water
company In connection with said wa
ter power, rights, privileges and
easements, some of the members of
the city council bucked and would
not stand for the provisions. requir
ing the city to assume and pay all
taxes and other assessments against
the water power and rights that may
accrue during the period of lease.
1t was specified in the original
contract that the city was to assume
the amount of cost and expense of
additions and betterments to the wa
ter company's property and mater
ials therefor since May 8, 1909, plus
10 per cent added thereto, when the
appraisement was made by the
board of engineers, the cost of such
betterments and improvements to be
by a special board of ap-
praisers to be named by the city and |
water company, but the question |
arose as to what would constitute |
and Alderman Greenbaum and 9TH
ers insisted that, in cases where the
replaced an old main with
a new one and charged the cost of
the improvement up to the better
ment account the city should be CIV
en- the benefit of the depreciation
from the original estimate of the
physical value of the plant as be-
tween the value of the old and the
new piping, or whatever may con-
ititute the said betterment.
Acting Mayor Stolz, called Alder
nan Carson to the chair and took
he floor to explain that it was his
that the cost Of bet
erment and improvement, with the
additional 10 per cent, required to
)e paid by the city made by the
company during the interim between
he opening and closing of negotia-
ions for the transfer of the plant,
hould be confined to actual extern
ion work and that, while the TAX
ng up of an old main and replacing
{ with new and larger main, con-
Itituted an extension to the capacity
If the plant, the city should be given
he benefit of the difference between
he appraised value of the old pip
ng, which is contained in the physi-
'al valuation Of the plant as sub
nitted in the original proposition,
and the cost of the Improvement.
After some parley over and dis
,ussion of these two clauses as con-
tanned in the veport of the special
the council finally decld-
ed that these matters should be
made clearer before and definite ac-
ton be taken upon the report or
and the matter was re-
to the special committee
with instructions 20 secure and sub.
NIT clearer and more concise state
ment of these two propositions at
the next meeting Of the council
which is fixed for next Monday even
ing.