Daily capital journal. (Salem, Oregon) 1903-1919, 1910-08-08
WATER COMMITTEE FURNISHES
AN INTERESTING STATEMENT
Explains Wrat Has Been AcCompished-Wth Acting Mayor
Committee Gives Comprehensive Summary of Conditions
Surrounding the Purchase of the Salem Water Companys
Plant.

Below is given a complete sum- The d
mary of the steps taken by the Salem the en-
authorities in the matter of municipal sno"e'
from I
- ""'o1 S'' Mex
TEN for the city of Salem. The COM of wb
mittee and the acting mayor have the ph
worked diligently to bring this matter that Il
before the people, and now submit this W
what has been done for the informa- corp
tion of all voters. a grow
The price agreed upon is not a total s
haphazard conclusion, but has been ing el
arrived at by close application on the award
part of the city council committees and tn
In the first place it was decided as ferred
better to arrive at price by ap- cOmmi
praisemest than by an arbitrary price trlousl
from the water company. For this They f
reason three competent engineers a lul
were appointed to arrive at the ex- $4S, 90
act value of the existing plant. The critics
city named ]. H. Cunningham, the island
water company named r. o. Donald, Domini
and instead of those two selecting a additic
third man the governor named State agrees
Engineer ]. H. Lewis. These gentle $44, 90
men are all known to be competent, power.
and their mode of procedure was suc1 to take
as is adopted by the engineering au- time W
thorities of the country. at the
First they made complete inven- the m
tory of the water company's property, rental
and its value was arrived at by TAX power.
ing the cost of each item and deduct like
ing therefrom the exact percentage cost tn
of deterioration as shown by its it will
actual condition and by the time it commit
had been in service This made not only hi
a lump sum, but an exact valuation 900 be
of every portion Of the plant, based have d
upon it's present physical condition. matter
In order to determine the condition If need
of the pipes, for instance, examina- be TAX
tions were made by these engineers have bC
at 80 different points in the city. By for ins
this process the exact status of the were m
property was arrived at. It is col
Next, on certain dates, the pressure they hi
was gagged at 10 different places, time.
which gave exact information as TO In ol
the capacity Of the pipes and their what I'll
service. From these tests the en- is taker
gineers made their final deductions. might l
Amount to be paid water company. ....
Amount to cover maturing per cent bends
Amount to cover, at cost, all possible sxteI
transfer =. go. .. ,...............
The city to assume the outstanding per Gel
ture in eighteen years ...........,. e.
On this basis the city will find itself with t
Receipts.
Present total annual income of plant 80. q.
Expenses.
Interest on 1851, 900 at 8 per cent. E. &.
Operating expenses and depreciation. =. =.
Annual profit for city ........... =.
The charter amendment makes provisions
to the foregoing as follows:
For purchase of water power ........ ....
For future extensions ....,...........
Should the council deem It to the interest of
these sums 1t would increase the interest eh
at per cent Observation-Disclosures.
But would relieve the city from the annual rel
power .... .... ..,....,....... -.
Leaving the increase In expense at only
It is estimated that the increased Voter.
evenue which would be derived from tion 9 o
he extensions to be made by the ex- does not
lenditure of the additional S75, 600 tensions
boye provided for, together with the property
additional business to be secured council I
fter the new sewer system shall purpose
ave been inaugurated, and that re-
ulting from the general growth of
he city which promises to be great
r than ever viii nearly double the