El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-28
the water company and shall receive
no pay.
Where They Disagree
s.Sixth is the section We cannot agrees

the water company and shall receive
no pay.
Where They Disagree
sixth. is the section we cannot agrees
upon"
This section follows
Section 6-The water rates for wa
ter furnished consumers other tnah IN
the civ. shall be reduced from time 10
time so that the International water
companv. its successors ana assigns
shall receive at least percent per an
num- and no more, upon the eotuo'
value of its plant. property, applian0es'
appurtenances and things devoted 10
the supplying of water to the city Oh
Ell Paso. its inhabitants and consumes
therein and such rates If at any tlme
reduced NAV thereafter be increased IL
the reduced rate shall not be suIIiclene
to produce the return aforesaid, put III
no event shall the rate ever oe aOoHe
that fixed in section two hereol- II
the CITY of Ell PaSo and the lnterna-
-ional Wafer company, its successors
and assigns shall fail to agree upon
tho value aforesaid, il shall be asceF-
tatned upon the same basis and prlh-
ciDle and by the same methods herelhoe-
fore nrorided for in the case OF ascer-
tanning the amount to be PAID Dy tns
CITY of FL PasO in the event OF pur-
chase
This section that the International wa
Ter company. its successors or assigns
shall receive in the way of DIVIDENDS OF
Otherwise percent per annniH a!oie
said. based upon the valuation aiore-
said. but out Of the said percent per
annum shall also be PAID adj lhNerese
unon anv sums borrowed by said com
many. its successors OF assigns
..Tf ANYTHING in this section snail
b. daemed TO be void as contrary 10
law. then. and in that event the part
that is so void shall be regarded as Oh
non effect and the remainder OF TINS
ordinance shall be and remain IN Iuii
force and effect
Mavor Sweeney continued: The sec
ton that we disagree upon is relative
70 the earnings of the company
Il believe that they should have a
return on their investment, and when
= exceeds some definite amount fixed.
then the rates should be reduced L
believe that such clause is absolutely
essential and necessary take the re-
sponsibility of this on myself
We are not asking capital 10 come
in here and not receive a reasonable
return on its investment That Is q
fair proposition. While the water
comnanv Is entitled to a fair return
and the citizens to protection. 1 regret
that the water company and myself nave
failed TO agree on mat point II WIN
be turned over to the new mayor anu
council. / hope the water company
will agree We have a remedy II 1t goes
10 a fight That is by the city re-
fusing to pay for water and applying
70 the attorney general l trust it VIII
NOT come TO this. but that you VIII
come TO an agreement If they bring In
that s4OO. 900 they are entitled to fair
return
The ComDanE's Side.
W H. Burgess, attorney for the wa
ter company in stating objections 10
section six of the proposed FRANCHISE
said: we object to it because 1t does
not permit us at any time to receive
more than percent on our investment
while vendors lien notes pay per-
cent. Then in addition. we must pay
all the interest and pay back all Dor
rowed money out of that percent Fig
uring we have 10 pay interest on $1,000
600 in bonds which will become neces-
sarv to make the proposed changes
we would get back $4,000; then we
have to pay out $4,000 mora and what
have we left on our investment?
Council Still Busy.
-Che council continued the matter with
the water company representatives
THURSDAY afternoon at o'clock. IN an
endeavor . reach an understanding on
the disputed section.