The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-07-31
Form a Contract for Proposed
Water Works Deal Drawn
by the City Attorney for Ia
spection.
SHARE IN MANAGEMENT
IS TO BE DEMANDED
Proposes That the City Sha
Have the Right to Take Any
or All of the Stock at Its
Decision.

A form Of contract protecfiue -
city In every way. believed - ~ 60 q
which will mest,the approval cf coun-.
ell II is proposed contract WIN ths
RieKmopd w9ter Works company ~
besn draS upsby cltys Attossy !;
Gardner. ,as.s ].
The ordinance provides: E1rse ascsr.
tain number OF shares Of stock shAlI
be issued to the city for srantins ~
contract to the company. Second. -
certain number OF shares shall - rs-s
served as treasury stock to Be used for
making extensions and additions q
the plant. Third. the city shall have
an option on all such treasury stock
issued and may elect to take any Or
all OF It. Fourth, the city shall have
the right to take any or all the stock
at any time. In case al II taken ter
minating the contract. IA board of
directors shall have charge of tho cor
poration, two Of whom shall bo -.
pointed BY the mayor OF the city.
Control BY City.
BY these provisions City Attorney
Gardner Is confident the city thruueh
the board OF works. will be 81 . pool.
tion to control the company. An fnnr4
portAnt Gscti0n ok the On ainon1o 80
vides that the water N0EIkS g.
shal! Roat aaRe el { CO =
Pending the valuafion d In pint
many dAAnite Agusee II the cCntr1ct
are withheld fIoWever, the dfvi1
on capital stock ana % al1 tre6S IL
stock will BE- fxed ln the Ordinanoo.
Net receipts shall Be divided betWeoa
the water works company and thu
city AZ follows: Forty-iivc per cont tog
be retained by the company and nfty-
i've per cent to be paid to the city.
After the dividends of the company
have been declared and the company
given It's share Of the net receipts, III
additional receipts are turned over to
the city. Another important provis-
ion Of this section states that tho city
may reserve the right 1t any time 70
commute q sum not exceeding IT.
share OF the net receipts for the pre-
vious year into reduction of the
rates to be charged for water.
A sinking Fund.
A sinking fund will be provided ~
council from the receipts from IT,
plant with which to buy the entfre
company or part Of It It any time.
Upon q six months written notico
the city reserves the right, under -
ordinance to purchase the entire plant
OF the water works company. IN caeo
the city elects to purcha4e the plant &
shall pay for the following Items: Tho
| par value Of the capital stock issue4
by the company. including the stoo1u
originally issued. and all treasury.
stock issued from time 70 time. TOR
the purpose Of making additions ~
and extensions Of the plant, plus M
paid dividends due on said stock, -
the par value Of Ill said capital St0clE
held and owned BY said city at ttme
Of such purchase.
| AZ to the salaries paid to direct6rs.
onicers, agents and attorneys q tn
company. the company itself may hAye
I
payment by written notice. and 81
there Is = disagreement betwesn -
company and the city the question q
salary will be submitted 70 the 1udGoA
OF the Wayne county circuit court
City Aveids Liabtiisy.
II Ii provided that the city saalI not
be liable In any suits nIed aGalnst -
company for any reason. Whenevee
streets or alleys Of the city are u ~
dug mp tor the purpose q laying ~
repairing pipes permit must - takes
out from the board Of works
| Meters for measuring the vAter
must be furnished free of chargD ~
the company and All service pfpes 90.
Meeting mains with patrons sha1l -
located according to wishes of tn -
irons Mains shall Be laid With ri
i erence to the present grade of IT,
Istreet and ID case the grade of the,
Ystreet Ii changed the pipes must ~
1 changed.
i Il provision Of the contract win m
!! the rate to BE charged Tor wateE. -
board viii nx this rate. . III. dart
ner III his ordinance has LETT n bIank
i An emergency fund of 500 mast ~
kept on deposit by the compauysa
When the company fails 70 repofr3
Istreefs, which e has dng 10, - eftys
vim repair the pisces md c1aSuo 81
to the c0mpanyss e11ez z1scy m #
ExtensiOn II the lines q - CO...
/ pany mn1t ~ nade - = psttftnn ~
I N board q works ~ pfuD eky 1lq1ll.
lesn- Thc exaet proNistonD q t1l1D