The Birmingham age-herald., 1910-01-12
DEFEND ACTION IN WATER WORKS CASE Bessemer Committee Gives
 Reason for Purchase IS BUSINESS PROPOSITION Council Committee Presents Answer to Query of Bessemer's Mayor "Why
 Buy the Waterworks ?"-Per-
 sonal and General.

Bessemer, January 11.-(Special. .)-Again the water works has come to the front with the statement issued by the special water works committee of the council in defense of the committee and incidentally the council. The statement takes up the situation in full and presents the argu- ments in favor of the purchase In a con- crete form for the first time. The state-
 ment in full Is as follows:
 'In answer to the query of the mayor. Why Buy the Water Worksg-
 "It is a matter of common knowledge in Bessemer that the people have for
 many years past desired to own the water works and the matter has frequently been | discussed in council meetings; it was this | general desire that led to the appoint ment of a committee by Mayor Lewis. then president of the council, to open negotiations with MT. Adler to buy the plant; Mayor Lewis appointed commit tee, of which Alderman Batson was chair man, and negotiations were conducted for several months. Afterward, due to changes in the council. other members were added to the committee The re- port of this committee concludes the ne- | gotations which were set on foot by
 Mayor Lewis as president of the coun-
 cil.
 ''In making the report recommending | the purchase, the committee was actuated | by the following reasons. namely: '1 The city should buy because the property is becoming more valuable every | year by reason of the net earnings in- l creasing; the owners proposed to sell
 several years ago for s125,Ooo. then $2oo,- | 600, then on basis of earnings which 1 would have made the price about S750O0. | Shall we wait until the earnings in- l crease still further, and they certainly will increase faster than ever before if , our board of trade and the Bessemer Land company does any good for the city. | "2 We admit the purchase of the plant | will not lower rates at present; they will | not be lowered until the contract with the | Water Works company expires in 1884 un- ] less the city buys the plant. former , city council attempted to reduce rates and | the supreme court upheld the contract. l '"The contract for purchase provides rates may be lowered when the earnings | increase sufficient to place in sinking | fund or retire $10,O00 bonds annually; even
 if rates are not lowered the city will reap l the benefit of the earnings in excess of
 interest on the bonds. Judging from the I growth Of earnings in the past the earn {, ings In excess of interest will pay off
 the bonds within 27 years and give the
 city water works free of debt Tt Is good proposition for anyone to | buy on 30 years time on terms that the property will pay for itself. We are sure | any business man in Bessemer will buy
 the water works on these terms. 1 "S The councilmen who were in the board when the city had an opportunity
 to buy on three different occasions sev-
 eral years ago admit they made a mis- ! take by not buying. Had the city bought,
 rates could have been reduced long ago,
 and had they not been reduced the sur
 plus earnings would have paid off the
 debt in a few years. Are we not going
 to profit by past blunders, or shall we i continue to make them?
 A. We admit the city has a right to | buy at arbitrated value in 1912, but 1t | will have to pay all cash then unless the 1 price suits the owners, and city the size
 
 i to pay for the plant except at d great discount.
 l If the purchase is deferred until 1912 1 the owners will get the benefit of the in
 creased value by reason of the increased
 annual earnings which we estimate will be $60O0 or over, which will increase the
 value of the plant $100.O0O.
 "If the city owns the water works it
 will not have to pay $2So0 state and coun- fxrt @fff
 sewer system under construction in
 Brighton is estimated will increase the
 net earnings S2O00 year; it is safe to es-
 timate the earnings in 1911 under city
 ownership at $700O to $8000 over 19O9 There
 is need now for 300 more connections
 with present sewers in the city of Besse- mer
 Shall we force the connections and increase the value of the waterworks l further before buying?
 70. As to the mayors objection to Mir. Adler or the city council naming the waterworl1s commission, the city can safely trust it's mayor and R. F. Smith to serve as commissioners. MT. Adler has right to have a hand in the con- trol of the plant as he takes all the paper issued in payment for it. If the city will pay cash now, which is im- possible, MT. Adler will gladly turn over ,, the plant to the city
 ''As to the people electing a commis-
 sion, this would put the waterworks in
 politics, and we do not believe it would be wise for the city to buy waterworks unless it can be kept out of politics It is a business proposition and oughs , to be treated as such. It is much moro difficult to find men capable of oper- ating waterworles; if the city buys, we consider 1t will be fortunate to get the services (without cosD of a man on the commission who has shown the capacity to make a great success out of a prop erty that the great majority of people could not see any merit in for so many years.
 "6. Mr.. Adler,s firm owns a one-tenth in option to buy in 1912. The city can only acquire this by agreeing to pump linn tied amount of water into MT. Adlers pipes at cents per 1000 gallons for a period of 15 years. The city can acquire this water only in this way. It is bet ter to get it this way than not at all.
 '7. We admit Bessemer will not have to worry about water supply for 25 years, until the contract with the waterworks expires. but water rights will be much more valuable then and unless We buy the present plant then we will still have a competitor furnishing pure spring wa ter against a works supplying river wa ter We ask how many people will drink river water in preference to spring wa ter?
 There are other reasons why the city --------------