The Hood River glacier. (Hood River, Or.) 1889-1933, 1911-06-22
MUNICIPAL SYSTEM
NOW ASSURED
CITY AND OWNERS AGREE ON PLAN
Old Plant VIII Be Condemned By Eminent
Domain Proceedings Citizens Greet
Action with Approval.

~
lar Monday night meeting, the ques-
tion Of the acquisition by the city of
the water system recently purchased
from the Hood River Power & Light
Co. by the Pacific Power & Light Co.
reached its last stage when the city
fathers decided to accept one of the
alternative propositions offered by the
owners Of the property and proceed to
acquire it under the power of eminent
domain.
Below is submitted the eommunica-
tion from Vice President Grenier. of
the Pacific Power & Light Co..
To the Honorable Mayor and the
Common Council of the City of Hood
River. Hood River, Oregon.
Dear Sirs: Confirming my state
ments in our interview of the 10th
inst. Pacific Power & Light Co. re-
spectfully offer to sell and convey its
entire water works property and sys-
TEN in your city to the City 'ofiHood
River at the present reasonable value
thereof; such reasonable value to be
determined by either of the following
methods:
!. By an appraisal to be made by a
board of three disinterested arbitra-
tors, one to be appointed by you, one
by the Pacific Power & Light Co.. and
the third to be agreed upon by the two
arbitrators so appointed; such ar
bitrators to be engineers or otherwise
familiar with or competent to pass on
values of property of this kind
9 BY proceedings under the power
of eminent domain brought in the
name of the City of Hood River in
accordance with the provisions of the
statutes of the State Of Oregon and
the City charter with reference to the
appropriation of property for public
purposes.
The valuation to be made by either
of the above methods shall include the
value of all reservoirs, mains, pipes,
supplies. real estate used in connection
Herewith, water rights, and all other
rights or easements of value to the
property now owned or used in connec-
tion with the Company's water works
system; the Company's offer including
the entire water works system with
all rights and privileges appurtenant
thereto.
In my interview of the 10th inst,
stated that the Company would be
willing to sell the above mentioned
property for $45, 900, even though the
appraised valuation found by either
of the above methods would exceed
such sum. After a conference with
other executive officers of the Com
pany, it has been decided to reduce
this sum to S42, 500, which according to
an. examination and report recently
made by Mr. d. c. Henry, consult
ing engineer. represents the actual
physical value Of water rights, fran
chises and the value Of the business as
going concern.
Mr. Henny's report dated March 3,
1911, showed that in reaching the
above valuation he deducted somewhat
over $1,000 off the replacement value
of the property for depreciation, and
made no allowances whatever, as
above stated, for value of water
rights, franchises, etc. A separate
valuation of the water rights which
are offered to the City as part of this
system was estimated by Mr.. Henny
on a conservative basis at SIS. 900.
The Pacific Power & Light Go. offers
this property to the City of Hood
River, as above indicated, at a price
considerably below its actual physical
value and its present value to the
Company, because it desires to assist
the people of Hood River in carrying
out their frequently desire to own and
operate their own water works system.
ThefCompany further recognizes the
immediate necessity of the City OBJ
tanning a larger and more abundant
water supply than is at present avail.
able, and it believes that by offering
its own properly to the City at the
reasonable value thereof, the City will
be materially assisted IN obtaining the
relief desired.
If the City prefers TO purchase this
property at the valuation appraised as
above suggested instead of at the
Company's cash offer of $42, 500, the
Company will do everything possible
on its part toward getting such vaua
tion determined as promptly as pos
sible
hShptCLluily yOuAs,
Pacific Power q Light Co
By A. S. Greiner,
Vice President.
The following is the report of the
Fire and Water committee of the
council:
Hood River, Oregon, June 10, 1911
To the Mayor and Common Council
of the City of Hood River, Oregon.
Gentlemen: We, your Committee OF
Fire and Water, have during the past
week, been in conference with the
present owners of the Water System
with a view of procuring from then
some expression of their attitude OF
the water question as affecting the
City's water supply. At the request
of your committee, the Pacific Power
& Light Company, the present owners
of the water plant, have addressed the
attached communication TO the Council
for consideration and in connection
with this communication your com.
mittee beg to make the following re-
port:
Q) Taking up the propositions Of
fered in this communication in then
order, we report that we do not favor
the first Eproposition outlined, for the
reason that this method, while gener.
ally held forth as equitable in affairs,
we do not feel would be free from
censure, should the award of arbitra.
tors exceed what has generally beer
accepted to the value Of the plant: and
be that as it may, the last analysis Of
this method means that one man prac.
tically fixes the award, which we dc
not feel to be proper in this case.
(2) We report in favor Of the sec.
ond proposition outlined in the Water
Company's offer; that is, for the City
to proceed to condemn the plant, with
all its fixtures and appurtenanees, and
have the value assessed by a jury OF
twelve men, after hearing all the evi.
dence in the case. This would give US
an award free from suspicion and criti.
cism and one which the citizens Of