The Richmond palladium and sun-telegram., 1911-06-29
Continues the Merry Water
Works Franchise Contro-
versy by a Defense of Com
pany's Proposition.
BAVIS CHARGE OF
JOKERS IS DENIED
On Question of Free Wa
ter" the Company Courts
Investigation, Promising
to Assist with Data.

The merry water works franchise
controversy. which has ragged in the
columns of the Palladium since the in
PRODUCTION of bids for franchises by
the Richmond City Water Works COM
pany and the Campfield company,
still goes merrily on. and will as long
as the matter is up for consideration
and the citizens and interested corpora
tions have anything to say.
Recently A. Bavis contributed an ar
ticle to the Palladium in which he
asked numerous pertinent questions
of the Richmond City Water Works
company and stated his belief its
franchise proposal was full of jokers.
Today Howard A. Dill, treasurer Of
the company, replies to Mr. Bavis in
an open letter and denies the charge
made by Mr.. Bavis. His reply follows:
A Reply to Bavis.
To the Palladium
In your issue of June Goth I notice
a lengthy and careful comment by Mr.
A. Bavis on the proposal of our COM
pany. We have taken pleasure in
reading Mr.. Bavis' articles on other
subjects. and Judge he is wide read
er and a man of good judgment. While
Mr.. Bavis is Hoosier at present, one
can but infer that he must be native
of Missouri, for he wants to be shown.
We therefore take pleasure in this at
tempt, although our ability may not be
equal to our inclination. Mr.. Bavis
rightly says that the appraised value
of the plant is the basis of the sub
ject under consideration.
Two years ago. the Board of Public
Works was of the same opinion, and
wisely secured the services of one
of the foremost engineers of this coun-
try. The Board and Mr. Maury ask
ed this company for certain data, by
which they could obtain a complete
valuation. This company was under
no obligations to furnish it, the city
had no power to compel it to do so.
except in case of purchase of the
plant. knowing Mr.. Maury's reputa-
tion for ability and fairness, the COM
pany acceded to the request giving
ali the information necessary for a
most thorough appraisal, not knowing
whether such a valuation would be
above or below the value of the plant
as shown on it's books. Mr.. Maury
might have made the item of deprecia-
ton very much more than was done,
and yet this company would have hesi-
tated to question it, feeling that his
experience and judgment outweighed
its own. We are not attempting to ex-
plain of defend Mr.. Maury's figures,
any more than we would take excep-
even if it should be adverse to our
own interests. .---.-. -
What 6avis Would Do.
Let us assume that Mr.. Bavis wishes
to purchase the business of Main
street merchant. Being a prudent
man, we infer that he would want a
careful inventory made of the stock, a
balance sheet showing receipts and
expenditures. profit and loss, etc. We
also presume Mr.. Bavis would engage
the services of a man or men to get
this data who were well posted in this
line of business. When their report
was made. it would seem reasonable
that Mr.. Bavis would accept such a
report as correct, whether it was above
or below the value he had placed up
o. the business. If the valuation ex-
ceeded his ability to purchase, he
would probably decline to buy, IL it
were lower than anticipated. he would
congratulate himself upon his good
fortune. An Independent valuation by
our engineer. Mr.. Alyord, convinced
US that the valuation of the city's ex.
pert was a fair one. and because it
may appear to be favorable to the COM
pany, should that be cause for criti-
valuation?
If by careful management and fair
dealing, the company has succeeded in
establishing a business that pays only
a fair return on the valuation, is 1t not
entitled to as much consideration as
the business of any merchant or manu-
facturer? All water works have not
been successful. by any means. and to
day a private water company has diff
ficulty to float its bonds at a reason
able rate of interest. Before 1898 this
company paid rate Of s per cent. on
its bonds Attempts were made in all
the large cities of the United States to
refund them at per cent. but SO
hazardous was a water plant consider
ed, this could not be done
How Il Placed Bonds.
Only through local underwriting was
this company able to place its bonds
ON q per cent. basis, because the