Daily capital journal. (Salem, Oregon) 1903-1919, 1911-01-31

olS oI argument and proof. Thl
values of material, mains, equipmen
are left as given.
The committee would respectfully
call attention to the fact that the of.
fer of the Salem Water company as
given in the bill does not include any
realty in block is, only the water
power, whether leased, optioned or
purchased. The engineers estimates
have figured $4,000 real estate and
$4,000 water power, development on
this aside from the $4,000 valuation
and under the offer and reservations
we might have to move this power to
the public dump or possibly up Salt
creek. All of lots and 2 and frac-
tional and s are valued by the engi-
neer at $4,000. If the company would
really put this in, the city could af-
ford to pay good bonus. Also the
realty values would be nearer right.
The committee would also call
your attention to the fact If Salem
water must be pumped, it would be
necessary to purchase additional
ground for enlargement of pumping
station and the city should get all of
block 96. The committee under
stands that the balance of said block
is now held for said company by
George Wolaver Also that the cost
of paving, $316.46, is bonded against
said property. South salem sewer
assessment of S19443 and that the
1910 tax of approximately $6250 is
about due on same and would proba-
bly, fall on the city.
On page 16 Cunningham states the
distributing system on a proper ba-
sis, together with the reservoir and
miscellaneous fittings can be had now
for about $13O,OOO The balance of
the system would not be used if Sa-
lem installed mountain water. A
reputable taxpayer very close to the
water company estimates that $780,
900 would bring in, mountain water
and build reservoirs. He states that |
he has had engineers figures on it.
The population of Salem has in
creased about 20 per cent in two
years per school census and enroll
ment If we should allow 20 per
cent of additional on the $295,OOO, we
would have about $S50,00O as the
present value This would be bo-
nus of 100000 in a $35O,OOO valua-
ton. But the 100000 betterments
must be deducted as it is to be paid
extra and we would have $4,000 as
physical or duplication value plus
going concern value. The assess
ment for 1910 of the company is
$1S2,5SO personal and about $4,000
realty, or about $265,OOO.
The company's book value of their |
plant is $264,SOO by calculation from
depreciation as given to Cunningham,
also from total cost on which per
cent equals $1S,422, the sum they
charge as interest on total cost of
plant. They figure depreciation at
$26S0 per year. This also figures |
back to an original cost of $685.
Their net profits in 1908 were.$ 5000 |
Interest on total cost of plant. 1922
Operation and maintenance. E. 1850
Depreciation. ......",... 1850
Tax. .................... 5,204
Total income. .$42, 900
The revenue has increased some
what but so have the expenses while
the pumps, boilers and centrals mains
are at very low ebb in upkeep. The
installment of such has been delayed
pending negotiations.
The arbitrated value is $422, ,5S5,
from which the company deducted
$4S,OOO in the offer. Since the water
right, one years interest and one
years profit is equal to this, they
have only receded from untenable
items.
If the city purchase the plant at
$4S0,000 with betterment and extern
sion, another 100000 is needed to
filter the water and install proper
pumps boilers, reservoir, mains, ETC.
This would be more than good
water system could be in
stalled for In addition to the fact
that no land is offered in the Salem
Water company's propositions in
block IS we beg to call your honora-
BILE body's attention to the fact that
the proposed lease of said power
would be void as 1t is not mentioned :
IN the title of this bill.
Your committee would also call at
.ention to the fact that the taxpayers
and voters of Salem have authorized
he bonds and the purchase of said
plant, but the final purchase is re-
'ponsibility resting solely and entire
y upon the mayor and common coun-
I'll of this city. The purchase price
8 given as based on arbitration. The
company has receded $4S,0OO from
said arbitrated value and In the opin-