The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-08-11

gives the company the right to per-
petual franchise, does it not?" asked
Mr.. Harris.
No Free Water Right.
mo. it certinIy does not give the
city the right to a free water" was
the attorneys reply. THE company's
right to use the streets will continue
after this contract expires but the
city's right to free water will cease
because it is provided in contract.
But the company's franchise will con-
tinue We claim that the company has
the right to keen it's pipes under the
ground and inasmuch as we have to
have water, why tear up the streets?
There must be some reasonable cost
and the company can take no advan-
tage of the city because the courts
will not allow it,
Providing no contract is granted to
any company by the city before the
present contract expires the present
company will furnish water until a
contract is granted. In this event the
city will have free water and the
|
ent until another contract is granted.
Many lockers" Found.
"Jokers" galore were pointed out by
councilmen and other interested citi-
zens present, and the representatives
of the company admitted a number OF
such clauses to be made favorable to
the company. Most of these 'jokers"
are in section IA.
| The company's idea in arriving at
the six per cent which it is to receive
and which the city virtually guaran-
tees, is to figure six per cent not only
on the present value. but also on the
value of the improvements and extern
sions. This fact was brought out by a
question asked by Councilman Wal
dele When informed of the COM
pany's plan. Mr.. Waidele said, THAT
certainly does not look right to me-"
Much discussion TRANSFERRED on the
clause of section IA, reading that "the
water works shall have the right to
increase the rates providing the rates
specified do not furnish a net seturn
of six per cent on the net valuation of
the plant" Councilman King said
that he doubted If the city would ever
receive anything from the company.
Mr.. Harris asked if there was any pro-
vision in the proposal to reduce the
rates after they had been increased.
This question was answered in the
negative.
A Weak Argument.
Attorney Ray Shiveley explained
the meaning Of going concern" as
the company looked upon it. He said
that there was no doubt as to the
going concern" value, as it had been
passed upon by the courts.
In the opinion OF those present,
Mr.. Shiveley's argument on this
point was very weak. Shiveley com.
pared the water works to local man.
ufacturing concern, saying that if the
company did not have it's business
that it would not be worth as much as
one having a business.
Councilman Waidele declared that
there was great deal of difference
between water works company and
manufacturing concern. When you
. want a connection with the water
works company YOU have to ask for
it," he said, land then you are going
to pay for the connection and let the
company own it afterwards A manu-
! featuring concern goes after business
| and the business of a water works
, company literally is thrown into the
| company's hands"
Another point was brought out BY
Councilman King. He said that the
company should pay the city some
thing for the privilege of using the
: streets of the city, and that this should
t be valued at a high price by the city
THE company should consider this
[ matter of great value to ito have
: the right to lay it's pipes-and should
be made to pay something to the city
, for the privilege" he asserted
1 Mr.. Dill asked Mr.. King what he
) considered a fair proposition. Reply
ing, Mr. King said that the city should
have free water, that the poor mar
/ should pay for the water he used and
that there should be no minimum rate
He declared that the minimum rate
[ was not fair to the people.
In no uncertain terms B. A. Bescher
) city clerk. declared that the matter
} of extensions was the worst thins
} with which the board of works had te
contend. He said that it was out
raseous that the water works woulG
not make an extension unless there
was $40 of private consumption on the
street. He asserted that the city Off
Gals were placed in bad light be
t cause of this fact
5 Mr.. Dill said that the company could
: not afford to make an extension In
4 every outlying district of the city He
declared that as it is there are ter
!. miles of small pipes which have beer
> extended and that Richmond is unus
: ually served in this respect He said
that under the proposed contract an,
unnecessary extensions would be paiC
2 for by the city inasmuch as the com
pany had to have its six per cent.
} That the public meetings have done
great deal of good is the opinion O.
l Mr.. Bartel and others. He said tha
it had educated the people to what the
proposals contained and that the PEG
pie had the right to attend the meet
r ings of council and board OF works Il