The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-08-15
In Order to Secure Fair Wa
ter Rates, Says Attorney
Jessup. Affairs of Com
pany Must Be Known.
CAMPFIELD STATES
PLANS OF COMPANY
Argues that His Company
Has by Far the Best Prop
osition and Would Reduce
the Rates on Insurance.

the Rates on Insurance.
All city officials are rapidly arriv-
ing at the conclusion that in order to
secure fair water rates. even IL the
city does not enter into q contract TO
purchase the plant. it must order an
inspection of the company's affairs
and books.
Since the publication. In Saturday
evenings Palladium. OF the law passed
in 1909. granting the city council this
power. the city officials are urging
an investigation. and at the meeting
last evening for further discussion on
the Campfield proposal. Wilfred Jes-
sup. connected with the legal depart.
ment of the city, declared that the
only method to ascertain fair rates 10
to inspect the books.
In q clear and convincing manner
Attorney Jessup explained that Il wns
vitality essential that the council order
such an Investigation. The subject was
brought up during the short discussion
of the advantages OF the Campfield
proposition, by Attorney Lindemuth.
Mr.. Lindemuth was asked BY Mr.. Jes-
sup upon what valuation the company
based its option clause. Mr. Lind
emuth answered that his company had
taken the Maury valuation.
Nssdsd for Fair Rases
We'll. we have to ascertain the -
tual sAltA pf tha slant = oakaar ~
Isecure Just rates. decl4rGd Jea6tp.
Mr.. Lindemutn asked Why & would
be necessary to take the value of
the plant into consideration In adjust.
ing rates. He said that It made no
difference what the plant ID worth.
The question Of valuation 10 an
important one." replied Mr.. Jessup eu-
phatically. III the plant il worth
$1,OO0.OO0. the rates are too low, aud
II the plant IL worth but $4OO, 900 and
valued at 100000. the rates are ex-
horbitant. It 1t not so?" he asked Of
Attorney Lindemuth.
4 would not say o to that" was
the answer.
In introducing their statements. Mr..
Campfield and Mr. Lindemuth assert
ed that the rates would not be discus
sed as they were 20 much lower than
those proposed by the competing COM
pany. Mr.. Campfield said that no mat
ter what company received the con-
tract that the city should attempt TO
get the lowest possible rates for con-
sumers.
In preparing his bid tfor ! water
works franchise Mr.. Campfield declar.
ed that he had followed the. city's Cd
Ivertisement to the letter and had In
cluded most OF the advertisement In
the bid. He said that this was done
SO that the bid would be according 70
the advertisement in every particular.
Promise improvements
Providing the contract IL awarded
the Campfield company 100000 win
be spent by the company in improve
ments In the plant. Lower fire insur-
ance will be obtained in the event Ger
tain changes are made in the( water
works system. and these are propos-
ed by the Campfield company. Mr..
Campfied has communicated with the
Indiana inspection Bureau and certain
changes were recommended by the
bureau, which II made. will result IN
the reduction in estimates on brick
mercantile buildings. Of about 13 per.
cent. and in estimates on contents Of
such buildings 2h per, cent, and in es-
Inmates on frame mercantile buildings
and their contents s per cent. The
improvements, however, will have no
bearing on the estimates that now pre-
vail on the dwelling and manufactur.
ing classes.
Mr.. Campfield stated that he had
made plans for these improvements,
which win be submitted to the board
OF public. works for ratification be-
fore the contract is awarded. These
plans will include another 20-inch main
10 be placed in the southern part Of
the city and some mains will be re
placed in the northern section Of the
city. He proposes to comply with
the suggestions made by the Indiana
Inspection bureau. A 100000 bond
will be placed with the city until the
completion of the improvements. This
bond will be separate from the fran
chise bond which will be held by the
city until the end OF the franchise.
Now Time for Action.
II the city ID ever to Danish the con-
|tention Of the present company to the
effect that it has perpetual franchise
Mr.. CampfIeld says that now il the
time to do it, and by awarding the
contract to the Campfield company tho
city need not fear OF his company
Continued on Pass 1txl