The Richmond palladium and sun-telegram., 1911-07-27
Under the Terms Of Camp
field Proposal Being In
constitutional, So Attorney
Lindemuth Admitted.
A PUBLIC HEARING
HELD THIS MORNING
Of the Campfield Proposal
and Tonight f. c. w. w.
Co. Will Have Its Inning
Public Asked to Attend.

That the possibility of municipal
ownership Of water works plant un-
der the e. NJ. Campield Companv's
is prevented by the state con-
stitution was an admission of A. C.
attorney for the company.
on Thursday at the joint morning ses-
sion of the board OF works and the
city council and citizens. at which the
discussion OF the two proposals was
open to all.
After discussing the Campfield pro-
posal for nearly two hours. the meet
ing was adjourned until 1880 o'clock
this evening, at which time Attorney
Lindemuth will conclude his state
ments in regard to the purchase of the
plant. The meeting this evening win
be open to all and it is the desire OF
the city administration that represen-
tatives of the Commercial Club. tho
Young Mems Business Club. and 9TH
er commercial organizations and all
citizens who are interested will attend
The Richmond City Water Works
company's proposal win be discussed
in its entirety at this meeting.
Rulings interpretations.
The imrrobability Of purchase OF the
plant by the city should the e. M.
Campfield company secure the fran
chise, hinges largely on the conatruc.
tion placed upon the state conatdtnttcn
by the supssnlet- cuust.-
torney said the constitution declares
that municipalities cannot become
indebted beyond two per cent OF the
taxes. In Richmond II the city was
entirely free of debt. which 1t is not,
1t could obligate itself to the extent OF
$290.00O, which is two percent of the
taxes of the city. At the present time
its bonded Indebtedness is $210.500,
leaving sc9.5O as the entire amount
the city could now obfigate itself to
expend. Any scheme to spend a sum
in excess of this at the present time
would undoubtedly be held invalid, the
attorney stated
The attorney for the Campbell COM
pany said there wassa question wheth-
er the city could purchase the plant
on the insaIlment plan. 30 long az It
did not oblisate itself In amy way.
He was interrupted by assistant city
attorney Wilfred Jessup, who cited
statute which declares q city can not
purchase stock in any corporation un-
less 1t acquires a majority interest
which rrecludes the instaIlment meth
cd of purchase and would preclude ev-
en- If the city was entirely free OF debt,
because majority interest under the
provisions OF the Camrfield proposal
would require an expenditure on the
part of the city in excess of the amount
provided under the terms OF the law
Mr. Lindemuth said that in framing
up the option clause Of purchase,
though there was a doubt whether IL
could be exercised. It was done on his
Interpretation OF the supreme court
ruling. As he understood the ruling.
the city could purchase on the install
ment plan SO long as II did not obli-
gate itself In advance to the delivery.
He disclaimed knowledge OF the statue
cited by the assistant city attorney
Rates Most important.
But though the attorney for the
Campfield company discussed the op-
ton clause Of purchase. he announced
when he brought up the subject,
the city probably could not mu-
nicipalize the plant by any method
and that he believed the question most
important in the minds OF the people
related to the rates for water. He did
not have time to discuss the rates pro-
posed by the Campfield company. nor
to compare them with those of the
Richmond City Water Works compa-
ny's proposed rates.
Attorney Lindemuth read the com
pany's proposal and many questions
were asked by councilmen and ad.
ministration officials and citizens
present One OF the first things ex-
planned by the attorney was that II
the Campfield company gets the fran
chise, it will acquire the Richmond
City Water Works plant either by me-
gotiations with the company or
through the instrumentality Of the OPP
tional clause of sale in the contract
which the R.~C. w. w Co, now oper-
ates under.
Many Questions Asked
Questions as to the supply of wa
ter for park purposes. in the sewer
Continued cn Page Six)