The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-13
Bids Submitted by the Richmond City Waterworks Com
pany, as They Now Stand, Are Not Acceptable to
the City and Will Be Rejected by the Board
of Public Works 1t Is Reported.
BOARD WILL PREPARE CONTRACT OF ITS OWN
This Contract Will Contain the Various Features Which
the City Will Insist on Being Incorporated in the
Franchise Taken Over by the Successful Bid
der-City Will Take Slow Course

chise, fund Is created In addition
it states that If the receipts OF the
pant are not sufficient to raise this
fund. sum equal to one-half OF one
per cent Of the valuation OF the plant.
shall be set aside for renewals. re-
placements, emergencies. etc. The
clause reads: THE Water Works COM
pany shall have the right to increase
the amount of such fund, and with the
consent of said city shall have the
right to increase the rates charged Tor
public and private consumption of wa
ter SO as to cover the necessary In
crease in said fund. and said city shall
agree to a reasonable increase OF said
rates
In the contract that is finally
never stand. 1t virtually means that
when ever the company wishes to In
crease the rates 1t may do SO.
Must Remove This.
Fifth: In the following few sub
sections OF the Fourteenth section OF
the local company's franchise. 1t pro
vides for the division of receipts. 6
per cent to the company. the next two
per cent of receipts equally divided.
and the remaining receipts going to
the city. This. is considered fair by
the city, but the following proviso
must be taken out:
If the rates for water service az
fixed BY this ordinance shall not fur
nish net return OF six per cent on
as herein provided for. said rates shall
be increased by said water works COM
pany SO as to provide for such return"
In other words said city Off
ciai, I'VE guarantee the Richmond
City Water Works company q six per
cent. return on their investment. The
company borrows the money. invests
it, makes money, while the city holds
the sack"
This provision will probably be
scratched off early In the wedding out
OF "iokers."
A Sixth Objection.
Sixth The rates In both franchise
bids are practically the same as at
present, excepting that the Richmond
City Water Works company's proposal
gives no free water. It charges six
cents per 100 cubic feet. or 75O gal
Ions. for public water. excepting fire
plugs. These would be rented annual
ly from the local company at $50 each
or from E. M. Campfield at $42 each.
The domestic rate OF the local COM
pany is 20 cents per 100 cubic feet.
and Campfield's 25 cents per thousand
gallons. the present Richmond city
rate. On the new schedule the r. G.
w. w. rates figures about 26 % cents
per thousand gallons.
By comparison 1t Is thus seen that
the rates of the CamDfield company
are slightly lower than those OF the
local company.
City officials differ as to free wa
ter, however, and no matter which bid
is finally accepted. there will be re-
strictions on free water. City Attor-
ney A. NJ. Gardner says he favors free
water. but with restrictions. II the
city, or schools use more than their
allotment they should be charged for
the same. One official said he thought
free water is not a good thing.
Kicks on Free Water.
You see. the city will be interested
in the plant. he explained. what We
pay for we get dividend on. There
is lots Of water wasted"
Mr.. Dill. superintendent OF the
Richmond City Water Works company
said yesterday he thought the income
of the city would be sufficient to buy
the plant in 25 years, with what mo-
ney the city would be able to borrow.
The method of purchase OF the plant
will be to establish sinking fund, Of
the city's profits from the water works
plant
/ One great objection to the Camp
| field proposition is the method stipu-
lated to buy the plant. 1t states that
the city must take $4,000 in stock at
once, reaping however n Of the pro
| fits OF the plant Immediately. and
thereafter purchasing 33I, 900 IN stock
Iper year The city officials, including
E. G. McMahan. controller, declare
the city could not raise that amount
| Of money each year without Ievyfng =
special tax
a campfieid Objection.
| City Attorney Gardner, although he
has not carefully investigated the
CampfieId proposition, thinks that Al
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