The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-15
Richmond City Water Works
Company Discusses its Bid

In explanation Of It's proposal for a
| renewal of Its franchise. the Richmond
City Waterworks company has issued
the following statement:
I'VE have been asked to make a
statement relative to the proposal
made to the city on the 18th inst. and
we are pleased to do SO. While the
matter of contract is legally decided
by the board OF public works and the
city council, we wish to take the pub
lie into our confidence and endeavor
to show the reasonableness of the pro-
posal. II was not expected that II
would meet with instant approval. but
we believe much of the criticism Is
due to wrong conception OF the CON-
pany's attitude towards the city.
I'VE are a corporation. public ser.
vice corporation. and perhaps we have
been travelling with bad company. but
even corporation is sensitive to un-
Just criticism. insinuations, and to ac-
cusations. We believe our service for
the past twenty-five years has been
equalled by few similar corporations.
There has been but little controversy
and differences OF opinion have been
adjusted amicably.
practically all of our stock and
about two-thirds of our bonds are held
by residents of the city, thereby keep
ing from $4,000 to $4,000 year at
home, which, with foreign investors
would be taken out of the city. The
investors OF this company naturally.
also. have a pride and an interest in
keeping the plant up to the highest
standard. The citizens of Richmond
too take a pride in the quality of its
water, and have never been restricted
In its quantity.
"The rates compare favorably with
the average OF over three hundred
cities in this country. Other cities
may have lower hydrant rentals but in
determining rates, both hydrant and
domestic, the construction and opera
ton OF each individual plant should be
considered. This can be secured by
a careful appraisal. and with this as a
basis. and the items of revenue. opera.
ton Vnd maintenance expenses, a
proper schedule of rates can be made.
Such a valuation should be made only
by competent engineers. trained by
experience and judgment. This city
Is in an excellent position at this time
to deal with this question, having the
valuation made in 1909 by it's engin-
eer, Mr.. Maury. Some criticisms have
been made of his valuation. That was
to be expected. Lawyers. doctors.
even engineers do not agree on all
points at issue. When a business
firm has a legal matter to settle 1t
consults competent lawyer whose
judgment and experience have gained
him an honorable position. His opin-
ion may not please his client, but the
latter would hardly place Its view be.
side that of the lawyer consulted. 1t
accepts the opinion Of the professional
man and acts accordingly.
"The experience. and position of Mr..
Maury warrant careful consideration
of his valuation, for there are few con.
sulting engineers in this country who
stand higher in this profession. At
the same time of Mr.. Maury's investi-
cation. this company engaged Mr..
John w. Alvord of Chicago to make a
valuation independent of Mr.. Maury.
The same items of facts regarding the
plant. its expenses and revenues were
given both engineers. The valuation
of these two engineers agreed within
few thousand dollars. Both of these
gentlemen stand among the highest in
their profession, each having been
president of the American Water.
works association, and each having
held similar positions in engineering
and waterworks associations Of ILL.
nois. Both gentlemen are members of
the American society of Civil Engin-
GERS. Mr.. Alvord has acted as an ex.
pert in many noted cases of water.
works litigation. involving the valua.
ton of plants and adjustment Of rates
II would seem. therefore, that they
were well qualified to appraise the
plant of the present company.
IF the valuation of the city's ex.
pert. Mr. Maury was too high, would
the city be justified in paying to the
Campfeld company the sum of 1925,
600 for the plant as ii now exists, be-
sides the interest on the $31, 900 paid
annually?
This company realizes that the
city wishes eventually to own the
waterworks. and with this in view has
endeavored to prepare scheme by
which this can be accomplished grad
ually by the city. giving the stockhold
ers fair return on the investment
and without increasing the rates Mr.
Maury's report shows that the presen,
revenue OF the company gives a net
return over per cent, so that it car
be reasonably expected that the city
will realize profit. What that sun
will be depends on the future expense
of operation and new construction
This brings up the matter. Of free wat
err. Careful records over several years
shows that the company is supplying
free to the city. including schools
about 10 per cent of its pumpage Ir
| eliminating from Our nronositiou th<