The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-07-21
In Twenty-Five Years to Pur-
chase Water Works Plant
Under the Proposal of the
Campfield Company.
STATISTICS GIVEN
OUT BY C. JORDAN
In Other Respects CONNER
cial Club Committee Be-
lieves Proposal Is Better
Than One of r. G.. w. Co.

because OF tQe enormous purchase
price the city would be required to
pay under the terms of the water
works franchise proposal of the e. NJ.
Campfield company the Richmond
Commercial club, judging from the
statistics on the proposal, collected
by Secretary Jordan, believes it's ac-
ceptance would practically preclude
municipal ownership. The statement
prepared by Mr.. Jordan ON the Camp
field proposition does not say this in
SO many words, but the figures pre-
sented speak loudly for themselves.
BY the proposition of the E. M.
Campfield company, as understood by
Secretary Jordan whose figures were
approved by Mr.. Campfield, the city
would have paid out at the end of
25 years, including the interest lost on
funds, total of $1,619,5Oo. Not un.
til then would the city be the owner Of
the plant.
The city would the first year as a
copartner of the company, expend
500, $3.50, another impossibility point
ed out by Mr.. Jordan.
Not the Net Cost.
But $1.619,5OO would be the actual
amount the city pays under the Camp
field purchase plan, the net cost
would be $1,o62,620. This conclusion
|s arrived at in this fashion. The
city, Mr.. Campfield assures in his pro-
posal, would receive $4,000 annually
in profits from the operation of the
plant. Deducting the profit which is
figured at $566,SSO for the twenty-five
years, it would leave the net cost ST.
O62 ,62O, though the actual cost would
be over a million and a half dollars.
However, by the proposal of the
company, it is also stated that in case
the city does not wish to agree to
Campfield's plan of purchase, the city
may purchase the stock in the open
isfactory. Though objections arise to
this method in the minds of some of
the clubs committee, these objection
have not yet been outlined in con-
crete form. The committee feels that
in other respects the proposal of the
E. M. Campfield company is better
than that of the Richmond water
IN,
will be furnished water at cost
much less than that proposed to be
charged by the established company.
In his examination of the e. M.
Campfield company's proposal, Secre-
tary Jordan made in part the follow
ing deductions, which were pronounc.
ed o. X. by Mr.. Campfield on his in
spection:
Jordon's Statement.
THE city is given the right to pur-
chase the plant.
The proposed Company will incor-
porate with capital stock of sS25, 900. 90
S625, 900 90 common stock; $500, 900. 90
preferred stock.
The S625, 100000 common stock is
non participating and non-voting and
shall be placed in some Trust COM
by the city in annual payments of
S31 100000 each, which will require 90
years, l month and % days. Then in
years, 10 months, and 2 days the
city shall pay S15O,000o0 for the re-
mainder of the preferred stock. OF the
| 5000, 10000 of preferred stock the city
shall take s50,o00.0o worth and the
water works company s150,o00.00
worth. The city to have one member
on a managing board of fve directors
and be entitled to one-fourth vote in
all stockholders meetings and receive
one-fourth of the net profits OF the
water company.
ITO cover this SS2J 10000 o. capital
stock s775, 100000 OF Sc bonds shall be
issued which with the $50,0o0.0o paid
| in by the city makes the ss25. ZOO. 90.
These bonds bear interest at So pay
able semi-annualIy and made $31, ,000.-
90 payable each year for 25 years. The
water company to pay the accrued in
| terest from the gross income of the
company.
Whenever a s31, ,ooo.o bond is paid
of, s31, ,0oo.oa worth of the common
non-voting and non-participating stock
| is transferred to the city from the
Trust Company holding the common
stock in trust
| Thus at the end of one year the
city would have $31. 10000 invested
IN non-participating stock after hav-
i ing paid III g interest on SITS. .o00. 90
bonds. making a payment Of $40.ss75o
plus the $50. 100000 of preferred stock
makes $so.6s75o for the city to raise
! the first year"