The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-08-16
Clause Providing for This
Written into the Water
Works Contract Proposal
Last Night.
NEXT MEETING TO
I BE A PUBLIC ONE
1.-The World' Is Invited to At
tend the Conference and
Discuss the Profit-sharing
Feature.

''The World" as Attorney Johnson
lputs it, is invited to attend the next
meeting of the board of works, the
city council and the city's attorneys,
when the water works contract pro-
+ posal will again be discussed. The
next meeting will be held at the coun-
! Gil chambers, Tuesday evening. At
! this time one mooted question will be
settled. 1t is whether the city shall
j. or shall not share in the earnings of
the water works company.
! At the meeting held last evening,
that part of the proposal contract not
Ireviewed by council and the board at
the previous meeting. was discussed.
Acting on suggestions from many
fcitiZens, a clause was inserted, which
iproviies for the city to share in the
profits. The newly incorporated sec
,tions calls for a division of net earn
tings over six per cent, after five
years have elapsed from the. date of
letting the contract, then the COM
lpany may retain six per cent net earn
iings, but the city gets half of all earn
sharing section of the proposal adopt
led last night follows:
Sharing of Profits.
Section 25. At the end of five years
from the date this contract is ratified
by the Common Council of said city of
Richmond, said Water Works shall be
appraised in the manner provided
herein in case the city shall desire to
purchase said works. For the purpose
of making said appraisement said ap-
ipraisers shall have the right to exam
inc all books and records of said COM
pany. Said appraisement shall be
and without considering the cost of
service lines paid for by the consum-
er No valuation shall be placed upon
the unexpired term of this franchise,
or on future profits based upon such
unexpired term in making such valua-
tion, which valuation shall be made
for the purpose of fixing a basis for
sharing profits after the end of five
years from the date this contract is
ratified by the Common Council of
said city.
On the 10th day of June of each
lyear after the end of said five years,
the company shall come to an account
ing and settlement with said city as
of the 30th day of April last proceed
ing, except that the first settlement
shall be for the part of the year from
the end of said five years to the 30th
day of April thereafter. All settle
L1;, f,,ll
year from April 30th to April 30th of
the following year, upon the following
basis:
From the gross receipts of said COM
lpany from all sources, and of every
kind for the year ending on said 30th
day of April there shall be deducted
for each year:
First-All expenses of operation,
maintenance, renewals and replace
ments, which words shall mean and
shall be construed to mean the ordin-
,ary, usual and reasonable operating
expenses of the operation and main
ltenance of said property, plant and
system of said company, including
the usual and ordinary repairs there
to, taxes, insurance premiums, in
lterest, all legitimate claims for dam
ages and such renewals and replace
ments as are required to make good
and maintain said plant and system
substantially as the same exists at the
to make good and maintain all addi.
tions and extensions substantially as
the same may exist at the time of the
completion of such extensions and ad.
ditions.
Second---A sum equivalent to six pei
cent. interest per annum, for said pre-
,ceding year on the appraised value OF
said water works as fixed and deter
mined by appraisement in the manner
herein set forth. and on the costs of all
extensions and additions of said plant
from time to time, less the amount oi
Indebtedness of said company on which
Interest is being paid. Interest on the
costs of such additions and exten
sions being allowed from the date
same are made.
In case in any year the gross re
ceipts shall not be sufficient to pay
in full the items mentioned in the
first and second paragraphs of this
section, then the deficit shall be paid
put of the gross receipts of the sub
Hequent year or years
Division of Profits.
After the deduction from the gross
ITeceipts of the items hereinbefors
mentioned in this section provided, the
amount remaining shall be considered
as the net profits for such year aris
bng from the operation of said water
works hereby authorized, and shall b.
divided between the company and tn.