The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-12-26
Asserts that There Is $780,
900 Worth of Watered
Stock in City Water Works
Company.
BAVIS WILL TAKE
NATTER TO COURT
Will Fight the City in Courts
with Restraining Order If
Contract Is Awarded to
the Company.

Should the contract for furnishing
the city with water be given to the
Richmond City water company which
will present a bid on the city's pro-
posal on January 16, and the sum of
$7O0,OO0 be accepted as the capitali-
zation of the company, a remonstrance
will be filed in the Wayne circuit
court to restrain the granting of the
contract.
! Alfred Bavis, prospective candidate
for mayor on the proposed Citizens
/ Independent ticket, intends to lead
this movement, as he believes the city
will not get the right kind of PROPOSE
tion through the present bid,
| "Of the 100000 stock of the COM
pany, 100000 is watered, said Mr.
Bavis, and | intend to lead the move
ment to have the franchise held up.
THE franchise proposed by the city
| is 1000 percent better than the fran
chise now held by the company but we
can get much better rates than the
present, | believe | have sufficient ev-
dence that lower rate than what the
city administration considers fair, can
be procured for water in this city. The
present rate is not a fair one. In
Springfield, Ohio. the water works is
owned by the Municipality and has Il
system which is excellent. The maxi
mum water rate there is ten cents
per thousand gallons and the mini
mum is six cents per thousand In
1911 on the capitalization. of $1,0So,-
000, without making allowances for de-
probation of the plant a profit of six
percent was made. If Springfield can
make six per cent on this rate, why is
it necessary for Richmond to charge
twenty-five cents per thousand, which
| Mayor Zimmerman believes is a fair
rate Springfeld's water is as good as
! Richmonds.
! Favors Commission.
Il am not in favor of raising the
two per cent limitation for bonding
the city, but | do believe it would be
wise if the state legislature would en-
act law which would permit us to
buy a self-supporting utility whereby
the profits therefrom could be absorb
ed in reduction of the cost of the
products supplied.
Il am not prompted by any feeling
of acrimony toward the present ad-
ministration but | do believe Mayor
Zimmerman yields to impulses of gen
erosity and such impulses are too oft
en- in the interests of the parties so
exercising that the influence is to
the detriment Of the peoples interest,
he is supposed to conserve
Springfield Plant.
According to information which Mr.
Bavis has, the municipal water works
plant of Springfield, Ohio, was install
ed in 1882 on bond issue of 100000
This included twenty-nine miles OF
main from inch to "a inch in diane.
ter, all necessary buildings, pumping
machinery, capacity Az million gal
Ions, boilers and accessories for a
Icomplete plant, also sixty-three acres
of land having water bearing gravel
beneath.
The average rate to consumer is, do
mestic service 81: bath $3.50; water
tcloset S2.50; washstand, no charge
sprinkling lawn and street, so foot lot
$500. Where meters are in use the
rate on the sliding scale is from to
10 cents.
The plant has never been apprais
ed. The actual cost of the plant to
December 81, 1910, and upon which
these figures are based was s1,0so, ,00o
The actual investment up to 1911 was
Sits, 5,s44.23. This includes all the
cost up to that time and includes the
cost of all equipment that has been
discarded up TO that time. A fair est
mate of that amount would be s1oo,
10000.
d The depreciation of the buildings
and machinery up to that time is esti
mated at 3 per cent; the depreciation
of pipe lines at l per cent. Last years
business paid AS per cent On an in
vestment of s1,0so. 100000. and the net
profit was s4S, ,10441. Deducting depre
citation of s15,900.o0, the net profit, al
lowing for free use of water. was 81,
per cent on the total investment.