The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-10-30
NO BIDS SUBMITTED
To BOARD FOR THE
WATER CONTRACT
Object to Being Required to
Sell After Five Years to
City or Purchaser of the
City's Option.
CONTINUED from Page One.)

considering the cost of service lines
paid for by the consumer. An invest
ment made under this section would
not be sufficiently attractive to induce
capital to purchase bonds or stock in
the company whose plant would be
subject to transfer at any time after
Eve years. 1t would be difficult if not
impossible to place bonds under this
section. An investor in bonds or stock
considers the period Of time, and the
personnel of the company as well as
its financial standing. Bonds of a cor
poration are not as marketable as
those Of government, and the chan
ge5 that are possible under this Sec
ton would tend to prevent the ready
sale Of bonds and stock by the hold
,ers thereof.
Suggest Changes.
We also consider the words without
bonus or per cent added as indefinite,
and should not have been in former
contracts. 1t seems to us that the term
! fair valuation would fully cover the
requirements, for there has been a suf-
ficient number Of cases of valuations
of this character to serve as prece-
dent in the appraisement of the water
works plant, and offering equal pro-
Etection of rights to the city and the
company.
"On page 10, item 7, your board spe-
oifles a five million gallon compound
condensing high duty or electric pump
ing engine. We believe the conditions
could be covered by specifying the ca
pacity Of the pump only, for the COM
pany, as we'll as the city, would be in
terested in an economical operation of
ITS plant, and this could be done and
your requirements of service be car
fried out by different type of pump.
+. Your specifications provide for free
fire projection to manufacturers and
business houses. We consider this too
indefinite and that it would permit any
Iperson or persons engaged in COM
mercial enterprise to install a service
for such purposes. The water COM
Epany would receive no revenue there
from, would be put to the expense of
| frequent inspection to prevent improp-
Ier use from said services, as well as
the possibility of underground leak
Iage. This objection could be met by
the use of meters, the expense Of in
Sailing same to be borne by the con-
sumner having a fire line, and as such
service would affect reduction in in
surance rates, such expense would not
be inequitable to the consumer.
! This company is ready to enter into
ia contract with the city on terms that
Iare reasonable to both parties, but it
feels that the specifications in the
items heretofore mentioned are suffici-
emily Objectionable to justify it in not
making a bid Hereunder.
I'VE trust therefore that your hon
Iorable board will deem it advisable
ito make such changes In the specifi-
cations as will eliminate those fea-
lures that are seriously Objectionable
from a financial and operative stand
point"
! campneId's Objections.
! The main objections Of the Camp
held company to the contract follows:
| "Supposing that the franchise and
contract should be awarded to a new
party other than the present company
and he should elect to put in a new
iplant and make the necessary extern
|sions, 1t would take at least two years
to do SO, and to get the system in good
working order. This would leave but
three years more to operate unmolest-
led. No capitalists would be willing
Ito invest a million dollars in such an
enterprise.
"Supposing on the other hand that
fhe new bidder should undertake to
force a sale Of the present water
works system and make the many
needed improvements and extensions,