The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-10-30
Object to Being Required to
Sell After Five Years to
City or Purchaser of the
City's Option.
OPERATION DEMAND
ALSO NOT FAVORED
The Specifications Provid-
ing for Equipment and Op-
Grafton Are Held to Be Ar
bitrary Ones.

The Richmond City Water Works
and the E. NJ. Campfield company. in
communications submitted to the
board of public works today. refused
to bid on the specifications prepared
by the city council and board OF
works to supply the city of Richmond
with water.
The clause in the specifications re-
quiring the successful bidder to agree
to sell at any time after Ave years
from the granting of the contract to
any one to whom the city may see At
to assign its option to purchase. was
the most serious objection of the two
companies.
Exception was also taken to the
specifications covering the equipment
and operation Of the plant. which were
held to be arbitrary in some instances,
and too restrictive in others
The refusal of the city Water Works
company to bid on the proposed con-
tract, will not affect the contract un-
der which the company is now supply
ing the city water. according to City
Attorney Gardner.
The communications OF the compan
les were taken under advisement by
the board of works. Mayor thinner
man expressed the opinion that the
city council ultimately would be COM
PEELED to alter the clause In the con-
tract which provides that the city has
the option of purchasing the plant af-
ter five years from the date on which
the contract is made.
He agreed in the statement OF the
companies that capital would not in
vest readily in a public service corpor-
alton that after Ave years may be dis
turbed by the action of the city In SELL
ing its right to buy the plant.
The sentiment was expressed that
the city council will have to change
this and operative measures In the
contract before bidders will be found.
1t was said that III. for instance, a
company had secured the contract to-
day, another company at the expira-
tion of five years might offer an in
ducement to the city and purchase the
plant for the sake of making some
money on the deal This would be
manifestly unfair to the successful
company, it was held.
Five Year Clause.
Referring to the section which pro-
vides that the city may purchase the
plant after years, the communication
of the water works company said:
ANY investment made under this sec
tion would not be sufficiently attrac-
tive to induce capital to purchase
bonds on stock in the company whose
plant would be subject to transfer at
any time after five years. II would be
difficult IL not impossible to place
bonds under this section
The company expressed it's readi-
ness to enter into contract with the
city on terms that are reasonable to
both parties.
In the Campfield communication in-
dicated that the City Water Works
plant in its present condition is not
capable OF producing the tests demand
ed in the city's contract. and that I'm
provements to the plant will be nee
essary before the plant can make the
| tests.
The Campfeld company's communi-
cation outlined at length the obtec-
tions against the five-year clause. and
asserted that the specifications Of the
/ contract will merely increase the cost
of water to the consumer. II also
/ maintained that capitalists are wary
of investing in public service corpora
tions in Richmond and cited the revo-
| cation of the street car franchise as an
example Of measures that frighten
! capital from Richmond
! Text Of Communication.
The text OF the communication OF
the Richmond City Water Works is
appended:
"On September IS and October 3
your honorable body advertised for
bids for supplying the City of Rich
mond and the citizens thereof with
water. said bids to be received by you
On or before 10 O'Clock a m. October
80 This company regrets it's inability
to present its bid under specifications
provided by you for the following rea-
sons:
Section "a provides that the said
company. its successors. and assigns.
expressly agrees to sell said water
works TO said city or assigns. at any
time after FIVE years from date this
contract is approved by the Common
Council. at a fair valuation without
bonus or per cent added. and without