Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-30
STATE APPRAISf
WATER SECUR|1
At S8,72S,5Bt
Figures in Report, ,$l,171,-
700 Short of Paterson
Co.'S Valuations.
EXPERTS CALCULATIONS
INCLUDE SIX CONCERNS
Take in the Passaic, Acquack-
anOnk, MontcIair, East Jersey
and Kearny Water Cos.
Especial to the newark stnr.l

Is-pSchhi 10 the NcNark sEIF=I
TRENTON, Dec. sO.-Appraisers
representing the New Jersey Water
Supply Commission and representa-
tives of the East Jersey Water Com
pany's interests here touay filed sepa-
rate estimates of the value OF the
| property controlled by the East Jer-
sey
There is a difference In the sotaf
figures of close to 81 ,200, 600
The East Jerseys estimate Is higher
than the one submitted by the Sta1S,
which is endeavoring to obtain a val,l4
alton of the water privileges. power
rights and other property of the COM
pany, which has monopoly of hold
lhgs along the upper Passaic river
valley.
In the appraisements the estimate
for the East Jersey interests is sub
mltted in the name of the New Jersey
General Security Company, of patef-
son. This company is the modern
corporation development of the So
eiety OF Useful Manufactures. estab-
/ lished in 1892 by Alexander Hamilton
Tor the purpose of exploiting for in
dustrial purposes the water rights adj
! Jaeent to and above the Great Falls of
Passaie, at Paterson.
The concern when founded received
a charter from the State which prae-
tically cost the recipient nothing.
Since then 1t has received many mils
lion dollars for power rights and for
water that flowed from the hills and
tributaries into the Passaic river.
The States valuation totals $S,72S.-
800 and that of the eompany,s ex-
perts $990O000
There is difference of $f,171, 700 be-
tween the valuations of the State and
the General Security Company. The
appraisal is for the purpose of en-
abling the commission to pass upon
the advisability of the States pur-
chasing the several companies
The companies included In the ap-
praisal are the Passaic Water Conn
pany the Acquackanonlx Water Conn
pany, the Montclair Water Company.
4 the East Jersey Water Company and
/ the Kearny Water Company
The valuation of the several com.
4 panies made by their representatives
show assets and liabilities as of De-
cemher 81, 1912. The valuations are
/ as follows. Passaic Water Company
$685., ,310, Acquachanonk Water Conn
pany, I,725,752 Montelair Water
Company. S,557,33 East Jersey
Water Company, 81, 1853, 1853 and Kear-
ny Water Company $125,5OS.
Comparison of Figures.
The appraisement made by the
State appraisers and comparison
with the company's figures follows'
We find the following values as of
December 81, 1912, subject to the
reservations explained in detail in
the report:
Gross reproduction cost Of physical
property, including rights of diver
sion for 50,000,000 gallons of water
per day, $9,214,6S4.
The company's figures for the same
property are $9,5730D0. The State
appraisers put the going values at
81, 100000. The companys figures are
$1,574.000
Gross reproduction. cost of going
properties, is put by the appraisers
at $10,414,6S4 The company's figures
are $11,574,000.
; The accrued depreciation is fixed
by the board at $1,213444. The coen-
pany's figures are $1,04s,000.
4 This gives the net, or present re-
production cost of going properties
including rights of diversion as above
$9,201,240, The company's figures are
$40 099 600
From the net sun may be de-
Quoted the estimated cost of diver
sion rights against minor riparian
owners below Little Falls $55, 807
Net present value of East Jersey
properties. including right to divert
fifty million gallons daily by the So-
eiety of Useful Manufactures, at Pat
erson, and at Dundee dam, for water
power purposes, 9.145, ,433.
The estimated value of the right
to divert fifty million gallons daily
from the Society of Useful Manufac-
lures and Dundee. not now possesses
by East Jersey properties, is put at
$417, 1888
There is big difference in the estt-
mates of what constitutes fair net
present value of the East Jersey props
critics, excluding the rights of diver
sion against the S. II. M. and the
Dundee raceway and to a willing pur-
chaser possessed of the power of eIni-
nent domain
The commission estimate is sS,72S,-
800, The companies figures are $9,-
100000
The above figures suppose that
payment Is to be made in the equiva-
/ lent Of cash 1t is added.
IF payment is to be made in se-
curities not having a par market
value, the proper allowances must
be made in the sum to be paid to the
lCOufInued an Pare q CoIuy.n Az