St. Johns review. (Saint Johns, Or.) 1904-current, 1914-11-20

actually worth. So far 1t has
been practically more or less
guess work so far as the city
council is concerned. as the city
engineer has not yet made an es'
innate of its physical valuation.
The Railroad Commission, how.
ever, has furnished some figures
that shed light on the PROPOSE.
tion. Its engineer found that
the actual cost TO the company
was $l22, 600. besides which the
company claims $500 worth OF
pipe not taken into account by
the Commission. And since the
estimate was made the company
claims to have laid SIG. 200 worth
of pipe. which totals about
Sl45, 700. Allowing several
thousand dollars and deprecia-
ton for value of the franchise,
the company has set the price TO
the city at $3.50. 900. The city
has made counter proposition,
subject TO approval by the voters.
Of $l10, 900. The company. we
understand. will not seriously
consider this offer.
In view of the discrepancy be-
tween the two prices named, and
in view Of the fact that the citi-
zens desire TO own their own
water plant, the best plan would
seem to be for the city council
to appoint a committee of three
competent persons, including
the city engineer. TO gather all
available data, and thus be able
to arrive at an intelligent esti-
mate of what the plant is really
worth. We believe no one would
be willing TO pay more than the
plant is actually worth. and il is
also true that none really feel
that the company should lose by
the transaction. II is a matter
that should be dealt with only in
a business.like way. The facts
should be ascertained and a
price fixed that is based only
upon conditions as they are
found to exist. If the plant is
found not TO be worth the price
asked. and will not bring good
interest on the investment, cer-
tainly it would be poor policy
to make the purchase.
The inquiry has been made as
TO whether the city could not i'm
stall water system of its own
and ignore the present system.
City Attorney Parker, in reply
to this. cites the case of Eugene,
which attempted TO put in an
electric system in opposition to |
that of a corporation operating
under a franchise there. The |
Supreme Court decided that the |
city could not ignore the rights
)f the corporation, that the city |
could install a plant of its own,
but il could not reduce rates low
ar than would afford the cor
poration a fair rate of interest
)n its investment. Applying the
same rule TO ST. Johns, if this
,ity installed a water system the
,ity could not make the rates
over than the st. Johns Water
Company could operate under
md receive fair rate of inter-
EST therefrom, and since the
Railroad Commission has deter
mined what that rate shall be
'or the present. it would not be
litlicult TO conceive what the
'ates must be if the city INSTALL
ID a new plant. There are also
'hases of the st. Johns Water
,ompany's franchise that might
AVE TO be reckoned with also.
For instance. wherein is stipu-
lted that the people of the town
t ST. Johns agree to use the
'ater furnished by the company
or a period of 25 years. So il
'ould seem that if the present
liant can be secured at a fair
rice, il may avoid more COM
lications than otherwise might
nsue. A competent committee
D look into the proposition
'ould seem the best plan to pur-
ne. If the plant is worth $ll0,-
90 or $3.50, 600, the people would ,
ant to know definitely.
An electric lighting system