Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-04-06

water used by the city for street
sprinkline, etc.
We also approve of the provision in
the franchise under which the city
can purchase the water works. but
suggest that the price 10 be paid
should be the actual physical value OF
the property or what it could be re-
produced for, and consider the term
going concern" rather ambiguous
ana apt to lead to confusion aud mis-
understanding as In the case of the
Denver Water company.
Respectfully submitted
SIMON STERN,
J. 4. MCLAUGHLIN,
w. w. STRONG,
+. j. WILSON,
DIR. Il. l., HUST.
A. b. MeMillens letter follows:
March 20, 1915.
DR.. r. L. Hust, Chairman, City.
Dear Sir:-I herewith make TO
your committee the following PROPOSE
ton relative to the extension of fran
chise of the water supply company.
There are certain principles that |
think are important to keep in mind:
the first being that the franchise
should be short, and so clear as to
it's meaning: second, the franchise
should be upon the basis of giving the
small consumer the benefit Of exact
~ the same rates as the large con-
sumner; and third that without regard
to the merits of municipal ownership
the people of the city should have full
opportunity to purchase the property
of the water company upon q basis
that is absolutely fair to both sides.
and enter upon municipal ownership
If the people of the city should at any
time determine that that was what
they desired.
In order to carry out this plan
propose that the city grant to the
water supply company a franchise
for twenty-five years, to take effect
at once upon the following terms;
/. There is a certain fixed expense
for every service that applies equally
whether it serves a large or small
consumer; that is, the expense in
volved in maintaining the service. |
therefore propose that for every
three fourths-inch service there be al
lowed an arbitrary charge of twenty
five cents per month to cover said
service without taking into account
the amount of water consumed. In
addition to this the rate to be TWEEN
ty-five cents per one thousand gallons
up until the first of April, 1913, the
time which the old franchise would
expire, and from that date on twenty
cents per Zoo gallons
The above proposition would do
away with the sliding scale Of charges
from thirty-five cents down TO twenty
cents and would also do away with
the minimum charge Of S1.SG. Each
consumer would pay for exactly the
amount Of water which he consumes
z. propose that the hydrant rental
should be S35 per year instead OF $50
upon the first one hundred and $50
upon the rest; and all water USED
through hydrants for fire purposes TO
be free Of charge. On the other hand
ask that the city should pay nom
inal rate of five cents per one thous-
and gallons for all water used for city
purposes other than fire purposes
This would amount to about the same
or a little less than the difference
made in the proposed hydrant rental.
If the consumers are to have low
rates II Is necessary that the city pay
at least q nominal charge for the wa
ter used by it.
pany for the year 1914 were in excess
Of $4,000 and the water furnished free
to the city, if charged for at the same
rate that private consumers pay,
would amount to over $4,000. These
items must necessarily affect the rate
to consumers.
3. The franchise should contain an
that the city may at any
time after the first day OF April, l9l9, |
elect upon six months notice in writ |
ing TO said water company, TO take
over all property OF said water COM
pany used in producing and supplying |
water to said company, and us STOCK |
Of supplies, and in that event SAID |
CITY shall pay to said water company !
the reasonable value Of said plant as
a going concern; said value to be as
eerfained by two competent experts, /
one to be chosen by the city and one |
IN he chosen by the water supply /
company; and in case the experts are
unable to agree upon the Value OF |
said property, the chief justice Of the |
court Of New Mexico then in |
office shall act as arbitrator, and upon I
he evidence furnished by the respect
we experts as to the value of such /
property and such other evidence as
he may deem necessary shall deter
nine the true value; which determi-
nation shall be binding upon both the |
,ity and the water supply company /
ind upon the payment by the city TO
he water company of the value so
fixed. the franchise and contract shall |.
be terminated and the water COM
pany shall convey all Of said property
10 the city
I cannot conceive Of any method OF
ascertaining the value of the property !
If the water company except by men
whose training has qualified them 70
pass upon such value.
The plan proposed could not be
otherwise than Just and fair TO both
sides and would ascertain the exact
value Of the franchise, if It has any
money value
The plan which have outlined