The Birmingham age-herald., 1917-03-13
FINAL APPRAISAL .OF WATER COMPANY IS EXPECTED SOON Nicholas Hill to Submit Re- port to City Within
 Next Two Days WATER COMPANY WILL ALSO SUBMIT REPORT May Result in Purchase of Water Plant by City-Plan for Arriv-
 ing at Valuation Agreed
 on Already

OI the prOpeTtleS Ol tHo Dii III ii Q he' 1T Waterworks company by Nicholas S Hill, the New York expert, is expect ed within the next two days. The Bir- Waterworks company has as- sured Commissioner James Weatherly that it will submit it's own appraisal of its properties at the same time With the receipt of the two valua- tions the question of municipal owner ship of the waterworks will become without doubt one of the livest issues in Birmingham.
 Whether the reports will mean the purchase of the waterworks will depend entirely upon future de- velopments.
 The following action must follow il the city is to operate its own plant soon:
 1. The owners of the waterworks
 company and the city commission
 must agree in regard to the valu-
 ations of the properties.
 2. It must be considered advfs-
 able for the city to buy and oper-
 ate this plant.
 b.
 by the elecoratss to issue bonds to
 cover the amount necessary to
 take over the utility.
 The waterworks question is an an cient problem and the situation Is not clearly understood.
 ANOTHER APPRAISAL
 There are many angles to the prob lem. For instance. despite the two ap- praisements of the experts, another ap- praisement may be necessary.
 The act of taking over the water has been talked for many sume tangible form until February 24, 1915. when the city signed a con- tract with the water company which fixed new rates. recalled suits insti- tuted against the water company and contained provision whereby the city might at any time in the future, provided certain conditions were full pany.
 Before the contract was signed the water company was supplying Bir- with water under a contract made with the city of Birmingham of date June 2. 1888. and the suburban by separate contracts When the greater Birmin gham bill was passed it was obvious that some was necessary.
 At that time there were three big suits pending in the courts, known as the Hankins suit. the Weatherly suit and the federal court suit The first FNr ', 1f having the waterworks company S charter forfeited. while the other was instituted by the waterworks company seeking to enjoin an ordinance passed by the city of Birmingham fixing the rates for water from becoming ef- fective.
 SUITS ARE WITHDRAWN
 It was provided that the first two suits should be settled in such a manner that the charter would remain unforfeited and that the matter of rates would be settled by the contract.
 In return for these concessions, the company reduced the water rates. The schedule was lengthy, but 1t will be recalled that the minimum was decreased from 8 to s2.25 a quarter. The small consumers were materially benefited by the adjustments.
 But the real concession was that con- tained in the ninth section of the con- tract, which provided that the city might at any time purchase the waterworks plant if certain set procedure were fol- lowed.
 In brief, the provisions were:
 The city might, at any time, acquire the company in whole The value is to be affixed by the two parties, if they can agree, but if this method fails, five appraisers are to be appointed. two by the city and two by the water works company and the fifth by the four appraisers, and their award shall be bind ing.
 NOTIFIED WATERWORKS
 Acting upon this agreement, the city o, Birmingham notified the waterworks over the plant and that it desired to reach an amicable agreement. without re- sorting to the five appraisers method, as to the price to be paid
 Nicholas s. Hill of New York was named by the city to pursue, independ- ently, an appraisement of the properties. As provided in the contract, the water works company supplied him with an accurate inventory of all properties that 1t owned.
 One of the stipulations was that there was no price to be paid for the franchise in event the city took over the plant.
 Now, MT. Hill has about completed his report, which will be in two sections. and 1t is understood that the waterworks has likewise an appraisement to submit. If an agreement can be reached as to the price. which will be to both interests. it is prob able that special election will be called and the proposition of whether Brming- ham shall buy the plant put to a vote. The electorate will be asked to authorize a bond issue covering the figure named.
 If the appraisements show a disparity and no agreement can be reached between the parties. then the final and ultimate method will be availed.
 THE ULTIMATE METHOD
 This provides for the naming of five appraisers who shall be entirely disin- terested, honest competent and nonpar- tican, nonresidents of Jefferson county, nor taxpayers. thereof, nor stockholders, or in the employ of the water company or otherwise interested therein.'' The city shall name two. the water company two, and the four ap- praisers, so elected. shall select the fifth 
 The award of the majority shall be final and binding, but of course, sub- feet to the authorization of the necessary ssue of bonds by the qualified electors of the city.
 The cost of this appraisal shall be added to the purchase price of the plant. although the compensation of the apprais- srs shall be decided upon in advance.
 There are other minor stipulations. but the real facts havevbeen stated above.