The daily banner. (Cambridge, Md.) 1897-2008, 1919-01-07
The Water Company
Issues Statement

was instructed to advise the Commits
sioners of Cambridge that the five
year contract for supplying the cit,
of Cambridge with water for fire pro
lection and other purposes would eX
pire on December 81, 1918, and t.
request the said officials to give
prompt consideration to a renewal 81
the contract, at the price Of $1,5dt
per annum, being an advance of $500
over the price named in the contrac
about to expire.
On the 9Th Of January a reply was
received by the Water Company from
the Commissioners of Cambridge,d de.
clining to agree to the advanced
price, but offered to prepare con
tract of renewal on the old terms. I
The inability of the Company anG
the Commissioners to agree is a mat.
ter of much importance. and one in
which the public is directly interest.
ed, and we think this proper oppor-
tunity to present to the public some
of the figures regarding the cost Of
pumping water and also some of thS
facts regarding the advance in insur-
ance rates, which took effect in the
year of 1917. l
The principal items in the cost of
pumping water are those of coal and
electric current. Coal has advanced
more than double in the past two
years, and when you take into con-
sideration it's inferior quality, the in
creased cost is really larger .han
these figures themselves indicate.
There have been two advances of
10 per cent. in electric current dur
ing the same period, and there has al
so been a great increase in all other
operating costs, including labor, lu-
bricating oils, repairs, and supplies
of all kinds.
When we first began supplying the
town with water we could do so with
two pumps located on the top of the
ground, at pumping station in East
Cambridge, and two wells afforded
a full supply of water, but as the
consumption of water grew, we had
to discard our two pumps at this sta
ton and install new million gallon
pump in pit in the ground 16 feet
deep, which was very expensive
operation, costing us upwards of
$4,000. We also had to provide
four more wells at this point at a
cost of about $4,000 or more.
We also built a new pumping sta
ton at the foot of Mill street, at a
cost of about $4,000. We bored
two large wells, Installed a million
gallon pump, which we run by so
h. p. gasoline engine. When we in
stalled this pump, gasoline was SELL
ing at Lee. per gallon, but advanc-
ed to % cents, which was prohibitive.
and we had to change to electricity,
which, as stated above, has advanced
20 per cent.
The electric installation cost us
about $4,000.
We are now making arrangements
at an expense of $4,000 to install two
five hundred thousand gallon pumps
at our East Cambridge station. which
will be operated either by an improy-
ed oil engine or electric power.
Any one who is at all impartial can
readily see by above statements why
it was that the company got behind
in its finances, causing us to cut out
all dividends to stockholders for
nearly two years, and also made it
necessary to advance rates.
The price of $1,000 made the town
was entirely too low at the time it
was made, and the price of $1,000
now offered the town is far below
what the service is worth, but our
directors are all large taxpayers and
public-spirited citizens, and do not
want to do anything that would even
look like an imposition on the town.
ance rates in 1917, will state that the
Water Company was not responsible
for the great increase in rates, al
though many Of the Insurance Ag-
ents in the town placed the blame on
our Company in order to screen
their companies from censure.
lott
ceived from the Underwriters Asso-
citation under date of Oct. 8, 1917. He
states: THE necessity for the gen.
eral advance of rates in Cambridge
was caused primarily by the very
disastrous fire record of the town
during the past few years. Condi-
lions finally reached the point where
it was absolutely necessary for the
companies to secure higher rates, ii
they were to continue to write insur-
ance in Cambridge.
Water supplies in towns and mu-
inequalities on the Peninsula, are
generally inadequate as regards to
their ability to furnish efficient fire
service, as compared with most sys-
tens in other sections. This differ
ence is probably in part due to topo-
graphical conditions, in that no sites
are available for storing large guam
titles of water to afford satisfactory
gravity supply at adequate pressures,
and also in part to the too general
use of small sized pipes for distribu-
ton. Our engineer reported that the
water service afforded by your COM
pany compared favorably with that
of other towns in that section, which,
as above stated, is one where fire pro-
lection is generally conceded to be OF
an inferior quality.
"In the makeup of our rates on all
mercantile and certain of our special
hazards, charge was made for def
cient public protection, which figure