Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1920-01-10
WHEN PESSIMIST
STEPPED IN AND
DISCUSSED WATER
CONTINUED From Page one)

tCOuJIuueQ INV ]
private stockholders could not appeal
10 the Public Service Commission
against the majority stockholder be-
cause the Public Service Commission
had no authority over municipal wa
ter supplies. He continued;
at will hardly lie claimed that
the company as a company can
run the plant and pay interest
on the investment at the advanc-
ed price paid (for the stocko
without either increasing the
price of water or else resort
ing to direct taxation
In the latter event ii was gravely
suggested that The man with $l0.-
600 home would pay ten times as
much for his water as the man with
a $1,000 home and get no more wa
ter"
Soundness OF Arguments
Whether these arguments were
sound or not is to he viewed in the
light Of the nearly eight years finan-
cial history of the Annapolis Water
Company as municipal corpora
ton.
The Act of 1912 Chapter Sc, pro-
vided so far as could lie then anti
cipated against the evils so freely
predicted at the time 1t placed the
executive management of the COM
pany in the hands of the Mayor OF
a.
members of the corporation. selected
by the holders of the MAJORITY of
the stock, the terms of office of said
directors to lie two, four and six
years, respectively
1T limited the property holdings of
the Annapolis Water Company TO
100000
1T enacted that Chapter Sc should
Immediately upon its passage become
and be part OF the organized law
of the Annapolis Water Company.
And it authorized and empowered
the city of Annapolis TO acquire all
the capital stock Of the Annapolis
Water Company, and operate said
company under said charter or any
enlargement or amendment thereof 10
the extent Of its stockholdings there
in
Then The Bond Issue
"At the same session. the General
Assembly passed Chapter lis of the
Acts of 1912. under which the bond
: issue of 100000 was made for financ-
ing the purchase of the stock
This legislation was planned with
he utmost care and the most exhaus-
, tive attention to detail by former
Mayor John dep Douw, City Collec-
TOR and Treasurer Winson G. Gott
= and myself, the committee appointed
by Mayor James F. Strange. The
J bonds are made a lien on the plant
= with the city guaranteeing them
) After thorough study of all the finan-
: cial aspects of the case. and of all
available information. the committee
: came unanimously TO the conclusion
5hat the water rates then fixed by
: private ownership would afford an in
} come sufficient to pay the Interest
: on the bonds, provide a sinking fund
meet all expenses Of maintenance, ad
! ministration and ordinary repairs
( and even extraordinary work.
auditors Report Stands Out
How accurate was the committee
vision is seen in the auditors reports
The financial management of the An
napolis Water Company has proven
even more remunerative than the ad
| vocates of municipal ownership ex
, pected, and from its net income funds
| are rapidly accruing for dschargine
5 the mortgage obligation. The man
agement has neither increased the
= rates nor asked the city to resort K
direct taxation to support the Water
) Company. When its debts are finally
! paid by itself the city will have il
fee simple valuable property, i'll the
| best state of development and ade.
quate to all demands by the users
, of water, and a source Of revenue that
will greatly tighten the burdens oil
, the taxpayers. The net income oil
the Water Company, when it is nc
longer required to be set aside for
. payment Of the bonds, representing
borrowed money owed by the city for
the plant and is paid directly into
the city treasury, will reduce the tax
rate Cne-half so far as we can now
see.
Schedule OF Charges
1.-The Act of 1912 required and di-
rected' the Mayor, Counselor and AL
dermen ito maintain such a schedule
of charges for water furnished its
F. customers by the Annapolis Water
Company to he uniform in every par
ticular, as will make the profits ac-
cruing TO the said Mayor, Counselor
and Aldermen OF the City Of Annapo-