The copper era and Morenci leader., 1921-01-28
TOWN COUNCIL WILL MAKE WATER CO.
 COUNTER OFFER

Following the receipt of a report on the present day physical vaulation of the plant of the Clifton Water & Improvement Company, made by Town Engineer A. J. Kerr, the Town Council, through Mayor Jones, has submitted to the Water Company a counter proposition for the purchase of the plant by the Town of Clifton.
 The pending negotiations were brought about by the offer of the Water Company to sell their plant to the Town for the sum of $150,000. The Councilmen are of the opinion that this figure is too high, and sup porting their opinion with the report Of the Town Engineer have tender ed the Water Company an offer of -132,8O0.O0.
 In submitting his report to the Town Council, Town Engineer Kerr says:
 "On all portions of the plant con structed prior to 1913, the reproduc afterwards, was depreciated as per the accompanying depreciation table. These costs and rates of depreciation
 
 engineers for the. State Corporation Commission. and agreed upon by both the Commission and the Water Company as fair and just. On the portions. constructed since 1913, the actual costs, as shown by the Water Company books were used, and de- preciated at the rate of 4@o per an mum, said rate being the average us.I ed by Sloan and Robson in their 1913 valuation.
 'The estimated value of the plant, as per the accompanying blue print, is $132,79S.12, showing that the Water Company in asking S15O,OOO.00 for the plant, reasons that their valuation has appreciated $17,200.0O, or approxim, ately 13%. Tn view of the fact that the material and labor used in the construction of the plant has increas- ed from approximately 40%o on pipe to 250% on machinery, there is no doubt that the value has appreciated. However, the amount of this appre-i citation would be difficult to estimate at present owing to the falling market and the question as to what the price level will be in relation to pre- war prices when a stable market has been reached"
 Statement by Mayor Jones
 Clifton, Ariz., Jan. 27, 1921.
 Editor, Copper Era,
 Clifton, Arizona,
 The Town Council on last Monday evening met for the purpose of re- ceiving Town Engineer Kerr's report on the valuation of the Clifton Water & Improvment Co.,, made by MT. Kerr at the direction of the Council from the books, records and data of the | Water Co.,, with a view to the Town of Clifton purchasing the entire hold ings of the Clifton Water & Improve ment Go. Each item of the inventory was carefully gone over, together with the depreciation rates used, and the report was accepted as fair and con srvative. After careful consideration 1 it was decided by the Council to en- i ter into negotiations with the Water 1 Co.,, for the transfer of the complete l water system to the Town of Clifton, i provided they would accept the amount ; of the inventory, viz. $102,S00.00 plus depreciation reserve fund of $30,- | 000.00, making total of S132 300. If | this offer was acceptable to the stock holders of the Water Company the ! entire proposition would then be sub l mitted to the taxpayers of Clifton for i final acceptance Or rejection. If ac- ceped, the stockholders of the Water Company would be given bonds of the Town of Clifton at par in lieu of stock, behring sfN percent interest 1 and running twenty years. Accord 1 ingly, the matter now rests entirely with the Clifton Water & Improve ment Co.,. and the question will no doubt receive due consideration.
 In connection with holding a bond ! election at this time for the purpose of acquiring the Water Co.,. it might l be well to state that the question of buying the Water system resolves it. 1 self into simple business proposi- | tion. If the bonds are voted it will be with the distinct understanding that the town taxes will not be in creased on this account under any circumstances The Water Plant will be entirely self-sustaining and the management and accounts of the 1 Water Department would be conduct ed along the lines of the best business | methods. It can be conservatively l figured that by the Town absorbing 1 the management of the water system considerable reduction in operating 1 expenses can be made, now necessary for the operation of the plant, con- sisting mainly in general expense i taxes and dividends. sn other words the Town of Clifton can operate the Water Plant for from $10,00O.00 to s20, 100000 per year less than can be | done by the Clifton Water & I'm provement Go. This amount, which does not include a depreciation re- serve fund of four percent per year would be used to retire bonds and pay the interest on same. AS the bonds | are retired, the water system can be enlarged and the rates periodically re duced. In time the water system would become a great asset to the Town of Clifton and would be paying