Graham guardian., 1921-05-27
Explanation by Receiver
Of Local Water Company

OF SAFFoRD:
The purpose of this communication
is to bring about better understand
ing between the Water Company and
the users of light and water, as well as
to show to the people of Stafford the
value and necessity of light and water
plant in the town. Due to circum-
stances over which we have no present
control, a condition has arisen which
now requires the best efforts and the
entire cooperation of taxpayers, con-
sumers and the company or the town
may lose its light. if not its water
plant. For this reason the receiver ap-
pointed by the Court TO take charge OF
The affairs of the company feels that it
is time to take into confidence all those
interested and to attempt to bring
about an adjustment of affairs that
will take care of the interests of all.
Due to water supply that under
present conditions is limited in amount
both because of inability to furnish
proper means of conservation and of
development, and because of the great
cost of properly serving a compara-
lively widely scattered community, the
water service has been subject to
much criticism, some merited and
great deal that is not merfted, since
the company has done all within its
power to furnish an adequate service
in the face of great difficulty. Since
the receiver has taken charge OF the
affairs of the company. considerable
number of persons have been found
who have used water for years who
have never been on the books of the
company nor paid for the service;
others have been found using water
for irrigating gardens and using 1t
wastefully in other ways, conditions
that the present water supply will not
permit If all users are to have their
reasonable supply of water. AS to the
light service: This has not been salts
factory, and cannot be made satifac-
tory under present equipment. But
this fact does remain, that Stafford
CANNOT AND MUST NOT BE
WITHOUT LIGHT AND WATER,
ard can and must work in harmony to
secure adequate facilities and supply,
We cannot go back to kerosene lamps
and salty well water.
So let us look the situation fairly in
the face and see what can be done.
The company has become indebted to
an extent of about sixty thousand dol
lars; this indebtedness is all valid in
debtedness, and great part of 1T is
local and owing to our own people. 1t
is an Indebtedness that must be paid.
Suit has been filed against the COM
pany by one Of the larger creditors,
in which suit practically all the other
creditors have joined, either as defend
ants or intervenors, and the property
must ultimately be sold under execu-
ton to meet these debts due. But suits
at law are expensive, sometimes long
drawn out, and fair adjustment is al
ways better than winning a lawsuit.
Further than that, questions of prior
tiles and rights Of liens have arisen
among the creditors, with the probable
result, in case any large creditor is ad-
Judged TO hold valid lien upon the as
sets of the concern, that the smaller
creditors wi be cut out, and lose their
claims. There seems to be DISPOSE
tion on the part of some, both credi-
tors and prospective purcha' ets, 10 let
TIE property 20 10 execution and buy 1t
IN al nominal cost. At least to buy it
and operate the water plant and let the
light plant 10. We are satisfied that
the Court is disposed to see that no &C
ton Is taken until a reasonable oppor-
tunlty has been, allowed for the per-
feeling of plans whereby the rights of
all creditors will be taken care of, and
the plant as whole will be kept intact
and put on basis that will allow it to
continue as going concern. And II
the creditors VINO may possibly have
visions of securing the whole plant for
their own claim and shutting out other
claimants, will make an investigation
of their claims of lien and OF the claims
inserted in the action by other creditors,
they will no doubt arrive at the conclu-
sion that long drawn out legal fight
is the ultimate and inevitable result of
any attempt to force sale without
first trying to satisfy all creditors.
Let US keep in view this proposition in
considering the problem. THE LIGHT
PLANT AND WATER PLANT CAN
NOT BE SEPARATED; THEY MUST
STAND OR FALL TOGETHER. The
light plant be brought to necessary
standard Of efficiency and made to pay
a reasonable return on the investment,
il taken alone. In the first place, the
number of consumers TO be served is
too small, and will likely be too small
for some years; in the second place,
the cost of production of light is great,
and the smaller the production, the
greater the relative cost. But the
light plant added to the water plant
will pay and will help make the water
plant pay. This for the reason that
the overhead expense of operation will
be about the same, whether the water
plant is operated alone or in connection
with the light plant Hence, if we
want to maintain our lights in Stafford
we must keep the two plants intact as
one organization. If we want to go
back to oil lamps, separate the concerns
and we will have effective produced the
results desired. lass#
AS we have shown, the plant will be
sold under execution in the cases now
pending in the Court. That is, unless
the company rs able to raise funds to
meet the debts. This. because of now
existing financial conditions, they have
thus far been unable to do II they
are unable to raise the money by the
time of sale, they will not likely be able
to redeem the property in the six
months period of redemption allowed
by law We weuld be glad il they
should be able to raise the funds. and
so far as we know, no one wants them
to lose their investment, but the con-