Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-19

their resignation to the Mayor and
City Council to take effect June 1st.
In the following letter:
To the Mayor and City Council Of the
City Of Augusta:
The undersigned, trustees Of the Au-
gusta Water District, hereby tender
their resignation to take effect AS OF
June LIST, 1924. Our reasons for this
course follow:
owing to the new buildings, largely
dwellings, being erected and in early
contemplation 10 seems neeessary IL,
the near future to make extensions of
our mains, the Public Utilities Board
having uniformly approved such ex-
tensions. The charter Of the Augusta
water District provides for this con-
urgency by directing that rates for
the takers shall be so adjusted from
time to time as to meet this demand.
An unexpected call was made upon the
district by the utilities board last fall
10 protect its watershed in order to
prevent contamination Of the water
supply at Carleton pond, necessitating
fthe expenditure Of upwards of sl2. 600
In the purchase of farms and other
buildings. 1t IS the judgment of your
trustees that further expenditures will
be necessary in the near future with
the extensions on Western avenue and
on lower State street and Sewail
streets, which are fast filling up. and
the improved fire protection of Mt. Yer
non avenue and various points on the
east side OF the river, therefore, in Oc-
toper last year your board filed with
the Utilities Commission a new sched-
ule Of rates. first restoring the first
faucet rate to IS, which was the rate
under the old Augusta Water Com
pany and which the district reduced
when 1t found 1t possible. also an In
crease OF 1919 on metered water. Our
| thought was that we could get along
| this year and do what was needful.
When the district was organized your
trustees sold bond issue of 100000
to buy and improve the property, Sc
curing less than 40 interest by guar
anteeing that no further bond issue
would be made on It, and the Individual
purchasers of these bonds were so as
sured, which we consider moral OBJ
legation on the part of the district. The
Public Utilities not only turned down
our recommendation but went further
and cut the faucet rates to So, thus on
this one item cutting our prospective
income for a year about $4,000. To off,
set this they charge to the tax payers
OF Augusta, irrespective of whether
takers; an estimated amount Of $4,000.
large part Of which is doubtful of
collection. In addition they allow the
district to tax old water takers an ex-
ira fixtures largely installed for con-
venience and which use little IL any
| extra water and which are likely to be
largely discontinued II taxed. Our ex-
| perience of 90 years in operating the
district leads to the conclusion that
| with rates so allowed we cannot pos
| sibly make both end meet and give the
| new sections of the city the service
| they are entitled to, hence our desire
to be relieved of the duties as trustees.
ROBERT MORANG.
| 50 - GEO. e. MACOMBER,
| PERCY v. HILL.
May II, 1924.
A representative Of the Journal Ia
| ter called on Mr.. Macomber. He said he
| was willing to answer questions. The
| matter had been gone over thoroughly
| before the Public Utilities Commits
| sion at the time of the hearing.
| Briefly 1t might be said, that the
| trustees were unable to see how un-
der the plan of the Commission the
| necessary improvements and extern
sions could be made and agreements
kept. The trustees borrowed the
money needed to buy the old company
and to install the new supply very
| advantageously, the city getting a
| premium which amounted to $4,000
! on the A per cent bonds for 100000
kunder a distinct agreement that this
should be the only bond issue and the
bonds were sold to individuals under
| that agreement. For his part he said
| he would not think of trying to
change that: that 1t would not be
| good faith to do SO.
When the trustees took over the old
| company they found the charge per
faucet So but after a period Of trying
out the system 1t was decided to low
err that to 81. Now they were asking
to have the old rate restored. Our
franchise says the rates shall be so
adjusted as to pay. first the operating
| expenses. then to pay the interest on
the bonded debt, then put into the
sinking fund not less than one per
cent and yield enough to make the
needed extensions from time to time"
| Up to last year, for the past three
or four years. the district has been
able to get along nicely in the matter
Of extensions. There had not been a
demand in new territory. Then came
the call for service at Newlands and
on the street to Hallowell. There is
in prospect new development, on
Western Avenue, which under the
conditions will be costly to bring the
water service to. probably meaning