THE EAST ORANGE WATER QUESTION.
East Orange, N. J., will not pay the East Orange Water company $800,000 for its plant, it is argued that, if such a sum were paid, the receipts would not be sufficient to pay the interest on the bonds and to defray the cost of maintenance, and there would, therefore, be no money left for a sinking fund. Such a fund, according to law, would have to be established. The contract with the Orange Water company expires in July of next year. Some believe that the water company may make a better offer to the city. Civil Engineer Peter Milne appraised the plant of the company and placed its value at $353,500.02. This figure, however, did not include the real estate owned by the company nor the value of its franchise.
The question has again been brought up before the city council. Alderman Baigrie offered a resolution, instructing the city engineer to prepare plans and specifications for installing water pipes and mains,and also directing the clerk to advertise for a supply of not less than 2,500,000 gallons of water daily. In support of the resolution, Mr. Baigrie recalled the fact that, although the question had been under consideration by the water committee for several months, the committee and the council were no nearer the solution of the problem now than they were when they took it up, having only gained as a result of their labors an appraisal of the plant of the Orange Water company. In view of the fact that the plant was appraised for about $335,000, and the company offered to sell it for $800,000, Mr. Baigrie thought there was no use of further negotiations in that direction. The resolution, however, was referred to the water committee, and a special meeting of the council will be held to consider it.
With regard to the report that the Orange Water company might sell to the Essex Union Water and Light company, of Summit (formerly the Commonwealth company), President Bassett, of that company, says that such an offer was on the point of being made some time ago; but, when it was found that negotiations were on with the city, the matter dropped. But if East Orange does not do business with the East Orange Water company, it is not unlikely,in President Bassett’s opinion, that the Summit company may reopen negotiations.