THE UNIVERSITY 
 
 OF ILLINOIS 
 
 LIBRARY 
 
 

 
 fINAL REPORT or THE SPECIAL 
 WATE^ORKS COMMITTEE 
 FEBRUARY 5, 1906 
 
 (/U-X-'V-TX , ]Y[ajlA\ 
 

 THB ANPf ARBOR PRBgft 
 
62 8 . 1 
 V73 
 
 FINAL REPORT OF THE 
 SPECIAL WATERWORKS COMMITTEE 
 FEBRUARY 5, 1906 
 
 Ann Arbor, Michigan, Feb. 5, 1906. 
 To the Honorable, the Common Council 
 
 of the Cit}' of Ann Arbor. 
 
 Gentlemen : 
 
 Your Committee appointed by your 
 honorable body, February 20, 1905, to 
 investigate and report upon the water 
 supply of the city, begs leave to submit 
 the following: 
 
 There is no more important interest 
 in a community than its water supply. 
 This is especially applicable to Ann 
 Arbor. This city is situated in a beauti- 
 ful valley; its natural attractions are 
 great; it has now 18,000 inhabitants; it 
 has grown rapidly for fifteen years; this 
 rate of growth still continues; it is a 
 city of homes for a highly cultured peo- 
 ple; it is well located for busniess, for 
 health, for enjoyment, for culture; it 
 is justly famous for its unsurpassed 
 educational advantages; its property is 
 valued at $11,000,000, and is worth 
 $15,000,000; it already has many pros- 
 perous manufacturing industries ; its 
 greatest single interest is its University; 
 this represents an investment in build- 
 ings of $1,650,000, and in equipment of 
 $1,000,000; this brings every year within 
 our gates more than 4,000 strangers from 
 all corners of the earth; they bring and 
 leave with us at least $2,000,000 every 
 year; the city is in a way a trustee of 
 this property and the health and lives 
 of those who come as students, or to 
 obtain treatment in our hospitals. These 
 
 make Ann Arbor peculiarh’^ exposed to 
 the spread of communicable diseases, 
 and the calamity from such would be 
 felt almost all over the United States. 
 From these considerations there is an 
 extraordinary duty of vigilance incum- 
 bent upon all our public authorities to 
 see to it that the people and their pro- 
 perty receive no detriment, that our san- 
 itary conditions, and the condition of 
 our water supply be, and be kept, above 
 suspicion and that the property and lives 
 of those entrusted to their care, be ade- 
 quately and vigilantly protected in every 
 way that the highest knowledge and the 
 best skill can devise. It is believed 
 that some such considerations as these 
 were in the minds of the Council when 
 they placed upon this Committee the 
 duty to investigate the water supply of 
 the city. It has been with this feeling 
 uppermost that the Committee has un- 
 dertaken its work — not to accuse or con- 
 demn, nor to palliate or excuse — but to 
 ascertain what the conditions pertaining 
 to the water supply in this city really 
 are, and to recommend such means as 
 in its judgment will lead to their better- 
 ment. 
 
 Many of the questions have involved 
 most difficult legal, engineering, sani- 
 tary and economic questions — many of 
 which it has been possible to answer 
 only approximately with the means at 
 hand and the information that could be 
 obtained. The conclusions herein are 
 based upon the best information th^. 
 
_ 4 — 
 
 Committee was able to secure, and are 
 subject to re-verification of the data 
 obtained. 
 
 The general conclusions of the Com- 
 mittee follow, with the facts and reasons 
 upon which they, are based, together 
 with recommendations for action by the 
 Council. 
 
 I. 
 
 (The legal rights of the City and the 
 inhabitants thereof, and the legal duties 
 of the Water Company under its con- 
 tract with the City, with the best meth- 
 ods of protecting the former and en- 
 forcing the latter.) 
 
 The City has the right’. 
 
 (1) To an adequate supply of water 
 for domestic, commercial, sanitary and 
 fire purposes, including the supply of 
 public buildings, the sprinkling of streets 
 and the flushing of sewers. 
 
 (2) To a supply of wholesome water 
 suitable for domestic purposes, free from 
 dangerous contamination, drawn from 
 sources not liable to dangerous contam- 
 ination, and a degree of care used in 
 collecting and distributing it, and in pre- 
 serving its sanitary condition, commen- 
 surate with the calamity that would re- 
 sult from dangerous contamination. 
 
 (3) To have the water furnished 
 continuously for ordinary purposes un- 
 der the reservoir pressure called for in 
 he contract, i. e., sufficient to throw six 
 streams through 100 feet 25/^-inch rub- 
 ber lined hose, i-inch nozzle, the dis- 
 tances stated in the contract. 
 
 (4) To have direct pressure at all 
 times under like conditions to the ex- 
 tent named in the contract, whenever 
 called for, or needed, for fire protection. 
 
 (5) To have the water furnished to 
 the city at the rates named in the con- 
 tract, including the flushing of sewers 
 by automatic tanks properly adjusted, 
 at the price stated in the contract. 
 
 (6) To have water furnished to the 
 inhabitants, under the conditions named, 
 at reasonable rates. 
 
 (7) To fix and enforce reasonable 
 rates by the Common Council. 
 
 (8) To make and enforce reasonable 
 regulations governing the use of water. 
 
 binding on the company and the inhab- 
 itants. 
 
 (9) To have such proper informa- 
 tion as to cost of plant and cost of oper- 
 ation of the water works, as will enable 
 the Common Council to fix reasonable 
 rates. 
 
 (10) To purchase the works at an 
 agreed price, or at a price fixed by a 
 commission appointed by the Supreme 
 Court upon application by the city. The 
 decision of such a commission would be 
 binding upon both parties. 
 
 The City has the following remedies: 
 
 If the contract has been substantially 
 violated by the Company, or there is a 
 refusal by it to perform all of its obliga- 
 tions, the City can bring action. 
 
 (1) To rescind the contract; or 
 
 (2) Maintain mandamus to compel 
 its full and fair performance. 
 
 We believe the latter is the more ap- 
 propriate remedy, under all the circum- 
 stances. 
 
 2. 
 
 (Whether or not, and if so to what 
 extent and in what particulars, the com- 
 pany has heretofore violated, or is now 
 violating, its duties to the City or its 
 inhabitants.) 
 
 The Company has violated its duties 
 in the following particulars: 
 
 (1) By failing in the past, and at 
 present, to furnish an adequate quantity 
 of water for both public and private 
 purposes, and by interfering with the 
 tanks used in properly flushing the 
 sewers. 
 
 (2) In drawing water from unsafe 
 sources, and collecting and distributing 
 it in unsanitary ways. 
 
 (3) In failing to aerate the water as 
 required by the contract. 
 
 (4) In failing, at various times, to 
 furnish the reservoir pressure called for ; 
 in failing to enlarge the supply mains 
 which bring water to the city, so as to 
 make them adequate to meet the in- 
 creased demands due to the necessary 
 extension of the distribution and ser- 
 vice pipes; and in absolutely refusing 
 to furnish the direct pressure called for 
 in case of fire, except when cleaning the 
 reservoir. 
 
- 5 - 
 
 3 . 
 
 (The present, and all available, sources 
 of supply of water to the city, together 
 with the geological, sanitary and other 
 qualities and conditions connected there- 
 with,) 
 
 The present source of supply of water 
 is mainly springs and wells, located at 
 what are called: Station No. i, up the 
 river about one mile from the city; and 
 Station No. 2, in the valley between 
 Washington and Liberty streets. 
 a. The Present Supply. 
 
 At Station No. i, water is drawn 
 from : 
 
 (1) A spring supply along a creek 
 on the opposite side of the river. This 
 water is first collected in two or three 
 wells about eight feet deep, located in 
 very unsanitary situations. At present 
 there seems to be no part of the supply 
 drawn directly from the spring further 
 up Allen Creek, on the Tower farm. 
 
 (2) Most of the water at this station 
 is obtained from wells from 60 to 120 
 feet deep, part of which is collected in 
 tile drain pipes laid a few feet under the 
 surface of the ground in a lot that is 
 at times used as pasture for a cow or 
 horse. 
 
 (3) River connections exist at this 
 station, and these are at times drawn 
 upon. 
 
 An average supply of about 700,000 
 gallons daily is all that can be counted 
 on from this station, outside of the 
 river. 
 
 At Station No. 2, water is drawn 
 from : 
 
 (1) Deep wells, 120 to 150 feet deep. 
 
 (2) Shallow wells 25 to 35 feet deep, 
 situated in the bottom of a valley, on 
 the steep side slopes of which are located 
 several stables and many privies. 
 
 (3) A spring located further up the 
 valley in the side of a small creek run- 
 ning through a meadow and pasture 
 field over which the Company has no 
 control. Some of this water is also col- 
 lected through drain pipes situated a few 
 feet below the -surface of the bottom of 
 the valley. 
 
 The deep well supply here will fur- 
 nish about 700,000 gallons daily; the 
 
 shallow wells probably 300,000 gallons 
 daily; and the spring supply is claimed 
 to be 1,000,000 gallons daily, but the 
 measurements made shortly before it 
 was utilized showed less than 75,000 
 daily. 
 
 b. The Future Supply. 
 
 The Huron River is probably the only 
 available adequate source of supply for 
 the increasing population of the city. 
 The minimum flow of the Huron, so far 
 as we have been able to learn from 
 such gaugings as have been made, is 
 about 400,000 gallons per mniute; the 
 maximum supply necessary for all pur- 
 poses of the city of Ann Arbor will not 
 exceed 10,000 gallons per minute for the 
 next twenty years, and would not much 
 exceed 2 per cent of the total available 
 supply from this source. The quality of 
 the water is such that it would require 
 filtering for use. As to the right of the 
 city to use water from the Huron River 
 there may be some doubt, depending 
 upon the extent to which mill rights 
 have already been acquired by private 
 parties. In the absence of such mill 
 rights, the city is probably a riparian 
 owner, and can take water from the 
 river for the supply of all its inhabitants. 
 This right, however, seems not to in- 
 clude the right to draw directly from 
 the mill pond of anyone who has mill 
 rights in the river. If there is any part 
 of the river within the limits of the city, 
 not already subject to prior mill rights, 
 the city should take immediate steps to 
 secure and protect the same. 
 
 The geological, sanitary and chemical 
 condition of the supply of water is fully 
 dealt with in Professor Russell’s report, 
 heretofore submitted to the Council. 
 
 4. 
 
 (The power and authority of the city 
 to construct water works of its own, 
 and the best method of proceeding there- 
 in.) 
 
 The city has ample power to construct 
 water works of its own, but cannot do 
 so, so long as the present contract grant- 
 ing exclusive privileges to the Water 
 Company, continues in effect If it was 
 rescinded the city would have the right 
 and power to construct water works, but 
 
 
— 6 — 
 
 could not go more than three miles be- 
 yond the city limits in doing so, and the 
 works could not cost over $1,100,000. 
 The rescission of the contract with the 
 Water Company would not terminate 
 the Company’s right to use the streets 
 for furnishing water to the inhabitants, 
 if it chose to continue in business. 
 
 5 - 
 
 (The probable cost of constructing 
 new and up-to-date works adequate to 
 the satisfactory present and future sup- 
 ply of the city and its inhabitants, and 
 for adequate lire protection.) 
 
 The population of the city has in- 
 creased rapidly — for the decade 1890- 
 1900 the rate has been about 4 per cent 
 per annum. This rate has continued up 
 to the present time. The population of 
 the city can be safely estimated for 
 1905, at 17,400; for 1915, at over 25,000; 
 and for 1925, at over 36,000. The aver- 
 age consumption of water is, and will 
 continue to be, 100 gallons daily per cap- 
 ita. At these figures, the average quan- 
 tity of water required daily is, now 
 
 1.750.000 gallons; in 1915, it will be over 
 2,500,000; and in 1925, it will be over 
 
 3.600.000. During the summer months, 
 the requirement now is a little over 
 
 2.000. 000 gallons daily; in 1915, it will 
 be over 3,000,000; and in 1925, it will 
 be nearly 4,500,000. 
 
 For ordinary purposes, the maximum 
 rate of consumption during the times 
 of largest consumption, daily and hourly, 
 is now about 2,700 gallons per minute; 
 in 1915, this will be 4,000; and in 1925, 
 5,600. 
 
 For adequate fire protection, there 
 should be available, over and above the 
 rate of ordinary supply above mentioned, 
 
 3.000 gallons per minute; in 1915, 3^500; 
 and in 1925, 4,250. If a six-hour fire 
 should happen at the time of maximum 
 ordinary consumption, the total daily 
 supply for ordinary purposes and six 
 hours’ fire, can now easily reach 3,600,- 
 000 gallons; in 1915, it sliould be 5,000,- 
 000; and in 1925, it should be 7,000,000. 
 
 For an adequate fire stream, for in- 
 side purposes, a continuous nozzle pres- 
 sure of 25 pounds is required; and for 
 first class outside streams in business 
 
 parts of a town, 75 pounds nozzle pres- 
 sure is often required. The friction in 
 hose is such that for the ordinary 
 lengths of hose usually used, 100 to 300 
 feet, 60 pounds hydrant pressure is nec- 
 essary for inside hose streams, and from 
 100 to 175 pounds for outside streams in 
 business districts. For residence dis- 
 tricts a hydrant pressure of 60 pounds 
 is considered sufficient for outside 
 streams, if the hose does not exceed 300 
 feet. With 175 pounds hydrant pres- 
 sure, 2-inch nozzle, with 400 feet of 
 3-inch rubber lined hose, 1,000 gallons 
 per minute can be poured upon a fire 
 with great force. It is usual, however, 
 to regard more than 130 pounds hydrant 
 pressure as beyond the limit of safety 
 unless the pipes are extra heav}'. 
 
 The elevations of the city are such 
 that if a static pressure of 100 pounds 
 was fixed for Main street (830 foot 
 level), where there should be such a 
 pressure for fire purposes, the extremes 
 would not exceed 130 pounds in the 
 lowest parts of the city, and not be less 
 than 60 pounds on the highest elevations. 
 
 The foregoing pressure requirements 
 are flowing pressures— that is, must be 
 kept up while the water is flowing at 
 the rates necessary. The friction in pipes 
 varies with the length and rate of flow- 
 age ; and mains have to be used of a 
 size large enough, not only to meet the 
 existing, but also the future, demands. 
 
 At present, the population of the city 
 is distributed in elevation approximately 
 as follows: 807-830 feet, 5,000; 830-853 
 feet, 3,000; 853-876, 8,000; 876-899, 2,000. 
 In 1925 there will probably be 15,000 
 people between the 899-922 foot levels, 
 since three-fourths of the growth must 
 necessarily be upon the high elevations. 
 These differences in elevatio’is corres- 
 pond to JO pounds static pressure. 
 
 A hydrant pressure of 60 pounds re- 
 quired 139 feet head. To secure this on 
 the high elevations of the city would re- 
 quire an elevation of 1061 feet, or 64 
 feet above the reservoir hill. By build- 
 ing a water tower 100 feet high on the 
 reservoir hill, a head of 36 feet could be 
 obtained for overcoming the friction in 
 the distribution pipes; and with such a 
 
— 7 ~ 
 
 margin a distribution system sufficient 
 for domestic and fire purposes for the 
 present, and for twenty years in the 
 future, could be designed. 
 
 Such a plant would require, at present, 
 a filter for 3,000,000 gallons daily from 
 the river ; a reservoir of the present 
 capacity ; a standpipe or water tower 
 100 feet high; pipe, 24-inch, 8,800 feet; 
 20-inch, 4,500 feet; 14-inch, 6,000 feet; 
 12-inch, 5,000 feet; lo-inch, 25,500 feet; 
 8-inch, 17,000 feet; 6-inch, 275,000 feet; 
 400 hydrants; two first class 300 horse- 
 power steam turbine pumps, with all 
 appurtenances ; the requisite land and 
 buildings; and would cost approximately 
 $600,000, Such a plant would be fully 
 adequate for all present purposes and 
 could be easily added to, to meet all 
 demands to 1925 at perhaps an addition 
 of about $15,000 per year for extensions. 
 The foregoing estimates are subject to 
 verification of the data upon which they 
 are based, by actual survey and meas- 
 urements. 
 
 6. 
 
 (The probable expense of operating 
 the same.) 
 
 The probable expense of operating 
 and maintaining such an up-to-date 
 works, with careful supervision, would 
 be about $16,000 per year at present — 
 $25 per million gallons pumped. This 
 is a liberal estimate, and might be, with 
 strict economy, reduced to $13,000. In 
 1896, the operating expenses per million 
 gallons pumped, by eight private com- 
 panies in Michigan, were $14.17; in 
 twelve municipal plants in the state for 
 the same year the operating expenses 
 were $14.68 per million gallons; in 1904, 
 in eight municipal plants in Michigan, 
 the operating expenses were $16.85 per 
 million gallons pumped; and the average 
 operating expenses for the three years, 
 1893, 1896 and 1900, of the Ann Arbor 
 Water Company, did not exceed $22.40 
 per million gallons pumped. It was 
 clearly shown by the Government inves- 
 tigation in 1899 that the larger the 
 amount pumped, the less were the oper- 
 ating expenses per million gallons. In 
 1915, therefore, the operating expenses 
 would probably be about $20,000; and in 
 
 1925, $26,000. These figures, of course, 
 do not include expense of extensions, 
 nor interest on the investment, nor any- 
 thing for a sinking fund. 
 
 7. 
 
 (The probable rates at which water 
 could then be furnished to the city and 
 its inhabitants.) 
 
 This is considered below under 
 “Rates.” 
 
 8 . 
 
 (The fair and reasonable value of 
 the plant of the present Water Co.) 
 
 According to the best information 
 available, the fair and reasonable value 
 of the Water Company’s plant to the 
 city, in case of purchase, does not ex- 
 ceed $285,000, including the exclusive 
 franchise yet held by the Company for 
 furnishing water to the city. This fran- 
 chise, in case it has not been forfeited, 
 may fairly be valued at about $50,000; 
 and although this exclusive franchise 
 was given to the Company, in case it 
 has not been forfeited, it is valuable 
 property of which the Company cannot 
 be divested. In case the city wished to 
 purchase, it could fairly afford to pay 
 this sum, $50,000, for it, rather than 
 enter into competition with the Water 
 Company. The plant proper of the 
 Company could not be utilized by the 
 city in such a way as to make it, in 
 its present condition, worth more than 
 about $235,000 to the city. This is based 
 upon the supposition that the distribu- 
 tion system is in the fair condition it is 
 asserted to be. There has been no op- 
 portunity nor facility to investigate the 
 actual condition of the machinery, nor 
 to ascertain whether the pipes are in- 
 crusted, leaky, rusted badly, or rotten 
 from electrolysis. The actual amount 
 and condition of the physical property, 
 and the location of the source of ade- 
 quate supply, are, of course, basic ele- 
 ments in the real value of the Com- 
 pany’s property. 
 
 The mean valuation, according to 
 Riggs and Sherman, after correction, is 
 $305>754- This, however, was simply a 
 valuation of the plant as it is, without 
 regard to its fitness for the uses of the 
 city. 
 
If the direct pressure, which we be- 
 lieve the contract calls for, could be 
 furnished in case of fire, most of the 
 places on the larger mains, and where 
 there is a good gridiron arrangement 
 of 6-inch pipes, with close hydrant spac- 
 ing, and at levels not above 870 feet, 
 would have what would be called fair 
 fire protection. For several years, the 
 city has passed much beyond this, and 
 now a large per cent of the population 
 lives above this level, and the growth 
 of future years will be almost entirely 
 above this level. These places cannot 
 have fair fire protection from the water 
 works without material additions, and, 
 as the city grows more, and more water 
 is required, the fire protection will dim- 
 inish in all parts of the city. 
 
 9 - 
 
 (The probable cost of making it ade- 
 quate to the present and future needs of 
 the city and its inhabitants.) 
 
 To make such changes and additions 
 to the plant of the Water Company as 
 would make it adequate for the present 
 supply of the city and its inhabitants 
 for all purposes — public, domestic, com- 
 mercial and fire — such as the city should 
 have; and if all the property of the 
 Company could be utilized, would re- 
 quire $300,000, allowing for parts that 
 could not be used $350,000. With an 
 expenditure of such sum, the plant 
 could be made first class in every 
 particular, and capable of being devel- 
 oped as rapidly as the increase of popu- 
 lation would require for twenty or thirty 
 years or more. 
 
 10. 
 
 (What would be reasonable rates to 
 be charged by such Company, should 
 the works be so perfected.) 
 
 This is considered below under 
 “Rates.” 
 
 II- 
 
 (The price at which such works could 
 be purchased.) 
 
 The only price which has been offered 
 by the Company to the city is $450,000. 
 This was the price made in 1901. The 
 same offer was made again last year, in 
 May. The Company has, it is under- 
 stood, $87,500 of capital stock outstand- 
 
 ing, and $276,000 of 5 per cent bonds 
 outstanding. These together make $363,- 
 000, and it is probable that the plant 
 could be bought for this sum, though no 
 such offer has been made. 
 
 RATES. 
 
 (Questions 7 and 10.) 
 
 The city and the inhabitants • are en- 
 titled to have water furnished at reason- 
 able rates under the contract. They 
 must be reasonable both to the consumer 
 and to the company if furnished by a 
 company — and according to the decis- 
 ions the consumer’s interest is para- 
 mount, provided the rate is not so low 
 as to deprive the company of its property 
 without fair compensation. 
 
 As to the consumer, a rate, to be rea- 
 sonable, must not be more than it would 
 cost him to supply himself, with sub- 
 stantially the same service. With wind- 
 mill pump one can now supply from a 
 well a family of ten persons, and have 
 water for sprinkling and garden pur- 
 poses, as fully and satisfactory as the 
 Water Company does or can, for less 
 than $10 per year — and own his own 
 plant. With a gasoline engine the cost 
 for like service would not exceed $12 
 per year. 
 
 In general, the company is entitled to 
 a fair income upon the money actually, 
 economically, honestly and intelligently 
 invested, and in fact used by it, and with 
 the works economically operated, with- 
 out allowance for depreciation, exten- 
 sions, or sinking funds. The rate of 
 interest for which it can borrow money 
 on a mortgage of its plant is a fair test 
 of the income to which it is entitled 
 on the money so invested. This is 5 
 per cent at the present time, in the case 
 of the Ann Arbor Water Company. The 
 amount of money invested and now act- 
 ually used by the Company does not 
 exceed $300,000, The city could borrow 
 money at 4 per cent, possibly 3^2 per 
 cent. If the city borrowed money, and 
 wished to repay it in 30 years on the 
 serial bond plan, the amounts to be 
 raised annually for interest and princi- 
 pal would be as follows: 
 
Annual Payments. 
 
 At 3'/^% At 4% 
 
 $ 50,000 $ 2,718.57 $ 2,891.50 
 
 300.000 16,311-39 I7»34903 
 
 400.000 21,748.52 23,132.04 
 
 500.000 27,185.65 28,915.05 
 
 600.000 32,622.78 34,698.06 
 
 If the repayment was to be made by 
 
 the establishment of a sinking fund in- 
 stead, it is safe to say that the sums 
 set aside annually could not be cer- 
 tainly invested at a rate of more than 
 3 per cent. The annual sums, in addi- 
 tion to the interest to be set aside, at 
 this rate, to repay the principal in 30 
 years would be: 
 
 Int. Sinking 
 at 4% Fund Total 
 For$ 50,000 $ 2,000 $ 1,050.96 $ 3,050-96 
 
 300.000 12,000 6,305.79 18,305.79 
 
 400.000 16,000 8,407.72 24,407.72 
 
 500.000 20,000 10,509.65 30,50965 
 
 600.000 24,000 12,611.58 36,611.58 
 In a city, such as Ann Arbor, the cost 
 
 of constructing water works adequate 
 for full fire protection for all parts of 
 the city, is approximately twice, and the 
 operating expenses and repairs one half 
 more, than what they would be for dom- 
 estic and business purposes alone. This 
 being the case, it would be reasonable 
 for the whole public who have the same 
 fire protection, if adequate, to pay one- 
 half of the interest on the investment 
 and one-third of the operating expenses 
 — although the actual amount of water 
 used for all public purposes, including 
 is share of waste, usually does not ex- 
 ceed 10 per cent of the total amount. 
 
 Further, since the whole investment 
 is made for the purpose of supplying 
 water to all the inhabitants, and since 
 there is a duty to supply all who call for 
 service, and this investment is made for 
 the benefit of all whether they take water 
 or not, it seems fair that all should pay, 
 by tax, the other half of the interest on 
 the investment, and not those who take 
 water. And since all would receive the 
 benefit of the payment of the whole cost, 
 the sinking fund, or serial bond pay- 
 ments, should be borne by all. If this 
 is correct, then consumers should be 
 charged only with two-thirds of the op- 
 
 erating expenses — ^the sum it costs to 
 furnish them with water. 
 
 Extensions and betterments should be 
 charged to investment, upon which inter- 
 est is to be paid. 
 
 While the foregoing principles of rate 
 adjustment between the public and the 
 consumers are believed to be correct, 
 they are not in accordance with the usual 
 practice. The division between the pub- 
 lic and the consumers, where any fair 
 division is attempted, is upon the basis 
 of the relative cost of the investment 
 for public and private service, and ot 
 operating expenses due to these services 
 respectively. These, as above stated, are 
 one-half of investment for each, and 
 one-third of operating expenses for pub- 
 lic service. 
 
 It is generally found that in cities 
 similar to Ann Arbor, 50 per cent of 
 the water used (allowing for leakage) 
 is for domestic purposes, 40 per cent 
 for commercial purposes, and 10 per 
 cent for public purposes. Dwellings, 
 then, should pay about 56 per cent of 
 the sum to be raised by rates, and busi- 
 ness houses 44 per cent. 
 
 In Ann Arbor there are about 3600 
 dwellings, a little over half of which 
 (say 1850) take water at present, and 
 of these approximately 80 are 5-rooms; 
 120, 6-rooms; 240, 7-rooms — the balance, 
 1310, being over 8-rooms — most of which 
 have a bathroom and a closet, and a 
 majority of the owners of which sprinkle 
 their lots. About 100 buildings are 
 built each year. 
 
 There are in the city 9 bakeries; 4 
 banks; 18 barbers; 4 billiard halls; 13 
 boarding houses; 2 brewers; 9 black- 
 smiths; 17 dentists; 10 druggists; 3 flor- 
 ists; 36 fraternities; 41 grocers; 8 ho- 
 tels; 3 private hospitals; 14 laundries; 
 8 livery stables ; 35 manufacturers ; 7 
 photographers; 5 printers; 8 restau- 
 rants; 37 saloons; and 57 stores of var- 
 ious kinds. 
 
 Applying the principles above set forth 
 to the conditions in Ann Arbor, upon a 
 basis of 4 per cent serial bond plan, for 
 works that cost the following sums, 
 the adjustment would be as follows: 
 
— 10 — 
 
 $300,000 $6oo,ooo 
 
 Serial bond — 30 years. . 
 
 17,349 
 
 34,698 
 
 Operating exp., repairs. 
 
 etc 
 
 16,000 
 
 16,000 
 
 Total to be raised... 
 
 33,349 
 
 50,698 
 
 Public, 1-2 of bond.... 
 
 8,675 
 
 17,349 
 
 1-3 operating exp. . . . 
 
 5,333 
 
 5,333 
 
 Total by public. . . . 
 
 14,008 
 
 22,682 
 
 Private, 1-2 bond 
 
 8,675 
 
 17,349 
 
 2-3 operating exp. . . . 
 
 10,667 
 
 10,667 
 
 Total, private 
 
 19,342 
 
 28,006 
 
 Average rate per 1,000 
 
 gals 
 
 3c 
 
 4^/^c 
 
 Commercial purposes 
 
 44% $ 0,510 $ 
 
 12,322 
 
 Dwellings (1800) 56%. 
 
 10,382 
 
 15,784 
 
 Dwellings, average 
 
 6 
 
 9 
 
 Approximate Amounts Now Paid. 
 
 City 
 
 Commercial and Univ.. 
 
 .$ 7,000 
 . 11,000 
 
 $18,000 
 
 Dwellings, etc 
 
 Total 
 
 . 21,000 
 
 .$39,000 
 
 In other words, if the city could ac- 
 quire the present plant for what has 
 actually been invested in it, and still 
 used in supplying the city with water, 
 it could pay for it in 30 years, and lower 
 the rates nearly $6,000 (almost 20 per 
 cent), or cut down the sum paid by the 
 city for hydrant rental to about $1,000, 
 leaving the rates as they now are. F.or 
 such fire service as the city now has 
 from the water works, it would not be 
 fair to charge half of the investment, 
 nor one-third of the operating expenses 
 — for the reservoir pressure alone, the 
 machinery and pipes are scarcely more 
 than such as are necessary for domestic 
 service — and $5, 000 per year would be 
 a large allowance for such service. 
 
 On the other hand, if the city built 
 works of its own, or could acquire the 
 present plant at its fair value, and make 
 it fully adequate for all the purposes 
 of a city of this size, if the public should 
 raise by taxation $18,000 per year for 
 30 years, and the rates paid remain the 
 same as now, the entire plant could be 
 
 paid for in 30 years — even though it cost 
 $600,000; and in that case the city would 
 have one of the best plants in the coun- 
 try. If the city could operate as cheaply 
 as other cities in the state having mun- 
 icipal plants, and could issue its .bonds 
 for 3 1-2 per cent, on the serial plan, 
 and if the city raised as now $7,000 by 
 taxation, the rates could be reduced 
 somewhat below present rates and still 
 the $600,000 plant could be paid for in 
 30 years. 
 
 The rates charged by the Water Com- 
 pany for the services rendered are un- 
 reasonably high. Upon a basis of $300,- 
 000 invested, the interest would be at 
 5 per cent, $15,000; operating expenses, 
 repairs and taxes are approximately 
 $16,000 — making $31,000 in all. The 
 gross earnings are approximately, from 
 the city, $7,000; commercial purposes 
 and University of Michigan, $11,000; 
 fraternities and boarding houses, $1,600; 
 1,800 dwellings, $18,000; new taps, 
 $1,000; total, $39,000 — leaving $8,000 for 
 other matters. The $23,000 of net earn- 
 ings, after paying 5 per cent interest on 
 $276,000 bonds — ^$13,800 — leave $9,200 for 
 the stockholders, or over 10 per cent. 
 It is probable that only part of this is 
 paid in dividends, and part used for ex- 
 tensions. If such is the case, although 
 they have been paid for by the patrons 
 of the Company, they are undoubtedly 
 charged to the investment account, upon 
 which the Company claims the right to 
 draw interest, and charge rates suffic- 
 iently high to do so. How much of the 
 investment upon which interest is now 
 claimed has been derived from earnings 
 due to excessive rates it is impossible 
 to say without access to the Company's 
 books. This is refused. A reduction 
 of ten per cent in the rates now paid, 
 if we are correct in our premises, could 
 be made and the Company would then 
 earn as much, or more than, it is justly 
 entitled to. 
 
 MUNICIPAL OWNERSPIIP. 
 
 Our commission did not specifically 
 require us to report upon the subject 
 of public ownership of the water works. 
 We, however, deem it proper to make 
 the following statements : 
 
— II — 
 
 "One of the most remarkable move- 
 ments in the municipal history of the 
 past century is the rapid growth of the 
 public ownership of public utilities.” 
 Turnpikes, streets, bridges and canals 
 have nearly all become public. In the 
 United States, water works, gas light 
 and electric light plants, telephones and 
 street car lines have largely passed, or 
 are likely soon to pass, into public con- 
 trol. In Europe, railroads, street car 
 lines, telegraphs, telephones, in addition 
 to water, gas and light plants, together 
 with very many other matters widely 
 affecting the public welfare, have come 
 under municipal or state control. In 
 1897 it w'as said that there were at the 
 beginning of he century practically no 
 water works in the United States or 
 Canada, whereas in 1896 there were over 
 3.300, more than 2,700 built since 1880, 
 and 1,400 since 1890. A similar growth 
 has probably taken place since. 
 
 In 1903, of the cities of over 30,000 
 population having water works, 70 per 
 cent were publicly owned and operated; 
 and of the cities under 30,000 having 
 water works, a fraction over 50 per cent 
 were municipal plants. Over 75 per 
 cent of the w^ater works in Massachu- 
 setts are public; in Illinois, 78 per cent; 
 in Michigan, 81 per cent; Iowa, 82; 
 Minnesota, 87; and in Nebraska, 88. 
 
 Down to 1896 there had been 200 
 changes from private to public owner- 
 ship, and only 20 the other way; and in 
 the six years from 1890 to 1896, there 
 were over 100 changes from private to 
 public, and only six or seven from pub- 
 lic to private ownership. Since this date 
 the changes have been substantially all 
 from private to public ownership of 
 water works. Many of the states, nota- 
 bly Ohio, Illinois, Missouri, Kansas and 
 California, have enacted laws looking to, 
 or authorizing, the complete municipal- 
 ization of nearly every public utility 
 operated within any city in these states. 
 All over the world at the present time 
 there is a stronger tendency than ever 
 before toward public ownership of pub- 
 lic utilities; this has been so constant 
 and persistent, and has grown with 
 fuller experience, to such an extent as 
 
 to make it certain that it is the result, 
 not of a freak or fancy, but of a settled 
 conviction in its efficiency to remedy the 
 evils arising from private monopoly, as 
 well as secure the benefits of intelligent 
 co-operation. 
 
 The fundamental motive of private 
 monopoly is not primarily public service, 
 but private gain — dividends for a few 
 instead of service for all ; whereas the 
 reverse is true in the case of complete 
 public ownership. 
 
 The evils that attend private mon- 
 opoly are patent nearly everywhere. 
 They have been enumerated, with much 
 truth, to be excessive charges, unreason- 
 able profits, watered stock, false account- 
 ing, doctored reports, poor service, un- 
 just discrimination, corruption, defiance 
 of law, impudent treatment of those who 
 are obliged to rely upon their service, 
 and usually an unholy alliance, in one 
 way or another, with such powers of 
 the government as are in a position, or 
 are willing, to serve them at the expense 
 of the public welfare. 
 
 Objections to municipal ownership 
 exist — danger from the spoils system, 
 paternalism, socialism, closing the door 
 to business opportunity, extravagant ex- 
 penditures, inefficient service, unecon- 
 omical operation, are usually enum- 
 erated. Some of these have, in practice, 
 proved more fancied than real — and only 
 a few, if any, are inherent, due not to 
 the plan, but to the fact that the govern- 
 ment itself is owned and run by a gang 
 rather than by the public body itself. 
 The remedy for such a condition is to 
 turn the rascals out; and their oppor- 
 tunity and motive for graft and corrup- 
 tion are as great or greater under pri- 
 vate monopoly ownership of the things 
 which all are obliged to use as they 
 would be under public ownership. 
 
 There are positive and compensating 
 advantages of public ownership of the 
 government itself and of public utilities, 
 possible in better service, lower rates, 
 economy of production, co-ordination of 
 industries, extension of facilities, in- 
 crease of business, no discrimination, 
 true accounts and full accountability. 
 
 The conditions, however, of such re- 
 
suits are: full legal power and authority 
 in a municipality as extensive as if op- 
 erated by a private corporation; power 
 of eminent domain; extensive police 
 powers ; charges according to cost of 
 service rendered, including interest, in- 
 surance, taxes relinquished, taxes to be 
 paid, depreciation, sinking fund; full 
 and accurate accounts subject to audit 
 at any time ; the creation of a thoroughly 
 competent Board of Control, with large 
 discretionary powers in determining 
 questions of engineering, mechanical and 
 operating details, subject to full report 
 and strict accountability; and, above all, 
 if the people are to own and operate 
 their public service institutions, they 
 must own and operate the government 
 itself, there must be instituted the merit 
 system of civil service, and for many 
 cases the initiative and referendum must 
 be open and prompt and efficient action, 
 — the fonner to prevent abuse of official 
 and administrative power, and the latter 
 to prevent the abuse of legislative power. 
 
 There would seem to be no more suit- 
 able place in the country than in Ann 
 Arbor, where it would be possible, with 
 a proper civic interest, to make public 
 ownership possible and successful. 
 
 In the case of water works the results 
 of municipal ownership can hardly ad- 
 mit of doubt. In 1890 a careful study 
 showed that “taking the United States 
 as a whole, the investment per family 
 is about the same in public as in private 
 plants, yet the total rentals averaged 
 43 per cent more per family in private 
 than in public plants.’' 
 
 A calculation based upon the figures 
 given in the Water Works Manual for 
 1897, showed ordinary family rates in 
 Massachusetts to be $7.50 for private, 
 and $5.75 for public plants; in Indiana, 
 $9.75 for private, and $4.66 for public; 
 in Illinois, $8 for private, and $5.33 for 
 public; in Texas, $15.12 for private, and 
 $9.25 for public; in Washington, $17 for 
 private, and $10 for public. 
 
 So also under private ownership, the 
 rates were 410 in Syracuse, New York; 
 $8 in Auburn; and $10 in Randolph; 
 whereas under public ownership after- 
 ward acquired, the rates were respec- 
 
 tively $5, 6, and $4, in the same places. 
 Many similar results could be given — 
 not for water works alone, but for gas 
 and electric light plants as well. 
 
 The fullest study of the subject that 
 has yet been made was by the Depart- 
 ment of Labor in 1899; the results, here, 
 almost without exception, were in favor 
 of municipal ownership, and can be 
 summed up so far as water works are 
 concerned, as follows: Cost per 1,000,- 
 000 gallons, excluding depreciation, taxes 
 and interest, — private, $41.25 — public, 
 $37.67 ; cost, including depreciation, 
 taxes and interest, — private, $123.86 — 
 public, $118.54; average price per mil- 
 lion gallons sold — private, $96.20; pub- 
 lic (often not including anything re- 
 ceived for public supply), $72.70. 
 
 A recent bulletin of the Census De- 
 partment relating to public ownership 
 of lighting plants, for both gas and elec- 
 tricity, shows results favorable to public 
 ownership. 
 
 If water works were to be constructed 
 anew for the city, the Committee would 
 favor municipal ownership. If the pres- 
 ent works could be purchased at approx- 
 imately the price at which they could be 
 utilized by the city, we would be inclined 
 to recommend that such be done. We, 
 however, do not deem it wise to pay 
 anything like the price asked by the 
 Company. In any event, before the city 
 purchases, we believe the company 
 should give, or the city should obtain 
 and verify, substantially all the informa- 
 tion requested in our unanswered letter 
 iO the Company, a copy of which is 
 hereto annexed (marked Exhibit No. s), 
 of April, 1905; also the detailed in- 
 formation called for by Professor Davis’ 
 communication to this Committee, of 
 October 20, 1905, a copy of which com- 
 munication is hereto annexed (marked 
 Exhibt No. 7) ; and further that the 
 entire plant of the company be put un- 
 der the general direction of a competent 
 engineer to be designated by the Com- 
 mon Council, for operating and testing 
 for such period during the summer as 
 may be necessary, to determine its actual 
 condition, capacity and performance ; 
 that these answers and the results of 
 
— 13 — 
 
 such tests should be made public; and 
 after the public are in possession of the 
 information, the question of purchase 
 should be submitted to the voters of 
 the city. And further, that it should be 
 made clear to the voters that the city and 
 the school district (which are practically 
 one) are already bonded (including 
 sewer and paving bonds) for approxim- 
 ately $300,000; that part of these bonds 
 run for 30 years with an interest charge 
 of over $12,000, and during a part of this 
 time require a principal payment of 
 $15,000 annually ; that the purchase 
 would probably add another $300,000; 
 and to make the plant adequate to the 
 needs of the city would probably entail 
 an additional expense of nearly $300,000 
 more. Before such purchase was deter- 
 mined upon, and after the facts before 
 mentioned were obtained, in the judg- 
 ment of the Committee, a competent en- 
 gineer should be employed to make pro- 
 per plans and estimates for utilizing the 
 plant if purchased. 
 
 While, perhaps, the Common Council 
 has power to ask for the appointment of 
 commissioners by the Supreme Court 
 to value the property, under the pro- 
 visions of the contract, which would 
 bind the city, without submitting the 
 question to the voters, we believe it 
 would be unwise to do so, and to do so 
 at all until the rights of the city and the 
 duties of the company under the con- 
 tract, are fully determined by a court, 
 or the company agrees to submit these, 
 and the question of their full perform- 
 ance to such commissioners, to be taken 
 into consideration in valuing the pro- 
 perty. 
 
 RECOMMENDATIONS. 
 
 IVe therefore recommend: 
 
 (i) That a fomral request be made 
 by the Common Council to the Ann 
 Arbor Water Company to furnish direct 
 pressure when called for by the Chief 
 of the Fire Department; to disconnect 
 their pipes from the Tower farm wells, 
 the river, and the wells less than 50 
 feet deep at Station No. 2; to replace 
 all drain tile for collecting water by 
 iron pipe with properly leaded joints; 
 to take such steps as will certainly pre- 
 
 vent contamination of the water from 
 the creek on the White farm; to have 
 all man-holes and other similar openings 
 connecting with the pipes of the col- 
 lecting systems at each of the pumping 
 stations securely closed; to have a suit- 
 able fence constructed about the col- 
 lecting or pumping reservoir at the 
 river pumping station (Station No. l) 
 so as to prevent persons from gaining 
 immediate access to the said reservoir; 
 and all other reasonable and proper pre- 
 cautions taken to prevent accidental or 
 malicious contamination of the water 
 supply. 
 
 (2) In case the Company fails 
 promptly to comply with the foregoing 
 request, we then renew our recommend- 
 ation of March 22, 1905, that the City 
 Attorney be directed immediately to 
 bring suit or suits as he and such coun- 
 sel as may be employed to aid him shall 
 deem proper, to preserve, protect and 
 enforce the city’s rights. Also that the 
 Fire Chief be specifically authorized to 
 call for direct pressure for fire purposes, 
 whenever in his judgment the same is 
 needed. 
 
 (3) That the City Attorney be dir- 
 ected to ascertain, and to do whatever 
 is necessary, to protect the rights of the 
 City as a riparian owner to use the water 
 of the Huron River for a water supply 
 for the city. 
 
 (4) That the request made by Israel 
 C. Russell, in his report printed in the 
 Council Proceedings for Nov. 13, 1905, 
 for an allotment of $40.00, to be used in 
 having two chemical analyses of the 
 water of the Huron River made, be 
 granted. 
 
 (5) That a competent geologist and 
 hydraulic engineer be employed to find 
 the best available, permanent and ade- 
 quate source, or sources, of supply of 
 water, and to test the same, whether 
 the water eventually be taken from the 
 Huron River, or come from other 
 sources; and that no steps be taken to 
 acquire the present water works with- 
 out first finding such a source, or 
 sources, of supply. 
 
 (6) That, after a source of adequate 
 and permanent supply is found, a com- 
 
— 14 — 
 
 petent engineer be employed by the city 
 to make the necessary surveys, with 
 plans and specifications for using the 
 same for the city, and constructing such 
 works as shall be fully adequate, ac- 
 cording to the best modern practice, for 
 all the purposes of the city at present, 
 and for twenty years to come, with es- 
 timates of the cost thereof; also to de- 
 termine with care what part, if any, of 
 the plant of the present company can 
 be utilized as a part of such plan. 
 
 (7) That the present ordinance fix- 
 ing water rates be repealed, and the 
 rates indicated in a proposed ordinance 
 attached hereto (marked Exhibit No. 
 (ii) be fixed by an ordinance as the 
 proper rates to be charged by the Ann 
 Arbor Water Company. 
 
 (8) That an ordinance, similar to 
 the one attached hereto (marked Ex- 
 hibit No. 13), be passed and enforced, 
 providing for such annual reports to be 
 made by the Ann Arbor Water Com- 
 pany to the Common Council, as will 
 enable the Council to fix fair and rea- 
 sonable rates. 
 
 (9) That an ordinance, similar to 
 the one attached hereto (marked Ex- 
 hibit No. 12), be passed and enforced, 
 providing for the creation of a tribunal 
 havdng power to investigate, report and 
 advise upon, all controversies and com- 
 plaints between the Ann Arbor Water 
 Company and the inhabitants, relative 
 to the services rendered, or to be ren- 
 dered, by the said Ann Arbor Water 
 Company. 
 
 (10) That Section 17 of the Ordin- 
 ance of June 6, 1894, be amended by 
 striking out in the fifth and sixth lines 
 of the section, as printed in the “Char- 
 ter and Ordinances of the City of 
 Ann Arbor” (1903), page 223, the 
 words: “or the Ann Arbor Water Com- 
 pany,” thereby making it a misdemeanor, 
 punishable by a fine and imprisonment, 
 for anyone except the authorized city 
 officers to tamper with or change the 
 adjustment or operation of the flushing 
 tanks. 
 
 (11) That the Ordinance (Section 
 16 of the Ordinance of June 6, 1894, 
 printed page 222, “Charter and Ordin- 
 
 ances of the City of Ann Arbor”) pro- 
 viding for the connection of dwellings, 
 etc., with sewers, whenever practicable 
 — be strictly enforced. 
 
 EXHIBITS. 
 
 Reference is made to the following- 
 papers connected with this investigation : 
 
 (1) Resolution of the Common 
 Council appointing the Committee 
 (printed Council Proceedings, Feb. 20, 
 1905, page 168) ; marked Exhibit No. i. 
 
 (2) Collection of proceedings of 
 Common Council relative to water 
 works matters, from 1885 to June i, 
 1905 ; marked Exhibit No. 2. 
 
 (3) Testimony of Mr. Fred Sipley, 
 Mr. Walter Mack, Mr. E. W. Groves, 
 Mr. Moses Seabolt, Mr. George R. Ap- 
 fel, Mr. Sid Millard; statement of Mr. 
 Lawrence; report of Professor Davis; 
 testimony of Mr. Leverett; statement of 
 Colonel Dean; report of Professor 
 Bogle ; and subsequent statements of 
 Mr. Lawrence; marked Exhibit No. 3 — 
 a, b, c, d, e, f, g, h, i, j, k, 1. 
 
 (4) Communication and recommend- 
 ation of Committee relative to the ap- 
 pointment of an attorney to bring suit, 
 and to an enabling act (printed Council 
 Proceedings, Apr. 18, 1905, page 3) ; 
 marked Exhibit No. 4. 
 
 (5) Letter of the Committee to the 
 Water Company, April, 1905, asking for 
 certain information ; marked Exhibit 
 No. 5. 
 
 (6) Report of Professor Davis 
 (printed Council Proceedings, June 5, 
 1905, page 37) ; marked Exhibit No. 6. 
 
 (7) Letter of Professor Davis as to 
 information necessary to determine the 
 condition and value of the distribution 
 system of the water works plant ; marked 
 Exhibit No. 7. 
 
 ( 8 ) Report and supplemental report 
 of Professor Russell as to the water 
 supply (printed Council Proceednigs, 
 Nov. 13 1905, page 153) 1 marked Ex- 
 hibit No. 8 . 
 
 (9) Second supplemental report of 
 Professor Russell, made to the Com- 
 mittee, Jan. 23, 1906; marked Exhibit 
 No. 9. See Exhibit No. 16, page 44. 
 
 (10) Copy of letter to the Water 
 
— I 
 
 Company, Jan. 27, 1906, asking for in- 
 formation necessary for fixing rates ; 
 marked Exhibit No. 10. 
 
 (11) Proposed ordinance fixing rates 
 to be charged by the Water Company; 
 marked Exhibit No. ii. 
 
 (12) Proposed ordinance establish- 
 ing a tribunal to hear complaints in re- 
 gard to water service; marked Exhibit 
 No. T2. 
 
 (13) Proposed ordinance prescribing 
 reports to be presented by the Ann Ar- 
 l)or Water Company; marked Exhibit 
 No. 13. 
 
 (14) Section 17 of the Ordinance of 
 June 6, 1894, as amended in accordance 
 with Recommendation No. (10) ; 
 marked Exhibit No. 14. 
 
 (15) Section 16 of the Ordinance of 
 June 6, 1894 , recommended to be strictly 
 enforced (see Recommendation No. 
 (ii); marked Exhibit No. 15. 
 
 (16) Minutes of the meetings of the 
 Committee from Feb. 24, 1905, ’the date 
 of the first meeting, up to and includ- 
 ing the meeting held Jan, 30, 1906; 
 marked Exhibit No. 16. 
 
 Respectfully submitted, 
 EMMETT COON, Chmn., 
 GEORGE H. FISCHER, 
 ISRAEL C. RUSSELL, 
 
 R. S. COPELAND. 
 
 HENRY S. DEAN, 
 
 I. L. SHERK, 
 
 B. FRANK OHLINGER, 
 
 H. L. WILGUS. 
 
 .T. B. DAVIS, 
 
 C. G- DARLING, 
 
 Committee. 
 EXHIBIT NO. 7. 
 
 Final Report Special Water Works 
 Committee, Feb. 5, 1906, 
 
 Ann Arbor, Michigan, Oct. 20, 1905. 
 The Special Water Works Committee 
 
 of the Common Council of the City 
 
 of Ann Arbor. 
 
 Gentlemen; 
 
 Whereas my efforts to secure informa- 
 tion regarding the construction and con- 
 dition of the distribution system of the 
 water works at Ann Arbor, Michigan, 
 have so far proved fruitless, I recom- 
 mend that the Special Water Works 
 Committee of the Common Council of 
 
 5 — 
 
 said City request the said Common 
 Council to furnish said Committee with 
 the information indicated by the accom- 
 panying schedule of memoranda. 
 Respectfully, 
 
 Citizen Member of Committee. 
 
 Ann Arbor Water Works Distribution 
 System. 
 
 To determine what is the present 
 construction and condition of the dis- 
 tribution system of the water works at 
 Ann Arbor, Michigan, information is 
 needed regarding the matters and things 
 indicated in the following memoranda : 
 Levels. 
 
 Referred to mean sea level, by con- 
 nection with U. S. Geological Survey 
 bench marks. 
 
 Lowest points in .system. 
 
 Suctions. 
 
 Force mains. 
 
 Highest points in system. 
 
 Where water is now delivered. 
 Within corporate limits. 
 
 At reservoir. 
 
 Top of bank. 
 
 Bottom of reservoir. 
 
 Discharge outlet. 
 
 Usual water level. 
 
 Ground at buildings requiring fire 
 streams. 
 
 Elsewhere. 
 
 At all street intersections where pipe 
 is now laid. 
 
 At all gates. 
 
 Ground. 
 
 Top of casing beside valve stem. 
 Reservoir. 
 
 Sizes, 
 
 Dimensions at top of basin. 
 Dimensions at bottom of basin. 
 Depth, from levels. 
 
 Locations. 
 
 Of inlet. 
 
 Of outlet. 
 
 Pipes. 
 
 Locations. 
 
 Of all the various kinds and sizes 
 of the main pipes, and the amounts 
 of each. 
 
 Sizes. 
 
 Outside diameters. 
 
 Inside diameters, 
 
At pumping stations. 
 
 Within the pumping stations. 
 
 In the vicinity of the pumping sta- 
 tions. 
 
 At the reservoir. 
 
 Suctions. 
 
 To river. 
 
 To v/ells. 
 
 To basins. 
 
 Pump connections. 
 
 Suctions. 
 
 Deliveries. 
 
 Force mains. 
 
 Distributing mains. 
 
 Elsewhere. 
 
 Condition. 
 
 Exterior. 
 
 Interior. 
 
 Joints. 
 
 Leaks. 
 
 Weights. 
 
 Of all sizes, from records of Water 
 Compan3^ 
 
 Dates. ' 
 
 When all sizes were laid, and ex 
 tensions made, as shown by books 
 of Water Company. 
 
 Specials. 
 
 Same data as for pipes — see “Pipes” — 
 as far as it applies. 
 
 Sizes. 
 
 Of all outlets not in use, and direc- 
 tion in which they look. 
 
 Gates. 
 
 Sizes. 
 
 Locations. 
 
 Condition. 
 
 Open. 
 
 Closed. 
 
 Partly closed. 
 
 As to the ease of operation. 
 Amount of possible opening. 
 
 Gate boxes. 
 
 Description of. 
 
 Condition. 
 
 Accessibility. 
 
 How to be found, with data for 
 finding. 
 
 Hydrants. 
 
 Locations. 
 
 Of each one, with kind of hydrant 
 Outlets. 
 
 Number and sizes of all outlets. 
 Positions on hydrant posts. 
 
 Kinds. 
 
 Number of each kind 
 Devices for opening and dosing. 
 Number of turns of wrench to fully 
 open. 
 
 Dates of setting each one. 
 
 Sizes. 
 
 Of post. 
 
 Outside. 
 
 Inside. 
 
 Valve, or gate, stems. 
 
 Of inlet 
 Setting. 
 
 Backing up. 
 
 Connection to leader. 
 
 Approximate length of leader. 
 Condition. 
 
 As to setting — see “Setting.” 
 
 As to depth of burial of leader. 
 
 As to accessibility. 
 
 In summer. 
 
 In winter. 
 
 As to ease of operation. 
 
 As to convenience of attaching and 
 serving hose. 
 
 As to whether hydrant can be fully 
 opened, or not 
 As to drainage. 
 
 ‘ Services. 
 
 Locations. 
 
 Approximate — of all service pipes. 
 Sizes of taps. 
 
 'Number of taps. 
 
 Kind of service. 
 
 Domestic. 
 
 Laundry. 
 
 Manufacturing. 
 
 Elevators. 
 
 Power. - 
 Others. 
 
 Corporation boxes. 
 
 Locations — approximate. 
 
 Number. 
 
 Yard hydrants. 
 
 Number in each block. 
 
 Sizes of outlet connections. 
 
 EXHIBIT NO. II. 
 
 Final Report Special Water Works 
 Committee, Feb. 5, 1906. 
 
 An Ordinance to Determine, Define 
 and Fix the Rates to be Charged the 
 Inhabitants of the City of Ann Arbor, 
 for Domestic and Other Uses, by the 
 Ann Arbor Water Company; and to 
 
— 17 — 
 
 Repeal an Ordinance Entitled : “An 
 Ordinance to Determine, Define and Fix 
 the Rates to be Charged the Inhabitants 
 of the City of Ann Arbor, by the Ann 
 Arbor Water Company, for Water for 
 Domestic Purposes and to Repeal an 
 Ordinance Entitled: ‘An Ordinance to 
 Determine, Define and Fix the Rates to 
 be Charged the Inhabitants of the City 
 of Ann Arbor for Water for Domestic 
 and Other Uses, by the Ann Arbor 
 Water Company,* Passed December i6, 
 1901, and Approved December 20, 1901,” 
 — Passed March 10, 1902, and Approved 
 March ii, 1902. 
 
 Preamble. 
 
 Whereas, the Ann Arbor Water Com- 
 pany has contracted and agreed to fur- 
 nish and supply the inhabitants of the 
 City of Ann Arbor water for domestic 
 purposes at reasonable rates; and 
 Whereas, in the opinion of the Com- 
 mon Council, the rates now and hereto- 
 fore charged the said inhabitants are 
 still unreasonably high, therefore 
 The Common Council of the City of 
 Ann Arbor Ordain: 
 
 Section i. That the rates to be 
 charged the inhabitants of the City of 
 Ann Arbor for water for domestic use 
 by the Ann Arbor Water Company shall 
 not exceed the following maximum 
 rates annually: 
 
 Dwelling House Rates. 
 
 Kitchen use for one family occupy- 
 ing not exceeding four rooms. .$2 50 
 
 For each additional room 50 
 
 For each regular boarder 25 
 
 For each bath tub, with six persons 
 
 in family 2 00 
 
 For each additional person 25 
 
 For each additional bath tub , i 00 
 
 For each water-closet, self-closing, 
 
 and wash-bowl 2 50 
 
 For each additional water-closet, 
 
 self-closing i 00 
 
 For each additional wash-bowl... 50 
 
 For hydraulic pump, operated by city 
 water, the Ann Arbor Water Company 
 may charge schedule rates, herein feed, 
 for the fixtures serv'ed by such pump. 
 
 For hydrant in yard, where no dom- 
 estic rates are paid and water is used 
 for domestic purposes, three dollars in 
 
 addition to the rates hereinafter fixed 
 for lawn sprinkling. 
 
 Section 2. Any water consumer may 
 place a meter in his premises for meas- 
 uring water used for any purpose, sub- 
 ject to the inspection of the Water Com- 
 pany, or an officer to be designated by 
 the Mayor of the City for that purpose ; 
 such meter to be kept in good condition 
 and repair at the expense of the owner 
 or user, and the Water Company shall 
 not be required to furnish water through 
 a defective or imperfect meter, but in 
 case of the refusal or neglect of any 
 water consumer to keep his meter in 
 repair, may charge for its service, the 
 schedule rates herein provided. 
 
 Meter Rates, 
 
 For water measured by meter, the 
 Water Company may charge and collect 
 the following maximum rates : 
 
 For a daily consumption 
 of less than 1,000 gals. 20c per M Gals. 
 For a daily consumption 
 of 1,000 to 3,000 gals. ..15c “ “ “ 
 
 For a daily consumption 
 of over 3,000 gallons 
 (provided that the min- 
 imum charge for water 
 measured by meter 
 shall be $5 per annum). loc “ “ “ 
 
 Section 3. For sprinkling purposes 
 the Ann Arbor Water Company may 
 charge the sum of four dollars per an- 
 num. 
 
 The sprinkling season shall extend 
 from April ist to October 31st of each 
 year, and all persons paying sprinkling 
 rates shall be entitled to the use of one 
 stream of water through a one-fourth 
 inch nozzle, or other fixtures discharg- 
 ing an equal quantity of water, under 
 the pressure called for by the contract 
 with the City, four hours each day dur- 
 ing the sprinkling season; such hours 
 to be determined by the Ann Arbor 
 Water Company, but no such hours 
 shall be fixed earlier than six o’clock 
 a. ra., or later than eight o’clock p. m. 
 No sprinkling shall be done during a 
 fire alarm. 
 
 Section 4. Building Rates. 
 
 For stone work, per each 161/2 eu. ft 2c 
 For brick work, per M 50 
 
i8 — 
 
 For plastering, per lOO yards 150 
 
 For grouting, 100 cu. ft 20c 
 
 For cement walk, 6 in. deep, 100 sq. 
 
 ft 15c 
 
 For cement cellar bottom, 4 in. deep, 
 
 100 sq. ft 15c 
 
 Rates for service not named in this 
 Ordinance are subject to agreement, but 
 without discrimination for similar ser- 
 vice rendered between the Ann Arbor 
 Water Company and the applicant for 
 such service. 
 
 Section 5. The Water Company may 
 collect all schedule rates quarterly in 
 advance on the first day of January, 
 April, July and October, and may turn 
 off the water from any premises* for 
 non-payment of rates herein specified. 
 For water measured by meter, the Wat- 
 er Company may collect monthly. 
 
 Section 6. Water consumers vacating 
 premises must notify the Water Com- 
 pany at its office, that water may be 
 turned off, and may be held responsible 
 for water rates until such notice. When 
 there is a change of residence the water 
 consumer may have the overpayment 
 refunded. For turning on or turning 
 oh* water from any premises, the Water 
 Compan}^ may charge a fee of 25c, but 
 no person shall turn the water on any 
 premises until application for service 
 is filed at the office of the Water Com- 
 patiy, and opportunity is given the Com- 
 pany to inspect the fixtures upon the 
 premises, 
 
 Section 7. It shall be unlawful for 
 any person or persons to use or per- 
 mit use of water for other purposes than 
 those for which water rates are paid. 
 
 Section 8. The inspector or other 
 authorized agent of the Water Company, 
 or an officer designated by the Mayor 
 of the City for that purpose, shall have 
 access, at all reasonable hours, to prem- 
 ises upon which water furnished by the 
 Company is used, for the inspection of 
 all pipes, meters, fixtures, and connec- 
 tions for furnishing water to such prem- 
 ises. 
 
 Section 9. No person or persons oth- 
 er than the Chief of the Fire Depart- 
 ment, or persons specially authorized by 
 the Chief of the Fjre Department, or the 
 
 Water Company, shall open any of the 
 fire hydrants, or in any manner injure 
 or molest any of the said hydrants. 
 
 Section 10. The Ann Arbor Water 
 Company may make rules for the regu- 
 lation of its service not inconsistent with 
 the provisions of this Ordinance, or oth- 
 er regulations made by the Common 
 Council; provided, that no such rule 
 shall be made or enforced by the Com- 
 pany, except in case of extended con- 
 flagration, restricting the free use of 
 water for domestic purposes, but only 
 to prevent needless and wanton waste. 
 
 Section ii. Any person or persons 
 violating the provisions of this Ordi- 
 nance, and any agent or employee of 
 the Ann Arbor Water Company col- 
 lecting or receiving greater sums for 
 supplying the inhabitants of the City of 
 Ann Arbor with water for domestic 
 use than the sums herein specified, or 
 unjustly discriminating between the 
 same in the charges made or services 
 rendered, shall be deemed guilty of a 
 misdemeanor, and upon conviction there- 
 of, shall be fined in a sum not exceed- 
 ing twenty-five dollars and the costs of 
 prosecution of each offense. In impos- 
 ing such fine, the court shall have power 
 and authority to commit the offender 
 to the county jail until the fine is paid, 
 or for a period not exceeding thirty 
 days. 
 
 Section 12. The Ordinance entitled : 
 “An Ordinance to Determine, Define and 
 Fix the Rates to be Clnrged the Inhab- 
 itants of the City of Ann Arbor by the 
 Ann Arbor Water Company, for Do- 
 mestic Purposes, and to Repeal an Or- 
 dinance Entitled ‘An Ordinance to De- 
 termine, Define and Fix the Rates to be 
 Charged the Inhabitants of the City of 
 Ann Arbor for Water for Domestic and 
 Other Uses, by the Ann Arbor Water 
 Company, Passed December 16, 1901 and 
 Approved December 20, 1901,’ ” — Passed 
 March 10, 1902 and Approved March 
 II, 1902, — is hereby repealed. 
 
 Section 13. This Ordinance shall lake 
 effect on and after April i, 1906. 
 EXHIBIT NO. 12. 
 
 Final Report vSpecial Water Works 
 Committee, Feb. 5, 1006, 
 
-~I9 — 
 
 An Ordinance to Provide a Tribunal 
 for Hearing, Investigating, Reporting 
 and Advising Upon, Complaints Rela- 
 tive to the Water Service and Supply 
 to the City and its Inhabitants. 
 
 Whereas the Common Council may 
 prescribe such just and reasonable terms, 
 restrictions and limitations in reference 
 to charging and collecting compensa- 
 tion for the supply of water to the City 
 and its inhabitants, as it may deem prop- 
 er, and protect the same from the im- 
 position of undue or excessive charges; 
 and 
 
 Whereas, in order that the Common 
 Council may act intelligently in the mat- 
 ter, and with fairness to all, it is de- 
 sirable to create a tribunal to hear all 
 complaints relating to the service and 
 supply of water to the City and its in- 
 habitants, therefore, 
 
 The Common Council of the City of 
 Ann Arbor Ordain: 
 
 That there is hereby created a Board 
 of Complaint to be composed of three 
 freeholding electors of the City, to be 
 appointed by the Mayor on the first 
 Monday in May of each year, and to 
 hold their offices from the second Mon- 
 day in May and until their successors 
 are appointed and qualified. Such 
 Board shall have power to hear, investi- 
 gate, report upon and advise the Coun- 
 cil upon every complaint relative to the 
 water supply and service to the City and 
 its inhabitants, whether made by indi- 
 viduals or by the Ann Arbor Water 
 Company, and whether by or against 
 said Company. Such complaint shall be 
 made in writing, and after reasonable 
 notice shall be given to the party against 
 whom the complaint is made, specifying 
 the cause of the complaint and the time 
 when the matter complained of occurred, 
 a public hearing shall be had if desired 
 by either party. The said Board may 
 require affidavits or other evidence, and 
 j are authorized to make investigations in 
 such way as they deem best, subject to 
 an opportunity to be heard by the party 
 charged with the failure or non-per- 
 formance of duty or other improper con- 
 duct. Such Board may hold meetings 
 at such times as they may find neces- 
 
 sary, in such places as may be assigned 
 to them by the City Clerk. They shall 
 report in writing at least once a month 
 to the Common Council, setting forth 
 the number and nature of complaints 
 made before them, their conclusions in 
 the matter, with their reasons therefor, 
 and such recommendations for action by 
 the Council as they may deem proper. 
 One of their number to be selected by 
 themselves shall act as chairman, and 
 another likewise chosen shall act as 
 their secretary, and a majority shall 
 constitute a quorum to do business. The 
 secretary shall keep a record of their 
 proceedings, to be signed by the chair- 
 man, and these records shall be depos- 
 ited in the office of the City Clerk, to 
 be kept on file therein, and shall be 
 public records of the City. 
 
 This ordinance shall take effect and 
 be in force from and after its legal pub- 
 lication. 
 
 EXHIBIT NO. 13. 
 
 Final Report Special Water Works 
 Committee, Feb. 5, 1906. 
 
 An Ordinance to Require Certain Re- 
 ports to be Made by the Ann Arbor 
 Water Company to the Common Coun- 
 cil. 
 
 Whereas the Ann Arbor Water Com- 
 pany has contracted and agreed to fur- 
 nish the City and its inhabitants with 
 water for domestic and other purposes, 
 at reasonable rates, and 
 
 Whereas the Common Council of the 
 City of Ann Arbor is authorized to pre- 
 scribe such just and reasonable terms, 
 restrictions and! limitations upon the 
 Ann Arbor Water Company, in refer- 
 ence to charges and compensation for 
 the supply of water to the City and its 
 inhabitants, as it may deem proper, and 
 to protect the same from the imposi- 
 tion of undue or excessive rates or 
 charges, and 
 
 Whereas certain information is neces- 
 sary for the proper adjustment of rates 
 and charges, which the City cannot oth- 
 eriwse obtain, therefore 
 The Common Council of the City of 
 Ann Arbor Ordain: 
 
 It is hereby made the duty of the 
 Ann Arbor Water Company, and the 
 
— 20 
 
 said Company is hereby required, on or 
 before the first day of February in each 
 year, to make and file with the City 
 Clerk, under the oath of the President, 
 Secretary, Treasurer, or Manager of 
 such Company, an annual report in 
 writing, stating the following items for 
 the preceding year ending Dec. 31st, 
 that is to say: 
 
 1. The total amount of money ac- 
 tually and in good faith invested in all 
 property used in procuring, collecting, 
 purifying and distributing water to the 
 City and its inhabitants, on and up to 
 the preceding Dec. 31st. 
 
 2. The actual amount of the fore- 
 going sum invested, derived from the 
 sale of bonds, from payments upon stock 
 issued by the Company, and from earn- 
 ings derived from the operation of the 
 Company. 
 
 3. The total gross income from all 
 sources for the year, specifying the 
 amount received from the City, from the 
 University of Michigan, from commer- 
 cial purposes, and from domestic ser- 
 vices. 
 
 4. The total operating expenses for 
 the year, including and specifying the 
 amount paid for salaries, for fuel, for 
 repairs, for taxes, for insurance, and 
 other operating expenses. 
 
 5. The sums paid for renewals, ex- 
 tensions, interest and dividends. 
 
 6. The number of, and the amount 
 received from, each of the following; 
 
 Barber shops, with one chair; addi- 
 tional chairs. Bakeries, using i bbl. of 
 flour daily; each additional barrels used. 
 Banks. Beer tubs. Bath tubs, private 
 family; additional tubs. Bath tubs, pub- 
 lic; additional tubs. Billiard rooms, one 
 table ; additional tables. Breweries. 
 Butcher shops. Blacksmiths, one fire; 
 additional fires. Builders’ rates, perch 
 of stone; 1,000 brick; plastering, i, 2, 
 and 3 coats, cubic feet of grouting ; 
 square feet of cement walk, 4 ", 6 "; ce- 
 ment cellar and basement floors; cubic 
 
 feet of concrete ; backfilling trenches. 
 Fountains. Revolving lawn sprinklers. 
 Gas works. Green houses. Hotels. Of- 
 fices and private rooms. Printing of- 
 fices. Churches. Dwellings, 4-rooms ; 
 additional rooms, including those living 
 over stores. Boarding houses. Frater- 
 nities. Private stables. Livery stables, 
 horses up to ten ; additional horses. 
 Cows. Laundries. Saloons. Restau- 
 rants. Soda fountains. Stores of all 
 kinds. Hydrants for stores. Yard and 
 lawn hydrants. Steam boliers, horse 
 power, and days. Water closets, pri- 
 vate family; additional closets. Water 
 closets, saloons and boarding houses; 
 Water closets, hotels. Urinals, private; 
 saloons and boarding houses. Manu- 
 facturing establishments. Work shops, 
 5 persons or less; over 5 persons. Tap 
 fees. Quantity of water at the various 
 or special meter rates, including that 
 furnished to the University of Michi- 
 gan. Other services for which charges 
 are made. 
 
 7. The total number of gallons of 
 water pumped, by months, for the year. 
 
 This ordinance shall go into effect and 
 be in operation from and after its legal 
 publication. 
 
 By Aid. Fiesher — 
 
 Resolved, that the report of special 
 water committee be received, placed on 
 file and printed in the minutes of this 
 meeting, and that 3,000 copies be printed 
 and distributed under the supervision 
 of the city clerk, and that the committee 
 be discharged. 
 
 Adopted as follows: 
 
 Yeas — Aid. Blair, Schlenker, Kurtz, 
 Kearns, Miller, Markey, St. James, 
 Sherk, Manwaring, Coon, Fischer, Ab- 
 bott, Pres. Gilmore. — 13. 
 
 Nays — none. 
 
 Moved by Aid. Markey, that when 
 we adjourn we adjourn to meet next 
 Monday night, Feb. 12, 7:30 o’clock; 
 supported and adopted.