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This gentleman having made a preliminary examination of the vicinity, associated himself with others, who, on the assembly of the local Legislature of British Columbia, early in 1885, made application for a charter em* powering them to construct and operate a system of water- works having an initial point on the Biver Capilano, north of Burrard Inlet, and conveying a water supply to the in- habitants of certain specified districts on the south side of Burrard Inlet, which districts are now embraced within the boundaries of the City of Vancouver. Owing to the limited time at Mr. Keefer's disposal, prior to the assembly of the House, the six weeks' statutory notice' of application was not fully complied with. It was, how- ever, hoped that, under the circumstances in this case, the House would suspend its rules, and allow the bill to be pre- sented for discussion. This had been done in several pre- vious instances. However, the House did not meet the wishes of the promoters, and, in consequence, no charter was obtained at that session. This gave Mr. Keefer an opportunity, of which he availed himself, of making a more thorough examination of the locality of the proposed works, and of thus being in a posi- tion to present a perfected scheme to the Legislature, in its next session, in 1886. MOVINCIAL ARCHIVES OF. B. & 2 He made a personal investigation of all the lakes and streams in the vicinity, and satisfactorily assured himself that tho source oi snpply, as originally selected, viz: The lilver Gapilano could not be improved on. Having difinitely decided this important point, he placed, in December, 1885, a fully equipped party in the field, which, under his imme- diate supervision, made careful instrumental surveys, tho re- sults of which amply demonstrated his previous conclusions. 1^ Having decided on utilizing the waters oi the Gapilano, for the supply of the city which he foresaw must speedily occupy the districts embraced in his proposed charter, Mr. Keefer experienced no difficulty in securing the co-opera- tion of several gentlemen, who were quite in accord with him in his opinion as to the superiority of the Gapilano over any of the other and more distant streams in the neighbor- hood, and in the conviction that an immediate outlay for an ef- ficient system of waterworks would not only be a remunera- tive investment, but also a boon to the population which must soon arrive on the scene, and who would otherwise be dependent on contaminated wells for one of the vital neces- sities of life. Early in 1886 the Ganadian Pacific Railway Gompany determined to extend their main line from Port Moody westward to the Granville Townsite at the month of Burrard Inlet, and decided on giving to that locality the name ot "The City of Vancouver." On the re-assembly of the Legislature in February, 1886, a second application was made by Mr. Keefer and his asso- ciates for an Act of Incorporation under the name and style of The Vancouver Waterworks Company. All parliamen- tary conditions having on this occasion been duly complied with, an Act was granted, bearing date April 6th, 1886. An Act was also granted on the same day to another Water- works Gompany, known as the Goquitlam Waterworks Gom- pany, and proposing to furnish the cities ot Port Moody, New Westminster, and other localities, including the site of Van- couver Gity with a water supply from Goquitlam Lake or River. V w 8 V The Act of Incorporation of tho inhabitants of the Gran- ville Townsite and adjacent lotf, under the name and style of the City of Vancouver, was also granted in the same session of the Legislature. Both water companies wrre limited to a period of four i 1 years, in which to construct and put in operation their pro- posed systems. And their charters were similiar in most particulars except in one point of most vital interest to the people of Vancouver. In the charter of the Vancouver Waterworks Co., the House inserted a clause (No. 35.) conferring on the City of Vancouver the right to acquire the company's works by purchase, on giving 12 months' notice in writing. But no such clause exists in the charter of the Coquitlam company. In June, 1886, soon after the Vancouver Co. had obtained its charter, the first steps towards construction of their works was commenced by that Company. Instrumental survey parties were «ent to the field and data for the definite location of the line of mains obtained. Plans were at once drawn out, structures designed, and the general details of the whole system elaborated. In January, 1887, an invitation was extended to the Van- couver Waterworks Co. by the City authorities to appear before the City Council and explain the merits of their pro- posed ivater supply. This invitation was issued in conse- quence of the action of the Coquitlam Co., who, taking advantage of the wide scope of their charter, had entered the field as a rival to the Vancouver Co., and had petitioned the city authorities tor a guarantee of interest on their issue of bonds, to enable them to commence surveys and construc- tion. Up to this date, the Directors of the Vancouver Co. had never conceived the idea of seeking pecuniary aid from the city. Seeing, however, that such a project was entertained by the Coquitlam Waterworks Co., the Vancouver Water- works Company decided to make a somewhat similar appli- cation. ir)57n4 4 Accordingly, in response to the invitation, their repre> seutatives appeared before the standing committee, and ex- plained the merits and details of the proposed works, and requested the city to guarantee for ten years three per cent, interest on the amount of capital to be Invested, which amount was not to exceed $300,000. The rival company also appeared, and, among other requests, solicited six per ceiit. interest for a period of twenty years on their issue oi bonds, up to the amount of $500,000 00. Neither of these propositions being accepted at that meeting, second propositions were made on January 2lst, that ot the Vancouver company being practically the sarre, viz., a request for 3 per cent, interest guaranteed for ten years on an amount not to exceed $300,000, and to com- mence only on completion of the works, water lor fire purposes being oiieied tree, provided the Corporation fur- nished the necessary hydrants. The Goquitlam company, however, materially altered their first proposition. On this occasion they requested a 4J per cent, interest guararntee for twenty years on $350,000, the guarantee to commence previous to construction, the date of commencement being left undefined. They ofi'ered water for fire purpoaes free, provided the right of levying a rate on all insurable property was conferred on them. The Council deferred action in the matter until both companies laid before them piinted propositions, embodying their re- quests and conditions. On the appearance ot the printed proposals, that of the Vancouver Co., remained unchanged. A further drop, had, however, occurred in the requests of the Coquitlam Com- pany. They now asked for a 4 per cent, interest guaran- tee on $850,000.00, the interest for the first year, while their works were under construction, to be paid by the company. On the 29th of January, the two proposals having been under due deliberation, the Fire, Water and Light Com- mittee reported to the Council, that they unanimously re- « \ garded the financial proposal of tho Vancouver Water Works Company as being preferable to that of the Coquit- lam Water Works Company. At the ensuing meeting of the Council on January Slat, the solicitor of the Coquitlam Company requested the I I Corporation to defer action in the matter of water supply for one week, inasmuch as the recommendation of the Fire, Water and Light Committee, as given above, practically pledged the City to the adoption of tho Vancouver Co. 'a project. This request was granted without protest from the Van- couver Company. On February 9th, the same company asked for a further postponement of action for two weeks, promising to give the city as favourable terms as those given by the Vancouver Co. The request was also granted without opposition. To better guard its interests, the Vancouver Company then withdrew its proposition until such time as the Coquitlam Company should be in a position to make a final and difi- nite offer. On March 14th the fourth and final offers of both com- panies were laid before the members of the Council. The Vancouver Waterworks Co. proposed to construct and operate their works in consideration of a guarantee from the city of 3 per cent, interest on the actual cost of the works, such guarantee to extend over a period of 10 years from the date of completion of the works, and not to be on a greater sum than ?275,000. They agreed to furnish water for fire purposes free, and to place hydrants at all points along the lines of their pipes, which might bo selected by the city authorities, the rental of each hydrant being $25 per annum. Also to sell the works to the city authorities, wlien so required, in accordance with the terms of the purchase clause in their Act of Incorporation, and finally, to provide a sufficient supply of water for all purposes within eighteen months after the acceptance of their proposition by the city. v?r" 6 On the other hand the Coquitlam Co. requested a guar- antee of 3 per cent, interest per annum, on the company's bonds, to an amount not exceedinj? 9280,000, for a period of 20 years, the guarantee not to begin until the completion of their works, the amount guaranteed to be lessened by a sinking fund, which would make the total equal to a guar- antee on the same amount for 10 years. Water for fire purposes was ofiered free, and a lien on all receipts promised the city up to the amount of its liability for interest. Also, if so desired, the company undertook to makeover to the Cor- poration an interest equal to ^ per cent, on the net profit received from that portion of the works embraced in the Vancouver system. On March 22nd, at a full meeting of the Council, in accordance with the repeated request of the Vancouver Waterworks Co., a motion was made to submit both schemes to the consideration of a competent hydraulic en- gineer, for an opinion as to the merits and cost of each. On a vote being taken this motion was defeated, the division being 4 for the motion and 6 against it. A motion was then made to adopt the Coquitlam Com- pany's proposal, which was carried by the same majority. Notwithstanding this refusal on the part of the Council to assist their judgment in arriving at a conclusion as to the project most suitable for the city, by asking the aid of pro- fessional advice on both schemes, the data of the proposed Coquitlam works, as famished by their engineers (who were also directors and promoters) was forwarded, under instruc- tions of the City Council, early in April, to a San Francisco engineer for his approval, the city authorities in the mean- time preparing an agreement to be entered into by that company. On May 10th, a by-law was published, embodying an agreement between the City Council and the Coquitlura Water Works Company. Much interest was evinced in the matter by citizens of all classes, and a general opinion pre- vailed that the Vancouver Water Works Company had been unfairly dealt with. Among the many reasons for opposing the by-law which were advanced and discussed, may be briefly mentioned the following : That the Council, after voting down a motion to submit both schemes to the opinion of a hydraulic engineer, adopted the Goquitlam scheme, and submitted that scheme alone to a San Francisco engineer for his report. That the Coquitlam Go's, actions throughout had been charterized by unusual secresy, inasmuch as they had been unwilling to give details of their scheme, or to show proper plans, and had repeatedly changed their financial proposals, the length of their system, and the elevation oftheir point of supply. That they had in the first instance requested a guarantee of 6 per cent, per annum for 20 years on 9^00,000 equal to 3 per cent, on $1,000,000, and finally agreed to accept 3 per cent, on 9280,000 for 10 years, being a total drop of nearly three-quarters of a million of dollars. That the length of their system, as finally claimed, was 20 miles against the 10 miles of the Vancouver system. That the City could not acquire the works by purchase on demand. That the agreement guaranteed only 8 miles of distribu- tion pipes, when 15 miles would be required at an early date. That the water supply was of quectionable purity f That the privileges oftered by the company were of little value, because the company was under no obligation to commence construction within a given time, and the city pledged its credit for 9280,000 leavmg the company at liberty to tap their mains for the benefit of other towns, and that complications were liable to arrise between Vancouver and other cities, if supplied by the same maiu. That it was not possible to construct the works for the estimated cost. 8 So decided and general were the oxpresstons of the voters on these and many other points, that the Vancouver Com- pany deemed it rijgfht in the interest of the city to publicly guarantee the ratepayers, that should the By-Law iail to become law, they would, as they had ongiually intended, construct their works without any aid whatsoever from the city, and that operations would be begun immediately the By-Law was defeated. Fully relying on the integrity of the Vancouver Company, a large majority of the citizeiis voted against the Coquitlam By-Law on the 4£h of June, 1887. The defeat of the By-Law relegated both companies to the same position they occupied previous to their negotia- tions with the city, each being on an equal footing, and free to carry out their projects as they might deem best. The Coquitlnm Co. had not the courage to remain in the field, and face, unaided, the risks attendant on the enter, prise. From the hour the defeat of the By-Law guarantee- ing the interest on their bonds was known, that company has taken no active steps so far as regards a supply of water to the City of Vancouver, their charter for which expired on April 6th, 1890, an application for its extension having been refused by the Legislature in their session of 1889. The Vancouver Company, true to their promises, and in the firm belief that the Council and citizens would duly recognise and appreciate at its proper value the benefits the company were conferring on the embryo city, by risking such a large capittil in an undertaking, the financial success of which was very far from being assured, at once began the preliminary steps towards construction, having submitted their scheme to the judgment of Thomas C. Keefer, Esq., C. M. G., Pres. Am. Soc. C. E., and obtained from, him the reports, of which the following are copies : — >ter8 >om- licly I to (led, fhe the Vancouver, B. C, 29th October, 1887. ./. W. McFarland, Jq.f Secretary Vancouver Water Works Company, Vancouver. Sir : — According to the request coDtained u ^. >ur letter of the 11th inst., I have examined the plans of the ^ oposed works for the water supply of the City of Vancouver. I have not thought it necessary to make c > )rsonai exain- inatio. >' the ground in the Capilano volley, which has been thoroughly surveyed iustrumentally, becai.ae trom the rough and wooded character of the route, nothing but ac- tual levels, measurements and teat pits will aftord any infor- mation to a visitor. THE DAM. A favorable site has been selected, as shown by the plans, at the required elevation, and I do not think there will be any difficulty in constructing a reliable dam. A dam is required iu any case to maintain the river sur- face at a fixed minimum level, and thus secure a constant supply into the mouth of the pipe. In this case, to secure the required elevation to overcome the ridge at the Big Canyon, 2J miles below the site of the dam, it is necessary to establish the crest of the latter above the low water level of the river, makins^ 2. total height of dam from the bottom of the river of about 15 feet. It should have a width not less than 60 feet at bottom and be provided with a sluice- way having its bottom level at low water mark, and width of 15 feet to be closed by stop logs, and used to secure the final planking of the tumbling way, as well as to protect the approaches to the dam, if necessary, during f-eshets. Hori- zontal apertures between the first course of timbers above low water, should be lined with plank and used ^to keep down the water until the dam is completed. The length of tumbling way or crest of dam should be 125 feet, and the height of the abutments and approaches above this crest, six feet. PHOmmi AKCHIVES Of. B. c. I : I I I 1 ■ 1 I 10 As the dam is the key to the whole position, it should be constructed iu the most substantial manner, with liberal provisions for safety against extreme rises of water, of which, in this case, no records exist, and for this purpose I understand timber and stone in abundance can be obtained upon the spot ; ample dimensions can therefore be secured at the minimum of cost. In the construction of the pipe chamber or well in the darn, provision should be made tor taking out another and a larger pipe for the future. I have submitted a general plan for such a dam as con- templated to your engineer, and am satisfied it will meet all requirements ot the case. THE PIPE LINE. It is most important that the pipe should be placed where it will not be exposed to displacement by slides or damage through fire. In all cases it should be carried under water- courses and sufficiently covered to protect it from falling timber. As far as possible, large trees in dangerous prox- imity to the pipe should be cut down. OROSSINQ AT THE NARROWS. The contract for the flexible pipe being only for the dis- tance between the lines of low water, I think that, simul- taneously with the laying of this pipe, it should be extended on both shores above high water mark, by a twelve-inch rivetted steel pipe. Steel is more reliable, cast iron more durable only on account of its greater thickness. I would advise an extra heavy plate of steel for these pipes, which will be submerged at every tide. At the termination of this twelve-inch line above high water mark, a Y, or branch pipe, 16 inches in diameter at the stem, and 12 inches diameter for the branches will be needed, with four twelve-inch stop-cocks, two upon each side of the Narrows, one upon each twelve-inch. These stop- cocks to have the bottom of their chambers above highest tides. Thie arrangement is necessary to enable you to lay the other twelve inch flexible pipe across the Narrows with- \ i ■ 11 oat stopping the supply to the city, as we.i ns to mnintain the supply after both are laid, id case of accident to either. The double line of pipe is adopted to give double security at a point where repairs cannot readily be made, and until the line is here doubled, the risk of a protracted stoppage of the whole supply must be incurred. On this account, as well as the fact that the full capacity of the 16- inch cannot be had until the 12-inch is doubled at this crossing, I assume the second line will shortly follow. It would give more confidence in the works, if it were done at the first. The flexible pipe on the south shore, rests upon rock, if not protected by excavating a trench for it, this protection must be given by building crib-work over it, to a depth of ten feet below low water mark. COAL HARBOR CROSSINO. The main here crosses where the width at low water is only 280 feet and the depth 5 feet with a mud bottom of unknown depth. I would advise the filling up of this portion with solid mar terial from the adjacent banks, so that the pipe may be laid above low water mark, and thus be accessible while the tide is out. It would be still better if it were carried above higli water on piles, as the length of crossing at high water maik does not exceed 1,000 feet. DISTRIBUTION. I have arranged the plan of distribution, not only for the district first to be supplied but for the possible future of the city, so that the work now done will form part of a complete system. THE MAIN. As your reservoir is above the dam on the Capilano, when once the water is admitted to the city, it will be im- possible ^,o make any connections with the mains without suspending tor the timt the supply to the whole city. All I I 12 future supplies from the main must be provided when the latter is laid and every branch which leaves this main mast be provided with a stop-cock close to the main, so that in case of necessity, the branch can be unwatared without emptying the main. Georgia street affords the best route for the main, and it should be carried full size to Granville street, bringing the full body of water upon the high ground at the C. P. K. Hotel. Here it may be reduced to 12 inches, and be transferred to Hastings street, along Granville street, and thence along Hastings street to West- minster avenue. This will bring the water in sufficient qnantity within the reach of that portion of the city south of False Greek, as well as provide for extension eastward. The number and position of hydrants will rest with the city authorities, but as the company proposes to supply and maintain them, I would advise that the 4-inch pipe which supplies the hydrants should have a stop-cock, so that the hydrant, it damaged, can be replaced without unwatermg the street or district in which it is placed. A good distribution is necessarily expensive, on account of the many valves and connections it requires, but as all these are necessary sooner or later, and they can be provided more efficiently and economically when laying the pipes then at any later period, and more especially will prevent disputes and complaints on the part of the corporation and consumers, it is wise economy to incur the outlay at the beginning. The hydrant valves and special castingn should be manu- factured at Victoria or Vancouver, the patterns to be the property of the company. This will forego the necessity of holding a full stock of imported ones. If the first outfit be imported they should be manufactured by first class makers in the best manner, es should be the cast iron pipes, and all iron work thoroughly coated by Ur. Angus Smith's patent process. All should be manufactured under inspection, by a faithful and competent maa, who can be procured on the l! L_. 13 spot, on the recommendation of some eminent English en- gineer, or some commercial house through which similiar contracts have been made. RESERVOIR. It is desirable, on many grounds, that there should be in the future, a reservoir, at sufticicnt elevution, and as near the centre of distribution as practicable. I understand that the bluff on the south side of the Nar- rows on the Government Reserve has an elevation of 200 fl. which would command the higher portions of the city for ^domestic supply. I also understand that there is high ground south of False Creek sufficiently high and of a char- acter suitable to the economical construction of a reservoir. This, or any position east of Westminster Avenue, (if there is high ground near enough in that direction,) would be the best, because it would place the distribution between the reservoir and the source of supply and thus double the effi- ciency of the pipes. With the reservoir above the dam on the Capilauo, which is ten miles distant from Columbia Avenue, the lowest street, and a central point, in the distribution, the time will come when increasing consumption will reduce the pressure upon the higher levels, as has been the case in Victoria, especial- ly during the daylight hours of greatest consumption, and this while the main is ample for the whole supply of the 24 tours. If there were a reservoir at sufficient elevation it would prevent this loss of head during the day, and would store the surplus delivery of the main during the night, and thus postpone the bringing in of a larger supply from the Capilano. It would also secure a supply for the city in case of accidents or needed repairs to the country main. In con- nection with this system, reflex valves would be needed in the 12-inch pipes, on the south side of the Narrows. All th Is desirable, now, in this connection, is that the site should be secured before it is otherwise occupied. 14 PIPH YARD. One of your first reqairemeDts will be a eentrally situated pipe yard, for which at least a couple of lots should bo secur- ed. Lead pipe, brass work and all small or port ible castings will be stored in a building under lock and ke^, and heavy castings, pipes, etc., under sheds. The building should be large enough for a work shop, store room, office and prov- ing press. I have the honor to be sir. Your obedient servant Thos. C. Kebebr. Ottawa, 19th December, 1887 J. W. McFarlandy £sq., Secretary Vancouver Water Works. Sir: — I have yours of 8th December, with reference to my report upon the engineering features of the Gapilano scheme, which you have adopted, and requesting further that I would express my opinion upon its merits as a whole. The plan is a gravitation one, the simplest of all, and one which can be maintained with the least annual outlay for maintenance. The quality of water is the best which can be found, drawn from a mountain canyon, and not ex- posed to any possible deterioration or diminution by the future settlement of the country. The quantity is abun- dant for the supply of the largest city upon this continent. The only objection which has been, or could be raised to the Capilano scheme, is the supposed ribk connected with the submerged pipe across the Narrows. This is no experiment, similar pipes having been employed in many places for many years, and under heavy pressures. You have put the executiou of this work in the haudt- uf an ex- perienced contractor in this field, who is also an able hy- drauUc engineer and who is only repeating what he has done successfully elsewhere. vMiMM 15 situated I be sue ur- custings id heavy (hould be id prov- Kekekr. ber, 1887 ?r Works. reference Capilano g further I a whole. all, and al outlay sst which I iiot ex- 1 by the is abun- ontinent. >e raised onnected his is no in many !S. You •f an ex- able hy- bas done It is impossible for Vancouver, or any other city, to have a superior system of waterworks to tlint which is within your reach. Your great pressure secures (he best possible system for fire protection, that of direct pressure from hydrants without the intervention of steam fire engines, and without their cost and expense of maintenance. This is the first desideratum in waterworks for any town which is not fire-proof, and as it will effect a large annual saving in fire insurance, the city will no doubt be willing to pay for it in proportion to its value. I have no doubt that your work, when carried out as pro- posed, will be a complete success, and prove a valuable property to the shareholders, and an inestimable boon to the citizens. I remain. Very truly yours, (Signed,) Tags. G. Keefbr. The company has also been further confirmed in the adoption of its scheme by a report obtained by them from Mr. W. R. Eckhart, Member American Society of Civil Engineers, and Vice President of the Society of .Mechanical iSiigineers* This report is of great length and considerable detail, the substance of which is summarized in the following para- graph, with which the report concludes : — « 4c * ♦ * * " I have examined into many schemes for proposed water " works, both in California and elsewhere, but none seem to " combine all the advantages that the Capilano Biver af- " fords your city." On June 8th, four days afier the defeat of the by-law, two fully equipped survey parties left Vancouver for the purpose of finally staking out the lino of the mains, and obtaining absolute data on which contracts might be let. Immediately on their return, on the 8rd of August, tenders for clearing. 14 close cutting and grubbing witbin the company's right of way, were publicly invited. On the Ist November, 1887, a contract for furnishing and laying the first of the proposed double line of flexible mains across the first Narrows was let to the inventor and patentee of the flexible joint, Mr. John F. Ward, late chief engineer of the Jersy City Waterworks, Mr. Ward had made a specialty of laying submerged pipes for many years, and bis reputation for success in works of this character was well known throughout Canada and the United States. The pipe was delivered at Vancouver, and the operation of laying it was commenced by Mr. Ward, on the 21st April, 1888, but owing to the exigence of his aflUirs, as he stated, Mr. Ward returned to the East, and after the lapse of some weeks he notified the company that he was not in a position to return to Vancouver, and must there- fore officially abandon the work. On the 23rd of December, as soon as the work of clearing had been sufliciently advanced to admit of furthfci opera- tions, tenders were invited for the construction of the dam across the River Capilano at the point of supply. -This con- tract was awarded on the 24th January, 1888, and was com- pleted on the 18th of April following. In the meantime the company had been in communica- tion with steel pipe manufacturers in England, with a view to the purchase of steel mains. "^ It was found however, that much more favorable terms could be obtained from a local firm. This contract was therefore let to the Albion Iron Works, at Victoria. Contracts for cast iron'distribution pipes, lead, and other nepcbsary material, were also entered into, so that at the beginning of the year 1888, seven months after the company's promise to the electors of Vancouver, the whole of the works were well under way. •"M. 17 Pendinp; the manufacture of the steel mains and the arrival of the cast iron pipes from Scotland, contracts were, in consequence of the failure of Mr. Ward to carry out his contract for this work, entered into with a local firm for completing the laying of the submerged main across the first narrows, and for the necessary works of excavation, re-filling, tunnelling and laying the mains north of Burrard Inlet. The first submerged main was successfully laid on August 28th, 1888, and all the other works having been completed by the 25th day of March, 1889, water from the Capilano River was on that date for the first time carried under Burrard Irlet to the south shore and distributed through the City of Vancouver, the company thereby re- deeming in every particular the promises made to the electors previous to the defeat of the Coquitlam Water- works Co.'s By-Law. The whole period occupied in constructing the above works, amounting in value to about $300,000 00, was only 22 months ; and subsequently, a second main was laid under Burrard Inlet, in accordance with the Company's original plans. Bince the Ist May, 1889, on which date the water supply to the City of Vancouver was inaugurated, the Vancouver Waterworks system has been in constant and success- ful operation. Beyond such accidents as are common to all works of water supply, and without which no system has yet been operated, there has been no interruption to the service. Two of these accidents occurred in that portion of the line most difficult of access, namely the submerged mains, but even these were repaired with but little delay. In connection with this matter, it may be mentioned that both these accidents were preventable. The first took place in October, 1889, and was without doubt due to an excessive water ram, acting on a casting which, though it had proved itself sufliciently strong to resist the test pressures of 300 pounds per square inch imposed on it previous to and after immersion, was not strong ei.ough to withstand the sudden 18 Bhock of a water ram. How this ram originated, it is im« possible to definitely state; but it is a significant fact that just at that time the city authorities were engaged in mak- ing test trials of the power of the difl:erent hydrants. The opening and closing ol valves during these operations was of constant occurrence, and ignorant or recklees handling would have certainly created hydraulic shocks that would permeate the whole system till a vent was found at some weak casting. The second accident occurred in November, 1890. The steamship Abyssinia in passing through the Narrows in a fog, touched both pipes, crushing in the wrougnt iron main, and breaking ofl' entirely 4 feet of the cast iron main. In a certain sense the company admit blame in this latter accident, it having been a part of their original programme to amply protect the shore ends of both mains, as a pro- vision against such an occurrence. The heavy expenditures already incurred together with the considerations herein- after mentioned, had, howerer, delayed the carrying out of this detail, the chances of such an accident being consid- ered remote. It has been claimed by the Council of Vancouver, that the company do not provide sufficient pressure for the tire service and that their works are not capable of doing BO. This jontention is based on the fact that, up to the pre- sent the company have not considered it judicious to oper- ate the system with the unusually heavy pressure which is known to be at their command. They have deemed it un- advisable to constantly subject their works to the wear and tear of an altogether unnecessary pressure, when all the re- quirements of the city can be. and are, amply supplied by a pressure more in accord with that furnished to other and more populous cities. Under this conviction, a presnure reducing tank was constructed a1 an elevation of 255 feet above tide level, and within 2J miles of the city boundary. This tank is provided with a connection casting and slide valve by means of which the full pressure of the wliolo 19 it is im* fact that iD mak- nts. The atioQS was handling hat would at some 890. The Narrows in ougnt iron iron main, this latter programme I, as a pro- Kpenditures ons herein- lying out of >ing consid- 30uver, that ire for the )le of doing ) to the pre- ous to oper- re which is )med it un- e wear and Q all the re- ipplied by a other and a presnure of 255 teet y boundary. g and slide the whole system can be immediately turned on when required. A telephone connects the city with this tank, and a watchman is on guard there day and night. A pressure of 255 feet is considerably above the average of Canadian and American cities. With this elevation an ample supply of water can at all times be furnished, and a constant pressure of 131 feet, or 57 lbs. per square inch maintained at a height of 108 feet above the sea level. This is the elevation of the hydrant nozzle at the C. P. B. Hotel, ana is one of the highest points within the city. The value of this pressure may be readily understood when it is stAted that by means of it 112 gallons per minute can '^e discharged through the unusual and rarely required length of 500 feet of rubber hose, with a 1-inch nozzle, throwing the stretim to a vertical height of 67 feet, and a horizontal dis- tance of 95 feet. In addition to this most effective fire service, it must not be forgotten that by a simple telephonic message to the pressure tank, the full pressure due to the elevation of the point of supply at the dam, 417 feet or 181 pounds per square inch can be turned on forthwith. The Council also contend that although this latter pre^ sure can be obtained, the company's mains are incapable of resisting it. The unreasonableness of this contention is manifest, when it is stated that the weakest portion of the mains are calculated to resist four times this pressure. The Council has been informed of this fact, and the company have signified their willingness to turn on and maintain the unusual pressure of their system if the citizens, whose con- nections might be affected by the excessive pressure, offer no objections. The company has been censured for not having extended the sub-mains when required, for the sparsely occupied out- lying portions o''the city, and the immediate construction of a reservoir within the city limits has been urgently pressed upon them. In regard to the former, the company con- siders that the 17 miles of feed iu£ pipes laid throughout the i k. 20 city meet a)! present pressing reqntrements, and an exten- sion to the less populated districts is intended to be carried out in due course, ii the works continue in the company's hands. The construction of a reservoir and other works to give increased efficiency to the system, has been under consider- ation for some time past, and would, as well as the other works before alluded to, viz : protection of the submerged mains .and extension of the water service throughout the city, have been undertaken soon after the opening of the works, but for the company's financial operations being hampered by the purchase clause in their act of incorpora- tion, which gives the city the right to demand the sale of the works when required, and further, in consideration of the fact that negotiations for the purchase of the works have been constantly pending daring almost the whole ot the period since the successful completion of the works. On the 14th May, 1890, the Council of Vancouver in- structed Mr. Herman Schussler, of San Francisco, the same gentleman who, at the request of the Vancouver Council bad reported favorably on the Coquitlam project, to examine and report on the Vancouver Water Company's works. This gentleman accordingly furnished them with a report and an approximate estimate of the value of the works, based on a few days' examination, which estimate, however, entirely omits all the usual allowances for organization, sur- veys, engineering, and clerical work, and other necessary incidental costs, nor does it include any allowance for the imjiortant item of the second submerged main under Bur- rard Inlet and Coal Harbor, the piper, for whicli had been delivered at the time of Mr. Schussler's estimate. Those under the Inlet have since been laid, which, together with the 16-inch pipes ready for Coa'i Harbor, represent at the present date an expenditure of $23,712. 71 by the company. The company received no official copy of Mr. Schussler'f estimate and the results of his investigations, but learned from the k>cal newsfjapers of the 19th Jone, 1890, that he SI id an «iten- o be carried e company's orks to give der conaider- M the other e submerged roughout the ening of the ations being of incorpor»- d the sale of eratioD of the works have whole ot the a works. V^ancouver in- isco, the same raver Council ct, to examine Dany's works, with a report 3f the works, late, however, anization, sur- ber necessary svance for the ain under Bur- ich had been imate. Those > together with ipresent at the the company. VIr. Schussler'f 9, but learned 1890, that he I had estimated the cost ot the actual works up to that iicitor on Vancouver an under- ror of the iTancouver srs of the Let, 1886, e out the 1 35 ot the he Corpo- lut section /^ancoaver loeorporatioQ Act and amendments thereto, (hereantc aa- uexed and marked B.) And that if the negotiations for the purchase of the Van- couver Waterworks are not consummated between the City ot Vancouver and the Vancouver Waterworks Co., prior to the 16th day of December, 1890, then the company may be at liberty to apply to the Legislature to amend sec- tion 35 of the Vancouver Waterworks Act, 1886, by in- serting in it a clause to limit the time under which the City of Vancouver can purchase under the section, and upon such application to amend section '65 of the Vancouver Water- works Act, 1886, the Corporation will not oppose a reas- onable time limit Mr, Hammersley on behalf of the City of Vancouver, as- sents to the above arrangement. (Signed) Geo. B. Martin, Chairman. The Bill to amend the Vancouver Waterworks Act was then withdrawn, and the committee then proceeded to con- sider an Act fo amend the Vancouver Incorporation Act' 1886, and am'^odments thereto, and agreed to report the Bill with amendments. The Bill so amended was accordingly passed (City ot Vancouver Incorporation Act, 1886, Amendment Act, 1890. ) The first definite proposal by the Corporation for the pur- chase of the works was contained in a letter from the Clerk of the Council, ot which the following is a copy : Vancouver, B. C, July 8th, 1890. To the President and Board of Directors of Vancouver Water- works Co. {Limited), Victoria, B* C. Sirs : — I havQ the honor to inform you that the Council of the City of Vancouver has by by-law numbered 101, and dated June ?Cth, 1890 (a copy of which by-law I en- close) fixed a price to offer for the works and plant of your company, under the provisions coutamed in that behalf in I ii 26 Bub-section (b), sectiou 6, clause 142, oi the Vancouver City Incorporation Ait, 49 Victoria, cap. 32, and on behalf of the City of Vancouver 1 have to give you notice that the price fixed by the said by-law for the said works is $211,000. I have the honor to be, gentlemen, Your obedient servant, (Signed) Tkos. P. McQuiqan, [Seal]. City Clerk. By-Law No. 101. A By-Law to fix a price to ofier to the Vancouver Water- works Company for their works. Wherecis it is necessary nnd expedient that the cor- jjioration of the City of Vancouver should own a system of Waterworks ^r supplying the city and •' i inhabitants with water. And whereas the Vancouver Waterworks Company is a company incorporated for the city and has a system of water- works for supplying water to the said city, established. And whereas it is necessary by By-Law to fix a price to offer to said company for such works. Therefore be it enacted by the Mayor and Council as- sembled: That the sum of $211,000 be fixed as a price to offer to the Vancouver Waterworks Company, for the works of said Cf mpany, and that said price be offered therefor. That a notice of such price be communicated to said com- pany by the City Clerk, with an offer of such price to said Company for the said works. Done and passed in open Council, this 30th day of June, A. D. 1890. fL. 8.] ( Signed ) D. Opphnhbimbr, Mayor. (Signed) Thos.F. McGuioan, City Clerk. Ili 27 Then, upon the advice of their legal advisers, the Com- pany applied to the Supreme Court for an injunction to restrain the Municipal Council from proceeding with this By-Law. The Company applied to the C^urt and obtained from the Court an expression of the opinion that it was not competent for the City to acquire the Vancouver Water- works Company's property otherwise than under clause 5 of the Company's Act of Incorporation, except with the consent of the Company. On 22nd October, 1890, Sir Joseph Trutch, one of the Directors of the Vancouver Waterworks Co., reported that he had had an interview with Mr. A. St. G. Hammersley, City Solicitor of Vancouver, with reference to the negotia- tions for the purchase ol the Company's works by the City, and the following letter was written : — Deab Sir : — With reference to my interview with you to-day, when you apprised me of the views of the Municipal Council of Vancouver respecting the acquisition by them of the works and property of the Vancouver Waterworks Co., at as early a date as practicable, and made certain sug- gestions in relation thereto, I beg to inform you that I have since conferred with the Board of Directors of our Company, and am authorized to state that : Ist. Upon receipt of notification from the Corporation of Vancouver of their intention to acquire the Company's works and property under the provisions of the Vancouver Waterworks Act, the Company will readily proceed at once to arbitration under thjxt Act, to determine as soon as may be found practicable, the value of the Company's works and property. 2nd. But they consider it inexpedient to enter into any arbitration as to the value of the company's works and pro- perty, otherwise than under the provisions of that Act, or to name, before such value has been duly determined, any fixed sura in lieu of the bonus and interest prescribed under section 85 of the Act, as to be paid to the Company in addi tiou to such value. 9» I beg also to take this occasioo to represent, on behiilf of the Boexd of Directors of our Company, that further expen- ditures on these works are requisite in the interest of th« owners of the property, and for the benefit of the community of Vancouver in general, in order to secure the complete ei&ciency of the works, and to extend the water service over the whole area of the city, but the company are withheld from undertaking such additional outlay by the iatimation given them by the Municipal Council of Vancoaver of their desire and intention to acquire the works forthwith. Yours &ithfully, (Signed) Joseph W. Trutoh. A. St. George Hahherslbt, Vancouver City Solicitor. iU ill On 27th October, 1890, the Water Works Committee of the aty Council, reported that they had received a pno- position from the " Phoenix Water Works Cknupany," tor supplying water to the city, and asking for a guarantee oi interest on their bonds. Gentlemen, On behalf of the Phoenix Waterworks Com- pany, it being their intention, subject to approval by your Council, to construct waterworks for the supply of the City with water, we beg to request that your Council will grant permission to the company to lay pipes, etc., for the convey- ance of water under the streets of the city, and to ooostruot within the city limits the necessary works for a wster sup- ply tor the residents of the city. In order that the irorks should be thoroughly good and worthy of the city ia every respect, and that the city should derive full benefit there* from, in consideration of the company supplying the city free of charge with all water necessary for public purposes, and for any industries or manufactories that tcight, from time to time, be bouused by your Council ; also, in consid- emtlon of the company providing a pi'oper and effective water pressure so that the system will be thoroughly effi- |--'^ cient in case of fire ; we have to request that the city shonld gaarantee the debentures of the company to the amount of 9850,000 and interest thereon for a period of years, or make an advance of that amount to the company tor a period of years. If your Council agrees to guarantee the debentures of the company or to make the advance, the whole of the property of tbe company could be hypothecated to secure the due payment of the moneys. The water rates to be charged, from time to time, could be regulated by your Council and the company, by mutual agreement. We beg ta request your favorable consideration of the above, as the company wish to commence the work as soon as possible, and are in a position to thoroughly satisfy your Council as to the stability and efficiency of their proposed work. We are, (Signed) yours truly, 1)rakb, Jaokson & Co. Vanoouvbr, B. C. Oct. 20, 1890. The committee recommendedi the acceptance of this offer with following amtoudments. ** Amount to be guaranteed, reduced from $350,000.00 to $300,000.01), with interest at the rate of 4| per cent^ City to collect all water rates, and after deducting all charges for interest on debentures, sinking fund and expenses, hand the surplus over to the Company. " City to have the right to purchase the works at any time at actual cost and 5 per cent, added to that amount. ** All work to be done to the satisfaction of the City Engineer and the Water Commissioners." " At the same meeting of Council, a notice of motion was gtveo, ta bring in a by-law to give a guarantee on above terms to the Phcenix Waterworks Company. PHOVIJ^CIAL .ARCHIVES OF. B. C, 80 In consequence of the^e proceedings in the City Oouncil, and as the City Solicitor had not, so far as the published reports of the Council meeting shewed, presented the letter written to him by Sir Joseph Trutch ou behalf of the "Water- works Company, dated Oct. 22nd, 1890, for their considera" tion, it was considered advisable by th^ Directors to write the following letter : — Victoria, B. C, Slst October, 189a To His Worship the Mayor and the Aldermen of the City of Vancouvery B. C. Gentlbmen : On the 22nd inst, Mr. Hammersley, City £ ii- citor of Vancouver, acting, as we understand, under your in- structions, had an interview with Sir Joseph Trutch, one of our directors, respecting the acquisition of our company's works and property, by the Corporation of Vancouver, and at Mr. Haramersley's request, a letter was addressed to him by Sir Joseph Trutch, conveying the conclusion of our company as to certain suggestions made by Mr. Ilp.mmersley. As we do not learn that that letter has been laid before you, it occurs to us that it may not have been considered as sufficiently authorised by our company to warrant its being so dealt with, and therelore,as we desire to render it certain that our views expressed in that letter should be at once made known to you, we beg to furnish you vdth the follow- mg copy ot it viz : — (For letter, see page 27.) IM This letter we now beg to confirm, and we degire to add that we have been ready since our undertaking was success- fully accomplished and the water services in Vancouver in- itiated, and have ou every occasion expressed — as we do now — our willingness to facilitate by any means in our jx^wer, the acquisition ot the works by the Corporation of Vancouver, under the provisions ot our Act of Incorporation. 81 > We have to state further, that although we do not perceive any suitable means of annving at a satisfactory and binding valuation of these works otherwise thati l>y arbitration under the provisions of our Incorporated Act, we will, in the desire to meet the viewi of the Corporation, give the fullest consideration to any proposal the Corporation may find themselves in a position to make to us, a binding offer for the purchase of our works and property on fair and reasonable terms, based on due consideration of our risks in the enterprise. We have accordingly delegated and fully empowered two of our Directors — Sir Joseph Trutch and Mr. 1). M. Eberts — to act definitely in our behalf in any and all dealings with the Corporation in this matter. As we are led by Mr. Hammersly to suppose that misap- prehension exists as to the proper interpretation of the pro- visions of our Act in respect of interest on our outlay, we think it advisable to state that we understand that the rate of interest guaranteed under those provisions, is to be 10 per cent, less the amount of net revenue collected, that is to say, should the net revenue, after all proper expenditures on account of maintenance and management have been de- frayed, amount to (say) 6 per cent, on the company's stock capital, the company would be entitled only under the pro- visions to have the rate of interest payable to them made up to 10 per cent., that is to say, to the extent of the difference in the case supposed, between 6 per ceni. and 10 per cent. We desire to add further with reference to the concluding paragraph of Sir Joseph Trutch's letter to Mr. Hammersley, that unless your Corporation communicate to us authorita- tively your desire to the contrary, it is the intentio!i of our company to proceed at once with the additional requisite works therein mentioned, by the construction of a reservoir, the extension of the mains, and the carrying out of other works necessary to secure the complete efficiency of the water ser- vice, the expenditures on which have so far been deferred solely in consideration of the intimations we have received 82 of your desire to acqaire our works forthwith, and to have these expenditures made under your direction. I am gentlemen, your obedient servant, (Signed) John Irving, President. On behalf ot the Board of Directors of the Vancouver Water works Co. J. W. MoFaeland, Secretary. On the 4th oi November, 1890, the following letter was received by the President of the Waterworks Co., trom the City Clerk, and the following reply returned thereto : — Vancouver, B. C, November 4th, 1890. John Irving, Esq., President of Vancouver Water Works Co., Victoria, B. C. Sir : I have the honor to enclose a copy of a resolu- tion passed by the City Council of Vancouver, on Friday, the aist OctobCi-, 1890. Hesolved : That the amount to be paid, as the value to the city of the Waterworks Company's plant and system shall be fixed by arbitration. The arbitration to be held and conducted independently of the provisions of either the Act of Incorporation of the city or the company. That the city appoint one arbitrator and the company an- other, the two arbitrators so appointed, to appoint an um- pire. The arbitration to be closed within two months Irom the date of itgreement to arbitrate. In the event of the company agreeing to the above, the city will pay 10 per cent, on the amount awarded in addition by way ol bonus to the coonpany. n 88 A reply is requested from your company within a week from date, as the city has certain offers made for the con- struction of waterworks by another company. I have the honor to be, sir, Your obedient servant, (Signed) Tiros. F. MoGuigan, City Clerk. Victoria, B. C, November 4th, 1890. Thoi. F. McGuigan Esq., City Clerk, City of Vancouver, B. C. Dear Sir: — 1 am in receipt of your favor of the 4th inst., and note its contents. Sir Joseph W. Trutch and Mr. Eberts have been appointed by the Directors of this company to act for, and on behalf of the company, upon any matters relating to the business referred to in your communication of the 4th instant. I am Informed that these gentlemen proceed by to-mor- row's steamer to Vancouver for this purpose. I have delivered your communication to Sir Joseph Trutch, who will reply to you definitely in reference to same. Yours truly, ( Signed ) Jno. Irving, President. On November 5th and Gth, 1890, Sir Joseph Trutch and Mr. Eberts met the Water Committee of the Vancouver City Council in Vancouver and discussed the matter fully. As a result of this discussion, Sir Joseph Trutch, on behalf of the Vancouver Water Works Company, offered, without prejudice, to sell the works absolutely and at once for $375,000. At a Council meeting held on November 10th, 1890, the Waterworks Committee reported havingmet Sir Joseph Trutch and Mr. Eberts, on r)th and 6th November, after tii mt 84 considerable discussion and various offers being made by the Committee for the purchase of the works, all of which were refused, nothing definite was arrived at. The Water- works Company offered to sell their works for ^375,000.00. On the 7th November, the Waterworks Committee met and resolved that the oft'er of the works for 3375,000.00 could not be entertained, but that a letter containing another and more final offer by the city should be ibi warded to the company. The City Council resolved that the following letter should be forwarded to the Waterworks company. November 10th, 1890. To the President Vancouvei' Water Works Co., Sir :— The City Council of the City of Vancouver beg to remind you that they have, on two separate occa- sions, passed resolutions which have been duly forwarded to you, with a view to coming to some amicable arrange, ment for the purchase of your waterworks system. 1. After having received an exhaustive report on your system of waterworks, and their present value and efficiency, from an engineer holding a high position in his profession, and on whose judgment in matters of this kind it is safe to rely, the city made you an ofler of ^2 11, 000 as the price they were willing to pay, that amount being calculated on the above report. To this offer the city i ceived no reply from your company, but in lieu of any reply you com- menced an action against the city and applied for an injunc- tion in the Supreme Court of British Columbia to prevent the city taking any steps to procure a waterworks system. The application was dismissed by the Court. The city, still anxious that a fair and equitable arrange- ment might be arrived at, made another otter, tts follows : The value of the said works to the city should be settled by arbitration and 10 per cent, on the amount so settled be added by way of bonus, the total so formed being payable 85 by the city to your company as the price. This ofter your company has seen fit to refuse. Your company then made an offer at the meeting lately held here between Sir Joseph Trutcli and Mr. Ebertsonhe- hiufoi the coDipany and the Waterworks Committee of the City of Vancouver, to sell the works for $375,000. This amount heini^ so largely in excess of the valuation placed on the works by the Engineer appointed to value them, the city could not entertain. All through the i.egotiations between your company and the city, there has apparently been i» determination by your company that any proceedings to arrive at the valuation paid tor your works should be arrived at under the provis- ions of, and as laid down by the 35th clause of your Act of Incorporation. In fact, the -nly letter received from your company in reply to the several letters sent by the city, and the verbal offers that have been made, expresses clearly that you insist on the city coming under the provisions of your Act, in order to arrive at the price of the works. The Coun- cil being desirous of meeting your conn)auy in every way, and going as far in their offer consistent with the rights and interests of the city as they can, beg to make one more pro- position to your company, which must be considered final. As your company is t^o desirous of having the pi'ice to be paid tor the works fixed and arrived at under the provisions of your Act of Incorporation, and as it has been admitted by the representatives of your company that there is an am- biguity existing as to the meaning of the word " value " used in the 35th clause of the Act, in the following expres- sion : " On payment thereof, to the said company of the value of the said jworks and property to be ascertained a;^ hereinafter provided," the Council will agree that an arbi- tration should be held under the provisions of your Act, provided the word " value " shall be clearly defined before the arbitration is entered into, and a definite line laid down and agreed to for the guidance of the arbitrators as to how 86 they are to arrive at the " value" before they commence the arbitration, that is to say : The Council consent to give the notice required by the 86th clause of the company's act, of their intention to ac- quire the works and property, provided your company agree that the arbitrators shall bo bound by the following, in ar- riving at the value: They shall first of all decide the amount it took to construct the works, as they are at pres- ent, i. e. "the actual cost of construction," then they shall calculate the cost of placing the works in a thoroughly ef- ficient and proper order, capable of bearing all necessary and proper pressure of water for use in the event of any fire within the city, and the cost of putting the whole system in thorough repair that may have been rendered necessary Irom the happening of accidents or otherwise since the completion by the company. Having tirrauged this amount, that shall be deducted from the actual cost first arrived at, the difierence shall be the amount payable for the work and all other property real aud personal, to which will bo added the additional amounts of 20 per cent, and sufficiem, +o raike up a 10 per cent, div- idend as mentioned in the »md 'i-Uh clause. It may be pointed out that h.^ your company appears to be satisfied that the works are in good, proper, sufficient or- der and capable of beariug all necessary pressure, there can be no reasonable objection to your agreeing to this proposal. The Council desire an answer to this further offer before Saturday, 15th instant, as it must be distinctly understood that these repeated ofters have been made by the Council purely with a view of coming to an amicable arrangement and that this is positively the best. Yours truly (Signed) Thos. F. McGuigan, City Clerk. To which was sent the following reply:— 87 Victoria, B. C, November 14th, 1890. Thos. F. McQuigan, Esq., Cittj Clerk., City of Vancouver, B. C. Dmar Sir : I am in receipt of your favor of November 11th inst, to hand this morning. As the letter only reached mo this morninef, I fail to sec how it would be practicable to give matters contained therein a full consideration, and give you a definite roply before the 15th inst., as to-day is the 14th. I trust that the Council will perceive that it is imprac- ticable for us to give a definite reply oft-hand. I would state that the Board of Directors will take your otter into full consideration this afternoon, with the aim of giving you a definite reply at the earliest possible moment. Yours truly, J NO. Irving, President. Victoria, B. C, Nov. 15, 1890. T. F. McGuigan, Esq., City Clerk, Vancouver, B. C: Dear Sir, I have before me your communication dated the 11th November, which was received by me yesterday morning, and has been to-day laid before all the share- holders of the Vancouver Waterworks Co., who are now in Victoria. I am to convey the company's appreciation of the step your proposal now makes towards an adjustment of the points in issue between the Corporation and the Company and to assure you of our desire to approach the nei^otiation in a fair and business-like spirit. We think it advisable in the first place in order to re- remove a"seeming impression in the mind of the Corpora- 38 tion, ol discourtesy on our part, to point out to you, regard ing your allusion to a previous offer of ?3 11,000.00, that such offer was uot made as a simple proposition, but was the pre- liminary step under Sec. 142. a. s. b. of the Vancouver In- corporation Act, towards carrying into effect the apparent design of the Corporation to either themselves construct waterworks or else to appropriate ours, under the pio visions of the Incorporation Act. It was contended by us that such design was contrary to law, and that the by-law passed to give effect to it was nugatory, but in order to set at rest any doubt upon the subject, we applied to the court tor an injunction to pre\ent the Coiporation proceeding under their by-law. Upon the application, first the Chief Justice and then the Court of Appeal sustained our view, holding that the by-law was invalid, and that the Corpora- tion could neither construct waterworks themselves, nor expropriate ours, except under sec. 35 of the Vancouver Waterworkd Act, and that as consequently no danger threatened us from the Councils' nugatory proceedings, there was no occassion for an injunction, the application for which they accordingly dismissed. In respect to your allusion to the report "from an En- gineer holding a high position in his profession, etc., " the only report of which we are aware is that made by Mr. Schussler, and which was published in the newspapers, and this we can only regard as under the circumstances "ex parte," but even Mr. Schusclor's report approved generally of our works, and valued them at a much higher figure than the $211,000 above referred to. I am not aware that our Company has admitted any am- biguity in the word " value " employed in section 35 of our Act of Incorporation — but as the Corporation is willing to arbitrate upon the basis of that section, we shall willing- ly meet the Corporation in the proposal to place the moan- ing ol the expression " value " beyond question, and in the hope of settling this matter our Company is willing to con- cede much. 39 We are of course aware of an opinion which prevails, tha* owing to the leakrge in the main when the water was first turned on, the pipes are defective and incapable of sustain- ing the necessary pressure. Without concurring in this view, but in order to arrive at a solution of the matter, we are willing ',to allow this question to be taken into consideration by the arbitrators, and to submit to a deduction, should it be determined that any defects resulting from faulty workmanship in the con- struction of the main exist, and this we think will practi- cally meet your views. , As an alternative therefore to your pro^^f^ed basis of set- tlement, we beg to submit the following : The arbitrators shall first ascertain our actual outlay on our enterprise. To this sum they shall add 20 percent., and fiuflS.cient to make up a dividend of 10 per cent, per annum, as provided by section 35 of our Act. They shall then estimate the co?u of remedying any de- fects arising from faulty workmanship, if any shall be found to exist in the construction of the main, and shall deduct such cost from the total arrived at, and the remainder shall be the amount payable to our company for the purchase of our works. The twelve months' notice required by the Act, shall be Waived. I have the houor to remain, Sir, Your obedient servant, (Signed) John Irving, President. At the meeting of the City Council held on the 24th November, 1890, it was resolved that "The Vancouver Waterworks Company having by tlioif letter of November 15th, declined to accept the proposal made by the city tor the purchase of their system of waterworks, us contained in 40 If tk letter dated 11th November, which distinctly stated that the propo8f*l therein made was positively the last," be it resolved " that the Council cannot entertain the proposal now made by the Vancouver Waterworks Company, to go to arbitration on any other basis than that offered by the city, and instruct the City Clerk to notify the said company that unless the City's proposal as contained in their letter of the 11th November, be acce' ted on or before the Ist t December next, the propositions for settlement as therein contained will be considered withdrawn. " A letter from the City Clerk embodying these view of the Council was accordingly addressed to the President ot the Waterworks Company and was replied to as follows: — Victoria, B. C, Nov. 29th, 1890. 7/ios. F. McGidgan^ Oily Clerk, Vancouver B. C. Dear Sir: — Your letter to me of the 25th inst., has been to-day laid before the Board of Directors of our Com- pany, who have rame to the following conclusions thereon. We desire to state that in view of the special circum- stances under which the enterprise of furnishing Vancou- ver with water was undertaken by our cormp' "y ; the paucity of the population of Vancouver when the underta- king was initiated, and the difficulties we have encountered in carrying it out; that our enterprise has resulted in an u^^uudant supply of pure water on reasonable terms to the inhabitants of the city, and, as we believe and maintain, at a proper and efficient pressure for Hre purposes, w a? e entitled to be dealt with by the municipality — u^.7 that they are anxious to acquire our works after they have commenced yielding us a revenue of some $40,000 per an num — in the full and unrestricted sense of the terms jm'o- vided for such acquisition by our Act of IpoorMOii:i.Hn'. L^ut the terms of arbitration proposed to us hj^ ;\ Cor- poration are in our judgment so vague in some respects, that they would place in the hands of the arbitrators an indefinite discretion which might lead to conclusion by 41 them, ( auch for instance as provision for the constroction of a reservoir at our cost) largely and most unjustly in- jurious to our interests, and these conditions the Corporation urge us to accept, with the alternative as we gather from the reports of recent proceedings in the Municipal Council of the initiation under their subvention of a competitive scheme of water service for Vancouver. We are decidedly of opinion that a competing water service would be in contravention o* the spirit and the letter of our rights under existing Acts, and of the agreements made between us and the Municipalitj' in this respect, but we are most averse to any contestation for the maintenance of those rights, appre- ciating as we do the disadvantages and prejudices to our business interests which such contestation might entail, and therefore while protesting against the injustice of our being required to give over to the Municipality, a property the actual present and prospective value of which is so consider- able, on terms specially calculated to entail on our company the risk of deduction from capital, which we have in good faith and witi» the best means at our disposal, expended in securing a great benefit to the City of Vancouver, in full assurance that in any case we should at least be recoup -d such bona fide expenditure with the interest and bonus pro- vided for in our Act of Incorporation, we will consent to enter upon arbitration on the bas's in all respects of the last proposition made to us Ly the Corporation by your letter of the 11th inst., provided tnu cerms therein stated be de- fined in the following particulars: — 1st. *' Actual Cost of Construction " shall include all out- lay by the compauy which shall be established to the satis- faction of the Arbitrators as legitimate expenditure in the organization of the company, surveying, engineering, super- intendence and conduct of management of the company's works. 2nd. The term " Cost of placing the works in a thor- oughly efficient and proper order, capable of bearing all necessary pressure of water for use in the event of any fire within the city, and the cost of putting the whole system iu 42 thorough repair, that may have been rendered necessary from the happening of accidents or otherwise, since the completion by the company " shall apply only to the com- pany's works now actually existing, and shall not be held in any \ ; ■ "^ mean or to include any provisions for any additional, ementary or substituted work that might be considered deo.vablc or requisite to protect or strengthen and improve the existing works, or to complete or perfect the water system now existing. I have the honor to be, sir, Your obedient servant, (Signed) John iRviNa, President. m- Then at a meeting of the City Council held on December Ist, 1890, the lettei- of the President of Vancouver Water- works Co., dated Nov. 29, 1890, was read, and a motion passed as follows : That the Vancouver Waterworks Co. having by a com- munication dated 29th November, 1890, agreed to accept the conditions upon which the city proposes to acquire their system of waterworks, as set forth in a letter addressed to the said company on 11th November, 1890, be it resolved that a committee be and is hereby authorised to have a formal agreement executed in accordance with the terms of said letter at the earliest possible date, the agreement to provide for the arbitration being commenced not later than the 16th Januury next. It was admitted by the Council that the company had j^raclicaUi/ adopted the Council's own proposal, and now all that remained to be done was to get the matter in for- ward shape, so that the incoming Council could consummate the arrangenicnt. Then at the Council meeting held on 15th December, 1890, the committee appointed to have a formal agreement prepared recommend that the City Solicitor be instructed to 48 prepare an agreement to arbitrate between the City of Van- couver and t'le Vancouver Waterworks Co., on the basis of the resohition passed by the Council on Monday, November 10th, 1890. , At a meeting ot the City Council, held on Dec. 2nth, 1890, the following resolution was passed : " Be it resolved that the agreement drafted with refer- ence to the purchase of the property, real and personal, of every nature and kind whatsoever of The Vancouver Water- works Company by the City of Vancouver, be forwarded to the company with a request that it be duly executed by said company without delay, as by resolution of Council the arbitration is to convene by January 15, '91, and be it fur- ther resolved that the Mayor and City Clerk be authorized to sign same when returned, and affix tne city seal thereto." The following drafl agreement, with covering letter from City Clerk, was accordingly forwarded to and received by the President of the Vancouver Vfaterwcrks Company : DRAFT OF AGREEMENT. This affreement made the day of one thousand eight hundred and between the Corporation or the City of Vancouver who, for them- selves, their successors and assigns, are hereinafter called the "Corporation" of the one part ; and The Vancouver Waterworks Co. Limited, who for themselves their successors and assigns, are hereinafter called the " Com- pany," of the other part. Whereas by the Act of Incorporation incorporating the company, passed by the Legislative assembly of British Co- lumbia, and entitled the "Vancouver Waterworks Co. Act, 1886," it is therein provided by the 35th clause thereof, that the Corporation, on certain considerations, and by giv- ing a certain notice as therein mentioned ; And whereas, certain doubts and differences have arisen as to the interpre- tation to be put on the word " value " used in the line uf the said 35th clause thereof: 44 And whereas the Corporation are desirious of acqairing the said works, plant and property of the companjr, at a reasonable and proper cost, and have consented to give the notice as provided for by the said 35th clause, upon the said company having agreed that the word *' value " as used iu the said 85th clause, shall be held to mean and to bear the construction as hereinalter set out, and that the arbitrators to decide on the value as mentioned in the said 35th clause, shall, in arriving at the price to be paid for the said works, be guided and bound by the construction agreed to be placed on the said word ♦' value " by the par- ties hereto as hereinafter set out. Now this agreement witnesseth that in consideration of the premises and in consideration of the com- pany having agreed as hereinafter appeareth, the said Corporati'^n has agreed to and doth hereby give notice of its desire to acquire the works and property of the said company as required by and set out by the hereinbefore recited 35th clause of the said Act, and in consideration thereof, it is mutually agreed and declared that in arriving at the value to be paid for the said works and plant, the arbitrators shall be guided by and it shall be obligatory on them to carry out the following course in arriving at the laid value. They shall first ascertain and determine the cost of con- struction by the said company of its said works, such cost to include all legitimate expenditure iu organizing the said company, and the sums paid for surveyors aud engineers during the construction oi the said works, and the cost of all labor and material, not in any case to exceed the market value of the labor at the date of the employment thereof, and the market value of material at the date when the materials were supplied and at the place from where the materials were imported, with all legitimate charges, freight and duty added, notwithstanding any contract tor the said labor or materials the company may have entered into, but not to include any cost incurred in the repairs of the works from time to time, from whatever cause the repairs may 46 have beeu rendered neceseary, nor any fees paid to the directors for the mana^(»eraent of the company's aftairs. Thev shall then ascertain and determine toe sumnecessarv to place the said works as they at present exist in such order and condition that they shall be capable of bearing nil the necessary and proper pressure of water for eftectual use in the event of fire within the city of Vancouver, not- withstanding that the works do not now extend to the limits of the city of Vancouver, and the cost 6f putting the whole system in thorough repair, that may have been rendered necessary by accident or otherwise since the completion of the said works by the company. After having ascertained these amounts, they shall de- duct the sum required for such repairs, and the sum that shall have been arrived at as necessary to place the work at present in existence in such order and condition as to fit them to bear all the neccbsary and proper pressure of water for effective use in the event of fire within the limits of the City of Vancouver from the sura found as the cost of con- struction, and the dift'erence, to which will be added twenty per cent, on such difference, and a sum sufficient to make up the ten per cent, dividend mentioned in the said 35th clause of the said Act, shall be the amount payable by the Corpo- ration to the company for the system of waterworks, and all other property, both real and personal, of said company, in connection therewith, free from encumbrances, charges and liens, of whatsoever nature or description. And it is hereby mutually agreed and declared by the parties hereto that the notice given by the said Corporation to acquire the said works is given and accepted by the said company, and the arbitration under the said Act shall be carried out on the above proviso and condition solely that the value of the said works and property as stated by the said 36th clause, shall be arrived at and ascertained by the arbitrators in manner hereinbefore appearing, and it is hereby declared that in every respect the arbitration shall proceed under the said Act, and the parties hereto shall 46 facilitate the settlement of the matter with as little delay us possible, uud the said company will ut unce proceed to arbitrate without waiting for the expiration ot the year's notice as provided by the said Act. And it is hereby declared and agreed that the arbitrators and umpire in their conduct of the reference, the examina- tion of witnesses and in all other matters whatsoever shall be bound by the rules of procedure, and have the powers conferred on them as it this matter had been referred to their arbitration by an order of the Supreme Court of Brit- ish Columbia. The receipt of this draft agreement was duly acknow- by the President in a letter to the City Clerk, stating that the draft agreement had been handed to the Company's Solicitor for settlement, in conference with the City Solicitor, in accordance, in all respects, with the terms of agreement set forth in the correspondence between the Corporation and tb e company. The following letter was also addressed to the Mayor and Aldeimen of the City of Vancouver by the company's solicitors : Victoria, B. C, January 3rd, 1891. To His Worship the Mayor and Aldermen of ike City of Vancouver^ B. C. Gentlemen: — On behalf of the Vancouver Water- works Company, who have handed to us the proposed agreement between the Corporation of the City of Van- couver and the company for the acquirement by the city of the company's works, with instructions to settle the same in conformity with the agreement arrived at by correspond- ence bet% een the Corporation and the company, dated the 11th and 29th November, respectively. We have amended the agreement in red ink so as to as exactly as possible follow the terms of the corresrondence referred to. 47 In reference to the recitals we have limited them to the Act, and the correspondence, and have also recited the giv- ing by the corporation of the necessary notice, which we think should be done by a separate notice, and not by in- corporation iu the agreement. We shall not insist on this opinion, however, if the corporation would prefer the method adopted in the agreement, as submitted, although we think ours the preferable j '. n. We have also added to the agreement a proviso that the corporation thall pay the costs of the arbitration, if the award exceeds (?211,000) two hundred and eleven thousand dollars, the sum oflfered; the company paying the costs if the amount awarded be not more than ^211,000, to which we presume there will be no objection. If exception is taken to any of the amendments, we would suggest a conference, as is usual in such cases, between the counsels of the city and company. We have the honor to be, gentlemen, Your obedient servants, (Signed) Ebbrts & Taylor. Subsequently, in consequence of notices of motion having been given at a meeting ot the City Council held on Janu- ary 5th, 1891, a Committee on Waterworks was appointed on January 12th, 1891, and on Janurry 19th, 1891, Mr. J. M. Browning was requested to act as arbitrator on be- half of the city. On January 26th, 1891, the Council received a com- munication from Mr. Browning, declining to act as arbi- trator. On January i9th, 1889, the Council instructed the City Clerk to communicate with the solicitor of the Vancouver Waterworks Company, asking tiim to meet the City So- licitor with a view to settling the agreement to arbitrate, and a meeting was accordingly held between the City So- licitor and the company's solicitor. Settlement of the proposed agreement is still ponding. PROVINCIAL AKUHiVHS Q£ at !W^ 48 y In the Britiah Columbia Gazette of 4th December, 1890, appeared a notice signed by the City Clerk of Vancouver, of the intention of the Council to apply to the Legia'aturo for an amendment to their Act of Incorporation ; and on the following 18th December, 1890, a notice signed by the President of the Vancouver Waterworks Co., to apply for an amendment to their Act of Incorporation, by repealing Section 85, was published in the Gazette. In reference to this latter notice, the following letter was addressed by the President otthe company to the Mayor and Aldermen of the City of Vancouver : — ViOTOKiA, B. C, December 22nd, 1890. To His Worship the Mayor and Aldermen of the City of Vancouver^ B. C. Gbxtlrmen: — We have caused to be inserted in the Gazette and your local papers, a notico that we intend to apply to Parliament at the next session, for an Act to amend our Organic Act, by repealing section 85. We wish it most respectfully to be understood by your Honorable Body that the course we are pursuing is by way of no menace, but only in keeping with an arrangement made at the last session of the Legislature by which we withdrew a similar Bill to the one we now propose to place before the Legislature, on the understanding that if no arrangement was arrived at between the city and the company by the 15th December, 1890, the company would be at liberty to introduce the Bill and the Council would not oppose. If the negotiations now pending between the city and the company as to the acquisition by the city of our works are satisfactorily settled, the proposed amendment to our Act could be withdrawn. I have the honor to be, Gentlemen, Your obedient servant, (Signed) Jno. Irving, President