July 2, 1914: Denver Threatens to Seize Private Water Plant

1914 photo shows Cheesman Dam with water going over the spillway. This was a common sight until drought and growth of Denver made inroads on the storage supply.

1914 photo shows Cheesman Dam with water going over the spillway. This was a common sight until drought and growth of Denver made inroads on the storage supply.

July 2, 1914: Municipal Journal article. Threatens to Seize Water Plant. “Denver, Colo.-The Denver City Water Company is trying to prevent the city from building its own plant, but has so far lost almost every legal fight. It is now trying to sell the plant to the city. The city is willing to buy, but the officials insist that the figures are too high. To complicate matters the plant broke down in the last few days. For several days portions of the city were without water and at the mercy of fire. Two conduits gave way, and investigation showed that they were worn out. Temporary repairs have restored an almost normal supply, but the opponents of the company say that the weakness of the plant has been exposed. The voters are opposed to the water company’s scheme to sell out to the city, and the city commissioners are supporting the public. Public opinion was disclosed last February at a referendum election, when the taxpayers, by a vote of more than 2 to 1, decided to buy or build a municipal water plant, and voted a bond issue of $8,000,000 for the purpose. It is estimated that if the city should buy the old plant for $8,000,000, or a lower price, $3,000,000 additional would have to be spent to put the plant in fair shape.

A new municipal plant can he built for about $9,000,000. ‘If the water company isn’t giving the city the service it should give, or if it uses any extreme methods, such as cutting off water on the people who are unable to pay for service six months in advance, then we shall exercise the police power imposed in this city and take such steps as may be necessary until the service is restored and the water company employs reasonable methods in the collection of its rates,’ said City Attorney I. N. Stevens.

Finally, by unanimous vote the city commissioners recently agreed to extend indefinitely the provisions of the resolution providing for seizure of the company’s plant if its service shall at any time be adjudged insufficient for the city’s needs. This decision was reached after Commissioners Nisbet and Thurn had declared they believed the company was supplying the city with all the water possible with its present plant. The adoption of this resolution means that no action will be taken at this time by the city to interfere with the water company. It means also that the water company must maintain the present standard of service or risk action looking toward taking control of its system out of its hands.”

Commentary: The final selling price was $14 million which is interesting given the discussion in the article above. Throughout this period, there was a struggle between public and private ownership of water systems in the U.S.

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