The supply to Carbria Iron Company was based upon an agreement of that company to pay an annual water rental of three (3%) per cent upon the cost of construction. This agreement rests upon tradition, as no written agreement can be found, but it was always accepted without dispute. From time to time an extension of the works required an adjustment of the rental in accordance with the original agreement.
A dam located by the Johnstown Water Company on the Little Conemaugh River just West of Mineral Point, and Border Dam, located about ten (10) miles South of Johnstown in Somerset County, were the sources of supply for the plant. The Conemaugh supply being carried in a twenty (20) inch main and the Border Dam supply in a thirty-six (36) inch main.
At the time of the organization of the Manufacturers Water Company, Cambria Steel Company was paying a water rental of $20,500 per annum. The construction of the Conemaugh and Stonycreek systems represented an expenditure on the part of Johnstown Water Company of about $500,000.
At the opening of the year 1900, the question of water supply for the Cambria works became more prominent, due to proposed large extensions of the works and increased requirements, therefore it was deemed necessary to build storage dams upon Hinckston Run and Quemahonning Creek.
On July 31, l888, the Johnstown Water Company accepted the new constitution and the provisions of the Act of 1874 in order that its capital and indebtedness might be increased, etc.
The Johnstown Water Company was chartered by special act of the General Assembly of Pennsylvania, approved April 11, 1866, PL. 723.
"For the purpose of introducing from some convenient source a sufficient supply of pure and wholesome water into the Boroughs of Johnstown, Conemaugh, Millville, Prospect, Cambria and vicinity," and "Said company shall be organized and managed as provided by the Act of March 11, 1857, PL. 77, and be subject to all the restrictions and provisions and have and enjoy all the rights and privileges in said act."
Counsel for the water company were of the opinion that it was very doubtful if the Johnstown Water Company, which was organized to supply with pure and wholesome water certain boroughs and vicinities, would have the right to condemn other sources of supply for the purpose mainly of supplying manufacturing concerns. They had in mind that in going forward with the proposed large storage reservoirs, the right of eminent domain would have to be restored to and certain streams taken under condemnation proceedings, and with these conditions confronting the management of the steel company, which company also controlled the majority of the stock of the Johnstown Water Company, it was determined to organize a new water company under the Act of May 16, 1889, PL. 226, being an amendment to the Act of 1874, for the storage, transportation and supply of water and water power for commercial and manufacturing purposes and on February 19, 1900 the Manufacturers Water Company was chartered to supply such water in the district composed of Cambria County. The original capital of the company was $l,000 and later increased to $50,000.
After its organization, this company by formal
resolutions of its Board of Directors, resolved to provide, erect and maintain
certain storage dams and reservoirs for the storage, reception and transportation
of water and water power, and for these purposes and under its rigtlt of
eminent domain, appropriated certain lands and the waters of certain streams
and directed the president of the company to take such action for the settlement
of damages for the property so taken and appropriated, and for the extinguishment
of title in other parties to such property as might be necessary. The appropriations
thus made by the company were, inter alia, as follows:
For a reservoir upon Quemahoning Creek sixty-eight hundred (6800) feet
above its junction with the Stonycreek in Conemaugh and Quemahoning Townships,
Somerset County for the appropriation of 50,000,000 gallons daily of water.
For a reservoir upon Hinckston Run at a point three and three-tenths
(3.3) miles above its confluence with the Conemaugh River, in East and
West Taylor Townships, Cambria County, for the appropriat1on of 6,000,000
gallons of water daily.
The Manufacturers' Water Company further passed similar resolutions for reservoirs on the Little Conemaugh and Stonycreek Rivers at the points already covered by the present reservoirs of the Johnstown Water Company, such action being taken with a view to prevent any other water company having the right of eminent domain for storage purposes and condemning the same.
The Johnstown Water Company leased to the Manufacturers' Water Company by agreement dated July 12, 1900 and for the term of ninety-nine (99) years.
1. The dam on the Little Conemaugh River, together with all lands, water and works connected therewith and the twenty (20) inch pipe leading from said dam to the Cambria Steel Company's blast furnaces in the City of Johnstown.
2. Borders Dam in Somerset County, together with its thirty-six (36) inch main leading therefrom to Cambria Steel Company's blast furnaces, etc.
Note. By agreement between the above parties dated December 29, 1913, the above mentioned lease was cancelled and a new lease made limited to Borders Dam and its pipe line, etc., and also provides for a mutual exchange of water in times of drought or in case of accident or other good reasons.
The records show that as early as September 26, 1901, work was prosecuted vigorously on the construction of Hingckston Run reservoirs and that proper action of the boards had been taken for the appropriation of the waters of the Quemahoning Creek and of Hingckston Run Creek and condemnng the lands necessary for that purpose, the details of which should appear in the minute books of the Manufacturers Water Company. There also appears that the money expended in the name of the Manufacturers' Water Company was contributed by Cambria Steel Company and that the intention then was that said steel company would be the sole consumer of the water company.
Said agreement of December 29, 1913 recites that the Johnstowrn water Company constructed a large storage dam on Saltlick Run, rendering necessary to said water company the twenty (20) inch pipe line leading from the Conemaugh River Intake to the Franklin plant.