The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1857-07-07
I viii make { little table Of il:
sl,669,ooo

$l,Oo3,uUU
Average per year for IL years, $l38, 908
Nearly enough to build works once year
Thirdly, The contractors surrender to tn,
city the .'control and management Of th'
works, viz: Two Cornish engines and FIX
lures, and thirty miles Of pipss-observe
however, they still belong to the contractors
until the expi, alton Of the IL years. q dc
not overlook the RICH, ofthe city to buy then
from the contractors. and will attend to tina
in it. pl.ce.) %
Fourthly, The contractors agree to pay
the acoruing interes. on the $500, 900 city Of
Keokuk bonds, and to redeem the principa
At the end Of the lo years.
Filthy, The contractors are said to be
responsible, (which means, presume, tina,
they are men Of capitsk or who can COM
mand funds, outside s. sales Of these city
bonds.
All the foregoing may be considered in the
light Of premises, to be admitted. There are
several ways Of considering them. h con-
sidsring them, my FIRST question would be,
what is this proposed issue Of $300, 900 Of
city Of keoknk bonds to he handed over to
the contractors, for9 Why should our city
pay over its notes bearing per cent. annual
interest, and also pay cash enough within
the first three years, to build the Water works,
when the assumption is, that the contracting
parties, not only independently Of the bonds,
but Of the city's cash, could themselves raise
the means for building them. ! donot know
what the object Of the proposers is, but lean
see the eject upon the city. very plainly
which 10 neither more nor less than to de-
prive the city Of the ability to buy the works
from the contractors until the expiration Of
thetwelve years. Why? Because in buying
them, the city would have to redeem those
bonds, and pay cash besides for the entire
cost Of the works in addition to whatever
sum or sums the city would have paid annu.
ally to the contractors. The contractors, re-
collect, would really have no occasion to sell
those city bonds; they would merely salt
them down in their pockets or desks, for the
twelve years, without paying one cent Of in
terest on them. Whys Because the city or
citizens agree to pay them in the starts nough
cash to build the works; orat leasts nearly
enough, that Irresponsible" men would have
no difficulty in procuring the remainder;
particularly when it 10 clear, that within the
fourth year, If not sooner, the cash payments
from the city would surely cover any little
deficiency. II il should be said, that the
contracting parties must sell these bonds
that they do not intend to join with the city
and put 10 any funds Of their own, what does
the term responsibility" Is used, signi-
fys
Suppose the contract made, and the works
built, and that the city wanted t. buy them
back from the contractors in 1860, how would
the account stand? Now understand, for
the present call city and citisens al one
The city win have paid out in bonds, $30O, 900
Cash in 1858, $4,000
Cash in 1859, $4,000
Cash for 1850, $1,000
$685., 500
| And now the city would be called upon to
pay some other indefinite sum, cannot say
how much, because it depends upon what
the contractors, by their good or bad man.
! agement, may have made 1t cost. They
would not be likely to put ii At less than
$4,000. That added to ~533, 600 would
make in round numbers, *7S0,00O ~ the
cost of the works TO the city up to 1860, in
elusive.
Suppose the city should defer purchasing
until 1865, how would the amount then
stand?
Bonds as before, $500, 300
Cash IN annual payments, up to 1865
| inclusive, 500 600
And FIRST cost assumed a. above, 100000
Total, 81, 440, 600
This would be the cost TO the city, or TO
the citizens, II you choose. Take it for 1867
and it would be VI 1906 600!
And supposing the city to keep on paying
the snug little "annuals" 10 the contractors,
until they shoald amount to over Two Hun
dred Thousand Dollars per year, and permi,
the IL years to run OUT, when the bonds
would have to be redeemed BY the contract
ors, how would the case then stand? An
swer, the city will have paid in cash, On.
Million SIX Hundred and Sixtv-nins Thou
sand Dollars 10 the contractors; and the,
will have secured what? Why,~Water works
The proper cash cost Of which Ne have q.
sumed ai $25o, 900. And during I'll this pe
rod Of IL yesrs, the city will have had out.
standing, e3OO, 900 Of eight per cent. bonds
} thereby depiscisting the market value oi
their other securities. Then finally on thi,
point, what security has the city that IN,
bonds will not have 70 DO paid by the city !,
LAST, upon the expiration Of the period p
What II the contractors may hsvs cleared ,
million Of dollars What II TO hinder then
from selling these bonds at any tims-ever
the day before the end Of the 18th year-ts