Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1859-01-15
ISSUE or CITY BONDS ron WATER
WORKS.

lesNE OF CITY y DN TUX hAAEh
WORKS.
Fgr he Mempbs Appeal
To ALDEKsAS d EGAS-Dcar Sir: have
observed with some degree Of interest, pro
oeedings in the City Council with reference to
The recently proposed P.eject Cor erecting water
works. This being asubject about which We
are sIscomparstively = norant, nookedto YOU
course and views, as wbstwOuld perhaps afford
a safe and enlightened direction to public sent-
ment-
Ihold your opposition to the proposed loan
Of $4,000 wed grounded, There are several
valid objections to this measure, but one viii
suffice. The embarrassed financial condition Of
the city does not justify Der IN agreeing 70 pay
tbs amouat, as proposed n tie eonuact sub
mitted for Che raifcation q tie CITY Council
Justice 70 the Demands Ct creditors and con-
tractors, precluded the Propnety Of ineurnng
this additional dsmand upon he Strengthened
resources
Inow beg leave 10 say e few words with
reference to the economy and praeticabHity Of
your plan, a. indicated by the resolutions
passed at the last meeting II the City
Council
You proposed that the city raise money TO
accomplish this desirable work, by issuing
her bonds and selling them. Before embark
ing in an enterprise Of this magnitude, pru-
dence demands that the cost should be first
carefully counted. and then the rays and meaas
closely seuutlnized. The good opinion I have
--- -t~u=~.,., r,rLsI.
nv believing youwcuId submit for the adoption
Of tie CITY CouneiI > measure q this impor-
lance, without thoroughly invest eating the
sabject If %, ! hope your f-ures viii work
oata different result from what Is here respect
Tally Submitted for your Consideration.
Ihave had an opportunity 10 examine esti-
mates made BY one Of the most accomplished
engineers in the United States. for water works
in Memphis. He estimated Cor nine miles 500
feet Of water pipe, and the cost Of the whole
work on the plan proposed would sum up S399,-
SIS %. Now this amount must be paid by tie
city, in cash, for labor materiala &c. To raise
tins sum, I would ask, how many city bonds
must Be issued and sold az The rates they ave
a z in The market. This new flood OF them,
too, would have heefsot Il making capitalists
distrastful, and thus depressing them in Vslnc.
At a moderate estimate s625,000 would be
required to be sold, so the water works, tuilt
your plan. would cost the city an Increase Of
Indebtedness Of S625. 600, At this rate Oct as see
how much It wiH cost he city annually to keep
these works IL operation. Il will require at
less Two wears b complete thsm. during Rhich
time interest must B. paid Q the bonds neces-
sanly fssaed-this win be a. least $4,000,
which must be added "a. the cost Of the works,
an aggregate Of s675,0o0.
This is an Indebtedness Of the city. creat-d
for the purpose Of these works, on which She, at
heary cost, pays monthly instaIlments Of interest
a. The Eastem cities To raise THIS interest
protect credit, experience teaches us that
the Mayor VIII have 10 shin around town beg
ging Individuals to indorss the rity's notes,
which he is often obliged to sell at from one to
three per cent. a month discount.
Well, in estimating The cost q keeping up
the works, we win state as follows:
1. Interest on debt created 10 erect
them, annually -.--.. .-.---.. $4,000
? According 10 the Engineers Esu-
mate. before referred to, cost Of Sal
aries, Fuel, 49, 49, .-.. s.Iq5
3. Incidental expenses % the city, al
least -- rss -s 400