The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-02-21
THE WATERWURKs.
Mayer RiIsbury's Views on the niIl Be-
fore the House.

Mayor piIsbury's Views ON the niil Bc-
fore the House.
Mayor piisbury was interviewed yes
terday morning by q representative OF
the DEMOCRAT, on tho subject OF the bill
now before the House OF Representa-.
tives creating the New Orleans Water
works Company In substance the
interviewer elected tho following:
The Mayor said that he knew OF no
more important matter connected with
the welfare OF the city than full sup
ply OF fresh, clear water, and he had,
therefore, given his personal attention
to this great need OF the people since he
first became connected with the City
Council us Administrator Of Finance.
Our reporter asked his Honor who. TX
there were any particular persons,
would 90 into, the scheme, and Ii the
bill presented by Mr.. Leeds was not his
own. The Mayer replied that the bill
had been
PLANNED BY HIMSELF,
that 1t was now put before the people
for consideration, and that anybody
who chose to come ia as subscribers to
the capitol stock could do 80.
Our reporter ventured to inquire into
the propriety of giving to the company
to be created perpetual franchise.
Mayor Piisbury said to this that he
was not welded to this clause of the
bill, and had simply drawn it up In q
form that would be most attractive to
those who might wish to enter into the
plan. He had no objection to limit the
time, say to ninety-nine years.
The conversation now turned on the
FINANCIAL ADVANTAGES
which the riddance OF the control of the
Waterworks would afford the city,
According to Mayor Pilsbury and the
figures Of the Waterworks Department,
the Waterworks are serious incum-
brance to the city.
To go back little into the history OF
this institution: When the charter OF
the late Commercial Bank and Water
works Company expired, several years
ago, In accordance with the contract
corporation acquired sthe waterworks,
its franchises and all It's appurtenances,
for the sum of two millions OF dollars.
From this sum there was to be deducted
six hundred and six thousand six hum
dred dollars OF stock held by the city In
its own name In the old company. For
the remainder, one million three hun
dred and ninety-three thousand four
hundred dollars, or thereabouts, the
city issued its bonds, now known as the
wATERwoREs BONDS,
secured by mortgage on the works. OF
this amount OF bonds the city has since
paid or extinguished some five hundred
thousand dollars, leaving still due to the
bondholders the sum OF about eight
hundred and sixty-flve thousand dol
lars.
The revenues OF the Waterworks prop
er amount to about one hundred thou
sand dollars per annum, whilst the ex-
penseg OF the Department Of Water
works and Public Buildings, for the
Waterworks branch, amount to over
seventy thousand dollars, exclusive of
the salary Of the Administrator. Accord
Ing to the computation OF the Mayor,
at the lowest reasonable rate Of inter-
est OH the outstanding mortgage bonds
and its own investment OF $780, 900, the
city loses on an average, yearly, the
sum OF seventy thousand dollars, or
more.
The capital Of the proposed company
is to be two millions OF dollars. OF this
amount, the city is to be entitled In ex-
change for it's original interest In the
old works, six hundred and six thousand
six hundred dollars worth OF stock In
THE NEW COMPANY,
and, In addition, five hundred thousand
dollars (more or less) worth OF stock for
the amount of mortgage bonds which
the city has extinguished by purchase
which would give the city q total Of over
eleven hundred thousand dollars
worth Of stock in the new company.
The remainder OF the stock would be
filled by the subscription to the capital
by the holders Of the outstanding mort.
gage bonds, the amount OF which Is esti'
mated at about eight hundred and sixty.
five thousand dollars, as stated before
sueh mortgage bonds to be taken at
their
PAR VALUE
for stock In the new company. This
Mr.. Piisbury asserts, would appear tc
| be o great advantage to these bond
holders, whose bonds are now quoted or
the market at little more than hal
their face value.
What, then, would constitute the cash
operating basis of the company
| Mr.. Pilsbury replied by saying that II
| should be observed that the bill pro
| vides that the present works and its
franchises shall be Immediately turned
over. to the new company, who are
| auInOTlZeu To DOTTOW TWO mllIlO0S O
| dollars thereon and issue their bonds
| fer the amount.
In answer to further inquiry the
Mayor added that he had reason to be
lieye that these bonds would be take I
up, and possibly by
| SENATOR JONES, OF NEVADA.
Had he any assurance that thi!
American Cr@sus would enter into tn.
scheme? Mr.. Pilsbury said he though
SO from the conversation he had hat
with Mr.. Mcmillan, Senator Jones
engineer and agent. Senator Jones
had lots OF money and was doubtless
ready to invest it profitably whereve
he found an opportunity to do so. Be
sides, the bill provided that the capita
stock of the company could be increased
one million dollars II necessary, which
xNaflld give the cannanv tnpethar witI