The times. (Owosso, Mich.) 1882-1897, 1886-04-30


over and above insurance, on occa-
sions of this kind, would more than
pay the entire cost of system of
water works.
Third:--It is the aim and ambi-
ton of all public spirited citizens
whose prosperity is identified with
the growth and prospects of a thriving
little city like yours, to, in every way
possible, induce manufacturing capital
TO locate in your midst; and my
experience, covering series of years,
has confirmed Inc in the opinion that
next to proper railroad facilities that of
public water supply is invariably the
primary consideration for capital to
seek eligible locations for maufactur-
ing purposes-your own energy and
enterprise as demonstrated in the
construction and maintenance of
manufacturing establishment, which,
more than any other one IN your
midst, adds to the prosperity of your
city. In this connection l think |
can say that you are laboring under a
disadvantage when brought in COM
petition with similar manufacturing
establishments located in cities where
they have public water supply. af
fording ample fire protection from the
excessive insurance that you have to
pay in your city.
Fourth:-I do not think that / haz-
ard my veracity in saying that should
your people invest $500 in a good
system of water works that the
reduction in insurance on the proper
ty in your city would pay the interest
on the investment at ten per cent; or
in other words, the direct saving to
those of your citizens who have prop
erty to insure, would meet the interest
on the bonds and pay the running
expenses of the works.
Fifth:-Permit me to consider the
undertaking an investment. You
issue, we will say, $40, 900 in five per
cent bonds, and you spend the money
for system of water works; your
yearly interest will amount to $4,000,
we will add to that the running ex-
penses including two men at the
pumping station, a superintendent,
who will act as secretary, also, fuel,
light, waste and oil, which shall not
exceed So, per annum | assume
that within three years after the works
are constructed that you will have at
least 400 water consumers. | will
make the rates low at an average of
$40 per year, which gives $4,000;
the railroads would, l am sure, pay
at least SI,oo more. At the end
of the third year, l am convinced your
works would bring you an income of
$4,000 per year. To Offset this we
have $4,000 interest and $4,000 run
ming expenses, so that at the end of
the third year we strike balance
and the works become self sustaining
You will have in addition, the saving
in insurance which will be at least IS
per cent, and the use of the fire by.
drants, for which other cities pay from
$50 to $Ioo each per annum. The
works must be presumed to be worth |
all they cost you. They add $4,000
to your valuation; they are a perma-
nent and safe investment; it is not
speculative or visionary, but real, per-
manent and one of the best that a
city can embark in, owing to the
many and great benefits that a public
water supply bestows upon a COM
Sixth:-This comparison ofreceipts
and expenditures is not misleading
or vague-it is the result of expert
ence and knowledge, based upon the
experiences Of other localities similar
to yours. The expenditure, if made,
will be mostly all spent in your midst,
from which no element in your COM
munity derives larger benefit than
the laboring mantle benefits Of
fire protection will be equal and alike
to all of the tax payers. The man
who owns the humble cottage on the
outskirts of the town, is afforded equal
fire protection with the man that
lives in the palatial residence in the
heart of the city. Your bonds are
issued for, say, 20 years--the unde-
veloped resources of your city and
the increase in valuation 20 years
hence, if there was no other source
from which revenue might be derived |
for the liquidation of the the principal,
in my opinion, the $4,000 then
would look no greater than s., 900 now;
but it is safe to predict that with
proper management the income from
the works will not only pay the run
ming expenses and interest, but will
afford you sufficient surplus revenue
to create a sinking fund, which if |
properly invested, will be sufficient to
liquidate the bonded Indebtedness at
Seventh.-The CITY from which I |