Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1889-02-05

ment prior to the Maturity of the bonds,
nor is it reasonable to suppose they
would 30 accept unless premium were
paid equal at least to the interest to &C.
crue up to the time of maturity. Con-
tequently the city would be under the
necessity of re-investing in new securi.
ties sum equal to its bonded indebted.
ness as sinking fund readily converti-
BILE into cash to meet payment of the
bonds as they fall due. In seeking to
make an investment Of this character,
available in cash on comparatively short
notice, the city would be fortunate in re
alizing agreater rate OF interest than 4
per cent per annum. The city would be
the loser in the transaction ali the differ
enee there might be between the amount
OF interest received on the re-investment
and the amount paid on its bonds, see
appendix for compilation and instead Of
having paid of the debt by the sale, the
bonds would still remain outstanding,
and the city would be incapable of any
new issues by reason of Limitation the
same as if no sale had been made 1t has
been suggested by those favorable to the
sale. that it might be conditioned, the
purchaser should assume payment of the
bonds as part payment of the purchase.
This would be merely a change in the
mode of payment and not release of the
city from its obligations, nor would il
change the status of outstanding bonds
as bar to further issue on the present
assessed valuation of property. The orig
jnal lien Cd kv ka A.
hold against the city. and in the suppcsa-
able case of the purchaser Of the water
works assuming the payment of these
bonds, should the purchaser for any
cause refuse, neglect or fail to make such
payment, the bnndholders' lien would be
good against the city and he would have
his remedy at law accordingly. In fact
the majority OF the committee regard the
proposition of having the purchaser as.
snme the payments of the city's outstand
ing bonds as raising and adding unneces.
sary contingencies without changing or
removing the difficulties presented by the
per cent limitation established by law.
On the other hand. it is believed very few
responsible tax papers of the city could
oe found to advocate paying into the city
treasury $220,O00 to use for other pur-
poses, and leave the bonded Indebtedness
to take care Of itself unsecured by the
proceeds of the sale of the waterworks.
Furthermore, any sum likely to be
obtained, by or from the sale in
excess of the amount OF outstsnd-
Ing bonds, even if paid into the treas
ury and used for purposes of public i'm
provements. would be comparatively
small and go but little ways. As a fin
ancial operation it would be only a tenn
porary expedient, and the benefits to &C.
crue would be more specious than real or
tangible The way to the much discussed
city improvements in streets and side
walks is already provided by law in pre-
scrlbed modes OF special assessment, or
by special taxation, and these methods
are as much open and available for max
ing the desired improvements, now, or at
any other time hereafter, as they were be-
fore the subject of the sale of the water
works was preached
1t has also been suggested as an argu.
ment in favor of selling the waterworks
that 1t would eliminate a disturbing ele-
ment in politics and municipal elections.
The majority of the committee can see no
particular reason why improper intiu>
ences, If any, should, or do, emanate from
the Waterworks more than from any 9th
er department of the city government,
and in fact would seem less likely TO be
found there than in department S where
the number of employees is greater and
the opportunities are better 10 exert co,
ercive political irfuence
HO wOuld / be with the xat.r - A.
hands OF private company or corporationP In
stances are numerous aud frequent enou h Gu =
rently reported and sufficient, suthenticat d 10
snow at private companies and corporations are
not unfiequently very powerful factors in dire thy
Shaping or IN indirectly covering the suf age of
lhelr mployes at ell ctions, and upon political
questions The standard of political probty is uu-
as hi IN the case of the CITY as in mi
waite corporations. and the majority OF the commit
zee are q cldedly OF opinion at chan IF owner
shlp IN the wat works from the city TO q private
hoI &, would not materially diminish to saw the
ieast, whatever OF politics may be COZ nected with
Its management
wand conditions which would insure free hydrant
service to the city, and the right to fix and regulate
! q maximum rates to be charged consumers
ough perhaps difficult to formulate in precise an
cHecuVe termsrthe committee of opinion based
upon legal advice that such conditions can he maze
Naild ana effective as part of tue terms sale and
II a sale should ever be made the committee would
OF the sale,
Il ale we're possible and contemplated the COM
mittee deem it ,Xpedieut and adyisashle hafor,a
any agre. ment was formulated or entered into 10
submit tho question If SALE no sale to a vo,e of
the taxpayers II is true such proceedings is not
required or even authorized by the city charter.
and the result of such vote would have no legal
and binding effect. but. il it vote and Re-
earded as q free ana untrammeied expression of
lhe voters would vi tual constitvte vote of in
sTucuon and necessarily BE- given que weight BY the
Olty Council The committee also states as its
opinion at in case of contem plated sale il would
hot pe ADVISABLE to name any specific for
which the city would SELL hut that the most feast
Ole mode OF proceeding would be to invite sealed
prop sails 18th the right reserved to the ty to re-
ei any or all b DIS. Tn n If any sponsible party
oio sum the city was willing to accept q sale cou
be made and closed If, on the other hand. there
vas combia .tion among bidders or other parties
20 obtain the property at less tuRn fair value the
city would be under obligation to contract with
Or sell 70 any one.
As III result of inquiry the committee find that
throughout the United States the large cities Al
WORKS Il is represented to the comm tee as the
seneral condition in tue eastern and der settle
states, that all lies and towns of any conside able
size and impo lance. either now own or are m az
hg EFFORTS TO own and control their water supply
Inc cities OF Joliet aud Quincy in this state and
probably others would be found upon inquiry .rs
40 aole inst noes close At hand, where one has re-
ENTITY Dough and the other is negotiating to buy
rom private companies the water works and re
from being dependant and at the mercy
u private interests or water supply. 1t is quite
probable that these and many of the cities and
owns in this Yves country, in early days feel ng
he urgent need of being supplied with good whole.
tome water and lacking capital resources of their
'wn to furnish 1t as q mn icipal under aking were
induced by necessity to invite capital from abroad
Ind principally from the east to construct, own,
nd operate a water works, but the commit be.
ieve hat at the resent time the tendency is en-
irrly in the direction of cities owing and operating
heir own water works, and oontro ling the ra es
md m asure Of water supply. Facts and crcum-
stances generally indicate this to be true policy.
The city of Rock Island, instead Of having occa-
ZION to purchase, already owns its entire plant.
yves but $50 900 its water bonds; the works are
n good condition and sufficient for present de-
nands; there is 81 increasing yearly surplus of
evenue over expenses, and the amount over this
Tearly surplus has now reached 0 sum which. in
;lading edit for bydrant service. not only pays in
uu the yearly interest n the water bonds, but al
10 pays further sum equal to about gig per cent
IN S25O, 900: Or excluding hydrant service, affords
N actual surplus revenue equal to the u yearly