San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1890-09-29
The waterwarks Question.
EDITOR LIGHT:


There are several points that have not
been touched or at least enlarged upon
with reference to the issuance of those
$4,000 900 bonds at per cent interest, an
nually and irredeemable till the end Of
fifty years.
The first is, that there is no proposition
before the people but that embraced in
the ordinance, ana the proclamation
Hereunder.
The suggestion now thrown out on a
telegram from Major Breckenridge that
the bonds be payable in twenty instead of
fifty years is merely an electioneering
scheme.
Major Breckenridge, nor the city coun-
Gil have any right to change the PROPOSE
ton. The only way to change it is that
the council shall act on it anew and re-
submit it to the people.
The council derives it's authority from
the vote of the people. That vote is their
power of attorney to make the contract,
and no such proposition as twenty year
bonds is before the people. We are to
vote on that proposition that is embraced
in the ordinance and proclamation and no
other.
The next question is as to the foolish
terms as far as the people of the city are
concerned.
The lowest sinking fund that can be
cent. per annum. Surprising that the
city authorities and the Waterworks
company have the power to change the
law, as to the sinking fund, by a cont act
between them, (which power they have
not, then in this fifty years the bonds
have to run, the sinking fund of forty
thousand per annum will amount to the
full face of the bonds or will produce
100000.
Then we have enough of the principal
of the sinking fund at the end of fifty
years to pay off the face value of the
bonds and as the interest is payable an
annually there will be no interest due.
Now at the end of each year, for fifty
years, we will have $4,000 OF sinking fund
to invest.
We will suppose it is invested as it ac-
crues. At the same rate of interest the
bonds bear 5 per cent. The result will be,
that without compromising the interest
annually. this first years sinking fund
will produce in the remaining forty mine /!
years $4,000.
Every succeeding inStalment of sinking |
fund of $4,000 will produce just 5000 less |
than that preceding. So that at the end |
on our sinking fund in the treasury
sum exceeding two millions of dollars
and at the end Of fifty years. we ought to
have over four millions in the treasury |
instead of two millions that will be need
ed. What is the sense or reason of |
withdrawing so large sum from the |
people
The next question is, that if the bonds
shall be issued according to the contract, |
land they can be issued no other way,) |
such bonds fifty years, five per cent, ire
deemable) il they are good bonds, are |
worth in the market at least $3.50 on each |
dollar.
1t is understood that the Water Works
is willing to take the bonds at
par. If this trade is made and the bonds
have paid the valued three millions in
stead of the large price of two millions
for the property. But. if our bonds are
good, then 3 per cent. ought to place them
above par.
The proposition, as made, is i'll advised,
and if we are to get the waterwOrkS and
other property, we ought to have better
terms. j. A. G.