The Dalles daily chronicle. [volume] (The Dalles, Or.) 1890-1948, 1891-04-15
WISDOM JUSTIFIED.


The people of this city are to be con-
graduated on the harmony that was
manifested in the election that took
place last Monday when the Taxpayers
with practical unanimity voted the
necessary funds for completing the wa
ter works. 1t is something, for which
those who seek the city's property should
be devoutly thankful, that this disturb
ing factor of the city's harmony. has at
last been fairly taken out of the way, and
we may confidently hope, that as time
rolls on the wisdom of those who
adopted the gravity system will receive
further and constant justification. While
there will be a.bonded Indebtedness of
$l25 900 there is every assurance of an
ample income and resources by which
every obligation can be met without in
creasing the prevailing rates to water
consumers. More than this, there is
every probability that after the first in
stalment of $25 900 that falls due four
years from now, shall have been paid,
the existing water rates can he reduced
as much as one-third of their present
cost, and that the income will still pro-
vide as it does now, forlall expenses, for
the interest and the sinking fund. 1t is
based on the careful calculations of those
thoroughly familiar with the subject.
The income from water rents for the
month of January was 1926; for Febru
.ary it was 1915; for March it was 1892. A
low estimate for April will give $3.50 while
May, June, July and August, the months
when considerable water is used for irri-
cation, the income will not fall short of
$1,000 a month. By September it is
hoped the works will be completed when
an increased income will be GER
tain to ensue; which may be safely
placed at a yearly average of one thous-
and to twelve hundred dollars a month.
The gross expenses to be deducted from
this amount do not at present exceed
1925 month, and will not be increased
when the works are completed. The
prevailing rates for water rent are on an
average as low as they ever were, and
lower than when the city was smaller,
and there is not the slightest probability
that they will ever be higher. The net
income from these rents for the current
year cannot fall for short of ten thousand
dollars, while the interest on the bonds
already issued is six thousand, leaving
four thousand for the sinking fund. The
new water bill provides that any money
in the water fund not needed to pay in
terest or the principal of the city debt
can be loaned out on short time at not
less than eight per cent. per annum. 1t
is safe to say that the profits thus ac-
quired will help considerably towards
paying the interest on the bonds. There
is at present in the hands of the city
treasurer about 500, 900 to the credit oi
the water fund. In addition to this the
water fund, as is well known, has prop.
erty in Gates addition that is reason.
ably worth $4,000, and this property
cannot be diverted to any other use. Il
was granted to the city by the United
States, government for water purposes
only. Besides the city owes the water
fund about $17 900 principal and interes
of money received from the sale of prop
erty belonging to the water fund but
mis-appropriated to the use of the city
so that the debt owed by the water funt
will only be increased $4,000, by the is
suance of the new bonds. The. remain
ing $l7 900 will be added to the debt O
the city and credited into the water fund
The total Indebtedness of the water fun,
when the new bonds are issued viii
therefore be $1OS,OO The interest ol
this amount at six per cent is Sc, ,4S0
year while the net income from waite
rents will still leave not far from 81 900
year, and perhaps more to go to tn
sinking fund.
The old water works might be chea
or they might be dear but they paid t
their late owners ten per cent on cap
ital of $75, 200. Had the city adopte
the pumping system she would hav
this property to compete with backe
by more capital than all the men in Th
Dalles are possessed of. We shoul
then have had a system that would hay
cost the city an annual expenditur
according to engineer Loves estimat.
of $14, ,429, so year interest included,
a cost of not less than $116, ,702, ,8S wit
an income that would have fallen so f,
short by meeting the expenses that
would have eventually forced us I'M
the necessity of purchasing the old plal
to get rid of the competition or drive
the city into hopeless bankruptc
From these calamities the wisdom of Il
council has happily delivered US an
time has justified and will continue
approve their action.