St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-05-19
Will they WORK IT?
A Republican Scheme to Sell
Off the City Water
Works
And Pay the Municipal Debt
They Have Worried
Over.
The Plant Said to Be Well
Worth Its Ten Million
Dollars,
Which Amount an Eastern
Syndicate Offers to Pay
For 1t.

great scheme is being quietly
Matched by select eoterie OF Repub-
lican leaders. which. at the proper time,
will be sprung upon the city. 1t in-
wolves the sale of the water works.
The water works were purchased by the
city Aug. 10, 1882, and the consideration
was $S40,OO0. They are today estimated
to be worth S1e.0O0,000, and this sum
powerful Eastern syndicate is prepared
to give the city, The scheme is being
quietly guarded by the interested III
diyiduals, but by dint Of searching III
dury an outline has been obtained.
A great hue and cry was raised at the
late election about the enormous in
debtedneSs of the city. 1t was shown
by the officials that in the .waterworks
the city possessed an asset which wiped
out entirely tins Indebtedness, and also
that much of this debt was incurred by
the purchase and improvement of these
works. Out of this has originated the
scheme for the purchase of the water
works from the city. Several promi-
nent citizens entered into commnnIca-
ton with syndicate of Eastern capt.
talists, who ultimately were interested
in the proposition to. secure control OF
the waterworl1s. o. Ii was demonstrated
TO these capitalists that the works were
worth Sl0,U00,000 and that an
Offer TO Purchase
them at this time would be favOrably
looked upon by the representatives OF
the city. The local Republican leaders
will take charge of the deal at this end,
and, if the scheme goes through, Will,
of course, be properly Iecompensed for
their services.
1t will be urged that the city having
an indebtedness of many millions some
thing must be done to relieve the prop
erty owners, from the heavy taxation
bearing upon them. During the recent
election the changes were successfully
rung on the taxation question. The city
was represented as taX-ridden, and that
the people were leaving it in order TO
escape the burden which extravaganza
in city affairs was placing upon them.
This kind Of thing went down at the
election, and now it is proposed to go
step further The city will be asked TO
sell its WaterworkS and take the pro-
ceeds of the sale for the liquidation of
its Indebtedness.
There is no doubt that the purchase
of the waterworks for $4,000 would be
eagerly seized by an syndicate of capt.
talists, for the investment would be
great one. A gentleman yesterday
stated that the waterworks in the next
twenty years would be worth S20,00O,000.
Even this large sum is probably
Within the Mark
The city has water supply to meet
the demand of 100000 people, and the
works have been so improved and en-
larged that this can be accomplished
without any very great extra cost. The
great snap which the waterworks would
be to capitalists can be readily con-
ceiYed. The amount of money which
could be made out fit will make the
attempt to secure control of the water
supply all the more audaciOuS. NOth-
ing will be left undone to secure the
end i'll view.
The scheme involves that the city
takes $4,000, COO for the waterwOrks,
relinQuishing all its franchises, and in
return the syndicate enters into con-
tract to furnish water at maximum
rate for all time. City Attorney LAWYER
was seen and asked if the city council
mad the power to dispose of the city
property i'll this way. Il imagine" he
replied, "without having inquired into
the bearings of the case, that the city
would have to secure the sanction of
the legislature. | have never heard of
any city diSpoSing of property of SO
much Importance, and therefore would
first like to carefully look up the law
before passing any opinion thereon. l
have not heard anything about the ru-
NOR 10
Sell the WaterWOrks.''
The proposal to sell the waterworks
is of vital Importance to the taxpayers,
outside the speciOus plea that the pur-
chase money will be taken to liquidate
the Indebtedness of the city. The tend
! ency of the day is for the eities-for
! the people-to control their water sup
pig, and also their gas supply.r 1t will
not be long, from present indications,
| when the people will claInor with no
uncertain sound for the ownership of
the telegraph and the railroads. This
being the case, it is hardly reasonable TO
expect that the people Will sit idly by
| and see valuable works disposed of to
! suit the ends Of interested individuals.
1t would no doubt please some taXpay-
ers of today to be relieved of taxation,
| but every community must also. to a
certain extent, provide for the future.
| 10 sell the water supply to soulless
| corporation would be criminal act not
only against the present generation, but
against generations yet unborn.
There is also another side to be looked
at The water works are great source
| of revenue. Sell them and this rev.
enue will instantly cease. The re-
ceiptS of the water board last year are
| placed at 1928, 296. l6. The receipts are
| yearly growing. and, as they increase,
the taxation is to that extent decreased.
! If it would be so great thing for a
| syndicate to run these works, it would
be equally more to the advantage of the
| city itself. A few years and the water
| works will have paid off the cost in
| CURED by the city.
! 1t will thus be seen that there are
many vital questions involved in this
| matter, and citizens must be wary in
passing upon the issue to be brought
| before them by the new Republican
regime. -
Write or wire Frank /. Tedford, mem
| Der Duluth Stock exchange, what iron
4 stocks to invest in OH the MeSaba range
FABER SLAVES AT PLAY.