The record-union., 1892-02-23
The resolution was adopted unani-
LINn1Ex,s WATER SCHEME.


LINDLEY'S WATER SCHEME.
D. A. LindIey was present, by invita-
ton of Chairman Green, and suggested
that the Water Works could not be a
source of profit to the city so long as the
bonded debt remained unpaid and 30 per
cent. of the gross proceeds had TO be paid
TO the bondholders. There could, there
fore, be no harm in inserting a clause in
the charter allowing the city, by two
thirds or more vote, to lease the city pipe
lines to some water company well water,
for instance) and allowing said company
to connect at Thirty-first street and sup
| ply water and collect rents therefor. The
| city would become the carrier of water
and could charge the water company a
rental OF say 90 per cent. of the amount
the company would charge, which
amounts should be limited in considera-
ton OF the use of the pipelines. Ii 90 per
cent. OF the rental should be held as be-
longing to the bondholders the city could
simply turn this 30 per cent. over to them;
but If the city felt authorized 90 per cent
OF TINS % per cent. could be set aside for
the bondholders and 45 per cent. for other
purposes. There would, undoubtedly,
be a suit TO compel the city to pay in the
whole % per cent, but in that event there
would be 90 per cent. of the 55 per cent
PAID out to the bOndholders and only 10
per cent. of % per cent. tied up in the
law suit.
Such scheme would probably not be
resorted to unless the city should get so
poor that she could not afford to put in
her own pumps, which she now needs, as
1t is undoubtedly better to take the situa-
ton as it now is, considering that, with
everything working smoothly, the end
OF the debt is generally figured to be in
plain sight.
This scheme might be availed of to tap
the wells east of town, and the city might
eXpend few thousand dollars in boring
experimental wells, with the idea of SELL
ing the wells to some company that
might be willing to enter into a contract
10 erect stand-pipes, pumps, ETC., and col
Iect water rents. The company would
undoubtedly have to be organized with
capital subscribed by our own citizens,
but who should be allowed such a profit
either on water rents or selling the
works back to the city at the expiration
OF the lease, which lease should be limited
so as not to extend into the time (after
payment of our debit when the Water
| Works may become a source Of revenue
to the city, instead of almost a burden as
they are now.
This plan might be availed Of to con-
meet at Tenth street, and supply the east
end of town with clear water, and let the
rest of the town be supplied by the old
| Water Works.
AF. La hue wanted TO know II II would
not be better for the city to control her
own affairs, and Mr.. Johnson said the
/ scheme looked as though the city would
be putting her property out of her hands
to defeat her creditors.
Mr.. Lindley said he did not propose to
attempt to 60 into the details OF the
scheme, but he had an idea that it might
be feasible. At any rate, it would do no
harm to embody such provision in the
charter, so that the city could take up
this scheme if it could be worked.
Discussion of the subject was then
dropped.
FIRE DEPARTMENT.
The report of the Committee on Fire
Department, as discussed at last Satur-
days meeting, was adopted. 1t appears
! elsewhere.-EDs.
CONCERNING ELECTIONS.
The report of the Committee on Elec-
! tons, which was also discussed on Satur-
day, was adopted.
! CONCERNING CITY BONDS.
| The remainder of the session was de-
voted to the consideration Of the chapter
on Bonded Indebtedness" The chap
! ter merely prescribes the manner of issu-
ing bonds, and is not Of general interest.