The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-03-12

establish a sinking fund to retire thu
bonds at maturity; all payment OF IN
terest being made direct to the truste,
Dendho1der, and the amount set aside foi
the Sinking Fund to be placed in tht
hands Of its own regular SINKING
Fund Commission or an agreed upon
numbe of bonds to be purchased annu'
ALLY: this latter course Is earnestly rec
commended, as by this method the amount
needed for annual interest VIII steadily
As the works are planned, and owing
to the long distance to bring the water
the SO, 900, 600, and even then there may
and undoubtedly there Will be-, claimants
for water and riparian rights and dam
ages which will have to be settled long
after the works are completed, and as II
is the intent and meaning of this propo-
sition that the city shall become tins
sole n absolute owner of the plant al
the end of twenty-five years i'll fee SIM
pie. and with no further payments 10
make after that period; therefore, ou1
proposition is that the city shall pay US
the sum of fifty dollars per million gal
Ions during the first ten years after conf
pletion, but that thereafter, if the city
may elect to exercise it's option of leasing
the plant, it shall pay the mounts pei
million gallons of water taken according
to the table below, for the purpose OF
meeting the interest charges, and for the
redemption of the bonds the city shall
pay an annual decreasing amount per
million gallons.
BY this method, the city would not only
not feel the burden, but would pay less
per million gallons than by any other
method, and far less in a total amount
than under any other plan, and the
amounts so set aside with accumulated
interest, would extinguish the bonds at
maturity, after which the company would
convey title to the entire prop
erty to the city free. SO that the
city would own the works and water
Sources in fee thereafter, with an ample
supply of water free from all time.
The company then would be dissolved.
The increase in quantity of water used
been over SO per annum, but this esti-
mate is based upon an increase Of only
40 in order to be far within the mark.
The amount actually needed to paw the
$4,000 annually. During the first ten
years nothing TO be set aside for the re-
demption FUND. because during the succeed
ing fifteen years he amount of water re-
quired will be so large that the rate per
million gallons will be very low, and the
city can then afford to set aside during
that time enough money each year 20 ex-
tinguish the bonds at maturity.
AS the quantity of water required in
creases in volume SO does the income OF
the city in selling it, and that income
densome to set aside the amounts for the
sinking fund.
Indeed, our experience in the supply of
cities prove that where pure water can
be had by large consumers, the sale of
water by measurement increases enor-
mouSly, and in this instance will become
so large that the entire cost of these wa
ter works and supply will eventually be
met from that source alone without
touching the incomes from dwelling
houses.
The amounts to pay the annual interests
and to be set aside as a sinking fund dur
ing the last fifteen years of the contract
are shown for each year in The following
table,