The labor world. [volume] (Duluth, Minn.) 1896-current, 1903-03-21

Editor Labor World
Dear Sir: In your issue of last week
in the article under, heading Munich
pal Problems" commenting on the pro-
posed issuance of $4,000 Of water and
light bonds, you ask: why not in-
itiate the idea Of taxing the people in
advance for improvements?
At the first glance it might seem
that this would be wise, but if more
carefully considered it will be seen
that there are serious objections to
this plan.
In the building of new works, or in
the purchase of old Ones so large an
| investment is required that it would
be practically prohibitory to engage in
such enterprise were it mandatory to
make an immediate payment therefor
In making extensions thereto or i'm
| provements thereof, which are almost
invariably required because of new de-
velopments and increased growth thai
| are but in their infancy, it would moi
only be. burdensome, but unjust, be-
cause a larger part Of the needs pro-
vided for are not yet in existence.
In fact the construction Of public
works, their Improvements and extern
s1ons, are largely for the future, and an
immediate payment would not only be
extremely burdensome, but unfair and
| unjust.
what has posterity done for u.s."
is a question often asked, though us
ually disguised in more polished terms,
and yet as originally uttered, is forcible
and pertinent.
The necessity of paying interest for
the use Of money is no reasonable OBJ
| lection to the borrowing Of it, because
| the use of the money is worth the in
terest required, if it is not usurious
and will earn for the borrower, should
he desire to invest it, all that he pays
| for it. A man who buys a home pays
in lieu Of rent, the repairs and the in.
| terest on the investment at a. rate
| that he would receive had he that
amount Of money to loan.
Money, when borrowed by COM
! munity on long time bonds, carries
| with it usually an interest burden at
the very smallest rate outside of gov
ernment bonds that is, obtainable.
when the fact is considered that money
can be so obtained at 81 and per
cent, and that it is worth to us in
dividually 6 or 7 per cent, would it
not be unwise even though it be
| deemed just; to- force an inmediat.
payment for the construction of pub
| lie works.? -:
That the. presents should pay a por-
ton of the expenses for construction
Lis true, {: and TO len lould hes:
Etablished as early, aas' possible and: a
stated sum contributed thereto annual
ly from the. earnings Of the works.
With us in Duluth, there is a good
reason against the immediate establish.
ment of a sinking fund, and that is tbs
very large construction expenses both
of the original plant and the suppli-
mentary system, unparalleled in waite,
works history pronounced by an
Eastern commentary, imposes upon the
water consumers of today an excessive
interest burden which with the cost OF
operation and maintenance Of the
plant is all that should be expected
Of them or attempted by them.
The first great necessity with us, as
Lit appears to me, is to bind all Oul
energies an economies to the keeping
of the plant we'll up to the needs Of
the city and the reduction Of the rates
until they shall have become more ir
keeping with those Of other cities.
Yours truly,
L. N. CASE.
Duluth, Mimi, Mar. II, 1908.