Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1904-12-30

Perhaps the first in order is, VIVA
will happen should the town vci'
against the adoption Of the first article
ia the warningy
la that CASE the hew system either by
construction or purchas-. or both, viii l.,
owned by Fire District No. | ia ths
town of Brighton, which is really th'
village of Island Pond. The Legis.l.
ture was asked to grant charter Ia the
Fire District because there is uo villag,
corporation, aud il was feared owing t.
strong opposition by the Island Pond
Water Company that the town bill
which was already before the Hous,
might not pass. What happened wa,
that the Senate and House concurred in
the passage of both bills, which received
the signature of the Governor and both
became law.
What is proposed now is TO let the
town have the first chance to say
whether or not the people oatside the
village desire to have share in the
profits of the system. The village peo-
pie recognize the fact that their fellow
townsmen stood by them in the incep-
ton of the movement last summer. and
chat therefore they ought to be given
the opportunity to say whether or not
they still wish share in the system.
OF course there would be only one
answer to the question so far as the town
is concerned, if it were absolutely certain
that there would be profit without any
increase of taxation. Now the last will
depend upon the first So far it is plain.
If there is profit on the water plant
there will be no need of taxation to
support it. Let us see how this is.
The charter allows the town to bond
up to the sum of fifty thousand dollars,
not more. 1t is not expected that the
full sum will be needed, but in order
that there may be no question let us
take the $4,000 as a basis. We will
suppose that the town has issued bonds
for that amount upon which there is an
interest charge of 4%. 1t can easily be
shown from the number of water takers,
that the rate of twelve dollars year will
yield at least 1920. In addition the
town now pays over $500 for hydrants,
making at least $500 income, which
will pay the interest on the bonds, $4,000,
and provide surplus of $500. Out of
this at least $1,000 could be set aside
each year as a sinking fund to pay off
the principal when it becomes due, and
in the meantime invested at low rate
of interest. 1t is not an experiment, and
there is no guess work about it, but
what has actually taken place in many
towns and villages in this aud other
states. Fairhaven starting with a single
faucet rate of s., paid off over thirty
thousand dollars in twenty years, and
Barton got so much money at an IS
rate that they give discount of 33 and
one third per cent
Now in the face of all this does any
one suppose that there is going to be
any increase in our town taxes. Why
the bonds are to be issued to avoid that
very contingency, so that the property
may in few years pay for itself and
afterwards yield an income for the
town.
Now we shall he able to understand
that part of the section of the charter
which provides for the bonding of the
town and reads as follows: ain case it
ii. e. the town. shall neglect to provide
for the payment of the principal and
interest of said bonded indebtedness, as
the same shall become due and payable,
the commissioners shall forthwith and
without a vote of the town, assess
tax sufficient in sum to pay
the same, and cause the same to he
collected within sixty days, and the
money so collected shall be held and
used to pay the same, and for no other
purpose"
The clause quoted above, which will
be found essentially in all town charters
of a like character, is entirely to give
security to the bond holders. Some
times towns have been known to dc
queer things. You can never tell what
IA number of men comprising town
meeting will do under certain circum
stances. No doubt they all intend te
do the right thing, but opinions might
differ as to what that thing was, and Sc
some action might be taken that would
imperil the rights of the bondholdels
For instance, the town might use the
income of their aqueduct for curreD
expenses, or apply tito pay some othe
debt, and thus 'neglect to provide TO
the payment of the principal and in
terest of said bonded Indebtedness q,
the same shall become due and DaudJie,