The San Francisco call., 1905-01-29

~ URING past week things occurred of interest to
business men and taxpayers The Harbo Commission in San
- negotiating for the sale OF the seawa bonds which
authorized by popular vote IN Novenber, went lar e6 %
Satisfactory shows that investors have confidence IN the
Commission These bonds do not rest on the credit OF the CITY or
State but based entirely the property they Will eat
y poprey bond issue 1t adds no burden to the
taxpayers 1t commercial convenience necessity tor
those who desire and to for its use and such users
will pay for the improvement by paying the bonds
The the decision of the Oakland City Council to
proposition bond that city for S55oooo tor
municipal plant be purchased OF corporation which CLAIMS
rights Santa Clara County Instead OF making these bonds
credit the be mortgage the property OF every
years The law requires the bonds be in lump
people will paying and sinking fund three for
water before they get drop they paid
the Bond interest 100000 before they get any They
also each for the sinking fund redeem annually
oneoe of the principal of the bonds This sinking fund will be-
the year S475o the second the third 165o
the three years OF S42o656.
The Oakland Council then by asking the people to vote upon
themselves debt of S55oooo buy plant that has
and from which is admitted drop be had for
asking them pay for that period without
any all of 100000 for and $2o66 for sink
Granting that the annual bill paid the Contra Costa during
that three will be S4ooooo S2ooooo tor the whole period
it will be that the Council asks the people to out water
for the three So65o This approaches fren
zied finance closely to be startling.
There ways avoid it. but both business
probably attractive city government One
the Contra Costa plant existing and operating supply
of water If the parties could not price the offer OF the
company accept should have been accepted This
would put city immediate possession of plant and
100000 which, the interest the people will
all 1t money thrown the But the Council refused
let the people pass upon the purchase OF the existing plant all
Why No why and the result that the people
asked themselves the three
that will take from their pockets So 3o65o
trying get plant while
leaving the field Everywhere results loss and
Such result obvious that Europe the law
that all private plants shall be bought before entering upon municipal
. ownership.
The way avoid this of large Of the
money by basng the bonds the plant alone In that
but the would interest principal
the bonds and they would until the plant dev
cred them fixed their for The Council without
explanation rejected both of these plans and adopted
from the people the three years total charge Of
$2.3Io65o:
Concurrenty with this remarkable exhibition of public fnan
taxpayers do pay penny principal interest and the
of the seawa who will pay them will pay penny until
the wall ready for their and then they will value received
their If the Oakland Council desires furnish
possible between grossly unbusineske methods
those that busnessike has succeeded We have prob
ably the loss at minimum for with the litigation pending
Santa Clara County taking the claimed by the
plant likely to be six than three years before the
municipal plant supply drop of water
Fhe Call has insisted upon carrying business principles
municipal socialism, have municipal socialism We have
insisted that plant be left the field with
municipal plant and that bonds issued for be based
alone be paid by those who Our readers will
in Oakand plight for insisting upon these things
They only consistent with public ownership of public u
ties absolutely necessary the people
protection al all under that policy.