The Corvallis times. (Corvallis, Or.) 1888-1909, 1905-03-01
AS TO WATER WORKS.
And Water Commission Something
About the Plan-Law not IN Eff
feet ti1l May.

ne people OF CORVALLIS stand
face to face with the question of
whether or not they want a noun
tain water system, and if so wheth-
er or not they want to build, and
operate their own mountain system.
They will have chance, unless
war, pestilence or other calamity
intervene, to vote on the subject
in the near future. The power
has been granted them by the leg
islature to issue $4,000 in water
bonds for the purpose of building
and maintaining a water system.
The bill creates a water commission
composed of ten citizens. This
committee is permanent body
with power to fill vacancies in its
own ranks by the election of a resi-
dent taxpayers. If the people in a
popular vote declare in favor of
public ownership and for the is
suance of water bonds, it is the
business of this committee to issue
the bonds and build the plant with
the proceeds. When the plant IS
built this committee creates a COM
mission of four taxpayers to whom
the water plant shall be turned ov-
er, and who shall operate and
maintain the system thereafter.
Not more than five members of the
water committee of ten, and not
more than two of the commission of
four, can be of the same faith po-
litically.
The bonds shall not bear to ex-
ceed six per cent interest as the
committee of 10 may direct. They
are to be made in denominations of
500 to 81 900. and it is believed
that the whole issue will be taken
locally. No better investment is
available. The interest rate is not
high, but the security is perfect,
so good that if the owner of bond
wants to borrow money temporarily
his bond is worth its face as col
lateral at any bank in the country,
Because they are always made to
bearer, and cannot be definitely To-
Gated, bonds are rarely found for
purposes of taxation, and payment
of taxes on them is generally avoid
ed. Money put in them is better
than if deposited in. bank because
it is just as safe, is equally avail
able, and it brings a good interest
besides.
For the first seven years only
enough money will be collected in
water chas9G to pay the running
expenses OF the plant and interest
At no time will more money be
collected than is required for pay
ment of interest, repairs, running
expenses and betterments. No at.
tempt can be made to exact water
rates that will yield profit. The
payment Of principal cannot begin
until the expiration of seven years
from the day the plant iscompleted.
Then three per cent of the origin
| al outstanding bond issue is pro-
vided for in the water rates, under
which regulation the entire out
standing bonded indebtedness will
be paid off in al 1-3 years from the
date the plant is completed. The
fund arising from the three per
cent shall be used to call in bonds
| the question of which bonds shall
be so called in, to be determined
by lot.
I The law authorizing the bond is
4 sue will not become effective until
May 18th, ninety days afte- ad.
journment of the Legislature. II
carried no emergency clause. It il
not probable however, that the wat
er committee will wait until the
18th of May without some kind ol
1 action. Much preliminary work
it is held, can be done. so. that
decks will be cleared for action
! when the right time comes. The
committee for instance, can form a
provisional or temporary organiza-
tion, and prepare bylaws and rules
for its own government. 1t can
enter into correspondence for gath.
ering materials, statistical and 9th.
erwise, of great value, all of which
can be done as we'll Under provis.
iona1 as under permanent organi.
zation. They can, for instance,
enter into an arrangement by which
| the city council can secure sur
vey of the proposed system. A
vital factor in the whole business
is a survey with estimates of what
the business is to cost. Until there
is such a survey. ,there can be nc
intelligent voting on the subjec
of a bond issue. It is necessary to
know beforehand with greatest ap
proximate accuracy, what the cos
| will he or if the system he uif1,ir