Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-11-01
OWNING The WATER
WORKS At ATLANTIC
An Erroneous Impression Gain
ed By Reports of the Sit
uation There
is OPERATED At A PROFIT
City Bought the Water Works After
Operating Under a Lease Which
Proved Profitable--EIectric Plant
Also Operated by the City-lnspect-
ing City Accounts.
to rimes-Rep1blican

SDSCl9l 10
Des Moines, Nov 1.-The results OF
the inspection of the accounts of the
city of Atlantic by the inspectors from
the office of the state auditor is likely
to prove one of the most important re-
ports made under the new law, for the
reason that it is the first perfectly re-
liable report on the workings of a mu-
nicipally owned electric and water
works plant. Students of municipal
problems everywhere in the state will
make a careful study Of the report that
has been made for this reason. That
city has been operating the waterworks
plant for some years under lease.
and operated it at a profit 10 the city
that the saving was such that 1t was
no more than business principle to buy
the plant. and so it did so, tho it had
to circuinvent the law to do 1t. The
electric light plant has been owned for
longer time, and every year shows
gain in the receipts over the diSburSe-
ments, and an Increase in the amount
of the cash balance carried over in
spite of the fact that $4,000 was trans
ferred in one sum in one year to the
waterworks fund to help pay for the
waterworks plant.
The actual figures of the state in
spector on file with the state auditor
show that for the period from April Is.
1901. to Sept. %, 1906, that the
receipts from the plant were $SS,667.3o,
which amount allows nothing for the
street lights and the expenditures for
the same time less the $4,000 Illegally
transferred to the waterworks fund,
was $91,761.35 The city therefore got
it's streets lighted for a cost of $3,-
oa4.S2 for period of five years and
five months. The city aid, however.
receive in electric light taxes for that
period the sum of $12,4O034.
But this does not tell the whole
story. April Is, 1901, the city had cash
on hand $5,67S.46 in The electric light
fund. The city had ON Sept. 25, 1906
in the electric light fund, the sum of
$9,4s224, and this, with the $4,000 IL
legally transferred to the waterworks
fund, makes a total of $12.4 or
more than the total taxes received by
the city for that fund, so in any event
the city has operated the electric light
plant for five years and half in such a
business like manner that the streets
and it's own public buildings have
been lighted for nothing.
The water works plant n1Skes even j
better showing. The income from the
water rentals and other sources of rev.
enue from operating the plant since
April Is, 1901, down to September %
1906, was $53,207.04 and the eXpendi-
lures including an item of $3,970.5s in
$5,64742 interest on stock. but not in
Guiding $S7,5OO paid on the purchase
price of the plant is $40, 9,062.06. showing
an increase of receipts over eXpendi-
lures with the large number of water
hydrants for fire protection and the
water for city buildings absolutely
free.
According to the report of City Ac-
count Inspector Pennell on the ac-
counts of the city Of Fort Madison
that city has been the. recipient of q
very large and brilliant gold brick
and has been handing down the gold
brick from generation to generation
and seems disposed to continue hand
ing it down for generations to come
The term gold brick" is the term that
Inspector Pennen applies to the $120,-
600 of bonds that the city was induced
to tax itself back in the "fifties' to in
t, h,,i15 limo To he
city that was never built.
The report says that the city's legal
indebtedness is exceeded by a consid-
cradle sum but that the fault does not
lie with the present city council or
their immediate predecessors, but with
their grandfathers. 1t then tells of the
vote of the people to issuse $4,000
in bonds for the purpose of persuadfne
railroad to come to the city. TIE
railroad never came but the city has
continued all this time to pay the in
terest on those bonds. The bonds are
supposed to be held by innocent pur-
chasers and the persons who gol6
bricked the city We're never captured
and punished, and the statute of limi-
taticn has now probably run. The city
of Fort Madison goes serenely on from
wear to year paying the interest or
$4,000. At 4 per cent the interest in
fifty years would amount to $240,000
or twice what the principle is.
According to the inspector the city
shows no disposition to do anything
about the matter and 70 all lntents and
PURPOSES seems disposed to continue
paying the interest for another ffts
or one hundred years or at least Until
some generation of Fort Madison citf-
zens decides to throw off the "old man
of the sea- Outside of this bonded in
debtedness the city has am indebted
ness of S1S,922.56.
Aside from being gold bricked" the
state inspector found little wrong with
the mana cement Of the city. The city
clerk is complimented for the way he
has managed the affairs Of his office