Omaha daily bee., 1908-12-30
MAYORS VETO OVERRIDDEN
ALI But One Member Of Council TAX,
Side Against Him.
WATER BONDS ARE TO BE SOLD
City f. TO Pay Cost Of Testing Legality
of the Issue to Pay for the
Construction of the New
water Works system.

The city council in a specially called
session, last evening passed the resolutions
providing for the issuance of the $4,000
bonds for the construction OF the proposed
municipal water works plant and author
izing an appropriation of 500 to defray the
expense Of testing the legality of the issue
over the vetoes Of Mayor Maloney. Both
resolutions we're passed over the veto. by
a vote Of Z to /. Councilman Bellinger alone
voting to sustain the mayor.
Recognized as speaking for his commit
tee and the other members Of the council
who are advocating municipal ownership
Of the water works, Councilman Jensen,
chairman Of the committed on water works.
read the following statement when 1t came
his turn to vote on the question of sus-
tanning the mayors veto OF the resolution
providing for the issuance Of the bonds:
Statement by Jensen.
That we consider that 1t is the duty of
the city council to proceed with the ut
most diligence and dispatch In all matters
! pertaining to the construction of a munici-
pal waterworks system, to the end that
the will of a majority of the people of
Council Bluffs repeatedly expressed may
be carried out at the earliest possible mo-
nature should no longer be considered, but
that We should all work toward securing
for the city an adequate and clear supply
! of water for domestic and public use for
all our citizens.
/ That your committee on finance and your
committee on waterworks' TO whom was
referred the matter of supplying the plans
and specifications for a waterworks sys-
TEN and to provide the funds for the con-
struction of the system by the sale of
bonds, have after careful and thorough in
vestigation of all the facts and conditions
relative and pertaining to the building OF
a water plant, and providing the means to
meet the cost thereof, and your commit
tees being thoroughly in accord with the
wishes of the people for a speedy con-
cluslon of all matters in regard to the
building of q water plant, have come to
the conclusion that only through the I'M
mediate disposal of the bonds can anything
definite be accomplished, and that II would
be a waste Of valuable time and effort ana
a useless expense to again advertise Tor
bids for the construction of a water plant,
without first having made provision to
pay the cost thereof, judging from the past
that it would not result in any competitive
bids.
But your committees have the assurance
of our consulting engineers, who have had
many years experience in building munich
pal water plants, that as soon as the FUNDS
are actually provided Tor the puioihs on
tractors and engineers who make a spe-
cialty of Installing water plants and thus
secure competitive bids and THE lowest
price according to the prevailing market
? price of material and labor. .
THAT your committees have been told and
have reason to believe that no iif I'm OF con- "a
waterworks system in view or a posslple
rising market, knowing that the city
a contract for an Indefinite period of time
after the bids were opened, that is untl
after the bonds had been Offered Tor saIe,
the validity Of the issue passed upon aho
the funds actually in the hands OF the
That part of the mayors veto message
referring to the engraving OF the ponus
does not seem to have any application. Inc
resolution does, not compel the. city TO nave
the, bonds engraved only G KIN he sn or,n nttsSd
thereon, but in any case the cost of en-
craving the bonds must be paid by the
FOR! II the purchasers OF the bonds are
compelled to- have the bonds engraved tne
bids for the bonds will necessarily pc iess
than II the bonds were furnished by the
That the objection to disposing, of the
bonds boz sas at Private me seIs Is S y Se that the
bonds may be sold at private or pubic
sale, and does not direct they shall be
mittee will no doubt ascertain which
method will be the most advantageous TO
Not All Issued at Once.
We do not understand that the finance
/ committee contemplates that all the bonds
shall be disposed of at once, and thus
compel the city to pay interest on the
that the Bonds shall be disposed of at
such time and in such amounts as may
seem necessary to carry on the work of
construction. 1t is necessary at this time
10 provide for the cost of plans, spsci-
fications, estimates and details. in fact for
all the expenses Incidental to the pre-
liminary work Of building a water plant
and at the same time secure an opinion
Is to the validity of the entire bond issue
as it is apparent that If the 1000 or 500
Of these bonds are legal the rest of the
issue is also legal.
1t is not necessary to issue the entire
amount of the s6O0,UO0 of water works
bonds, If after the contract has been
awarded II is found that the whole amount
rs not required, II Is not necessary "a
dispose of them. and the bonds do not
|, draw any interest while In the hands OF
the city treasurer, the interest starting
only on the delivery of the bonds to a pur-
5 chaser.
The amount of interest that the bond,
will bring to the purchasers Is not fixed
by the per cent of interest printed on the
. bonds or coupons, but is regulated by the
market price OF money at the time the
bond Is negotiated, and the desirability oil
the bond as TO length of time and the
security back of II, thus, a 8 per cent bond
: will bring a larger premium than a ~
> per cent bond would. ] do not know q
9 any municipal 3 per cent bonds being SOLD
at par as suggested by the mayors mes
, sage.
d We cannot regard that portion of tn,
. mayors message referring TO the interes
= on the bonds as being an argument agains
' the passing of the resolution now unde
consideration by the council, but rather a
an, argumen against the building of a waite
Y plant by the city, as 1t is we'll known tina
, bonds can not be sold without paying in
q terest thereon, and that such interest mus
+ come out of the bonds themselves until tn,
plant is in operation; II is also well known
that il is not possible to construct a plan
. of this size and not make any paymen
: thereon until IL is completed. and were 1
: possible TO make such an arrangement witt
"A contractor he would no doubt charge tn,
city a much greater rate of interest OF
The money he had invested in the plan
than the city will have TO pay on the bonds
This item of interest during construction
; was taken into consideration by the waite
works committee in making its estimate o
the cost OF the plant.
Had your on water works rea
son to believe that we had the hearty co
operation OF the mayor In our efforts L
provide a suitable water supply system 70
the city, we would no doubt be glad L
consult with the chief executive of the cit,
in a matter of such Importance to all on
people, but inasmuch as the mayor an
%nounces through the press that he woul
l. oppose anv attempt by the council to issu
: these bonds, and made that statement with
out consulting the city council or the mem