The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-07-22
Ogden News
office an Tweotv-EftN Stree.
Ogden, Wednesday, July p.
OGDEN WILL BUY
WATERW0RKS
Deal Closed for $155,4O
Cash for System Which Car
rieS 100000 in Bonds.

The voting of a 10 mill tax fy the OS-
den City council on Monday evening for
the purpose of constructing a water sys-
TEN, is of greater Importance to the in
habitants of this city than would appear
on the surface. Not only does this mean
that ogden is to have a municipal water
system. but it means that deal whereby
the city acquires control and ownership
of the system of the Ogden Waterworks
company is about to be contaminated
and within the week that this plant will
be under the control of the municipality.
This afternoon a special meeting of the
city council will be held to pass finally
on the PROPOSITION.
AT the meeting il is expected that the
necessary resolutions calling for a bond
election will be adopted and the question
will then be put up to the people whether
or not the city shall take up the $780, 900
outstanding bonds which are at present
drawing per cent and reissue them at
per cent, thus saving $1,000 year for
the city.
terms with the waterworks people for the
purchase of the system. Fifteen days
time was granted In which the final pa
pers were to be prepared and signed up.
The stipulated purchase price is $780, 400,
or less than one-half the amount for
which the system was offered for sale to
the city at the time of the municipal
ownership agitation during Glasmann's
low figure the company has a new fran
chise which has yet fifty years to run,
and which, 1t is believed, could readily
be disposed of at a much greater figure.
EccIes Is Charitable.
At the same time that the city began
to figure with the waterworks people
the Hartman people began to dicker for
the purchase of the plant. David Eccles
and those associated with him in the
ownership of the system favored the
city's purchasing the plant although the
price. they say. was less than one-half of
that offered by the other parties They
said they preferred the city, because they
believed the city would be best served.
and that 1t would be to the best interest
of the citizens of Ogden to have munich
pal ownership
The amount available under the pro-
visions of the constitution for the pur-
chase or construction of waterworks
system is sf71 1892, less 81. coo bond issue
for the sewer bonds. leaving a total of
$3.50 go. 32 This is in addition to the
amount raised by the 10 mill tax levy
amounting to Sl17.615.6S.
1t will be seen by this that the city
will have no trouble in raising the
amount named in the transaction. .r-
The most important point from citi-
GEMS standpoint is the question of voting
bonds in order that the waterworks issue
NAV be taken uD and Ogden City bonds
Issued instead. This bond issue is unlike
taxpayers of the city. At present the
bonds at 3 per cent cost $4,000 per an
mum, while the same amount issued on a
4 per cent basis will cost but $4,000 a
year, or a saving OF S4,Ooo annually 10 tne
city.
Argument for the Bonds.
II is further argued that ii is to the
ADVANTAGE of the people of Ogden to vote
the bonds for the reason that the earn
incs over and above the expense of, the
system. which VIII go INTO the eenerai
fund will he amply sufficient to warrant
the stock at par. II Is also commended
that the citv can operate the system
much more cheaply than the private cor
noration. One reason is that the ogden
Waterworks company pays yearly ap-
proximately 5000 in taxes on the prop
erty 1t paws an occupation tax of s.: 800
annually. The saving on the refundipg
of the bonds would be another AWO
saved and at the same time the CITY
would save S2.0S3.50 A year in hvdrant
rentals 1t is believed that on this basis
the system would easily pay for itself in
twenty-five years time. More than this.
IL is agreed that in seven years time, II
it is so desired. the warnings of the plant.
after paying all expenses and making ex-
tensions would be sufficient to wholly
wipe out the 100000 bond issue.
These bonds are not akin to any others
ever voted for the reason that the tax
payers will not be called upon to pay
any additional taxes, on account of the
, fact that the plant is more than self
sustaining and the interest on the bonds
will be paid from the earnings of the sys-
| tenn. IT is maintained then. that in vot-
| ing for the bond issue the people of Og-
| den will merely be voting on the point
whether or not the city shall pay or 4
per cent interest on the outstanding $780,
COO bonds. Those engineering the project
assert that they have reliable assurance
| that the bonds bearing per cent interest
can readily he disposed of.
| 1t is not the intention of the city to