The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1909-04-08
Water Warrant Scheme
Is Dangerous Business

Il appears now that the city will be able to
sen III $250.0OO OF special water warrants to
Tacoma wells and Clover creek.
But II 1t advisable?
The city this week has just sold 100000
e ofty securities for premium of $16,450. bear
tn0 only y per cent interest. Now the coun-
~ proposes to sell $250,000 more OF securities
for no premium and at per cent interest. 1t
doe not look like very good business.
This whole water warrant scheme was an
apparently jll-advised financial abortion. 1t was
gotten up to do something the administration was
afraid the people would not stand for II they had
I chance to express themselves. 1t always
claimed that q few thousands of dollars at most
would put the South Tacoma we'll plant in shape
~ slve this city all the water 1t needed.
When they came to do the Job, however,
They wanted t250.000, and contractors say this
estimate Ia too low. The administration was
afraid to go to the people with this scheme to
esk for bonds. so they got up this water war
xnnt plan. They proposed to issue 20-year war
5o1ts which In effect are bonds, to pay the bills.
This plan. according to the city attorneys. did
ut have to be submitted to the people.
Bat Il was such an unbusiness-like proceed
ur6 that none OF the bond buyers In the country
would have anything to do with 1t. Local banks
HAVE been juggling with the proposition several
weeks and finally on agreement of the city to
take the warrants back as collateral for deposit
o11eo the banks last night agreed to take the
warrants. providing interest at per cent Is paid
~. W seymour offered to take them at per
cent II he was paid per cent more for selling
Inc council last night tOlu tne SlHhinS iunu
commission to go ahead and place the warrants.
It looks like mighty poor piece of bust
ness
n this city can sell its bonds at " per cent
interest and get q big premium, why should 1t
issue warrants to run the same length OF time
and pay per cent interest and get NO premium?
II this water scheme is straight, why not take 1t
- the people and get authority to issue bonds
and get the benefit of low interest and premium!
On $25 Q, 000 bonds the city could get at
least $4,000 premium and interest at N per
cent would save $3.50 interest a year the first
year and almost as much succeeding years. In
20 years the saving in interest alone would be
fortune sufficient to erect fine public building
The bonds could be paid by special fund
created from water receipts just the same pa ~
= proposed to pay the warrants. epd the people
could get the benefit OF the lower interest and
nremfum which. under the present scheme. will
dmpy 20 into the pockets Of the bankers.
re seeuns to be expensive thing for city
% have Officials in power who will not trust
Ake|people. but who try to carry forward schemes
they are afraid the voters would not stand for
e submitted to them.
Il Is such things as this that makes the peo-
Re demand the recall public officials.
In the meantime the water consumers VIII
prubably have to go on paying abnormally high
utee for water to raise the cash to meet the high
lntorest on this unbusiness-like warrant scheme.