The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1909-03-04
H. A. Baker Wants Information in
Regard to Organization and
Debts of Water Company
PLAN AS ORIGINALLY MADE
City Paying Eydrant Rental
and Plant Will be Clear
in Ten Years
(From Thursdays Daily

(frOm thursday S Daily
There seems to be considerable in.
terest in the affairs of the Kenosha
Water Works at the present time and
the Evenings News has received the
following letter from Howard A. Baker
in regard to the inception and manage
ment of the plant.
Kenosha, Wis, Feb. "a, 1909.
To the Editor
Kenosha Evening News,
Kenosha, Wis.,
Dear Sir
AS there has been considerable
discussion Of late regarding our CITY
Water Works, on various subjects and
schemes, such as improving the quality
OF water either by extending the in
take or installing fltering plant, the
purchase of additional pumping ma,
chlnery, the refunding of bonds, etc.,
and as the Evening News has taken an
active part in this discussion, editori.
ally, write you for point of informa-
ton, (Which if you have not at hand
can undoubtedly secure from the Water
Commission) with the request that you
publish my letter together with your
answer in some future issue of your
paper.
[ request publication for the reason
that L believe great many citizens
would like to, and should know more
about conditions surrounding our mum.
cipal undertakings.
My understanding is that the original
bonded Indebtedness of the Water
Works was $4,000, and that before
the promoter could float the bonds it
was necessary that they be guaranteed
by the city, both as to payment Of in
terest and ultimate retirement, which
was done by the City Council, agree
ing to pay the Northwestern Loan and
Trust Company as trustees for the bond
holders annually the sum Of $9,2O4.OO,
which has been done, and that this
money is taken from the general tax
fund of the city and considered as
hydrant rental. Am L correct9
Also has any of the income of the
Water Works, over and above the
amount of this hydrant rental, been
used for the paying of interest on and
the retirement of bonds and if so in
what amount? Also what is the pres
ent bonded indebtedness of the Water
| Works?
Thanking you for an early reply, I
am,
Very truly yours,
Howard A. Baker,
416 Grover st.
In answer to the questions asked by
Mr.. Baker, it can be said:
The original planned cost of the
plant Of the Kenosha Water Company
was $4,000 which included the cree.
ton Of stand pipe at cost Of $4,000.
This stand pipe was not deemed neces-
sary with the opening Of the plant and
as it was not built the original cost of
the plant was but $117O0O The city
had no part in the building of the plant
or the purchase of the other water com,
panies. This was all done under the
direction Of a company headed by ), IL
liam III. Wheeler of Beloit.
The first move was the buying up of
the artesian systems at a cost Of $4,000.
This brought the entire cost of the
plant up to $4,000. The contractors
took the bonds in payment for the
| plant There were two issues of bonds,
one series Of first mortgage bonds
amounting to 100000 and the other
second mortgage bonds to the amount
Of $4,000. The artesian systems were
paid for with second mortgage bonds.
The city purchased the plant from the
Wheeler company subject to this in
debtedness and it was figured at the
time that the bonds could be paid off
in thirty years, principal and interest,
by the city paying a hydrant rental of
$9, 2O4 annually When the city took
over the plant in 1895 it paid $4,000
Of the Indebtedness at once which, of
course, will make the bonds pay out
sooner than originally planned. In
1903 the second mortgage bonds were
retired and in order to clean up this
issue the water commissioners paid
5000 out Of the receipts of the plant.
This small amount is the only sum paid
for the retirement of the bonds beyond
the money received from the city hyd-
rant rental. The number Of hydrants
maintained in the city for fire protec-
ton has been largely increased since
the original provision for the paying
of the bonds was made, but the annual
rental charge has not been increased
in any way.
The amount still owing on the first
mortgage bonds of the company on No
vember LIST, 1908 was $4,000 which,
under the present system of payment,
will be paid off in about ten years.