Bisbee daily review., 1909-09-21
DOUGLAS SHOULD PROFIT FROM
 LOS ANGELES
No Delay Should Occur in vot- ing the High School Bonds On Account of Increasing Rate of interest
DOUGLAS. Sept. 2O.-(special.) )--

 A lesson for Douglas. particularly appropriate at this time, Is contain ed in a news story which comes from Los Angeles. It comes fin the way of timely warning. It should be considered by the taxpayers when they cast their ballots on the ques- ton of a municipally owned water plant.
 Some time since the city of Los Angeles voted to issue $720,000 or school bonds and several bids were received for them at the low rate ot four per cent interest per annum But some of the people of Los Ange- les and some of the newspapers op- posed the issue, fought 1t and took it into the courts. Thus the sale or the s72O,OOO four per cent bonds was prevented at that time and the pro posed purchasers were freed from their bids. Now the issue has been declared legal and the ponds have been again offered for sale at the same rate but at this time, instead of there being rush for the bonds. as there was before, not a single bId has been received Financiers are suggesting re-offering at four and one half per cent and this may have to be done. though another attempt will be made to float them at four per cent before this is done.
 The facts of the matter are that a few months or even a few weeks ago there were not the financial con ditions that exist today. The period of conservatism had not ended and the investor was willing to take 2 lower rate of interest for stability Of investment than he is ready to take now. Business conditions have changed ia the past few weeks and while dealer could have taken those bonds at par at that time and disposed of them to the investing public at a 3.eo basis now they would have to go direct to some f. nancial institution.
 The case in Douglas is similar. A splendid bid has been received for the city bonds for the purchase ot the water plant, provided it shall be endorsed by the taxpayers. It may be years before such another offer can be obtained. The era of depres- sion has ended and one of prosperl- ty, general the country over is at hand, which means higher rates for the money which business expansion will demand. This means the lack of such opportunities as were offered when the bids were put in for the Douglas bonds. It means that If the proposition to purchase a water were taken up and adopted a year or two hence that the rate of interest on the bonds, issued at that future time might be much higher than the one already obtained That is equiv alent to paying a higher price for the plant since it would enhance the interest payment each year just so much.
 In addition to this the city is con stantly growing and expanding so that it is doubtful, more than this It is improbable, that the plant now of fered could ever be obtained again at the same figures This would mean still greater original cost as we'll as an added rate of interest ana would materially increase the am ount which it would be necessary for a municipally owned plant to produce to meet the interest on the bonds and to establish the sinking fund for their ultimate payment.
 The lesson seems, therefore, to be clear. Douglas now has an opportn nity to purchase a water plant at s lower price than she will have again and in addition to this she can os tain the money for the purchase now at lower rates than will probably be possible for several years to come.
 With these facts before the tax payers they will hardly hesitate to take advantage of present opportuui ties