The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-08-12

ownership idea has come and made
good in Richmond.
No Graft.
One OF the chief arguments always
brought forward by those Who favor
monopolies OF the public service by
corporations instead OF municipal
ownership. is the entirely plausible
statement that public plant cannot
be built without graft. The proposed
plan concerning the Water Works
cannot be attacked along this line be-
cause it is already built. Moreover
the possibility OF graft in the opera
tons for the next twenty years is
precluded by the fact that the direct.
ors who represent the city will be
checked by the directors Of the COM
pany who would not sacrifice their
own profits.
Good Management Assured.
In fact this offers many Of the ad-
vantages which are found under
commission form Of government. In
this way the city actually secures as
good government and conduct Of its
water works business and plant as
Galveston and Dies Moines under their
most beneficial form Of government
which is conceded to be the highest
type of the conduct Of civic affairs
yet developed in America.
Cheaper Than Building.
Granted even that the city wanted
to build water works plant 1t could
scarcely find it possible to do so with
out raising the tax rate-issuing
bonds-getting far beyond its consti.
tutional Indebtedness. Gripping its
other improvements. The refund sys-
tenn saves all that-it ceases making
| municipal building a burden or an OBJ
ject OF controversy.
The refund system moreover is fair
to the company and to its stockhold-
ers.
The refunding system would be en-
inently fair to the stockholders OF the
Water Works company. giving them,
as 1t does, the very same return on
their money that they have had in
past years. and paying them back ev.
1
own figures. Viewed in this light, the
surplus to be divided equally at the
end Of twenty years is also very fair
to the company.
| Refunding the Plant.
The refunding Of the capital stock
and the bonded Indebtedness of the
company which seems such a miracle
at first glance is taken care Of by q
very simple but most effective little
problem in compound interest, com
pounded annually. This is done BY
taking what amounts to 1-5% of the
capital stock and the bonded indebt
edness and compromising the sum an
nually for twenty years at 40. And
four per cent Is a very conservative
percentage.
City Has Right to Buy.
There is no question of the fac
that the city has the right to buy OF
to become a stakeholder in the Water
works company Section 30, OF thu
water works ordinance Of the City o.
Richmond. distinctly states: The cit,
shall have the right, at any time. te
purchase the works at a fair yalua
ton. without bonus or per cent add
ed" The section goes on to set ou
IN detail the manner OF appraisemen
l-or II that fails. the manner of an
peal to the circuit court for appraise
ment.
Advantage Of the Plan.
The plan will meet with popular an
proval from many points of view. No
only will perpetual franchise be don,
away with. but-the city will at tn,
end OF twenty years own its ow,
plant. 1t will relieve the citizen from
the disaster OF a syndicate oppres
sion. 1t will not leave him at the mer
cy OF the Water Works Company I,
the matter of rates and all simila
questions. 1t will insure good busj
ness management of tie city's plan
and will amount to actual purchas
at the present time without raisin,
the tax rate, or even a suspicion O
graft in construction or manage
ment, thus putting the city on tn
nigh road to relief from corporate,
ACKNOWLEDGEMENT and toward the com
mission government of proved sue
cess at Galveston and Des Moines