Bisbee daily review., 1910-04-02
.EL PASO'S EXAMPLE AS
 APPLIED TO DOUGLAS
lpouglas InternationaIl

As Douglas is to have a munici paily owned water plant when cong ress shall consent to the bond issu required for payment for and in proyement of the existing plant. tn following statement as to the F Paso water company is of espeei al interest and is therefore repro duced.
 II. J. Simmons. general manager of the E. P. & S. W. railroad. and president of the International Water company. gave the early history of the company. He told Of how Dr. Davis and Bailey secured the fran chise and after expending about SSO. 900 quit and would not go ahead. MT. Mills. MT. Douglas and others who had gone in simply as friends 10 Dr. Davis then undertook to re- organize and carry on the work. They turned back into the company the shares they held and paid cash for the stock of the new organiza- tion
 Witness said that in the Beginning Dayis and Bailey sold their fran chise fo their company for the en- tire capital stock of s1.0ee.00 that when the reorganization took place ths new management recovered -94e, 900 shares and turned it back into the treasury. leaving 60.000 shares outstanding to represent the land on the Mesa and the work done there: that the outstanding 60.00o shares represented an actual cash expenditure on the Mesa of Ss0,430
 On the the original organization witness said that Dr. Davis had giy- en 100 shares each to Walter Doug las. C. E. Mills. Felix Martinez and four other men. so that they would serve as directors, and that Messrs. Douglas and Mills returned their shares to the company because they had not paid anything on them.
 Witness said the total outstanding stock at present consists of 705.374 shares. which were sold for s212.- O54 to the present stockholders; that the first issue Of bonds was sold at 30 cents and the second at 50 cents. i, Witness added that 10000 shares Of the outstanding stock was paid 10 Turney and Burges at 50 cents on their face value for legal services for two years and 2,o00 shares were paid to U. S. Stewart for his ser vices as fiscal agent In selling the bonds. There are still in the treas ury 2s4.e26 shares.
 Ia addition to the money paid for stock witness said the stockholders had loaned the company s9e. e.25o and guaranteed sl5,000 more. mak ling s114,250. Add to this the bond sale of s877 900 and 1t showed s803 | 304 in actual cash the present or
 ganization had put into the plant
 not counting loans they had made
 from their friends
 MT. Simmons testified that DO ex
 travagance had been practiced 1T
 the expenditures of this money. bu
 that it was spent under the direc ton of the most skilled and abl' management that could be secured r He said that outside of interest pal, : Ion bonds and one per cent divi
 dend every dollar of the company earnings in excess of the operatini : expenses had been put into tn betterment of the plant: that tn officers had not only not receives
 any compensation but had pail !. their own expenses in attending t
 the company's busoness-
 Witness said that the interes . bearing indebtedness of the conDan r amounted to s5s1. .0o0 and the nor interest bearing indebtedness [ : jss.olo.
 r Asked why the company did no