The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-14
L|NOEMUTH GIVES
HIS EXPLANATION
OF CLIENTS BID
Attorney for E. M. Campfield
Says the Water Works
Franchise Proposal of Lat
ter Is a Fair One.
CONTINUED from Page One)

er 100000 Of stock will be preferred
stock and will be the sole voting and
participating stock OF the company. or
this amount the city shall take $50, 900
at par and the new water works COM
pany shall hold the remaining $780,
900 until the final contamination of the
purchase by the city. The money to
construct the plant will be raised by a
bond issue OF $775,O0O of so semi-an.
nual interest coupon gold bonds. which
with the $4,000 paid by the city in
purchase OF the $4,000 of preferred
stock will make $S25,O0O and equal to
the total amount OF common and pre-
ferred stock.
Although the city's interest will
be small for some time, she will
mt once have under this plan one.
fourth interest from the start and
have a representative on the Board of
Directors and will also have a one
fourth share In the profits which the
city can apply on It's annual payment.
The annual payment will be $3l 200
for % years, which In that time will
amount to S775,O00 or just equal to the
bond issue. The $31 900 will be paid
by the city into the hands OF the trust
company holding the $625,OOO of COM
mon stock. upon receipt OF which the
trust company will deliver to the city
'331, 900 par value OF the common
stock and with the funds take up and
cancel $31 900 OF the bonds, which will
be made to mature in that amount
each year.
Then Goes to City.
As, the $3l 900 paid by the city to
take up that amount of bonds Is ap-
piled on the principal or face of the
bonds. the interest payable semi-an-
nually will have to be paid by the wa
ter works company out of the profits
which will amount to $3S.750 the first
year and decrease annually to the
amount of so interest on the $31 900
paid off each year. When the entire
stock held by the company will be sur
rendered to the city and the entire
plant turned over to the city provid-
ing the city has put In all extensions
ut her own expense. II she has not
then the cost of all extensions made
during the period will be added to the
purchase price and the city will have
to pay for the same in cash or by
bonds or some other plan to be agreed
upon between the city and the COM
pany. AS the city will have one-fourth
OF the profits from the start and as
there will hardly be any extensions
for some years after the plant Is COM
pleted and as the income will no doubt
increase as the city grows, the city
will be more than able to take care
Of all extensions out of its one-fourth
profits. and, and have some over to
apply on its annual installments. II
the city cannot save enough out of its
present revenue very slight annual
tax would make up the necessary de-
ficiency. But, In addition to the city's
one-fourth share in the profits she
will have her saving of IS on each of
the $50 fire hydrants."
Probably on Thursday morning. the
bond that must be put up by the bid
ding companies will be considered by
the Board OF Works and fixed at
$4,000, according to City Attorney A.
NJ. Gardner. This Is the customary
bond, on a contract of this size.