The Caucasian. (Shreveport, La.) 1900-192?, 1911-10-03
A Letter from Mr.. Rives


proving the six-year contract with :
the Electric Light Company. The
basis of my reasons, as | have stat
ed time and again, and shall contin-
ne to do so, are that believe fully
90 per cent of our people want to
own both the electric light plant
and the water and sewer plant; but
if our credit does not permit OF us
doing both now, | am confident 70
per cent Of the 90 per cent want
the electric light plant subordinat-
ed to that Of the water works and
sewer system. Then the question
of our financial ability is at once
TO be considered. | being elected to-
look after the finances of the city,
consider it my duty to explain to
the taxpayer and show him the rea-
sons for The faith that is in me:
don't | know that a great many men
OF affairs are too busy to give these
matters the careful consideration
they wish to, but expect the men
whom they have hired to figure out
and inform them of the resultsY
And it does not take anyone with
more than ordinary intelligence
(which | know is all ! possess) to
know this of the average business
man.
It is possible that our city assess
ment may reach $i5,500000, giving
| us a borrowing capacity of $780,
o06 Deduct from This our outstand-
| ine bonds $4,000, and it leaves us
total of S93S,000. To every mer-
chant and business man, it is plain
| that we can mob borrow as bust
hess proposition up to the full limit
Icf our legal capacity. They know
that any bank will treat them just
/ as the banking world will us. Say a
/ merchant wants to borrow $4,000
from the bank; they ask him for a
statement, which he furnishes
showing him to be only worth $4,000.
lit is certain that he will not get the
| full loan of $1,000 1t is barely pos
Isible by paying an attractive rate
of interest he could borrow S4,750,
1but the conservative banker would
not lend anything like that amount.
IT seems clear, therefore, that the
lefty could not expect to borrow at
a reasonable rate of interest to the
full extent of the s9SS,OOO
| believe that every thoughtful
business man in Shreveport will ap-
lprove of my taking this conserva-
live course in planning for large ex-
penditures by the city, therefore,
| / have asked the Commercial Nat
ional Bank to write their New York
and Chicago correspondents on this
question, (the letters will appear
elsewhere and speak for them
selves hence it is very plain to me
that when we begin to issue bonds
in amounts that take US up close to
i our margin, it must be done with
| the view always in mind that our
credit will be impaired, but must
be only so much that the conserva-
tive bond buyers over the land will
mot want our bonds. Otherwise we
preclude this class and leave our
selves only TO the man who will de-
mend higher rates of interest, for
he's taking bonds beyond the limit
sci by the conservative fellow.
Now, | say to you Mr.. Taxpayer,
lit is not wise to calculate more than
lS per cent Of our total assessment
lof si5,500,0O0 to get what you can
actually borrow, namely Si,240,000.
Deduct from this our outstanding
be nds of 100000, which leaves US
only S67S.0OO TO build the electric
Hight plant and the water works in
addition. | think our people recog-
Inize the necessity of the enlarge
lment of our fire department and
Twill vote the $4,000 bonds asked
flor at the same election for the
electric light plant. This, of course.
will bring the amount down lower.
Following the request given us at
1.-THE mass meeting at the courthouse
scme wekes ago, presider over by
oul distinguished citizen, ex-Gov-
ernor Blanchard, Mr.. Mccullough,
commissioner of public utilities,
has employed a firm of engineers
from Kansas City to make the re-
lport asked for at that meeting. This
Twill be done as speedily as possible.
/ Our city negineer, Mr.. Geo. r.
Wilson, who has lived here all his
life, and has given the water and
sewer system of our city consider
able thought, believes the figures
to acquire the water and sewer sys-
tenn. and make the needed extern
sions OF the water and sewer mains
to all parts of Shreveport vii re-
Il