Arizona republican., 1911-03-11
COUNCIL
BUYS A SEWER
Phoenix Sewer 8 Drainage
Co. Sells System
PRICE OF PLANT $4,000
Municipality Assumes In
debtedness to that Amount
and Will Probably Pay
With Money Raised from
Sale of Sewer Bonds.

since D % CLOCK last evening the city
OF Phoenix has been the owner of J
sewer system. At that hour a con.
tract for the purchase of the plant ot
the Phoenix Sewer & Drainage com
pany was signed by Mayor Llovd r
Chrlsty and Recorder Frank Thonas
Tor the city. by President +. S. Lack
ana Secretary NJ 5 Foss for the
company \ few minutes before the
council had instructed the recorder
10 INFORM bond buying houses that
blds for $4,000 worth of sewer
bonds VIII be received up to the ev-
ening Of April 3. The recorder was
also instructed to notify l.. S. Ohm
steam of Los Angeles, the city's sew
er engineer, To be present at Monday
nights meeting of the council. At
that meeting call for bids for con-
structing a sewer covering that part
Of the city which cannot be served
Dy the old system, will probably be
issued
When the contract was signed the
city virtually took over the system
II was agreed that Avery Thompson.
superintendent of the water depart
ment, should be instructed to famil-
iarize himself with the sewer system
between now and the LIST of April.
when the city will formally take
Charge. In the meantime the COM
pany's hooks will be turned over To
Thompson and the April bills will be
sent frorn his office.
The arrangement entered into for
paying for the sewer system is only
temporary. In the contract the city
agrees to pay off the bonded in
debtedness OF the company as fast
as II comes due A deed is placed
in escrow with the Valley Bank and
as soon as the bonds are paid il is
turned over to the municipality. The
city has the option. however, of pay
ing all the bonds at any time il
pleases, though none fall due until
July /, 1911. 1t is believed that con-
Sress will soon grant permission for
the use of $4,000 of the money real
lied from the sale of sewer bonds
Tor the purchase of the present plant. !
In the remote event that that permis-
sion is not granted the system viii be |
paid for with the profits derived from |
he operation of the system The city |
will Immediately begin the collection |
IF monthly rentals and will apply |
hem to the purchase price until per-
mission is secured from congress to |
Jay for the property in full.
When news reached Phoenix that |
he house committee on territories, |
n the last congress- had failed to
eport favorably the bill permitting
he use of $4,000 of the funds raised
~ the sale of sewer bonds to buy
he old system, in accordance with !
he wishes of the people expressed
L an election held December 9. 1910.
President +. S. Lack of the company
ct about deVising some means of
making an immediate transfer of the
property to the city. He was assured
ersOnally by the mayor and coun-
linen that no reasonable offer
rould be refused, for they were an
ious to have the way cleared for the
rehersive sewer, such as is urgent
: required.
a din ectors' meeting and stock
olders' meeting was called by Mr..
.ack for yesterday. At the directors |
leeting "a contract was drawn up and
pproVed. Later it was given appro-
al by the stockholders and the ,
layOr was requested 30 call a special
.eeting u the council in order to
ispose of the matter at once and J
ermit Secretary Foss, who hau II
)me from Los Angeles especially on ,
lis business, to return home.
The council met at O'Clock; the
iayor Councilman Stauffer and
ouncilman Hackett being present
r. Lack and Mr.. Foss were also on
and Although it was the most i'm
)rtant meeting the council had had
II many months, no one excepting
ty officials and the two officers Off
lie company were present.
Recorder Thomas read the minutes
the directors and stockholders |
ceilings. and also a copy of the con- l
act The contract provides for the
king over of the system by the city Il
pril l, 1911. All the company's t
'Operty. excepting its real estate. \
included i'm the contract and the p
re of the sewer farm as an outfall s
permitted for ten years without a
arge The city is bound not to c
ant sewer franchise to any other
rporation during that time.
The bonded indebtedness of the
mpany totals 100000 There are
0 bonds of $500 each. bearing six h
r cent interest. and all are held h
the Los Angeles Trust company II
lree bonds. amounting to 1880 fall Il
e July 1. 1913. and $4,000 is due o
the first days of January and Ii