The Marshall republican., 1913-11-07

TO take out 100000 worth OF bonds,
which were sold at a discount OF
l5% SO that $4,000 in this case
was actually received and used by
the company. This was applied
first to the purchase OF the proper
ties at the aggregate price OF 500.
900 and the balance, or $4,000,
was to be applied to the immediate
betterment and extensions that were
urgently required.
The mortgage particularly stated
that the remaining $4,000 was to
be issued only when additional ex-
tensions or permanent betterments
were put into the properties and
then only TO the extent OF S5G OF
the actual money invested in the
property.
II vas the duty OF the Trustees
under the mortgage TO satisfy them
selves that the money had been ac-
tually spent In permanent invest
ment In the plant. and this they de-
termined after a careful cortification
and audit.
Mr.. Giichrist stated that the New
York people. who farmerly owned the
Marshall properties. have reported
to him that they paid In cash for
both the gas and electric properties.
which were very ANAL ut that time.
the sum OF 6 1900. and ut that time
a great deal OF money was required
for permanent improvements and
betterments. and to extend the lines
to reach a large number OF resi-
denccs In Marshall which had hith-
orto not been served by electricity.
That In they were allowed by the
Trustees to take out and sell a suf-
fcient number OF bonds to net them
$4,000 and OF this money $50 900.
M mentioned above, was used 10
purchase the plant n the balance
or $4,000 for permanent improve
ments and betterments.
In 1906 IL required 100000 In
face value OF bonds TO provide for
ss5. 300 In cash. II should be re-
WONDERED that In 1905. which was
shortly after the panic and money
was stiil high, Il was necessary TO
sell SCI bonds at u substantial dis
count and the above discount OF
i6cI which was given on these
bonds, was very reasonable for this
period.
This Is a commentary on the way
the bankers looked upon the opera
ton OF small electric light plants
In 1905. and II does not do to con-
slider that the ordinary city bond
rate OF SO is a fair criterion for
bonds based solely upon the value
of an electric light plant and It's
ability to make a profit.
The ordinary city bond. authoriz-
ed by the State to be sold for the
purpose OF building an electric light
plant. is moi a lien upon the plant
an such. but also upon all the prop
erty OF the city and In fact upon all
the property OF the tax payers. be-
cause should the electric light plant
fail to earn. the city will be called
upon to make up the deficit and II
the city has no surplus an additional
tax must be levied and, lths property
oypers viii pay fol,i Il In .thes aeass
MsummarySof' thsiaaiountefn ibl
ey ppt sipto 1.-THE propery by the
New York owners would therefore
be- ~ foiiowsl for both plants. be-
cause In all these calculations II
must be remembered that the
amounts quoted are not for the cleo
trio plant alone but for both the gas
and electric plants. In 1906 the
purchase price OF $4,000 was paid
out; and Immediate permanent
improvements and betterments we're
made 20 the extent Of the .amount OF
AIS 900; ~, 1900, bopds were issued
10 the extent or $4,000 which at
the s5% ratio would aindicsts I'm
|pyovements 70 the eStent OF si6,ooo;
|inf faot bonds wereS issued to the ex-
tent OF siS,5O0 showing in the
same way that improvements we're
made to the exten Of $4,000 In
that year; In 1905 bonds were is
sued to the extent OF $4,000 or upon
$500 Of improvements; In 1909
$1,000 worth OF bonds were issued
indicating $3.50 worth Of improve
msnts, in 1910 bonds were issued
to the extent OF $500 making the
complete issue Of $4,000 five
years after the mortgage was made
and showing In that year $7i6o wor-