Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-18
SUBMIT WATER
SUPPLY PLANS.
Continued from First PaEe)

vision must be made for paying OF
TIM bonds which will be given to tn 4
New Jersey General Security Company
on account of the purchase.
1T is therefore proposed thai IN
the operation of the WORKS there sii ~
he SET aside seven per cent. upon the
total valuation of each of the units
of the properties from earnings te
nav the interest on all the bonds ana
redeem so much of the bonds given
TO the company so far as this amount
will allow, and from the balance u
tha earnings, to make such eXten-
tions and improvements to each prop
erty as may be necessary, ana theh 70
apply what may be left 10 returns
further bonds given to the COMPANY,
becoming a separate account of eacn
of these transactions in a similar SUD,
division as is now done by the sew.
eral companies.
"Second-Another method of pro.
eedure, which would be contingent
upon the cooperation of Paterson,
Passaic and Montclair, would be TOT
these three cities to at once advance
sufficient funds to the commission,
which funds would be credited agalilse
the purchase of their distributor
systems, to pay off one-hat OF the
bonds now proposed to be given 10
the company. If this amount were
distributed about in the proportion
of the securities which would be
chargeable against the three inter
ested municipalities, the amount 10 De
advanced would be: For Paterson,
$500. 600: Passaic. $4,000 Montclair,
100000. BY this arrangement th1
company would at once release TINS
commission from it's obligation TO
| Ill M unit and the
commission would then be in a posi-
ton to turn over the distribution sys3.
TENS in these several municipalities
for operation by the municipal au-
thorities, upon a basis of charge
for water taken which would be sui
fcient. in addition to the basic rate
for water, to pay the interest and
sinking fund on the bonds outstanding
against their respective portions OF
the plant.
Must Retain Employees.
THE commission desires, at this
time, TO make a definite statement
regarding the policy which 1t viii
adopt if the purchase of these prop
critics is contaminated. First ana
primarily that the operation of the
plant shall be conducted by the pres
ent employees and in the same bust
ness-lilxe manner as at present in the
interest of the municipalities sup
piled; that it believes and has been
assured, that the operation in this
manner would Immediately produce
greater revenue in the operation or
/ the companies than now shown by
! the appraisal, for the reason that the
payment for diversion of water. which
] has heretofore been somewhat of an
arbitrary charge. will be very much
reduced, that the overhead charges
of the several companies, such as
salaries of officers, will be eliminated
and that a benefit to the interested
municipalities will result from the
/ application of earnings. which now
are distributed to stockholders to the
reduction of bonded Indebtedness.
! Also the commission believes that at
an early date contracts can be nego-
/ tiated with the city of Jersey City
and Newark for the furnishing Of
/ temporary supplies of water to help
out these cities during times of short
| age. which will be material items OF
income and which can be applied to
| the further reduction of bonded in
debtedness. The question as to the
rate at which water can be supplied
to the several municipalities in cas-
they should advance the suggested
/ cash on account of their distributive
{
ter of contract with each of the sew
eral municipalities.
/ 1T is, however, pertinent to say
! that any arrangement made would be
at a rate which would enable the re-
spective municipalities to furnish
water to the individual takers at
! least at as low a figure as it is now
I being furnished by the several COM
panies, and profits received by the
I commit cinf, from such tinT1 Os
| the several units of the plant will be
credited as herein suggested and APP
/ piled to the reduction of outstanding
obligations upon such portions of the
| plant, so that each separate part OF
the system may then receive credits
in proportion to the earnings of such
part of the system from which il Is
supplied and which will eventually
| be owned by the municipality In
which tits located.
"The details of the appraisal of the
| properties are on file in the office of
the commission at Trenton and in the
office of the consulting engineer,
Morris r. Sherrerd, in the City Hall.
| Newark, n. j., where representatives
| of the interested municipalities may
| obtain any desired information re-
garding the same. No attempt has
! been made to exactly distribute the
! appraisal on the several municipali-
/ ties or units of the plant for the pur-
| pose of arriving at what the several
should pay. either for water or for
! its portionsof the distribution system,
on account of the stipulation made
| by the New Jersey General Security
Company, as herein set forth. The
several communities to whom this
letter is addressed are, however, re-
specially asked to send representa-
tives to the hearing to be held in
Paterson City Hall at p. m. on
! April 8, with authority to express the
attitude of your municipality regard
! ing the ACCESSIBILITY of the taking over
of the properties and operating the
same as a whole by the State, on one
or the other Of the plans of operation
| herein outlined"