Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1915-05-21
MUNICIPAL LIGHTING
/. PLANT BONDS SOLD
Will Start Work on Building in
Short Order, Say the City
Aldermen.
WITHIN 2 WEEKS, REPORT
Mainly Through Efforts of
Rhodes That Bond Brokers
Accepted Issue for Plant.
WITHIN 2 WEEKS, REPORT

Bonds for the proposed munlc1pal
electric light, heat and power plant
have been accepted by the A. B.
Leach and J d. Everitt concerns
They will be delivered and the money
turned over to the city as soon as
conditions involved have been ac-
cepted by the city. The new cleo
trio plant will be erected on the for
mer water works site in upper Smith
street and the work will be started
within the next two weeks, according
to present plans.
1t was mainly through the efforts
of City Treasurer James A. Rhodes
that the bonds were accepted yester-
day afternoon by A. B. Leach & Com
pany and ]. D. Everitt & Company,
the highest bidders. The acceptance
was made and agreement given in
writing upon condition that the mon
ey be deposited in the Orange Ma
tional Bank without interest to the
city and then to be drawn out upon
authorized engineers certificates as
1t may be needed to pay contractors
for the work,
The bonds are to obtain $150,000
for the construction of complete
plant and equipment here. They are
to run for fifty years and bear inter
est at the rate of four and half
per cent. year. The Leach and
Everitt firms offered premium OF
4,156 upon them and this will not
be lost by the conditions under which
they were accepted, but the city will
lose some interest money which could
have been acquired If the money was
turned over to the city to deposit as
1t saw fit before paying it to con-
tractors, according to City Treasurer
Rhodes A ma jority of the aldermen
expressed satisfaction over the lat
est turn of affairs today and they
felt certain now that the work would
progress without further hitch. Pos
sfbilities of a writ of certIorarf or an
injunction being issued restraining
the city from proceeding, were held
to be unlikely.
In accordance with action taken at
an adjourned meeting of the Board
of Aldermen Wednesday night, City
Treasurer Rhodes and City Attorney
Andrew J. Wight went to the offices
of the Leach and Everitt concerns in
New York yesterday. They first con-
ferred with the Eyeritt interests. Mr..
Rhodes acted as spokesman for the
city and he Informed the bond
brokers that the city was not inclined
TO fight, either by means of a lawsuit
or otherwise, and he told the brokers
that II they really wanted 1t, the city
would return a certified check which
is on deposit here. By using tact and
avoiding any antagonism, it is be-
lieved Mr. Rhodes succeeded in get
ting the brokers to favor the city.
Promise to have something done in
behalf of the city was made and a
further conference followed at the
offices of Leach & Company. A two-
hour conference was held there and
the brokers then agreed to let the
city have the money, despite the poor
condition of the financial market.
The conditions of acceptance were
that the s150,000 be turned over to-
gether with the premium originally
estimated, provided that it would be
deposited Immediately in the Orange
National Bank without interest to the
city, to be drawn against as the city
needs it for the plant construction,
upon submission of proper certifi-
Gates of the consulting engineers in
charge. These terms were agreeable
to the city's representatives. They
were placed in writing and will be
put up for acceptance or rejection at
the adjourned meeting of the Board
of Aldermen Monday night.
Through the loss of interest on the
money during the time 1t Is on de-
pOSit the bond brokers will get back
some of the money which they might
lose in the premium. Mr.. Rhodes
stated today. The interest may
amount to about $4,000.
Under an agreement reached be-
tween the aldermen, the electric
plant will be erected on the former
water works site in upper Smith
street 1t will occupy but small
portion of the land. according to Al
derman F. William Hilker.