The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1915-12-23
The water Bond Issue.

LIE water 6ouQ Issue.
There seems to be a considerable
misunderstanding Of the action Of the
water commission in applying to the
city council for the issuance Of bonds
in the sum of $250,0O0 for the building
of the new water plant. This question
is not a financial question, but simply
one of methods. Under the organiza-
ton of the water company it could
railroad commission to issue nom
liability bonds for the entire cost of
the new plant, but such an issue would
not be the part of wisdom. Kenosha
has lot of municipal pockets and one
of them is the one from which the
support Of the water company comes.
The water company is self sustaining
1t is lot better than self sustaining
and there is every reason to believe
that it will continue to be an Garner of
profits. It is confronted with the
necessity of building modern plant.
This plant is going to cost $350,000.
Unlike most of the boards of the city
the water board has big start on the
payment of this great expenditure. In
fact it has profits to the amount of a
hundred thousand dollars which are
available for the work. Men who buy
bonds class them as industrials and
municipal bonds. They look on the lat
ter as having the strength Of Gibralter,
they look on the former with sort of
suspicion. This suspicion is commune
Gated to the men who ultimately buy
the bonds and for this reason the mar
ket for an industrial bond is not nearly
as steady as that for municipal bond.
With the credit Of a whole city behind
it bond at once takes a strength
which can not be given it by the state
ment of the earnings of an industrial
company This is the whole meat in
the argument in favor of the issuance
of a city bond to pay the cost of the
water plant rather than the issue of a
non-hability bond. The payment Of the
interest and the principal of the bond
! is not to be effected by the fact that
it is signed by the mayor and the city
clerk rather than the president of the
board of water commissioners. These
bonds are not to be burden on the
| taxpayers. The water rents are not to
be raised to meet their payment and
the city will not be asked to include
IN its budget any money that has not
I
already been included. 1t is admitted
by financial experts that city bond
can be sold for a whole per cent less
interest than bond against the water
plant In the twenty years that these
bonds are to run this will mean a
saving to the city of $4,000. Far be
it from us to recommend the extension
Of the credit of the city to the break
ing point, but the water issue is simply
business proposition and one which
the ordinarily prudent man can but
support. The water company will
annually from its profits meet the in
terest and principle of these bonds as
they come due, but the money will pass
through the hands of the city clerk.
| There is no easier way for the city to
make twenty-five thousand edollars
With the provision of the ten thousand
dollars for hydrant rental to be paid
over the term of years that the bonds
run, there will be no question as to the
ability of the water board to meet
every demand that is made upon it fo1
| the retirement of these loans