Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-03-14
Dill Mould Pass.

pose.
Dill Would Pass.
such bill could be passed with
out the sllg htest difficulty because II
would be 20 the interest OF every tax
payer in municipalities. and rs II
would apply only 10 municipalities,
there would be no special interests 70
oppose H.
III has Seen argued that under the
constitution II would he necessary 70
levy taxes TO pay interest. and create
q sinking fund, regardless Of whether
or not the money WAS in the city treas
ury for these purposes. This Is not
the Law. II the interest is paid and
the sinking fund created according to
law there will be no one to invoke the
aid Of the court to require the levy OF
a tax, and no court ever compelled
community to tax itself to raise money
which il has on hand and IS ready 10
pay.
Il think / can point out where your
figures are erroneous
You assume that $500, zoe in bonds
are necessary to acquire the plant.
Ten years ago. when the franchise OF
the company had thirteen years to
run. It offered Us plant to the city for
$500 900. In that valuation the unex-
plred part Of the franchise was in
eluded. viii | was advised at the time
was valued at 100000
Might Get II For Less
THE company claims II has made
Extensions and improvements costing
about $4,000 annually since that time
and estimates tho deterioration at
SO, 400 per annum The net better
ment therefore Of its physical value
has been $500 per year, or $4,000
for the ten years Assuming the price
OF ten years ago included the fran.
chise value OF 100000. the physical
value did not exceed then $4,000,
and it has been bettered now TO the
extent Of $50, 900. or a total now OF
see geo. But, asstne that the value
of the franchise was not considered
ten years ago. the present value of the
plant cannot now exceed the price Of
ten years ago $4,000, with tn net
betterments 10000 added or in
round numbers, 100000
III. then. the plant can be bough,
at $500 900 only that amount Of bonds
* necessary and per cent interest
thereon is $4,000.
THE water company's assessment
for this year M the city Is tlkI,000.
and IL will pay thereon ti,i9A34 city
taxes. instead Of $4,000 as stated by
yom The company pays other taxes
state and c0unty-but the city will
lose only Sl.lg{.3l If it should buy the
plant.
$4,000 for hydfants.
1T would require. therefore. $i6.-
goo to pay the interest and make up
The loss from taxes annually.
1t now pays $4,000 for hydrant
rentals annually out of general city
funds
The net Increase. therefore. for in
rest ana loss will BE Sc, 200 per an
mum. instead of ses,o0o as estimated
by you.
In addition, il would require only
|s7,500 per annum after five years for
the sinking fund, instead OF SEQ as
estimated by you.
The gross receipts Of the company
last year, including hydrant rentals.
were s5S,5f6. Deduct from this in
terest and loss, <iG.20a. and there is
Ia balance If sea- Deduct again
$1,000 for sinking fund. which be-
lievo should bc set aside from the first
year, and the balance Is then s5s. 00o.
Set aside for hetterment SIS. 000 annu-
|ally, and not To eNceed SIS geo for OPP
Grating expenses and there would then
remain net surplus of SIS 600 on the
basis Of the present rates. This can
I've given back 10 the people in reduced
water rates To the extent Of one-third
below what they now ara.