The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-01-05
City Water Department in Ex-
ceHent Financial Condition.
Will Be Able to Meet Bonds
When They Fall Due.
TO Be NO REDUCTION IN RATES
NewIand Does Not Contemplate
Cheaper Water.
The Mayor Agrees That 1t
Would Be Poor Business.

Don't begin spending your money
for Injuries on the strength of the
saving you expect to make because of
any promised reduction in city water
rates
BECAUSE: First-Frank NJ. Newland,
waterworks commissioner, says he
hasn't promised any reduction in
rates Second-He declared today that
he had no means of knowing yet
whether the earnings of the water de-
partment would justify any decrease.
Third-He stated that there is some
thing to the principle of paying debts
before cutting price, and fourth-the
mayor and a good part of the city
commission are opposed to any reduc-
ton with a bonded indebtedness OF
s62O,DO0 hanging over the city water
department
All of these facts appear to argue
against any cut in the price of water
at present.
in rates" said Mr.. Newland today. 4
would be foolish to promise some
thing 1 had no means of knowing l
could do. There is always more or
less agitation for lower water rates
although water is the cheapest COM
modify we have. The city waterworks
is i'm excellent financial condition but
we do not yet know even what the
earnings have been for 1915. 1 made
trouble for myself once by promising
a reduction in rates and 1 do not in
tend. to bring down another ava
lanche."
The Mayor Opposes 1t.
Mayor ]. L. House said this morn
ing that, while the water department
is under the Jurisdiction of Mr. New
land. he, the mayor, was opposed to
any reduction in rates with the bond
ed Indebtedness as it now is.
Il don't know that Mr.. Newland is
planning any reduction" he said, but
it is my opinion that it would be much
better business to pay off the indebt-
edness against the department than to
make a few cents cut in the water bill
of each user in the city. The average
business man who owes a note draw
ing Interest pays the note off before
he begins to salt down money in
non-interest drawing account
The total bonded Indebtedness OF
the city waterworks is 100000 and
$270.OO0 of this amount falls due in
1929. The remainder falls due at the
same time but the plan is to refund
these latter bonds and pay interest on
them for another period OF years. The
department now has in its sinking
fund a total of $143.249.57 towards
the payment of the issue of 100000.
The sinking fund is created by setting
aside $12, 400 each year. There is now
+ in the general fund or the water COM
I pany S32,SSS.41 and application has
been made for bonds 10 the amount of
! 100000 There will be left, after 9TH
or expenses are jaid, about $4,000 in
the general fund.
One Never Can Tell.
There is no means of knowing when
something will hit the water depart
ment requiring the expenditure of a
big amount of money for repairs. That
is the bugaboo of the department
That is the reason the price of water
is not put down to the actual cost of
operating the department plus the
amoHnt PAID on the outstanding bonds
each year.
The department would be foolish"
said Commissioner Newland, ito cut
the price to the bone and take a
chance of having to meet some big eX-
penditure for repairs with an empty
. pocketbook. We don't want any
( bankrupt waterworks on our hands
naturally, my desire is to furnish
water to the people of Topeka at the
/ lowest possible figure. BY that 1 mean
tho lowest possible figure consistent
WITH good business. We must meet
+ these bonds and we must lay aside
money for possible repairs. When
II that5fs done and there is still a good
surplus on hand will be plenty of time
to talk about a cut in the water rates"
When Mr.. Newland first became
city commissioner he thought he saw