Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-03-24

he drawn: The most authentic fig |
ures are contained in the largest gov
eminent publication showing condi- !
tions down to 1914, Cities having a !
population under 30 900 were not tah-
ulated hut as to cities between $4,000 !
and $4,000 inhabitants X appears |
there were then fifly-eight munich |
pally owned plants TO twenty-five In |
private hands, many Of these being
plants where long time franchises ex-
listed having still a considerable period |
TO run.
The value Of municipal plants is
usually measured by the bonded IN
dehtedness. that generally represents
ing their cost. These flftN-elght mn-
nicipally owned plants had a bonded
Indebtedness Of S81,14l,6S4 their
total income during that period was
S6,323,l5S, substantially twenty per
cent computed ON their bonded in
deltedness their operating expenses
during the same period was S2,9i2,-
047. considerably ISIS than fifty per
cent OF their earnings, leaving their
net annual earnings at substantially
ten per cent of their bonded indebt-
edness.
From a leading bond expert We
procured the following figures COW
ering eight plants in Illinois and WIS
'cOnsin which were taken over by the
respective municipalities during the
past few years. The average pupula-
ton of these cities was 2Q,500; the
average gross earnings of the private
CompalIies at the time the plants
were taken over were S43, 500, and the
average purchase price of the prop
critics by the cities SS1S,000. In seven
out OF the eight plants there VAS an
immediate reduction of the private
rates amounting TO twelve per cent
anda decrease IN the eighth case ae-
companied by an increase Of city rem
tails made on order of the public serV-
ice commission who held that the pro
portionate rates to the city and the
individuals were unjust.
Local Application.
Comparing these cities with Albu-
querque il will be seen that with
substantially the same population we
are paving twice the amount for our
water that those cities paid under
private ownership aud notwithstand-
Ing the subsequent reductions OF rates
under municipal ownership in those
cities their plants still earn all oper-
ating expenses, interest, depreciation
and the necessary linking fund.
Kenosha one Of these cities. men
toned by Or Farr greatly reduced
its rate and paid for It's entire cost
in fifteen years out of its net earn
ings Some Of these cities had 10
conduct their water considerable dis
tance and 90 to quite heavy expense
to secure the proper pressure, Alhll-
guarque is located over apparently an
unlimited water supply and has an
elevated mesa right within her hur-
ders to get the proper pressure from
reservoirs, those conditions are sub
stantially ideal here.
If these statistics are reliable. and
they appear to be they would seem
ia leave little question as to our pro-
per course on the present situation
The.tax payers of Albuquerque Will
at the coming election, vote ON the
proposition to place In the hands of
the city council the power to issue
100000 of bonds, or so much there
Of as shall be necessary to build or
purchase a system of water works.
Under this ordinance, If adopted. the
council must necessarily determine
how much should lac issued, They
could decide that 200 was suffice
lent or could issue the entire amount
In effect they are given power to pur-
chase, if they so determine.
Bond Election Necessary.
Under the constitution. a bond Is
sue must he voted on at Il regular
election for choosing city officers. The
next election for that purpose will be
two years hence. It would then he
too late to issue bonds and commence
the construction of u system, If that
were decided on, before the expiration
of the present franchise. In this con
dition of affairs, even If we doubted
the wisdom Of municipal ownership,
1t would seem to be common business
sense to place in the hands OF the
eity's governing body the power t.
buy or build a system. if for no other
purpose than to put them in position
tn deal on an independent basis WIN
the present water company or with
any new company that Will offer 4
franchise with equal guarantees on
/ better terms,
Should we desire hereafter to grant
1 IIdHtHlst, A'llllltU NhhHf Atf'o "
that if the city officers have neither
power nor means to buy or build d
water works. the terms the old com
pany will offer will be very different
from those that could be secured II
the city was amply endowed with the
power to protect Itself The passage
of this bond ordinance us proposed
will place that power in the hands OF
the city council
The only argument against this
would be thai the council will be
composed Of collection of ineompe-
tent imbociles or dishonest grafterf
who will make use Of that power for
their own advantage or to the city :
injury If we believe the latter prop
osition we had better commence by
disincorporating the city at once and
placing its government in the hanus
of the water company direct or 1T
! s,,nora honest than thou" supu0rtpfs