Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-05-10
RECEIVERS FOR WATER PLANTS

The municipal water plant at Gallup
seems to have been wrongfully drag
ged into politics. The Herald of that
town takes occasion in attacking the
local opposition party, to allege that
recent legislative act is a detriment.
The comment IS as follows
zone Of the most infamous pieces
Of class legislation by the last repub-
lican legislature endangers the mu-
nicipal water systems, providing that
| if such business does not pay a profit
it must be sold and disposed of to
private profitecrs. The republican
gang had in view getting control of
the town board and then manipulating
the town water system in such a way
that it would not pay profit and
then turn it over TO a private concern
who could charge any price imagin-
able and make great profits there
from.
The way things now stand the
present town board could dispose Of
the town water system to their own
private profit and the people could
! do nothing to prevent it, Republicans
intend to do that very thing if they
ever get control of the town govern
ment"
The Herald is in error. Neither the
present town board nor its successor
could hope to make a grab and get
away with it. The newspaper is mis-
! informed about the purpose and work
I ing of the statute.
The law protects a town, its tax
payers and its creditors, if officials
allow a plant to become insolvent. Or
if the finances of the property are
misapplied. Neglect of duty incom-
potency, or disastrous management
can be checked under the legislative
provision, through action in court.
Some towns voted bond indebted
ness upon themselves to secure mu-
nicipal plants, but do not adhere to
agreements in the bonds. Do not pay
interest; do not keep the plants in
good repair; are not vigilant in col
! lectlng sufficient rates, and fail TO ac-
cumulate or preserve sinking funds
needed to pay Indebtedness at the
agreed time. In some cases sacred
sinking funds are used for other pur-
poses, in violation of law Taxpayers
who supply money to pay off the
bonds have an interest in seeing that
the money is not misapplied.
The law which the Herald scores
makes it possible for citizens or bond
holders to cd into court and secure \
receiver who would. as an officer of
the court. take temporary charge and
do things necessary to make a plant
pay, meet obligations and secure re-
suits.
Courts take such action when rail-
ways and other institutions fail
often a receiver, backed by court au-
thority and with power to raise quick
money, saves property from being
taken over by bondholders, or from
going to rack.
Judges do not permit collision be-
tween town boards and receivers, to
rob the people of a municipal plant
by wrecking methods and unneces-
sary sale The law protects investors
who often are widows and others de
pendent upon the interest on bonds,
for actual living. In many cases the
bonds are owned by savings banks,
and depositors would be hurt by de-
fault of towns.
Certainly if Gallup or any other
town defaults through inefficiency it
is good bye to any chance the mu-
nicipality may have had to sell more
bonds for any purpose.
The present law strengthens the
credit of towns desiring to raise funds,
and makes bonds sell better, because
direct and quick protection is guar
anteed through courts. ...> 10
Any party interested can secure
remedy by showing court need
I tHcIeOI. IL GOnulllOHS WARRANT lHt
action municipal plant can be taken
into the hands of the court and run
| according to the directions thereof
until obligations are met. Whenever
u town can show. that need of a re-
/ ceiver no longer exists the property
and management will be turned back.
The law is honest and sound. SO
are the courts. So are the people and
town officials generally. Rarely will
a court receiver be needed. and not
at all if the local officials are diligent
and handle the business well.
Local boards of either party will be
all the more careful through knowl-
edge that failure will result in sum-
mary action, when citizens or others
in interest have quick legal remedy
rat hand.
| 1t is said that if President Wilson