The Birmingham age-herald., 1921-01-16

WHhe the Value or the plant, as fixed by the arbitrators. s65s, ,eS5-may seem high, the plant is now paying 10 per cent net on that valuation; that is, 10 per cent after paying operating expenses. includ- ing taxes and licenses. The city will not nave an opportunity to purchase at a less price.
 NET INCOME
 The net income of the plant has grown from $500 in 1904 to s5s 900 in 1919 and 1920 Will run close to S65 600 net income. The contract between the city and the Water company has fourteen Q4 years to run and the net income of the company has increased on an average of $3,50o per year Tor the fifteen Q5) years from 1904 to Eis, and with the expected growth of Bessemer for the next fourteen QD years until the contract expires it is not un- reasonable to presume lhat the income VIII continue to grow in the same ratio, which would give net income at the end of the fourteen dD years period of at least SlU,VoO based on tine present rates.
 RATE OF INTEREST
 Tt is true that per cent seems high rate of interest for the city to pay for tho money with which to purchase the plant, but, when you think Of the fact that Canadian and Angio-French securi- ties are selling on basis that pays 71h Jper cent to per cent, and other securi- ties in America are selling on the same basis, we will not be paying more than reasonable rate; furthermore, the bonds to be voted on and issued by the city for the purchase of the plant are callable at the end of ten Q0) years, and can be retired at that time, and after paying off such as the sinking fund will retire the remainder can be renewed at a less rate of interest, as no doubt by that time the money market will be back to normal n ho hnd hxr Aostx 5 to per cent.
 UNFAIR ARGUMENT G
 Can the city operate the plant as suc- cessfully and cheaply as it is now oper- ated? Any number of cities and towns in the country are now and have been operating such plants successfully and furnishing their people with water at a less rate than we are paying. and Bes- semer can do the same.
 The argument that the plant will not pc operated in business way is not fair; we have any number of good busi- ness men in Besserner who can and will operate this plant as . municipal plant on business basis, just as it is now operated. It can and should, and we be- heve will be operated under such a plan as will make it a success, and we believe the best plan would be to put it in charge of commission consisting of three, who will have absolute charge of the plant and it's operation.
 LOWERING OF RATES
 Can there be an adjustment or lower- ing of rates charged for water? Of course, one of the main, if not the main, purpose in purchasing the plant. by tho city Is to get reduction of water rates: while it may not be possible or best to dc this at once, there is no question that such reduction can be made in the near Efuture. and when the plant is paid for the rate can be reduced to less than half what it is now. There is no question but that certain inequalities which now exist can be adjusted at once, and within the next five years the rates reduced at least ten Q0) to twenty (2W per cent, and at the expiration of 10 years a fur. ther reduction of ten q0) to twenty (2o) per cent more can be made, and at least half of the bonds retired
 SAVING IN TAXES
 The saving in operating expenses that