Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1921-02-08
BOND ELECTION
WILL BE CALLED
CITIZENS WILL BE ASKED TO
AUTHORIZE PUCHASE OF
LOCAL UTILITY
S50,O00 Is THE PRICE NAMED
Agreement Reached on All Important
Points OF the Transaction.

The citizens of Bonners Ferry will
soon have opportunity to decide
whether or not they wish to purchase
the plants OF the Bonner Wafer &
Light Co. Negotiations between the
city council and A. II. Featherstone
the owner of the Bonners Ferry util-
ity, have progressed to the point
where agreement exists on all i'm
portant features of the transaction. A
contract has been drawn and signed
by the local officials and is now in
the hands of Mr.. Featherstone, and as
soon as signed by him an election will
be called on the question of issuing
bonds sufficient to finance the deal.
The law provides that in case of a
bond election published notice of 30
days must be given. This will place
the date of the election on or about
the 18th of March.
The city council are naturally
pleased at the result of the negotia-
tions. When it was decided the best
interests of the town required either
the purchase of the present plants or
the building of new ones, the council
tAupiOStO tWO competent tnSlnttIo W
check over the local plants and give
the officials a fair figure on their
valuation. This was done and the
council decided to open negotiations
with Mr.. Featherstone. Mr.. Feather
stone was willing to sell and sub
mitted price of S75,00000. The city
considered this altogether too high
and offered instead $50,O00.0O, the
price recommended by the two engi-
neers as a fair one. Mr.. Featherstone
then offered to split the difference
and offered to sell for $62,500.00. but
the council stood pat on their original
figure, believing that would be all
they would be justified in paying for
the plants. Finally Mr.. Featherstone
agreed to sell for that price. In the
meantime the bond market had be-
come so unsettled that the council
were convinced it would be impossible
to dispose of city bonds at the rate
of interest allowed by law Conse-
Quently Mr.. Featherstone was told the
city officials felt it would be necessary
for him to accept the bonds of the city
If the purchase was authorized by the
voters. To this Mr. Featherstone con-
sented stipulating a 20-year six and
one-half per cent bond. Again the
city thought the rate of interest too
high and offered 20-year six per cent
bonds, to which Mr.. Featherstone
wired acceptance. This little differ
ence of one-half per cent means an
interest saving of $3.50 a year on
$4,000 and saving of no mean pro-
portions during the life of the issue.
That is the present status of the
negotiations. The city council met
Friday evening and discussed the
terms of the contract to be forwarded
to Mr. Featherstone for his signature
This has now gone forward and its
return is momentarily expected.
In conversation with numerous citi-
zens the Herald has heard nothing but
commentator of the city officials in
this matter. 1t is generally recog-
nlzed by the community that the
growth of the town has made neces-
aary better and more modern light and
water facilities. To secure this needed
improvement, it was necessary either
TO purchase and improve existing facil-
tiles or build new plants. After care
fully considering the local situation, il
was finally decided it would be much
wiser to purchase the present plants
and thereby eliminate competition. Q
1t has been pointed out further that
the present undertaking is much diff
ferent in every aspect from the bond
issues previously put through in Bon
ners Ferry Sewer and paving en-
terprises produce no financial returns
The purchase of a water and lighi
plant, however, will be a money earn
ing proposition from the minute 1t is
taken over by the city. A careful
computation of the present earnings
of the local utility has convinced the
city officials that sufficient revenue
will be provided to take care of al
interest charges and retire the bond:
as they come due. In other words
there will be no addition whatever
TO the local tax burden because of thi'
purchase. AS one citizen remarked t.
the Herald, What possible objection
can there be to the city owning iti
own plant with the citizens payint
their money into the city's funds in
stead of having it go into the pockets
of an outside corporation, especial.
when at the same time there will b.
no increase in taxation?" So far a
can now be ascertained, there is no
only no opposition to the present
move, but instead there appears to b
a positive sentiment in favor of tn
city owning its own water and ligh
plants.