The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-10-01

taken up with the bond. holders and
stockholders, and that he would adj
wise the city of the results of his
efforts.
"With the resusal of the bond
houses to advance funds upon the
special assessment warrants which
had been printed, came the recon-
mendation of these houses that the
city vote additional bonds for the
purpose of securing funds necessary
10 complete the purchase of the old
plant, and all new construction work
outside of the distribution system
proper, and that special assessments
be levied only to pay for the distribu-
tion system. 1t was pointed out that
the special assessment warrants
were to bear seven per cent inter-
est, while bonds could be issued for
six per cent, and a premium paid
therefor. 1t was also stated that
the first issue of bonds had sold
-sirable to make this change in the
character of the securities to be is
sued.
"The city commission, having
been foiled by the threatened litiga-
ton in its efforts to raise the money
Wy special assessment, was virtually
compelled to accept the proposal
that a second series of bonds be is
suedJ and jn accordance with that
proposal, the question of issuing
1926, 100000 additional bonds will be
submitted to the voters, at special
election to be held on October Is.
Extensions Under Way
"Since the purchase of the plant,
! construction work has progressed on
| the extensions to the system, and
] the contractors for this work also
have to be paid. Under the circum-
stances it is imperative that the city
be authorized to issue the additional
bonds to secure funds to complete
the purchase of the old plant and to
pay for the construction work upon
the extensions outside of the distri-
| button system proper. 1t is proposed
| that the distribution system will be
paid for by special assessment as
ordinarily planned. The. statute
under which special assessments
were to be made to pay for all parts
Of the system which could not be
paid out, Of the original bond issue,
has been lin force in this state for
number of years. A considerable
number of cities and villages of the
state have built their water works
system by means Of special assess
ments exclusively. The city commits
sioners, in proposing to issue add
tional bonds, have not abandoned the
position that they could legally have
issued special assessment warrants
instead, but it seemed to them the
better course to avoid the expense
and delay incident to litigation. In
view Of the more favorable interest
rate on the bonds, there also will be
considerable financial saving by
adopting that method Of financing
the enterprise SO far as is permissi-
BILE. The letter which threatened
the litigation was responsible for
the refusal of the bond houses to
complete their part of the agree
ment with the city.
"The question before the voters
is not merely: Shall the city issue
$235,OOO of additional bonds but it
is: Shall We own the water supply
of the city or shall it be permitted
to remain. in private, hands?" If the
voters of the city favor the complete
control of the city water supply,
thew must vote Yes. Otherwise we
shall be unable to complete the pur-
chase of the old system and to make
the necessary extensions"