The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-08-02
U. s. GRANTS
S126,OOOFO
SEWAGE PLANT
Sanitary Officials Ready to
Sell S31O,400 Bonds
for Work.
FEDERAL GIFT OUTRIGHT
Present Market Favorable
to Floating Disposal
Issue, Is Report.

Indianapolis was given its chance
today by the United States gov
eminent to end for all time its pol
luton OF White river. when an out
right grant of sips 900 was made by
the public works administration at
Washington. d. c., for the con-
struction of a sewage disposal plant
addition.
Word of the grant was received
by The Indianapolis Times through
the United Press.
When told of the outright grant
Maurice Tenant. sanitary board
president. said that plans for sell
ing $4,000 i'm bonds for the con-
struction of the plant would be be-
gun at Tuesdays meeting of the
sanitary board.
The city can not have the federal
money. It is understood, until it
matches the grant with the re-
mainder of the construction cost of
the disposal plant addition or
s3lO.4OO.
1896, 900 Allotment Refused
Last winter, the public works adj
miniStration allotted the city almost
the entire cost of the project, $685.
600. with 30 per cent to be an out
right grant and the remainder to
be loan to be repaid over a pos
sible period of twenty-five years.
Attorneys for the sanitary board
as we'll as federal lawyers, said the
$3.50 tax limit act of the state for
babe the issuance of bonds by The
city. and the government on May 9
reScinded the loan and grant.
Today'S action was taken by Mr..
Tenant TO mean that the govern
ment would make the Sl26.000 out
right grant, providing the city was
able to sell bonds on the plant ad-
ditiOn in the private bond market.
II has been pointed out that the
city can. by declaring an emer-
gency, levy taxes to pay for the
bonds.
Gas Funding Watched
The near success of the funding
Of the Citizens Gas Company pur-
chase is believed to be linked ,ndi-
rectly with the disposal plants con-
Struction.
Hope that revenues from the gas
company in time might aid the re-
tirement of the disposal plant bonds
as well as the gas company'S pur-
chase price is expressed in some
circles.
/ Mr.. Tenant said the sanitary
board believed that the present bond
market was favorable to the float
ing of the disposal plant bonds.
We have every assurance from
bond houses that there is a de-
mand for bonds. We will call in in
/ vestment bankers to discuss the
bonds in an effort to assure sale
before placing them on the mar
ket.' Mr. Tenant said.
The project will mean that all
sewage of the city will receive 100
per cent full-time treatment in
stead of the present inadequate
I treatment of Just so per cent of
the necessary time for purifying the
water.
Work for 465 Men
The project. If the bonds are sold.
will provide work for 465 men for a
/ period of six months.
II will mean an addition to the
/ actIvsted sludge plant at the dis
posal works near South Harding
street.
One questionable point discussed
by city officials in the matter of
/ financing is whether the city will
profit or lose by financing 20 per
cent OF the plant in the open bond
market instead of through a govern
ment loan for the entire project.
The governments rate of interest
I II Is assumed. would have been 4
I per cent. with a period of twenty
/ five years for retirement.
I In 1888, as we'll as this year, The
Indianapolis Times in series of arti-
+ cles on stream pollution has pointed
out the extreme need for Indian
apOlis cleaning up. its backdoor of
wastes that kill fish. ruin aquatic
sports. and endanger health.