Buys Bonds Issued to Purchase Its Plant
The council of Essex Fells, N. J., recently offered at auction a bond issue of $175,000 authorized for the purpose of purchasing the plant of the Essex Fells Electric Light & Water Company and the company bought the bonds at par. There were representatives of a number of bond houses present, it is said, who probably expected the bonds to go at about ninety, as they bear only 5 per cent, interest. The plant comprises four wells, two pumping plants, two reservoirs, 30 acres of land and all Essex hells mains, in addition to sewer mains and a sewage disposal plant. The bonds are in serial form and will be retired at the rate of seven a year ($4,375) for 40 years. It is estimated that the receipts for water service will be sufficient to retire the bonds as they come due and likewise pay expenses and interest charges. The taxpayers will he relieved of the rental on hydrants, which has been $15 per hydrant annually and also of the payment of $25 hitherto levied on every house holder for sewage disposal.