Lorain Water Works
The Lorain, Ohio water works has made a very good showing, financially, as the profits for the year from March, 1917, to March, 1918, were sufficient to enable the department to pay off $14,000 of the $610,000 bonded indebtedness, taking care of the payment of $22,000 interest on outstanding bonds as well as the ordinary and extraordinary expense and still have practically $8,000 of a balance to use for bond settlements. These figures are shown in the annual water works examination report submitted by Aaron Moul, state inspector, to City Auditor Patterson and Service Director Pillans. Total receipts from all sources for the twelve months were $133,443.13, while the expenditure, including the $14,000 to take up bonds and $22,000 interest on bonds, was $125,268.52, leaving practically $8,000 more ready for bond payments. There were three small findings as to accounts, all of which have been adjusted. City Auditor Patterson and the clerical force in the water works department were commended for the excellent manner in which they kept the records and their willingness to assist Inspector Moul in his work of gathering data.
The total valuation of the plant is given at $695,023. This, of course, does not include the new pump being installed or the other work to be done to the filter basins for which bonds have been issued and which will raise the valuation to nearly $800,000 or more than $200,000. In this connection, a clever piece of financing was accomplished when City Auditor Patterson disposed of a $90,000 water works improvement bond issue at private sale to the National Bank of Commerce of Lorain, at par and accrued interest. Taxpayers of the city were saved at least $5,847.50 by this sale, closed entirely through the efforts of Auditor Patterson. The bonds calling for 5 per cent, interest were not sold on Tuesday, March 19, when they were advertised, as the only bidder, R. L. Day Company, Boston, withdrew a bid it had submitted. Had the issue been readvertised it would have been necessary to have raised the interest rate a half per cent., which would have amounted to $5,847.50 before the bonds had been paid off by the city. Auditor Patterson, in his desire to save the city this money, communicated with a number of the leading bond firms in his and other states, but all of them refused to consider the present issue at par and accrued interest, stating they would probably bid on five and one-half per cent, bonds to be issued later. Besides saving the city the money, more than two months’ time was gained in work on the water works improvement. Another bond issue would not have made the money available for the work until the middle of June and the contractors would have been unable to get it completed soon enough to have been of any use next winter.
Frederick Field, engineer superintendent of the Montreal. Can., filtration plant, is to take a position under the chief engineer of the Housing Department of the U. S. Shipping Board in Washington.