Preliminaries Cost $54,000

Preliminaries Cost $54,000

Preliminary work leading up to the development of the Wanaque watershed has cost approximately $54,000, it was learned at the meeting of the North Jersey District Water Supply Commission. Almost all of this money has come from Newark, for whose immediate benefit the watershed is to be developed at a cost estimated at about $9,000,000. The bulk of the expenditures has been for salaries of the engineering staff, office help and commissioners. The commission has received from Newark so far about $61,000, while $2,500 has been paid in by Paterson, which a year or so ago intended to join with Newark in the project and then withdrew. The expenditures of the commission date from July, 1918.

In a statement of money advanced to the commission and of bills paid on its account, received from John W. Judson, chief accountant of the city’s Water Department, it was stated that Newark expects the commission to pay its six per cent, interest on the money it has advanced. The commission, on the advice of its counsel, Frank H. Sommer, decided that this was not a proper charge. Mr. Sommer pointed out that if such a charge were to be made, the commission would be entitled to interest at the same rate from the city, on deferred payments to the commission, and if such a charge were made, the city would be the commission’s debtor.

It was decided that interest on the money advanced by the city would not be paid until such time as some other municipality should join the project, and then the interest on all money so advanced would have to be paid by the entering municipality.

No posts to display