The Orange Leader (Orange, Tex.), Vol. 26, No. 79, Ed. 1 Monday, April 3, 1939 Page: 4 of 4
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Loan For Purchase
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. TEXAS
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SHOWS PRESENT SYSTEM AND ALL PROPOSED CHANGES
JCti '7l 1"'1 ., ,;'VI., '• aatftkifrfi- y -fr;'--; yf;-:vy'" i* • 1* fa'-;r4 Vf; -i.r.r'i -'" i'. "* " ' •VriVfrVjn.-
The proposed extensions will include 8.4 miles
of new sewer line. 1.4 miles oi existing sewers
; are to be relaid at better grade and depth and
;|'2.3 miles are to be replaced with larger.^ and
deeper pipes. The disposal plant will be the mot£
modern approved type recommended by 1
ll state health department. ||| ""
two pump or litt stations. Main outlet emp-
ties into Sabine river at foot of Fourth street.
Two other small Outlets empty at the fdtft of
Polk street and on Arkansas street. r: V
The existing system has about 950 service
being listed as paying connec-
i^rin^iiiiO
w,
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1 ay
tfaa
im
fifsaaag
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wlill* M Inshore brmim tMoam* grni-
uftltr tr«>n«er. The bout , awampMl
«Ad ov*rturh«4, h« roporUtf., t« *
Ifwjtt mK
Til* !W<> couptat min>;i* r t.> cllnf
to (to «|4m fl the «yM It
turn*4, find ttttd on «rti*n th water
I rougher •• the hour* imitl'
At length, tit* ntt« rney utated. h«
''0*$
mfm
to
•I'ltNH FATAL TO DENTIST
DAUJlSI. T**., April. I. (AP)
tit. Donald U. OrulMN 31, Dalian
dentlat, tiled here re* *«w':
burn* received rHday m : h« >% waa
working la Ma \
Haturdnjr' night he w«* r*|K>rt*a
Improved, hut * relap** «it In and
^VIMIb a
Wal£ 1*aiU, and Sir*. H. & Mow*,
Kan an ■ city, and a brother. Dr. H.
C. Orupe, ot Bulan. Lamb county,
T**. 1
today and !
I'aHa, Te*.
1 ediMd^l
ilH
I Public Invited To Meet With City
Commission Tuesday To Discuss Final
Plans For Acquiring The System
A committee of Orange citizens Saturday placed their stamp
of approval on the proposed plan of the present city admini-
Htration for purchasing the E. W. Brown Estate sewer sys-
tem extending and improving same by the addition of a mo-
dem disposal plant through the use of an out and Out grant
of $108,000 from the W. P. A. and a loan of $136,000 from
the E. F. C. which is to be paid back entirely out of revenues
from the sewer system without any increase in rates or any
additional taxes of any kind.
The city commission is to meet at 5 o'clock Tuesday after-
noon at the city hull to consider approval of the purchase
plan and all interested citizens are invited and urged to at-
tend the session.
vuW- •
The following letter represents the findings of the coinmit-
|tee of representative citizens to investigate the facts in the
case and their approval of the' soundness of the proposition
| from u business stuudpoint as well as from a civic need:
Orange, Texas,
April 1, 1030.
[To the Honorable Mayor and City Commissioners,
Orange, Texus, s.
i Gentlemen:
On the 19th of October, 1938, the citizens of Orauge voted
by a majority of .r> to 1 to authorize the Board of Commis-
sioners of the City of Orange to issue bonds in the amount of
$180,000, maturing serially witliiu twenty years from their
•late, bearing interest at the rate of 4% per annum, for the
purchase, improvement, extension, enlargement, repair and
construction of a sanitary sewer system for our eity, and to
provide for the payment of principal and interest on witd
bonds by pledging the net revenues from the operation of iiaid
sanitary sewer system, a mortgage on said system aud the
pledge of a franchise to operate said system for a term of not
exceeding twenty years in event of default. Now this city has
fortunately obtained a grant or donation from the Works
Progress Administration in the amount of $106,000, of which
about $90,000 is to be spent in work and $18,000 in materials,
and has secured from the Reconstruction Finabcte Corporation
on Marrh 24, 1939 a loan of $136,000, after their engineers,
attorneys and appraisers had carefully examined the plans of
the proposed work and the extent and condition of the exist-
ing sewer system, and made an apppraisal of the value of the
existing system, including the franchise and all physical pro-
perties, at $75,283.00 after allowing 25% depreciation from
replacement costs.
The total cost of the proposed municipal sewer system is
$244,000 of which $108,000 is the out-right gift and grant of
the Federal Government through the Works Progress Admini-
stration. The other $136,000 is a 4 % loan from the Reconstruc-
tion Finance Corporation secured by the revenue bonds au-'
thorized by our citizens in their October, 1938 vote. This
$136,000 will be expended for the purchase of the privately
owned system for $72,500tfor lands and right of way for the
-j-disposal plant and outfalLlines, not to exceed $500.00, leaving
a balance of $63,000 for material, labor and expense of con-
structing the new sewer lines and disposal plant. This loan of
$136,000 is $44,000 less than the voted bond issue, and it is*
therefore not necessary to issue the full amount, but only
$136,000. From the investigation by the Government Agencies
it was disclosed that the privately owned sewer system since
the completion to the present size has returned to the owners
annual gross rentals of $12,000 to $14,000 per year ($14,085 in
1938). Maintenance and operating expenses, according to their
books, are from $1800 to $2400 per year, showing'net profits
of $10,000 to $11,500 per year. The existing sewer rentals rates
are not to be raised, but will be applied to all properties, pub-
lic and private, connected with the systein, and therefore with-
Jout any increase whatsoever in property tax or sewer rental
rates, the City of Olange will, as soon as the twenty year Fed-
eral loan is paid, own its sanitary sewer system, and should*
then reduce ths rates.
The general desirability of public ownership,of utilities by
any community, and perhaps the moot fundamental, is the dis-
posal of its waste through its own sanitary sewer system, as
evidenced by practically universal public ownership by all cit-
ies in the United States. Only thereby may Orange «top paying
to a commercial profit making compailp M| | m | >
About Plan To
Acquire Sanitar|||
Sewer System
In 180M a contractor by the na:l
of Curdwell aecured a franchise ft
the city of Orange to lay a ttunlt I
■ewer ayatem. He put down appi I
Imutely 1 1-2 miles of aewera a f
coat of about >14,000.
Cardwel! offered the ayatem to
city of Orange but the olty waa
able to finance the purchaae at
time. Dr. K. W. Brown, father
E. W. Brown 4r„ waa mayor of
city and he bought the ayatem. j
Ing the city coinmlaalon that
would hold It until the city waq|
It
Since that time the minltary
er ayatem haa la-en extended U
elude II I mllea and It haa ael
coat In exceaa of ) It t,000.00.
The It. K. C ap|«-alaed the
ent ayatem at (T5.2KI for tbe
poee of making a loan to the clt;
Orang* to acquire the property.
Brown Katate haa agreed to aell
the city for 972.6*1) and the R. F.
haa agreed to loan thla amount B
the pureha.ee of the prevent aj
and an additional tSl.ooo for
tending the aewer linen to add
«>0 uaera and constructing a
em aanltary dinpoanl plant.
The present aewer system ha* |
a net profit of arouiM tltMUM a
for tbe past 20 years. TUe *tj
revenue last year waa
and maintenance and operating ;
penses ha\*e run from |l.t** to fit,
a year according to the com|i{|
books. In other words Orang* |!
pi* have paid nearly ISttO.OO# j
server ratea and the city haa at
Ing to ahow for It.
The franchise on the present
tem has run SO Jrears and ha*
more to run. The revenue from
system In that time will pay o*t
coat of the ayatem nnd the impr>l
m«rlta and make the city owner|
a property Valued at 1100,000
without Increaalng present *e
ratea or asaeaslng a single pen
taxes.
A private offer of $100,000
make to the Ilrown Estntf In 1|
for the preaent sewer system
because of Dr. Brown's promise J
sell It to the city the offer was
fused.
At the end of 20 years, the
can materially reduce the rate*
entirely eliminate the sewer chalij
paying the maintenance nnd o|> j
tlon entirely out of general tuxil, \
revenue*.
'■■■ h.
VAMXtT MAN HOKORKU
L ivyy #S^Pb m A,
e<l by the * Federal
to many
' ' ' • • ■
Considering these favorable and fortunate conditions and
offers, we favor and recommend immediate purchase and. con-
struction of the Orange Sewer System as planned, and approv-
d the furnishing thereby of eni-
•kers.
W&
r,t .i:#l
WSwf&vaSiOF
m if
Contract* have been let for !j
Ing with concrete practically al j
the streets of tlrnnge. If the
Is to acquire and extend the c>|
Ing sewer *yatem the work must J
done ,at once ahead of the parln ;
10 addition to the loan ajreed |
by the R. F. C. for purcha** of
existing setver *ystem. on out
out grant of $108,000 from W.
ha* be*n approved upon It*
for u*« In extending same and
Ing a disposal plant.
A Jersey cow stolen at Hale
ter, Tex., returned two day*
dragging a brand new ropo to
owner. ■
1
KEEPING
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Quigley, J. B. The Orange Leader (Orange, Tex.), Vol. 26, No. 79, Ed. 1 Monday, April 3, 1939, newspaper, April 3, 1939; Orange, Texas. (https://texashistory.unt.edu/ark:/67531/metapth289943/m1/4/: accessed August 15, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Lamar State College – Orange.