Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1885-01-26
ALEGAL oPINIoN.
The City's Purchase Of the Water.
Works stock IlleRal.

markable financial transactions that
has ever occurred in the history Of
municipalities As appears rom the
minutes Of the council, the mAyor on /
ihat day presented 70 the board Of I
aldermen a contract which he had /
entered into with one Drake Of Rock |
Island, H.. whereby be hsd, for
and on behalf Of the city Of Fort |
Worth, purchssed from this man
Drake 500 600 Of the capital stock Of /
the Fort Worth Water-Works COM
pany, 3 private corporation, at the |
price Of S32OO0. Said contract then !
goes on 70 state, IN substance, that
Drake, having confidence Ia the
financial credit and standing OF
the city" Tor words TO that ef-
feet ''sgrses 10 take the bonds
Of the city at par, In payment Of said
S32 600; said bonds TO be delivered 10
him al any time within sixty days
from that date y This contract wa =
ih,reupon ratified by the council. and
The bonds OF the city 10 the amount Of
So 600 were, IN short time there
suer, delivered TO this man assert
that this whole transaction. 50 far ~
the purchase Of said bonds ia COD
Cerned, vas In violation Of the constl-
tuition Of the state; and, further, that
. By reason Of the fact thst the
bonds given 10 this man were
issued and registered for the sole pur-
pose las shown on their face) Of con-
Z structiDg sewers and improving the
streets, the said transaction became,
and ia, aud was, IL done knowingly. a
violation Of the criminal Law 81 this
state; and, further, that by the bar
gsin with Drake, the taxpayers Of the
: city were not only robbed OF S32, 900,
, but II the transaction be valid, then
they have become liahle for an addi-
Z tionAl sum Of $40 .OO0 without the
T. shadow Of q consideration.
4 !. AZ TO the validity Of the bargain,
art XII, sec. 3, OF the constitution
? reads az follows:
NO county, city, or other mu icipal
corporation shall hereafter become a
= subscriber TO the capital OF any private
corporation or association, or make
. sny appropriate or donation 10 the
= same, or In any " Use loan lie credit"
1 do not believe that any reputable
g lawyer can be found, who will lot say
+, that the bRrga in in question was =
= violation { the foregoing section Of the
d constitution.
10 ] IN - lit humanity Vi Tue UAE~
: gain. Article l03 Of the penal code reads
az follow III any fiicer of any
county, city, or town, in this state =
i shall frRudulently take,
misapply, or convert to his own use,
q any money, properly, or other thing
Of value, belonging to such
, county, city or town, or
u shall pay Or deliver the same to any
r person. knowing that he IL not eH-
~ tilled 10 receive il, be shall be punished
by confinement in the penitentiary, y
D. etc.
~ Now, no person, / imagine, viii or
j. can maintain the proposition that the
man Drake WAS entitled 10 receive
bonds Of the city, Issued for the sole
y purpose Of street and sewer improve
~ ments, in eXchh nge for stock in a pri
vate corporation. The only question
~ that remains, under this part of tn,
subject is: Did the officers of the city
81 engaged In this transaction, know o.
Of its illegalitY? 1, for one, cannot for
he moment believe that they did. They
ga are all men OF unblemished rep
- utation and OF good character
~ The transaction can only be explained
ly upon the ground that they were over
reached by Mr.. Drake, and that they
"a did not give the matter that degree o
w attention and investigation which IL
es importance demanded. 4
ng 8 AS to the fairness OF the bargain
and the additional liability of the city
hereunder. am cTedibly Informed, bu
"' do not assert il as a fact, because can
CT not speak from my own knowledge, tina
1st this stock, purchased from Drake, /
Ies not psid-up stock but that there ha
n, only been paid 27l cents oil
- the original subscription, leav
ing balance of unpaid subscription
on thereon Of S72 800 II this be true, an,
IN. the transaction be valid one, the cit,
Is liable TO said corporation, or an,
Oh creditor thereof. for the said unpai
ed balance Of $4,000. TSee r. S, arts
ed SOP 593, sos
a; / am also informed that said water
works has never paid dividend, but
III on the contrary, has defRulted in tn
nal payment Of It's fixed charges. n sue
be The case, then the stock, even fit
nj paid-np stock, Is in all probability N
~ terly worthless
me The question then occurs: Whs
ne is the remedy What shall the ta2
payers do TO avoid being taxed fc
a., the payment OF this subsidy TOR it
Ivy nothing else) to Mr. Drake?
The The answer IL, If Mr. Drake sti
viii holds the bonus delivered TO him b
emit Mayor Smith, then let the city file
bill for an injunction. restraining bin
% from negotiating said bonds and pra,
ne ing that they be redeliyered to the eli
veil treasurer Ii, however, he has neg
ara tiated them, and they are In the hanl
ofinnocent holders, then let the cit
uer sue him for their value Il am told the
son have sold at rremium) aud in Il
di- event he refuses to pay the none
~ have him indicted and brought fro
his fastness OF Rock leland on requis
ton, for he certainly knew that n
ible bonds he received were unlawful
nv. delivered to him
20, The taxpayers, Mr.. Editor, demar
from the city officials full and ia
lme explanation Of this matter They d
It tire TO know VIII made the contraC
was who negotiated and. advised III WI
M. has transaction OF such patent III