New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-06
THE WATER JOB IN COURT.
MAYOR CHAPLIN SAYS HE KNEW WHAT IE
WAS DOING.
A FLOOD OF AFFIDAVlTs - COMMISSIONER
ADAMss FORMER DENIAL OF THE CoNEC-

AUAMs's FORMER DENIAL OF THE CoNEC-
TIoN-TuE WATER FLOWED BACKWARD.
The Long Island Water Supply Company swim
die came up Yesterday before Justice Bartlett in
the Special Term of the Supreme Court in Brook
lyn. The courtroom was crowded with lawyers
and citizens. William Zeelcr was represented
by William J. Gaynor; the Mayor, Controller ard
Auditor by Corporation Counsel jerks and the
Long Island Water Supply Company by Thomas
T. Pcarsall
Mr.. Gaynor in his statement Of the case. said
that the water company organized before the
annexation of the town Of New-Lots The an
ncXatiOn act purported to authorize the defend
ant officials to purchase the property. either by
agreement or by the right Of eminent domain.
lie said they had no authority pay S1-25O, 900
for property worth NJ most S230,0G0. The de-
PENDANTS had beer. deceived. lie did not charge
them with fraud, but the condition Of the com
pany had tecn misreprcsented TO them. For in
stance, the statement Of earnings OF the company
false, and he believed that the company had
been enabled TO declare net earnings by tapping
the city mains.
Corporation Counsel jerks said that he came to
court with apology for the defendant officers
They believed the purchase for the best interests
of the city for the present and future. He com
planned that the action had been begun by Sub-
licatiOn Tie summons and complaint was served
on December - and the next morning the Brook
lyn newspapers and, 20 a certain extent, those of
NewYorlS, had published, not only The complaint
but the andavitS accompanying it, They tcemed
with charges of fraud, which lbs clients had not
seen fit to answer ont of respect to the court
before which they would try their case lie then
presented his afidavits in answer 10 Mr. Ziealcrs
complaint.
The first was that OF Alfred c. Chaplin. who
sworc that his action in the case was taken
deliberately and after examination of the facts
and questions involved Negotiations for the
purchase of the plant. franchise and possessions
OF the Long Island Water Supply Company were
begun eleven months ago, and were first sug-
gested by the representatives of the company.
Mr.. Staples at that time asked S225O, 900. The
Mayor said he had not overlooked the legal ques-
tons arising under the construction of the annexa-
ton act. He considered the clause forbiddng
the city TO furnish water in the Twenty Xth
Ward constitutional. and he believed the two
years limit laid down in the act applied only to
the power of condemnation and not 10 that of
purchase He considered that il would be of
advantage TO the city 10 have the privilege Of
supplying water to the people Of the ward, but
that belief was not based any representations
made on behalf of the water company. II
not merely business transaction for purchasing
a supply of water Though he believed the com
pany had valuable supply, but the city was
buying the right TO protect an important part of
its territory. Still he thought il would he
profitable TO supply water TO the Twenty sixth
Ward, and the city could after purchasing use
either its own supply that of the water
panX. The city would save what il now paid
for hydrants He then gave statistics Of the
growth of the ward, and said conflict between
the city and the company 10 arise unless
the purchase extinguished the cOmpany's rights
The $500, 900 of bonds could he refunded they
came due at lower rates of interest, so that by
1895 the cost to the city would he
only S22, 800 and by 1901 only $4,000
a year He estimated that the burden
assumed by the city in making the purchase for
the next four years would he $4,000, while the
revenues received might reasonably be estimated
at over $4,000. BY levying water rates
vacant lands as is done in other wards. it might
he increased by over S24 900, and Sls,72O might
he saved the hydrant charges paid TO the
company, thus making total of over 800, 600.
He had not overlooked the clause in the law that
the company must furnish free hydrants when it
able to pay per cent dividends, but regard
ed the provision of value TO the city, as
the company could increase its expenses and make
loans to avoid it. Taking the growth of the
ward into consideration the Mayor believed the
city would derive sufficient revenue from the
water conpany's plant 10 pay the principal and
interest the purchase, and it would impose
no additional tax on the city, but would place the
Twenty-siXth Ward on the same basis the
other wards He even believed that the works
might be made a source Of income TO the city.
The condition OF affairs existing before the pur-
chase was anomalous and vexaiious and he lc-
lieved the purchase of tie company was for the
true and lasting welfare of the people.
Theodore F. Jackson, the Controller, made afi-
davit TO practically the same effect as the Mayor,
drawing the same conclusions TO the revenue
20 he derived. and, like the Mayor, assumed the
full responsibility for the purchase. lie said it
had been entered into after full consideration of
the legal questions and the facts involved Mr..
Jackson made the point that during the ncgot!a-
tions $3.50 900 had been taken from the proposed
price.
The City Auditor Thomas B. Rutan, simply
made affidavit that he knew what he was about
when he signed the contract and believed the act
would benefit the city. ,
Mr. jerks then presented letter from Seth l..
Keency. president of the Commercial Bank of
Brooklyn, and one Of the propretors Of The
Brooklyn Eagle" to Cyrus T.. Staples, dated De
ccmber 30, 1890. in which he said that if the
city did not want to take the water works. he
would be one of ten who would be glad TO pur-
chase them at the price offered to the city. He
added that if he owned them he should hesitate
to sell
IL will be noticed that this letter was written
on December 80, three days after the beginning
Of Mr. Zicgcr's suit and after it became necessary
10 find justification FOR the price proposed. The
Mayors affidavit states that the negotiations
carried on for eleven months. 1t does rot yet
appear that during those eleyel months of secret
negotiation any one made such offer for the
property. Perhaps the object of the secret pur-
chase to prevent any one from outbdding the
city for the plant The Mayor says that Staples
asked $3.50, 900 for the property eleven months
ago The president of the company six months
ago swore il worth only $s3,12O. Again in
December il had become worth 81 ,25O, 900.
The next affidavit was by Henry Hlwkcs, the
Wafer PurVevor lie said thai ON Octohar o