Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1896-11-19
TALKED ABOUT IT.
cry AND company EXCHANGE
LETTERS.
Council Listens to the Reading Of
Arguments ts-Water Company Pro-
poses a $4,000 Rats-Will Try 1t
Again.

The city council met Saturday
night to discuss the water rental con-
tract. No action was taken but there
was considerable talk and the opinions
expressed were all in the direction Of
securing an amicable settlement OF
the matter. 1t is OF course out Of the
question to pay the old rental Of
5000 and the three year rental OF $4'-
900 expired July /. The company and
city have been exchanging communl-
cations and these we're read. The
company offers to take $4,000 annual
ly for five years but the city is prob
ably unable to pay that amount and
an effort is being made to compromise
y on much less. The council has made
no offer but will do SO later. The
Company seems inclined to 90 the
fair thing and indications are for an
equable settlement.
THE CITY's SIDE.
City Attorney Mead wrote on oct'
20 to Manager G. A. Rogers stating
the situation Of the city: that the
original franchise was granted in
1881, that hydrants and rental in
creased until the rental was $4,000,
that the waters quality was for years
execrsble. that fire service was poor,
that this existed until after 1890, that
the city had refused to pay the rem
tai. Then after the holders OF the
bonds had q receiver appointed they
made the plant give excellent service
by putting in Sand Springs water
The Water company had forfeited any
rights under the contract and the
overdue rental 100000 was settled for
small percentage. A new contract
practically was entered into for three
wears and this is now expired. The
Water company has neither legal nor
moral claim on the city. This is the
substance of the letter and it states
the position vigorously and at length.
Another letter Of Oct. 2l adds that
the statutory limitation upon the
city prohibits its raising more than
per cent Of its valuation for general
purposes will as matter Of law act
as a limitation upon any contract be-
tween the city and Water company
Mr.. Mead says: III we assume Tor
the sake of argument that the con-
tract Of 1881 is still in existence and
that hydrants have been added under
it until the annual rental is $4,000 l
think the fact that the general tax
fund is only about $4,000, the present
valuation being about $500, OOO' would
necessarily force a readjustment OF
the compensation by a court OF
equity. My opinion is that such a
court would hold that when the water
contract was entered into it was en-
tered into in contemplation Of the law
as it existed regarding the city rev.
enue, that the Water company must
be held to have had that in mind.
That not only could not the city enter
into a legal contract to give more
than its annual revenue to the Water
company but it could not legally
agree to give all Of it, it being the
contemplation Of the law that this
revenue should be used for all OF the
several purposes for which it was
raised and not for one only. This
position strikes me as impregnable
for II city can by contract bind it.
self beyond its charter revenue limit
atoms for $1,000 1t can 60 further and
BY its contract wholly confscate Its
taxpayers property"
WATER CoMPANY's SIDE.
In reply to these communications
Manager Rogers submits two letters,
one from W. G. Pine-Coflin, Of New
York, president Of company, to whom
the above letters were referred, and
one from himself. The first says in
substance that Mead's letters have
been considered by the board Of
directors, that it is their desire to
arrange the. matter amicably and
adds; 81 hereby authorize you to
accept for term Of 5 years $4,000
per annum in lieu Of the 5000 as
provided for in the conduct which
was made with the city Of Abilene
and accepted by the common council
and the mayor on Oct. 81, 1881, which
is now in full force. Any further ex-