The labor world., 1897-12-04

dent and Gentlemen Of the council: AS
| understand it these personal property
taxes are a charge against the gas ant
water company itself. They do not becom
d lien against the real estate, consequent
ly if the property and franchises OF th'
closed upon. under mortgage of the bond
holders and pending foreclosure sale
takes place by master in chancery the
title will pass to all of the property Of
Guiding the personal property and rea
estate and free and clear OF any claim
for the personal taxes, in other words the
bonGholders through their sale will claim
Gas Gas and Water company, so that they
would in that case be able to give clear
title to the property of the Duluth Gas
| and Water company to any buyer SO fa1
as the personal taxes are concerned. IT
would be otherwise if the taxes were a
| gard to personal taxes that the county
can sue and get judgment and the judg-
ment against the company would be a
lien upon its real estate out 1t would De
gage.
Alderman Stevens: Is it not a fact that
the hydrant rentals have been turned over
to the bOndhOlderS?
Mr.. Richards: The Central Trust COM
pany of New York claims the hydranr
rentals prior to February, 1887.
Alderman Hale: Mr. Richards. II we
should buy this plant would that neces-
sarily end that suit for hydrant rentals?
Mr.. Richards: No, it would not.
Alderman Hale: Our buying the water
plant would not iniure our chances IN
chat suit?
Mr.. Richards: I cannot see how 1t
| would, as matter of law.
Alderman Sang: Would it in any other
Mr.. Richards: It is difficult to see how
1T could. This is the way 1t would appear:
The city would be resisting a claim and
1t would be known that the city had
a past transaction. Probably a jury
would not be as much Inclined to favor
the city's contention as they might under
a matter Of speculation
Alderman Sang: Your idea is that we
could not collect from the stockholders?
Mr.. Richards: That would have to be
done in the name of the county through
the county judges.
Alderman Crassweller: DO you know
anything about the Minnesota stockhoId-
Mr.. Richards: 1 know nothing what
ever about them.
Alderman Sang: Is there not list Of
the stockholders among the records Of
the city?
Alderman Crassweller: should think
g. copy could be found.
Alderman Jefferson: Mr.. Gay, have not
the bondholders you represent sgreed
these back hydrant rentals to the stock
holders? =
Mr.. Gay: I have not heard any express
sion of opinion one way or the other about
that.
Q.-You don't know anything about that?
A.-NO, sir.
they not agreed to turn over all the back
hydrant rentals to the stockholders in
consideration or part consideration that
they will not enter into any litigation to
1n1n t11vr v,1<o ovof to
holders?
Al know of no arrangements of that
kind between the two. My own conversa-r
ton with the bondholders has been as to-
them for in case succeeded in negotiating
the sale to the city.
Q.-Do you not know that the company
so cents on the dollar?
A.-That is news to me-
Q:;oYou don't know anything about
A.-No, those We're ISSUED ten years ago.
long before I had any connection with
the company at all.
p Q.-Do you not know that the 1,113ooo 5
dollar?
A-That is out of the question for
the reason that those bonds were bought
and placed by the Municipal Investment
company of Chicago who sold them all at
par sterling
Q.-You have examined the books Of the
company!
A.-No, I have not, but 1 know that di-
rect from both the principals OF the COM
pany.
Q.-Don't YOU know that in the neigh
borhoOd of 400, 900 Of the IS is not account
ed for on the books?
Al was not aware of that.
Q.-EEer hear of it?
A.-No.
the company; you had large interest in
it and certainly familiariZed yourself with
their affairs in every way. shape and
manner, examined their books. etc?
me to reply to that question: | am Il u II
holder of the company and I became a
bondholder upon what supposed was
the company itself. I have never seen the
books of the company.
Q.-Then you don't of course know that
Of the gas and water company's bonds
was not used IN the construction of the
plant?
so it does not devolve upon the
purchasers of the bonds to know all that.
paid SO and accrued interest for my bonds
and that is all I know ana care to know
or need to know.
O. Q.-Can you state positively what the
~ einls OF the company for the
year ending Nov. l, or any other year,
were?
A.-The last official statement that l
have seen of the company is for the year
ended Dec. 81. 1896. wherein the net earn
ings are shown to be upwards OF $1l5OOO
Q.-You have not seen any statement
since?
A.-No, have not. I do not know OF any
having been drawn up.
Q.-Can you state what their expcndi-
lures were during that time?
Al expect they were the same as last
year, that the figures would not vary
much one way or the other~as against last
year.
Q.-DOes not the company state in their
foreclosure proceedings that the plant has
deprecated in value to a great extent and
the revenue has fallen off largely?
Al have not seen a copy of the fore
closure proceedings; I do not know.
Q.-And that it will not pay sufficient to
pay the interest on the bonds and that the
company was in default for interest for
some time. Is not that a fact?
Alt was fact owing to the city's not
paying the hydrant rentals.
Q.-Does the complaint not state that
the plant has SO deprecated that it would
not sell for one-half the face value of the
bonds?
A.-No, it says nothing of the kind
Q.-How do you know? You have read
it have you?
Al am simply informed.
Q.-Have you any access to the books
whatever?
A.-No. sir. none at all.
Q.-You could not state with any degree
of certainty? Couldn't you state on some Of
these questions from hearsay? Doesn't
the books or you were furnished this in
formation from other sources, show large
expenditures of money for other purposes?