The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-08-07
WATERWORKs PROBLEM.
MIR. C. J. Evans Has Been Studying
the Question and Gives His
Conclusions.

c. ]. Evans has made an exhaustive
study of the present waterWorkS QueS-
ton and he says that he is perfectly
satisfied that from a legal standpoint
the city will be under no obligations
whatever to the water company when
the present franchise expires in 1901
TO journal reporter Mr.EVans said:
PENDING any negotiations for the
purchase of this plant, it is very much
to be desired that the people generally
should be advised as to what is the
present situation and what are the
rights of the city. In a recent inter-
view, the mayor of the city expressed
himself favorably upon the subject of
purchasing the waterworks, but said
that the city was in an unfortunate po-
sition; that under the terms of the or
iginal ordinance granting this fran
chiSe, the city must pay all liens that
may be existing against the property at
the time of the purchase. That, at this
time, the bonded Indebtedness of the
company is 500, 1000, and that that
amount is considerably more than the
plant is worth; that upon the failure of
the city to purchase the plant upon the
terms provided by the original ordi-
nance, the city must extend the fran
chise for another period of 20 years.
Il do not think that the city will be
compelled to pay this bonded indebted
ness in full. nor do 1 think that it is I'M
der any obligations to extend this fran
chise for 20 years upon the failure to
purchase in accordance with the terms
of the original ordinance"
Mr.. Evans then quotes the state law
on the question as previously outlined
in an interview with Councilman Net
tells of the Third ward. He insists as
does Councilman Nettels that the state
laws are in conflict with the city ordi-
nance and that the ordinance is there
fore not binding.
In speaking of the amended act and
the obligation of the city to purchase
the plant, Mr.. Evans said:
Under this act, the city is compelled
to pay only the actual value of the
plant at the time of the purchase, and
the money is paid to the county treas
urer for the benefit of bondhoIders and
other parties interested. If the award
is less than the amount of bonds, the
bondholders must prorate the loss.
THE new statute provides for a re-
neWal of franchises of this kind but the
conditions are such that it is highly
improbable that the company will want
and renewal. The statute provides in
case of an application for a renewal
that a verified and itemized statement
of the present value of the plant shall
be filed, from which its actual value is
determined by the council Upon this
actual value the corporation will then
be allowed to retain out of its gross re-
ceiptS, per cent yearly, which it may
pay in dividends The balance of such
receipts after deducting expenses, must
be paid in rentals, twice a year into the
city treasury.
Il am inclined to think, therefore that
there IS no alternative; that the city in
someway is almost certain to become
the owner of the present waterworks.
That under the law as it now stands
the city will only be compelled to pay a
fair and equitable value for the plant,
without regard to liens. 1t will not be
compelled to pay for the franchise. for
the reason that the franchise will have
expired. There should not. however, be
any disposition to take any advantage
of the company. We can afford to be
liberal and if an agreement for the
purchase of the plant can be reached
at this time, or in the near future, the
city can probably afford to pay more
than it would cost to rebuild such
plant in order to obtain the advantage
of an early control and a, liberal man
agement of the Matar1Nn1.lcs