The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-07-09
eAYvoR WARNS THE MAYOR
Resurrection OF the old New LOts water
Scandal.


Scandal.
This letter, written under date oiJune Fl. to
Mayor Van Wyck by Justice William J. Gaynor
OF the Supreme Court in Brooklyn In regard TO
the famous Long Island Water Supply Com
pany scandal and the protracted legal nghto on
| the part OF the city TO acquire the property, was
made public yesterday:
DEAR 1R: The territory ofthe Twenty-sixth
ward OF Brooklyn was formerly the town OF
New Lots. 1t was annexed to Brooklyn by act
OF the Legislature in 8 Four or five years
previously the Long Island Water Supply Com
pany was incorporated and organized In the
said town. BY q contract with the town officials
It obligated itself to lay a very limited mileage
OF water mains and pipes. and supply a very
limited district with water. It invested In
It's plant considerably less than $2OO.OOO.
But after the demoralizing manner and
vogue OF our day and generation with
corporations possessing public franchises. re-
ceived by them as gifts from the community. 1t
Issued paper stock or shares for S25O.OOO and
bonds for 100000. What was done with this
aggregate of $75o.00O in bonds and paper stock
is a matter very well known over here. They
were distributed after the usual fashion. The
act annexing the town to Brooklyn provided that
Brooklyn should never supply any water in the
annexed territory until 1t bought out the COM
pany. although the company, as l have said.
had obligated itself to supply only q very
small district. About the beginning OF 1890
the three chief officials Of Brooklyn entered
into q contract for such purchase for $780,
600 and certain additional sums which would
bring the price up to about 100000 moro. The
stock and bonds had been got into the hands OF
f;6 Few in lnf dbn drsa; Is 9Sr 2 in RH fH sad m prSspa dat
OF the pockets Of the taxpayers. The people
over here would not stand such robbery:
neither would the courts. and the contract was
tion, OF the public funds. This brings us to
iyn to acquire the plant and franchise Of the
company by eminent domain. Commissioners
After a long and full hearing they awarded
S510,OOO This vas made up by ,b allSwing the
evidence placed the cost and value Of it's actual
plant and tangible, property. with all additions
AND AND %i by fSen a 70 ffas $685. sSSS.o SaIp foF " Fh to fFsne SaSS;
see R1e5!G 81 z t isE s stStsm Ssi8r { REFER Fer t gOa P To the
printed proceedings and report Of the Com
missiopers. do this because the false state
chise has been So indSstriously circulated that
thousands suppose it to be true. 1t has also
aithouSS f0G tRe som 81 q ff ssaes ' n BoGSs ana
paper stock of the company amounted to
was only $570,0O0,. as though the community
was under obligation, legal or moral. in taking
ikt iVE Value. but in addition enoUgR' to + pay OH
whatever sham bonds and mortgages the
suggest eMEiss tt That tfiffe an Ri ind fpfd whose he eI house use f Is to
be taken under the eminent domain power puts
Rslaa SS must SR b fs f STa tTdisd2 a or ie safs tls sim %aoh ftS :
tn; The e.S company my had "A meyer nf re earned n0ne d, 2 2 dividend DO on
the Court Of Appeals in this State and finally by
The n,, SSpg8Br9sgRSs7 Court of the United States on
Nevertheless the officials then in charge Of
Brooklyn ignored the matter and gave no sign
OF paying the award and taking the property
until a public agitation was started here to
compel them TO do their, plain duty In that re-
bids for bonds to raise the money. and thereby
brought the matter to the latter part Of Deem
Der. 1887, when q frivolous application to the
the matter to the lst OF January. when the city
Of New York came in with you as Mayor.
:" an free to write to you as q citizen in re-
lati9n to this matter, as my past connection
with IT prevents me from eyer having any Judi
payers and taxpayers, over here are waiting to
see, your administration pay this honest award
upon the city at an exorbitant sum is to continue
have stood out against it So long cannot hold
~ much lon longer Htra against the continued oPposi;
May / also suggest that the iitlsations to Which
! 1 hare large 5ef sn@. haUS f6ft 81 sfoS 6l5S o. a sFd90t thas
should not pc thrown away. The people here
your attention Is called to this business you
will see to it that 1t is speedily wound up;
xithninne i Rsw d f,fx' IL L n &Crs so%Ssd the;rd is is y eo
limit in respect of bonds for water supply.
Moreover. this award stands as a judgment
fore conceive. Of any honest reason why this
award should not be paid. and the company's
reference the other day to recent government
Of combined imbecility and fraud over here.
subordinates and clerks. induces me to call
your attention to this big one. lest while saving
drops from the spigot the bung be left wide
open. which the great majority believe you will
not permit. 1have the honor to remain. etc,
A few days ago Gen. Benjamin F., Tracy.
counsel for the water company. moved in the
supreme Court that the entire proceedings for
the purchase Of the property by the city be dis
missed on the ground that there had been no
f 9bner U Ta tne nd payment S9Si me Of tAe q SsW nr6x, ana that tRs
money for said payment, He also contended
that the delay seriously blocked the way for the
extension of the plant to furnish an increased
supply OF water. The hearing on the applica-
ton is to come up next week.