Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-05-26
Concern Was Supposed to Be
Making Money.
ONLY W E $2,ooo.ooo
Eug enesCarroll Appointed Temporary
Re sewer Yesterday Marcus Da-
ly May Control II.

The Butte City Water company, un-
able to meet it's financial obligations IN
the matter of it's bonded indebtedness,
has gone into the hands of a receiver.
The status Of affairs was known to a
few yesterday, and its announcement
this morning created considerable aston
ishment, as it was generally supposed
that the company was enjoying a lucra-
tive business in water rentals and pay
ing handsome dividends to it's stockhold-
.ers. But it seems otherwise.
The bonded indebtedness of the COM
pany is 81, 0 O,O00, bearing interest at the
rate Of 6 per cent per annum. and, ac-
scording to the bill of complaint. which
was filed in the United States court on
"Wednesday by Forbis & Evans, the local
attorneys of the Massachusetts Loan
and Trust company, which institution
holds the bonds of the water company,
the has found it impossible to
make the payments stipulated IN the
mortgage, and has succeeded in paying
only one-half Of the interest. The water
company, through Judge Dewitt, adj
mitted the allegations of the bill of COM
plant, whereupon Judge Knowles APP
pointed Eugene Carroll, general man
ager Of the temporary re-
ceiver, and ordered the defendant water
to show cause next Monday
why an order should not be issued APP
pointing a permanent receiver. Mr..
CAROLS bonds We're placed at $4,000,
and the bonds were forwarded to Judge
Knowles today.
The water company has been put to an
enormous expense in the construction of
immense reservoirs in a country in
which the natural conditions handicapped
such construction, and the money which
should have gone to the redemption Of
the bonds has been used for the purpose
of necessary improvements, and when
the time for liquidation came the COM
pany could not liquidate.
MIR. DAILY TO CONTROL.
It is surmised by many of the wise ones
that the litigation is a beginning, which
in the end will mean the reorganization of
the Water company, with Mr.. Marcus
DAILY in control. Just how this will be
accomplished, cannot ct present be as
c%ertained, but the big copper combination
has something to do with it, md Mr.. Day
as the president and manager Of the be.
syndicate is an altogether different in
dividual from the gentleman who shaped
the destinies of the Anaconda Mining
company to such good purpose. 1t is
known that a large proportion OF the stock
holders of the water company also have
heavy interests in the Butte & Boston and
the Boston & Montana Mining companies.
With the final absorption Of all the inter-
ests of these two big mining companies
by the ~Amalgamated Copper company,
the absorption Of the water COMPANY
would be a natural sequence, easily con-
summated, especially when the water
company's financial tire has been pune
tured and the contamination, as an
achievement, would be a bagatelle, when
compared to the mammoth ppe COM
bination. which may control it. If this
eurmise is correct Marcus Daily, as presi-
lent of the ~Amalgamated company. will
have something to say as to the affairs OF
the Butte City Water company in the fu-
ture.
1t is certain that some plan of reorgani-
cation is on foot. and that the r~eorganiza-
ton ~contemp!ates perhaps a complete
~overturning Of the present system and the
instalment of a big plant which would
empty an abundance of pure mountain
water from the Big Hole river into the
mains supplying Butte. a change thai
would be very welcome.
THE COMPLAINT.
Several days ago the bill of complaint
was flied in the circuit court OF the
United States at Missoula by the Massa-
czusetts Loan and Trust company. of
Ioston, against the Butte City Water
.npan reciting the fact that the de-
PENDANT company was indebted to the
plaintiff company in the sum of So, 900, 900,
secured by first mortgage bonds, and
praying for the foreclosure of the mort
gage and the appointment of a receiver
to take possession of the property.
The complaint relates hat on August
4, 1891, the defendant executed 1000 first
mortgage bonds in the sum of 81, 900 each,
bearing interest at the rate of 6 per cent
payable semi annually, and that by the
terms of the mortgage the defendant
agreed that on the first day OF February,
1897, and semi-annually thereafter, until
the maturity of said bonds, 1t would set
apart as a sinking fund for the purpose
of redeeming the bonds the sum Of
81, 900.
Thu complaint then relates that the de-
PENDANT has failed to comply with the
conditions with reference to the sinking
fund, and has at no time appropriated
any moneys towards this fund.
in the matter of paying interest on the
bonds the company has also defaulted.
being able to pay only one-half Of the
amount semi-annually, when the coupons
0vorp nroscnte0 and has piven for tho