The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-02-22
An Instrument For Squeezing
Men With Money.
WHY 1T OPPRESSES.
Now Capitalized For Nearly
Four Million Dollars.
VIII the People Continue to
Pay the Bills2
Vote For Mr.. Drew Who Has
Been Tried.

The struggle between the people OF
Topeka and the water company for the
control of the city government as only
two days away. 1t must not be forgot
ten that the question is to be decided on
Saturday. The waterworks people nave
become more active and are Strain1ng
every nerve to win the fight. 1t means
life or death to the New Jersey corpora
ton which calls itself the Topeka Wa
ter company.
An Investigation at the office of the
register of deeds reveals the fact that
this corporation has increased its bond
ed Indebtedness to So, ,4OO,O 900 and it ex-
poets to squeeze enough money out OF
the people of Topeka to pay an income
on that enormous sum. Its friends
realize that the water plant in Topeka
is valuable and there is good cause for
their struggle to keep control OF the
situation. There may be people in the
world who would submit but they are
not the residents of Topeka
A study of the process by which the
securities of the Topeka Water COM
pany were inflated is interesting and
will prove more than anything else why
it has been necessary for the company
managers to Cypress the citizens IN
order to get as much money out of them
as possible.
City Attorney Bird is now engaged in
a struggle with the New Jersey cor
poration in the state supreme court. He
has successfully fought the battles OF
the city with the water company and
if he is continued in office the suit which
he. has commenced may be disposed or
and settle the whole question OF the
right of the water company to do buS1-
ness in Topeka.
The following history of the water
company is taken from official records
and is reliable:
On August Is, 1881, the Topeka Water
Supply company filed its charter and
Incorporated with a capital stock OF
5000, 900.
On September s. 1881, the city of To-
peka granted the company franchise
to operate water plant in the city of
Topeka The Topeka Water company
raised $780, 600 and borrowed 100000,
making a total of 5000, 900 with which it
constructed it's plant and operated it
until July 2, 1887, when the company IN
creased it's capital stock to 100000 as
shown by the records in the Office of
the secretary of state.
On December %, 1889, the Topeka
Water company was chartered under
the laws of Kansas with a capital stock
of 81, 5000
On January 20, 1890, the city Of To-
peka passed an ordinance authorizing
the Topeka Water Supply company to
sell and transfer it's property to the
Topeka Water company.
On January 81, 1890, the Topeka Water
sp9gayv sTgpy tn Pge TopeK wats ts
sum Of 81 and other good ana
valuable considerations. The other
considerations are said to be $525, 900,
the amount received by JOab Mulvane
who sold the plant to Coffin & Stanton
of New York.
On February 1, 1890, the Topeka Wa
ter company executed a mortgage to
the Atlantic Trust company for the sum
of 81, SOC. 900, upon all of it's property and
franchises granted by the state of Kan
SaS.
Under this mortgage the Topeka Wa
ter company issued and sold bonds to
the amount of $1,0S0,0 900 which added to
the $120 900 of bonds issued by the To-
peka Water Supply company made
total bonded Indebtedness of 81, 900
against the property of the water COM
pany plant.
In 1898, the Topeka Water company
failed in it's payment of interest on it's
bonds. On February 10, 1894, John
O'Halloran commenced an action in the
circuit court of the United States and
recovered judgment by consent of the
water company for SO, 900 On the same
day John O'Halloran commenced an
other action in the circuit court of the
United States against the Topeka Wa
ter company on his judgment of So 900,
and E. Summerfield was appointed re-
ceiver by the consent of the company.
On account of the bonds issued by the
Topeka Water Supply company on May
81, 1894, William B. Strong, as trustee
for the bondholders commenced an ac-
tiOn in the circuit court of the United
States, and in January, 1897, recovered
a judgment for $1500OO.
On February &c, 1895, the Atlantic
Trust company commenced its action
in the circuit court of the United States
against the Topeka Water company
and on December 6, 1895, a judgment
was recovered against the water COM
pany for 81, 1,O80,000 with interest from
August 1, 1893.
On August Is, 1896, all of the property
of the Topeka Water company was sold
to Charles F. Street, a bond broker in
New York city.
On August 6, 1896, Charles F. Street
had organized under the laws of the
state of New Jersey, a corporation
known as the Topeka Water company,
with a capital stock of 81, 500, 900, with
80, 600 shares of stock of a par value of
$50 each, 18 shares of which were issued
to his attorney and one share each to
E. G. Maturin and H. W. Meen of Jer-
sey City, but there is nothing to show
that even a cent of money was paid IN
to the treasury.
On September 81, 1896, Charles F.
Street. the promoter of this New Jersey
corporation by quit claim deed trans
ferred to the Topeka Water company,
the New Jersey corporation, all the pro-
perty purchased by him at the fore
closure sale of the Atlantic Trust COM
pany for 81, 500, 900 of the capital stock
of the company and $3.50, 700 five per
cent 80 year first mortgage bonds and
$550.000 five per cent first consol-