Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1900-07-19
The Consolidated Water Power Co. New
Phases OF The Case.
Contributed ]

Some four or five years ago, as most
OF our readers will remember. the town
was pleasantly excited over the pros
pect Of a consolidation of all the water
power rights and privileges on the
Wisconsin river at this point into one
strong corporation and great anticipa-
tiOnS were had of the benefits sure to
follow such action. Matters went
ahead swimmingly. But the several
owners could not agree amongst them
selves as to the proper ratio which
their properties had towards the
whole, so they devised the plan of
blind pool. Three expert arbitrator
or valuerS. in nOWiSe interested, were
selected from a distant part of the
state, and were to carefully examine
the several properties, make surveys
and establish the relative valuation Of
each property. An agreement was
signed by quite considerable portion
of these owners Of riparian rights
though not all of them-tO accept and
abide by the decision of this board of
appraisers and arbitrator. A cast
iron contract, or what was supposed
then to be such, was entered into by
all the signerS to the original agree
ment to the effect that they would
deed their several properties to the
Consolidated Co. to be formed, and to
accept such shares of the stock of the
tO-be-fOrmed company as should be
allowed them in payment of their
properties. In due time the report of
the arbitrator was given forth. But
it appeared SO manifeStly unfair and
inequitable to the Grand Rapids side
of the river that the Nash Bros. fatty.
refused to abide by it. The Pioneer
Pulp Co. strongly demurred, but
believing that the opposition of the
Nash Bros would be effectual in over
throwing the whole plan they awaited
the turn of events, or as they said,
they bided their time" Seeing the
atOrS bought up the inflated stock of
of the par value, but in reality all of
its actual value, and were then, and
are now, strenuous in their efforts to
compel a rigid compliance with the
original agreement.
A suit was brought to compel the
Nash Bros. to carry out their contract
but broke down with dramatic effect,
and for year or two nothing more
was done. Meanwhile, W. E. Mack,
one of the original SignerS, wanted to
dispose of his property tied up in this
litigation and brought suit in the Z.
5. Circuit Court to have his property
decided back to him. The suit ran it's
course and finally landed in the U. S.
Court of Appeals, in Chicago, where
Judgment was rendered in his favor.
The court scored. in no measured lam
guage the ineQuitab BILE features of this
remarkable "Blind Pool" land pointed
out ample remedy. 1t stated that the
agreement made by the signerS to it
was in nOwise binding unless all the
parties having riparian rights in the
property to be consolidated should
unite for that purpose. The language
is clear. 1t says THE acceptance by
the corporation of the proposition en-
bodied in the agreement bound the
subscribers only on the condition that
the declared purpose of the agreement
could and should be accomplished, and
once the corporation proved unable, or
failed for an unreasonable time to
proceed as contemplated the sub
scriber, in the absence of an eStOppel
or dominating equity to the contrary,
has right to withdraw" InaSmuch
as some five years had elapsed since
the signing of the agreement and no
effort had been made by the CONSOLE
dated company to include properties
affected, notably working properties
such as the Jackson Milling Co. and
the Grand Rapids Foundry Co. to say
nothing of quite a number of shore
properties. and as the Nash Bros. case
was. and still is, in litigation it would
seem quite reasonable that parties
whose title to their properties was
clouded by the agreement should have
the relief claimed by Mr.. Mack and
others associated with him by cross
bills in equity.
Among these latter were the Pioneer
Wood Pulp Co. and the Grand Rapids
Water Power Co. who now bring suit
in the Z. S. Circuit Court to compel a
reconveyance of title to their property.
And there the matter stands today.