The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-08-07

reported to the board of directors the con-
versations we had in Topeka in regard TO
and have given them as nearly as was
able your views of the situation. You will
be possible to split the difference between
the price suggested by yourself and our
selves.
I'm order. therefore, to as nearly meet
your views as possible. the directors have
consented to recommend the bondholders
to accept the sum of 100000 for the prop
erty of the Topeka Water company as of
the time of the appraisal.
Since the appraisal the water mains
have been extended and the steam plant
at the pumping station is at, the present
time being largely increased In capacity.
The aggregate cost of these improvements
when completed will, in our opinion, APP
proximate SIS 600. In order to avoid any
recommend the acceptance of a minimum
figure of $4,000 for these improvements
1.-The drsct f5s are e tho &c
property of the Topeka Water company
upon the following terms and conditions,
SAL $500 600; to reimburse company for
moneys expended since date of appraisal
and for enlargement of power house plant.
1st $4,000; total. $4,000.
''If you Will favorably consider the sub
special election, will at once submit
proposition for the reduction of rates, both
the extension of mains along the lines
discussed in our recent conference. If these
points can be agreed upon. it is expected
that the city will at once pay all past due
hydrant rental and continue to pay the
same until the property is turned over to
the city, If it elects to purchase.
TT is also expected that the city council
will pass resolutions satisfactory to our
attorneys covering the concessions In rates
giving the city the right to purchase the
plant at stated intervals and settling the
franchise question.
purchase, the company Will deliver the
property to the city within one year from
the date of the acceptance. of the propo-
sition, free from all encumbranceS except
the $4,000 first mortgage bonds now Is
sued and outstanding, which are to be de-
Quoted from the purchase price.
THE earnings of the property pending
the delivery to the city to accrue to the
water company. In the event of any le-
delivery of the property to the city within
one year. it will be arranged that the
earnings of the plant after the expIra-
ton of one year, shall accrue to the city,
the city paying to the company interest
| upon the price in lieu of said earnings.
IF the city elects to purchase and de-
| sres any immediate extensions. reason
| able amount of money will be expended
| for this purpose under the SUPERVISION OF
| the city engineer. provided the city agrees
| to pay the additional cost.
with YOU this letter is sufficiently explicit
] to enable you to form an opinion as to
! whether it is advisable for us to enter
| into a more protracted conference in re-
| gard to- the many minor details. Suggest
! that, If possible, you get an expression OF
1 opinion from the CITY cOuIlCll DIS " WuCliiSi
| this proposition will be submitted to the
| people, provided it is accompanied by a
| satisfactory proposition for the settlement
| of the franchise question the reduction OF
| rates, the extension of mains. etc
| LAS you are aware, the directors have
no express power to act. We do not, there;
\ fore. deem it advisable to ask the approval
/ of the bondholders to any proposition I'M
| less feel assured that 1t VIII meet WITH
| YOUR approval and that of the city coun-
| Gil.
| I'VE also desire to call your attention te
| the fact that the suggestion to accept tnt
| price mentioned in this letter is not II
| any way to be construed as our estimate
of the value of the property of the To-
| peka Water company. We propose to rec
| ommend the acceptance Of this price as .
| compromise measure. Respectfully yours
| TOPEKA WATER CO.
by C. F. Street, President"