Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-11-27
City Officials Dismayed by the
News.
DO NOT UNDERSTAND REASON
City Solicitor Jacques Says Federal
Court Has Failed to Follow Well Es-
tabIished Precedent-city Will Go
Ahead With Plans.


has rendered decision in the Ottum-
wa water works case which afIirms
the decision of Judge Smith McPher-
son, giving the City Water Supply Co.
an injunction restraining the city coun-
Gil from carrying out its contract with
the Fruin-Bambrich Construction Co.
for a water works system under mu-
nicipal ownership. This decision,
news of which was received in Ottum-
wa late yesterday afternoon by tele-
graph, contradicts the recent decision
Of the supreme court OF Iowa which
reversed the decision rendered by
| Judge Robert Sloan in the district
court OF Wapello county and decided
! that the city had the right to contract
for the waterworls system and issue
| bonds to cover the expense without
going outside of its authority as con-
strued by the constitution of the state
of Iowa.
Surprises City Officials.
All of the city officials are much sur
/ prised by the decision, as they fully
expected the federal court to follow
| the state supreme court and render
decision upholding the Iowa tribunal.
This plan has been followed in many
4 lsimiler cases aslti the case was oan-'
! sidered by many as won when tho
state court decided in the city,s favor.
| However, this decision OF the federal
court makes it impossible for the city
to build it's waterworls plant accord
ing to the contract made wi1h the
/ Fruin-Bambrich Construction Co. OF
st. Louis. Both decisions OF Judge
NJ dos. nod hn
granting a restraining order before
the election was held in this city and
the later one granting temporary in
junction to restrain the city from car
rying out the contract after the first
order had been modified to allow the
election. The second decision by
Judge Mcpherson was made after the
election had been held and the water
works proposition had carried. Since
that time the matter has been in dis
pute, the case of C. A. Swanson having
followed very closely in the federal
court This case was brought in the
district court and was for the purpose
of securing an injunction similar to
that secured in the federal court.
Judge Sloan's decision was like that
of Judge Mcpherson and the city ap-
pealed both cases, the water compa-
nys to the United States court OF ap-
peals and the Swanson case to the
Iowa supreme court. Some weeks ago
the latter case was decided in favor
of the city.
], Attorney McNett interviewed.
5 VIM. McNett, attorney for the City
l Water Supply Co., was interviewed
a last evening, just before leaving the
: CITY for few days. He gave a his
6 tory of the case as follows:
: "In May 1900, the City Water Supply
:. company which is a corporation OF
a men, brought this suit in the United
d States court before Judge Mcpherson
= to enioin the city from carrying out
e the Fruin-B -Bambrich Construction Co.
contract and from issuing the 100000
bonds which were to be issued to raise
the money to pay the contractors ior
the waterworks. The case was ar
0 ahed in Nav at Council Bluffs. and in
July Judge Mcpherson granted tenn
norary Injunction, holding that the con-
:. tract and the bonds to be issued con-
| stifuted debts within the meaning oi
= , the constitution which limited the
!. amount of indebtedness of municipali
= ties. This case was then appealed by
n .tne Guy W lllS IiiSuAt Sooi ~ .'Pf'NN'
- of the United States. While that ap'
= :. peal was pending, c. A Swanson
! brought his suit against the city in the
:, district court of this county to enJoln
= the city from carrying out the contract
and issuing the bonds. Judge Sloan
granted temporary Injunction. The
case was then hurried to the supreme
. court advanced on the docket and sub
: mitted in February The City Water
\ Supply company was not party te
j that suit but it's counsel was permitteo
> to file an argument. The case in tbs
II United States court was then sub
7, mitted on printed and oral arguments
70 in st. Paul early in May last, Th'
II same case then upon the same question
y ! was pending in both appellate courts
Recently the Supreme court reversed
Judge Sloan and held that the bond!
to be issued were not debts within th'
IN meaning of the constitution, cop,
OF this opinion was then furnished b,
the city solicitor to the appellate court
/ Yesterday that court affirmed Judg
n Mcpherson who has, as | have said
at held that the bonds were constitution
he al debts, This practically puts tina
e. Ecourt and the state supreme court il