The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-03-26
THE wArERwoRKs.


now a strong feeling upon the part of
the mayor and members of the council
that the solution of the vexed water
works problem is very close at hand.
So close indeed that stranger things
might happen than a settlement with
in a few days.
For years the city has been in con-
slant litigation. Five years ago the
city could practically have obtained a
reduction of 20 per cent. in the prices
to water users had not the efforts of
the city advisors, legal and otherwise.
been expended to driving the water
works company out of town first and
settling the question afterwards. The
company is still here, and the question
unsettled. The city has been beaten at
practically every point in it's legal pro-
cedure. 1t is now settled that the
waterworks company has some rights
that the city is bound to recognize.
1t is believed by many and appears
to be so stated in the waterworks con-
tract with the city that only two OPP
lions are open to the city of Topeka,
either the franchise must be extended
to the company, or the city must buy
the present plant.
Not only does it appear that the city
may not equip another plant. surely not
without years of lawsuits. but il it did
do it would find another company
here in competition with it, with more
or less binding contract upon the city
to pay the old company $4,000 for
hydrant rental
The lawyers have been so divided on
these questions that an ordinary lay
man can hardly be expected to talk
with authority. but up to date the COM
pany has worsted US.
1t is clear. however, that if the city
should build a new plant it would cost
the property owners as individuals
probably 100000 to make the new con-
nections after the mains were laid and
the connections made to the sidewalk
or lot lines. 1t is also clear that it
would take several years to get a new
plant well into operation. Upon the
whole the city would spend many thou
sand dollars and then might not know
exactly where it was at.
Sometime ago the city employed an
appraiser who appraised the water
works at 100000. The waterworks peo-
pie employed a man and he fixed $780,
O00 and there you are
Meanwhile hundreds of our citizens
have been without fire protection and
water service and the rest have been
paying about 20 per cent more than
they ought to on account of the unend-
ing litigation, but the waterworks COM
pany has been receiving large fees from
private consumers which gave it a mar
gin for lawyers fees. On the other
hand, the city has had to pay it's own
lawyers outright. The consumers of
water, and those who wanted to con-
sumo it, if they could get it, have been
paying for the music.
A communication from Mr.. Street,
really represents bondholders, will I'M
doubtedly be read at the council to-
night. 1t is not known exactly what
Mr.. Streets letter says, because City
Spencer has not made the let
ter public, but from remarks made by
Mr.. Street and city officials it is evident
that Mr.. Street will decline to put a
price upon the property. on the theory
that representing the bondholders he
could not consistently name in advance
a price which would entirely shut out
the stockholders, no matter what kind
Of proposition the directors might OBJ
tain from the city. 1t is also safe
statement to make that about one-half
of the directors of the waterworks COM
pany are willing to remain here and do
business and the other half are willing
to sell out at a sacrifice and put their
money where it will cause them less
grief and probably bring them more
revenue The present owners, to use a
homely phrase, got bitten when they
bought our waterworks. They paid ST.
900, which is all represented by
bonds, first, second, and third.
The third mortgage bonds, amounting |
to about one-half million dollars, the |
company now sees is gone beyond re-
covery.
The second mortgage bonds. amount |
ing to $3.50, 900 are worth something, but |
not one hundred cents on the dollar. IF
they were the company would have to
secure $780, 900 for the property.
Mr.. Street, in a. remark made while |
he was here. as was stated in this pa |
per a few days ago, is undoubtedly will !
ng to let go for $650,000
The mayor and at least a number of |
mis- council, it is believed, are willing to |
pay about 100000.
If the city should have to pay $650.000 |
If this amount $3.50, 900 will have to run |
twenty years and bonds be issued for |
s400, 900.
,ity ought to procure this plant without |
lelay at the best possible figure.
We are losing money as city and as |
thousands of dollars every |