The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-03-22
THE WATERWORkS.
The City and the Company Near
er to a Settlement.

There was another long conference on
the waterworl<s problem today. .Presi-
dent Chas. II. Street and Receiver J. w.
O'Nein spent several hours at the city
building with the mayor and city at
torney. The officials refused to tell
what had taken place.
City Attorney Spencer said that ne
would make nothing public till the
meeting of the council "Wednesday
evening. "At that time I will tell the
council everything" said Mr.. Spencer.
Il do not know whether the council will
consider the question in open session
but 1 shall advise that the matter be
discussed behind closed doors When
the situation is fully understood by the
council, and the city knows what IL
wants to do, am perfectly willing that
everything should be made public"
Mayor Parker said: I'VE are trying
to keep these negotiations quiet We
didn't want 1t generally known that we
were in consultation with Mr.. Street.
1 don't know vet what we will be able
to do with those men. They are anx-
and will try to get the city to pay every
Last dollar possible"
What do you think of the plan they
propose of submitting the question to
a board of three engineering experts %
was asked
''I don't think it hardly just to the
city. 1t does not give US exactly fam
show. 1t is not as though an individual
the plant. We must deal with people
who have large corporation interests
and influences behind them"
amount of 10 per cent of the assessed val
uation. This would make 81 .013. 909.50 the
limit. There are now outstanding s42S,-
can be issued, assuming that the city votes
to hon issue the $500 IN park nj
the plant without Involving cash outlay
AS was stated in Fridays State Journal
the owners of the waterworks plant are
abo9t $50 COO but Of IF th ds Hn9
first mortgage bonds on the water works
plant. could be. and probably would have
to be, assumed, as the bonds have twenty
years to run and only the interest need be
met till that time. This would leave about
decided to pay $3.50, Gee in all The present
law WOULD require the city to set aside as
and by assuming O00O of incumbrance
the city would save $4,000 annually in
present outlay and leave the future to take
care of that amount
The water works property is now en-
mortgage bonds. $3.50. 600; second mortgage
bonds. $5500OO, and third, or income, bonds,
In conversation Mr.. Street. who, while
nominally president. is really trustee for
which is no doubt absolutely true. that the
owners, or bondholders. of the company
thing from the third mortgage and, that
those $3.50 600 in bonds represent. water. or
squeezed out, and the good money therein
is gone. The stock, of course has
value. Mr. Street and his associates are
evidently striving to save much of the
second mortgage as they can, but as they
have almost conceded they will accept
$3.50. Geo. they have surely made up their
minds to shave the second mortgage.
Mr.. Street said today that they have not
felt like making any special efforts to ar
rive at a. settlement while the mayoralty
was in dispute. He said also: Mayor
Parker and the present officials are the
first, to show business-like, attitude to
reach some satisfactory result. Mr.. Par
ker has talked over the matter freely with
me. Mr.. Spencer has asked me some
questions and 1 have submitted a brief
letter in reply, which, 1 suppose. he will
present to the council. The letter, how
ever, is only general"
A summary of the present situation is
that the city seems nearer solution of
the vexed question than ever before and
there are strong prospects that the city
will shortly own the plant and the peo-
pie get water who have it not, and those
who have it get it at reduced rates.
President Street left for the east this
afternoon,