The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-09-25

stacles to be encountered. But you
have your counsel. and SO have we, ana
il we can here agree upon the general
manner of procedure, the legal obstacles
will speedily disappear There is no
truth in the published statement that
we are trying to set trap for the city.
Zone cause of friction which has
arisen Is the refusal OF the city to pay
hydrant rental 1 represent 800 share
holders, and when the report comes in
that Topeka refuses to pay its hydrant
rental it makes it very difficult for me-
hope you can agree to clear up that
matter. I see no reason why st1pu-
1ation should not be entered into so that
none of your legal rights.
Our. directors have been unanimous
in the desire to meet you more than
half way. 1t is our duty to get what we
believe to be fair value for the plant.
We don't want to drive hard bar
gain
COUNCILMEN ASK QUESTIONS.
When Mr. Street finished his talk,
Mayor Parker called upon members of
the council to ask whatever questions
they desired Councilman Tincher said:
Mr. Street, if we agree to give $780,
600 for the plant, why not submit that
proposition alone, instead of hitching on
that condition about new franchise.
If the proposition to vote bonds is de-
feated, it must of necessity follow that
we will consult with you about renew
two propositions would confuse the
voters"
|. Mr.. Street: II have nc objection to
that plan- Our only object i, proposing
that if the bonds failed to carry the
company should grant the city reduced
water rates. It was not a string to t
proposition. If voter thought he would
get reduced rates if the city did not
buy the plant, he might be influenced
to vote against the bonds.
Mayor Parker: Il think that we could
make better bargain now about re-
ducing rates than later on, in case the
be more at the mercy of the company
Councilman Tincher: We ought to
know how much of a reduction we
would get in such a case
Mr.. Street: That's what 1 think. and
believe that we might as well settle
the whole thing at once. I believe I
know about what you expect, basing it
on the rate ordinance which your coun-
ell passed some years ago."
Councilman Weber: II am one of the
members of the council who thinks that
$4,000 is great deal more than the
plant is worth. How do you account for
the fact that it is $4,000 more than the
structural value of the plant? Your en-
gineer figured the structural value at
$491, 900 and the going value at $200. 900
more. Isn't S491. 900 the value of your
plant after the franchise has run out %
Mr.. Street: mo. it is not the value.
Our engineer submitted an elaborate
report showing how he determined the
going value. Our engineer added more
than yours. Each realized that it had
a going Value
Councilman Weber: why didn't your
engineer make reductions for wear and
tear?''
Mr.. Street: st think you will find by
looking at his report that he did make
reductions. I claim that the plant is in
better condition now than when it was
built. Pipes do not deteriorate in the
ground, and we have always kept up
the property in first-class condition"
Councilman Nichols: Does the COM
pany use the old pumping station at
Harrison?"
Mr.. Street: 1--WE use it as an auxili-
or three hours
Councilman Nichols: IT can't under
stand why we should pay $4,000 for
that old building which is useless to
u.s."
Mr.. Street: 'It would be a great mis-
take for the city to dismantle that sta
ton if it should buy the plant
Councilman Swendson: do you have
the authority to make an unqualified
proposition to sell for $500, 000?'
Mr.. Street: mo. because it is impos-
sible. All can do is to recommend to
the bondholders.'
| Councilman Swendson: ssThen 1t
seems that your proposition is condi-
to give anything but a condition an
swer?"
| Mr.. Street: "That is all we ask for
Mr.. Spencer knows the legal difficulties
/ think it will be an easy matter to in
duce the bondhelders to accept the pro-
position. There is no question about it
The directors represent two-thirds oil
the bondholders."
Councilman Swendson: '-Then that
can be done before we have to vote on
the question:"
| Mr.. Street: Certainly As soon as
we have your consent. we will send out
notices and get the consent of ou1
bondholders.''
PROMINENT TAXPAYERS HEARD
Mayor Parker here invited any of the
citizens present in the room to express
themselves, or ask questions. B. M
Davies said, addressing Mr.. Street:
Can you and will YOU furnish q
statement of the net and gross earnings
of the water plant? If could see those
figures it would help me to decide what
1 want TO do"
Mr.. Street: LAS long as all kinds OF
lawsuits are threatened or pending,
do not want to furnish information tt
our enemy I can assure you that the
plant is a good business investment or
the terms proposed.
H. C. Root: Il would like to ash
what the company has to sell. 1t has
no franchise to sell back to the city, and
as understand it, it can sell us nothing
except the pumping station, which is
worth about $4,000"
Mr.. Street: THAT is going into the
legal phase of the case, and must re-
fuse to do that. 1t is not agreed as tt
what the legal status is. and I am not
a lawyer"