Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-01-20
DECLINES. THE OFFER
UNDERWOOD STATES WATER
co.'s POSITION UNCHANGED.
Mayor T. II. PickIer Receives Letter
From President of City Water Sup
ply Co. Today Saying He Will Not
Accept city's Proposition.
From Monday,a Daily.

From Mondays Daily.
'fThere are number of matters in
the resolutions of the council with re-
gard to the proposed improvements to
the works which the company cannot
accept" says w. A. Underwood, presi-
dent of the City Water Supply Co.,
in letter to Mayor Pickler, which was
received in this city today in answer
to the propositions sent to Mr.. Under
wood two weeks ago through William
McNett of this city, attorney for the
also declines the proposition of the
city to lengthen the contract under
which the company is now furnishing
the water to the city for 5000 per
month in advance.
AT the meeting of the council held
two weeks ago. two resolutions were
passed, one of which offered to extend
the present contract for one year and
the other, to make several changes and
improvements, not the least of which
was the matter of the intake for the
water supply at point in the Des
Moines river above Harrow's branch
Mr.. Underwood declines both of these
propositions in his letter, which was
written January 16. at New York.
Mr.. Underwood continues and says:
The company cannot and will not
| abandon its reservoir without any
compensation therefor and so throw
away the money which is inyestal
1 therein.
There are several things in Che
agreement to which the company car
and will agree. The eleventh section
asks the company to name a cash
price for its property, payable in what
the city has to pay in. This is the
sinking fund On hand, the pledging Of
the net revenues of the waterworks
together with the sinking fund, etc.
The company does not regard q
contract to buy it's waterworks as val
id or one which could be enforced
and if it should retake its property fol
any reason it would be retaking the
same without any franchise to oper
4 ate it.
His Proposition. 4L
i .
"If we can otherwise agree on the
terms of the franchise the compan.
will do this: The city shall pass ;
franchise to the company for twenty
five years. to take effect and begil
from the completion and acceptanc,
by the city of the improvements W,
may mutually agree to make befor
hand. The company will then put
mortgage on the franchise and tn,
plant as improved, all prior mortgage
being paid Off
This mortgage will secure 100000
of five per cent twenty-five year bonds
and enough more bonds to pay for tn
cash cost of making the agreed i'm.
i provements. All estimates, bills an
statements for said improvements t
i be submitted to the city engineer o
such other officer as the council ma
appoint for his audit That is to say
100000 of these bonds are for tn,
i present water power and waterwork
plant and the balance for improve
ments. The company will convey t
the city the whole plant,-the water
works and water power, by warrant,
deed, subject only to this mortgage
and the city shall pay to the compan,
$4,000 in cash from the sinking fund
to be used in the reduction of the out
standing bonds. And the mortgag
and bonds shall provide that such
number of same shall be drawn eacI
! year for redemptlon as may be agree
upon.
I'VE want it distinctly understood
that the price here named is not wha
We consider fair to us. 1t is dis
count of all the interest on the origin
al bonded debt for about nine years
and one-half of the principal. In tn
meantime, while the work is progress
| ing, the company will supply to th
city and it's inhabitants at the sam
rate and as provided in the preseu
temporary ordinance.
Should the city not desire the wal
er power property the company vii
accept $225,000 in such bonds and re
tain the water power property an
convey the waterworks property t
the city on the terms above, the onl
difference being in the amount.
I'VE are unwilling to include in tn
improvements the building of an in
take and the laying of supply mai
from above Harrow's branch becaus
it adds nothing to the value of tn
mortgaged property but costs larg
sum of money
Council Meeting Tonight.
AT the regular council meeting thi
evening Mayor flckler will bring thi
: letter before the alderman and Wi
ask for their opinions regarding it. ]
may be that the new specification
for the waterworks plant the city prc
poses making a contract for sool
r will be ready for discussion at this ey
ening's meeting, although this is hare
ly probable, as the specifications ar
not quite finished this afternoon.