Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-09-08
BOND DEAL IS OFF
FAILURE TO RAISE MONEY FOR
WATER PLANT.
ORDINANCE NAY NOW BE PASSED

setter Received From President I'm
derWood Today Brings Forth State
ment from Captain J. G. Hutchi
son.
From Thursdays Daily.
@sne proposition to float bonds suf,
Hcient for the purchase of the property
OF the City Water Supply company
mas fallen through and the bond bro
herage company has been notified to
cease its efforts to dispose of the city's
ponds. This was given out yesterday by
D U. Hutchison, who has been promi.
aently identified with the movement.
yesterday ended the period of ten
nays given by the water committee of
she commercial association to the par
t,es endeavc-ing to negotiate for the
sale of the bonds.
Vine Extended Twice.
The proposition to float bonds for
the purchase of the plant met with
favorable consideration by enough
members of the council to defeat the
ordinance as it was being presented
for its final reading. Since that time
the negotiations with the bond dealers
have dragged and two extensions of
time were given by the association.
Vt was decided at the last meeting
OF the water committee to
make further extension of ten
days and if the negotiations were moi
completed by that time the committee
would recommend that the council
pass the ordinance previously defeat
ed.
Association Receives Letter.
Yesterday afternoon the commercial
association received a letter from
President Underwood in answer to the
letter written at the time when the ex-
tension OF ten days was given to the
local parties. The letter gives sew
eral matters of interest to the public
and is given in full herewith:
MIR. Hutchinson's Statement.
Mr.. Hrtchiscn was seen today and
stated that he had also received a
copy OF the letter sent to the CONNER
cial association and the letter of about
the same import from Mr.. Underwood
addressed to him personally. Finding
Mr.. Underwood opposed to accepting
the suggestions CT w. j. Hayes & Co.,
he advised the bond house at once to
consider the matter at an end SO far
as Negotiating the bonds for the pres
ent and that he would probably make
written report on the matter to the
council at its first meeting.
Mr.. UnderWood's Letter.
August 81, 1908.
The City Water Supply Company:
j. III. Mitchell, Esq, Secretary, The Com
mercial Association, Ottumwa, Iowa:
My Dear Sir:--I arrived home on Satur-
day evening, the 2!,lh. and this is my first
opportunity to write to you in reply to
yours of the 22d, further than my note of
the 26th from Richfield Springs. in which
advised you that / would answer your
letter today.
The two propositions which I understand
from your communication, and from one
subsequently received from Mr.. Hutchison,
to which seu desire our agreement or con
sent. are substantially these:
First:--That we shall take the sum agreed
upon, $2I0,O0o, in partial payments extend
Ing over period until February 1, 1904.
Second;-That we should make reduc-
i t,' ~ enc ,asl price OF So'ooo TO enable
ny, ny, .oLiiiils.ipn 70 pe piio 10 the mouse
",,t'n ~ the poiios.
~ Sp 'hese piopo'i'iohs III eheit OF
VI. ~
t ISL I, ! Ne .,oposltioh rs s.ated does not
Z set 1pf'i s,hp itnf ot not IL Is expected IN
s u.s., i'Vt'"'i P'S WIRE mute tlat we
sHo''l'',' GU RECEIVING lhe 'lfst payment.
y eoi.Nes''li'e ''i,u give possession OF
e.ne proprt.|' "f mo-. p'lt from cause IN
NJ MI iutclllss,, letteS' imagine that was
IN coi'teihpiatioh, iof ne speaks OF the
CITY eApehal,s some eight OF ten Thousand
doliafs, Which iuhds IL mas on hand, on the
uaiil. anu 10 not lnlasme that the city
would desire 10 eNpenu any money on prop
eftE winch dld NOT pelohS TO the city, and
winch IT was not certainty mat the
city would acquire. !, therefore suppose
that TINS proposition contemplates that we
shouiu TURN over the properly, taking the
CITY onllgatlon 10 ply us S2io,ooo. DO
not see now we can 90 that. because under
our view OF tnc law the oDngatlon OF the
city could not be enforced ana the city
would nave our properly ana we might be
put TO the expense ana annoyance of
lawsuit WITH posslpliity or even a proba-
bihty OF being defeated. Nor could we re-
cover inc properly under the decision of
the supreme court of the United States in
Ballou VS.. Iltchheld. That was case
where the city went in debt beyond its