The Topeka state journal., 1903-05-05
CITY CAN HAVE IT
Water Company Expresses
Willingness to Sell.
President Street Says They
Will Take Bonds.
WANTS AN OPINION.
Asks That Judge Dillon Pass
Upon Bonds.
Street Railway Franchise Is
Not Passed.
WANTS AN OPINION.

Charles F. Street told the council last
night that the Topeka Water company
viii be ready to hand its property over
to the city in about six months, as soon
as the foreclosure suit, already started
in the United States court, can be rush
ed through
He also stated, which is of almost
equal importance, that the Topeka Wa
ter company viii take the $685. 900 4 per
cent bonds of Topeka in payment for
the plant. provided the city will get
Judge Hiram P. Dillon to investigate
the bonds and pronounce them valid
and legal.
1t is now up to the council to decide
whether the city shall hire Judge Dill
Ion to give an opinion on the bonds, or
whether instead the city shall go ahead
and issue tile bonds, and trust to ind
ing a purchaser for them in the general
bond market.
Hiram P. Dillon, the man selected by
President Street to decide whether the
recent bond election was valid, is an
expert on municipal bonds. He has no
connection with the Water company.
and he is recognized as one of the high
est authorities in the country on legal
questions concerning bond issues. 1t
was Judge Dillon who passed upon the
Kansas avenue bridge bonds, and re-
fused to endorse them until the city
had. by friendly suit in the courts,
established the fact that they were is
sued IN accordance with the laws. 1t
may be that Judge Dillon will advise a
similar procedure in the present case
At the next council meeting it is prob
able that the question of how to pro
ceed will be decided. The sentiment
among the cOuncilmen last night seem
ed to be to adopt President Street s
suggestion, and refer the matter to
Judge Dillon. It will no doubt cost 4
handsome fee to obtain this opinion
In speaking to the council last night,
President Street said:
The last time l was before this
council, was believe, prior to the cleo
ton at which this bond question was
up for settlement. I can only say that
the Topeka Water company is still pre-
pared to carry out the agreement or
tentative agreement made at that time,
both in the spirit and in the letter. We
can not just now give you clear title
to the plant. but in a short time I feel
confident that we will be in a position
to do so. I imagine that it will require
from four to six months to effect a
foreclosure of the mortgage. Nearly
all the stock and bonds are in our pos
session. am told that to perfect a
title in the United States courts viii re-
quire about six months, and these pro-
|ceedings have already been commenced.
Now. in regard to these bonds, !
will say that we are perfectly willing
to accept the bonds in payment. pro-
vided you Will give US an opinion by
Judge Dillon that the bonds are valid.
Let me add that we have against
the city a large bill for hydrant rental
this is the regular dun which Presi-
dent Street always makes when he ad-
dresses the council-''and about which ]
believe there is no dispute. / have been
comforting with the city attorney to see
if there is not some way by which this
money can be paid over without in any
way prejudicing the interests of the
city in possible litigation. I believe that
a way has now been found in which the
money can be paid over. It is only faiI
and just that this matter should be set
tied, and will sign any kind of q
stipulation you want relieving the city
of all legal liability for the act.
I can only add that the assurances
which I gave a former administration
we will carry out to the letter, and
turn over to you the property of the
company for $500, ,O0O of which $270 0Ot
is represented by the existing first
mortgage"
There has been some question as tc
what effect this settlement will have OF
the pending litigation concerning the
SO, 900 claim of the company for hydrani
rentals in South Topeka This is the
historic old South Topeka case which
has been dragging along in the United
States courts for so many years tina
most people would almost hate to par
with it, as man hates to part with al
old familiar wart City Attorney Spen-
Ger says that even if the pending dea
with the Water company is consum
mated the South Topeka case will still
have to be either fought out in tn
court or compromised.
After President Street had finished
his speech, Mayor Bergundthal urget
that the council act in the matter wit
as much expedition as possible, and tn
first step in the proceedings was act
ua1ly taken. The ordinance which wa
I introduced at the last meeting author
izing the city to issue the $350,0O0 bond
was reported back favorably by tn
waterworks committee. taken up by tn
I council and passed without a dissentini
vote before Mr.. Street left the room
If the council decides to submit tn