The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-04-06
ABOUT WATERWORKS.
Before You Vote Read This
Statement Of Facts.

To the Editor Of the State Journal:
The election is so near thaB We're it
not that 1 feel sure that hundreds of
voters are. even at this late hour, still
undecided what to do about the water
works proposition. and that this is
/ largely because they have been urged
to accept certain erroneous. not to say
absurd view as to the legal aspect Of
the matter I would not write this com
munication: but 1 am certain that a
( brief, plain statement may do good even
/ yet Hence these words
whether the water works plant is a
paying investment at the price pro
posed is not a matter of speculation
For years the plant has been operated
/ by a receiver, who has made quarterly
reports to the IJ1tted States court, and
/ / have examined them for the purpose
/ of a pending suit against the company.
We there learn just what it costs to
operate the plant and what income is
received. and we learn that the city
could pay interest on the bonds, provide
sinking fund for their redemption,
pay all expenses and make large inn
provements from the present income
aIone-allowing nothing for the growth
of income with the city's growth and
more effort to get the people to use
water works water
1T is said the plant is not worth so
much Granted But the city does not
buy the plant alone; it buys an estab-
Iished business and a large income.
have never inquired but I violently
doubt whether the proprietor of the
state Journal would sell it for the cash
value of its plant The purchaser would
buy handsome income, not merely
building and a printing outfit
Not a merchant or a banker in the
city would sell for the value of the
tangible property; he would expect
something for parting with a money
maker. Well, this is what is known as
the value of a business as going con
cern:s and in the Kansas City water
works case the court of appeals of the
United States for this circuit decided
that this value "as going concern
this value of an established trade-is
part of ..the fair and equitable value
of a vvaterAv0rks plant and that the city
must pay for it. So we not only have
TO nav for this. but it is equitable that
we should have TO pay for it, We are
to get an established. paying business
The price is enough, but it is not ex-
orbitant.
We cannot build a new plant. The
supreme court of the United states has
settled it that if we should attempt to
build we could be promptly enjoined
because we would be destroying the
value of the existing plant and be I'M
nairfng the obligation of our contract
with the company. Our contract con-
templates that, once in operation. the
hot pff
the city is to buy it and operate it, or
the companys franchise is to continue
and the company is to operate it,
The contract assumes that there VIII
never be a time when the plant viii not
be operated by either the city or the
company. The United states supreme
court takes this view, and we must
either buy or extend the franchise
/ There is no middle course
Some lawyers say the company has
nothing to sell; that its franchise has
expired and it has no longer any right
to use its mains. Colonel Harrison goes
so far as to say that the mains belong
to the city now
What is the sense of making claims
we dare not act upon2 If the city's at
torneys really feel sure that the COM
pany has no right to use its mains any
longer. why hay they not asked an
Injunction long ago to prevent the com~
pany from doing this wicked thing
They could have had judicial decision
months ago on this question Because.
were such an Injunction granted the
city would indeed be dry; there could be
no water. and there might be a fire!
Suppose the city owns the mains =
what use can it make of them without
wells and pumps2 And the moment we
tried to sink wells put in pumps and
connect with the mains. we would be
doing business with an injunction, there
would be another lawsuit for some years
and the company would do business Is
before.
Suppose the company should agree
with Mr.. Spencer and his associate and
say it is doubtful whether it has a right
to use its mains any longer; that it
yearns to be law-abiding. and viii
therefore refrain from pushing any
water through the mains until this
question is setued-what a howl would
60 uD next day from everybody, and
especially from the fire department!
Why make claims we dare not act
uuon2
What is the intellectual and financias
value Of such cla5ms2
Let US vote the bonds and end this
nu-sarce
We must end it some time in some
va---
We can have no better time nor better
way. G. &. GLEN EMS.