The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-03-01
ANOTHER HITCH.
City May Be. Unable to Gel
Waterworks for Is Months.
Kansas Mortgage Redemption
Law Makes Trouble.
SPENCER WON'T TALK.
Numerous Conferences Between
Pres. Street and the Lawyers.
A Special Council Meeting May
Be Necessary.

Be Necessary.
1t may be over a year and half be-
fore the city of Topeka can take pos
session of the property of the Topeka
Water company, and be assured that it
is getting a good title TO the plant.
This rather startling and unexpected
turn of affairs is brought about, ap-
parently by the Topeka Water COM
pany, under the Kansas mortgage re-
demption law which gives the owner of
property Is months in which to redeem
his property after a foreclosure sale.
Until the expiration of that period of
time, the water company can not get d
good title to the plant, and conse-
quently can not give the city a good til
! tle
Frequent conferences have been held
between Mr.. Street, president of the
water company, and City Attorney
! Spencer since the formers arrival in
Topeka Tuesday. The matter under
/ discussion has been the provision of the
mortgage redemption law which seems
to interfere seriously with the propos-
| ed transfer of the plant to the city.
City Attorney Spencer today had a
long conference with the city's asso-
ciate counsel in, the waterworks case.
When that conference was ended, Mr..
! Spencer was asked for statement in
regard to the progress of negotiations
between the city and the water com
pany. He said:
II have had several talks with Mr..
| Street, in regard to the legal matters
concerned with the foreclosure of the
mortgages on the plant That is what
MIR. Street is here for. L have reaa
| over all the records in the case which
| have been filed in the federal court"
"Will the city be able to avoid the
provisions of the mortgage redemption
| law"
It don't care to express any opinion
in that matter said Mr.. Spencer
''WilI it be possible to get possession
| of the waterworks inside of the IS
month limit?'
.'I have nothing to say about that
now"
have fought the thing over, special
council meeting will be called to decide
what the city wants to do, in view OF
the new turn of affairs. Mayor Ber-
gundthal said today:
| have not yet called a special meet
ing to consider this matter. but may
find it necessary to do so. The attor-
neys are now trying to find some way
| to avoid the provisions of this mort
gage redemption law. 1t may be posi-
BILE for the Water company to give
bond which will protect the city,
The present difficulty may lead to
| further ENHANCEMENT over the trans
fer of the plant, and it may, on the oth-
er hand result in benefit to the city.
1t will give the water company furth-
| er opportunity to demonstrate to the
| city that it's facilities for pumping wa
| ter are as good as they were before the
] flood
/ All the legal trouble is with the mort
cages outstanding, and which the Wa
ter company is trying to have disposed
by through the channel of the Federal
court. The Water company is in the
position of a concern foreclosfng a
mortgage against itself. The people
who gave the mortgage are practically
the same ones who took it. With few
exceptions. the holders of the mort
gage bonds agreed to the foreclosure
of these mortgages, in order to get the
plant in shape for the perfection OF
title necessary to it's transfer to the
city Having secured the consent OF
a majority of the holders of the Sc
curitieS the Water company proceeded
to file the necessary proceedings in the
Federal court President Street IS mere
to give testimony in these proceedings
Now comes up the question of wheth-
er or not the Kansas mortgage redenp-
ton laws will permit the Water com
pany to give the city of Topeka cleal
title to the property until Is months
have elapsed after the foreclosure OF the
mortgage
there are any of the dissatisfied bond
holders who would try to come in ant
redeem the property under that law
either for the purpose of getting SOM
claim which the city would have t,
recognize. or else to force the watel
company to make terms with them.
Meantime the water company is th'
one which it seems will profit by tht
workings of the mortgage redemption
law, because it may be necessary fol
the company to retain control of the
works and get the profits for yeal
and a half longer than it has been sup
posed it would
The following are the provisions of the
mortgage redemption law in the genera
statutes:
s'492s. owner may redeem. The de.
fendant owner may redeem any rea
4 property sold under execution, specia
execution, or order of sale, at the
amount sold for together with interes
: and costs, and taxes as provided for IL
this act at any time within Is months
from the day of sale as herein provided
and shall in the meantime be entitled
to possession of the property.
1929. Who redeem. For the frs
twelve months after such sale, th'
right of the defendant owner to redeem
is conclusive, but if no redemption il
made by the defendant owner at the enc
of this time, any creditor of the de
fendant and owner whose demand is
lien upon such real estate may redeem
: the same at any time within Is months
from the date of sale"
Russian Gunboat Threatened.