The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-14
TAKE OR LEAVE IT
Water COmpany's President
COnferS With Council.
Ready to Turn Over the Plant
In Few Days.
CONDITION OF SYSTEM.
Says That 1t Is Better Than
Ever Before.
Suggests ImprOVementsNece
ry to Meet Increased Business.
Would Have a Reservoir Built
at Pumping Station.

President Charles F. Street and his
attorney, Charles Blood Smith, made
it very plain to the city officials of
Topeka at a conference Thursday af-
ternoon that unless the city of Topeka
carries out its deal to buy the plant
for $620,000. the water company will
continue to do business for another
20 years under its present franchise.
1t has even Withdrawn its proposition
for reduction in rates, and says that
1t will be able to give the city a clear
title to the plant and turn over pos
session within four or five days.
I'VE are not here TO sell this plant
to the city, said Chas. Blood Smith.
I'VE are here to deliver possession.
The plant is already Sold
Those present at the conference
Thursday afternoon, which was held
in Mayor Bergundthal's office. and was
not secret, were Councilmen Hughes,
Green and Howe. members of the
WaterworkS committee, Mayor Ber-
gundthal, City Attorney Spencer,
Councilman Holiday, President Street
and Charles Blood Smith. 1t was one
of the most Important conferences of
the kind the city has ever held. and
was characterized at times by some
what spirited passages between Pres
1dent Street and Councilman Hughes.
Hughes tried TO argue" with Mr..
Street, and succeeded in getting him
self badly tangled up.
After President Street had informed
the city officers that his company
would be ready to turn over possess
sion of the plant with a clear title
asked this question:
IF the city should decide not to
buy the plant. would you grant a re-
ductfon in rates -
That's something we haven't consid-
cred We have simply been acting in
good faith upon the only official action
taken by the city in this matter, agree
ing to take the plant on April l. We
have burned our bridges behind U.S.
Everything involved in the formation of
the company has been directed toward
the end that some time the plant might
be sold to the city. Our first mortgage
bonds are limited to S270,O 600. When We
clear up all other bonds, we are power
less to issue more bonds to pay for i'm
provementS or extensions of the plant.
When we submitted our proposition for
the sale of the plant to the city we
sufs%1tted an alternative proposition for
a reduction in rates and the extension
and Improvement of the plant. At that
time 1t did not make q particle of diff
ference to us which one of those pro-
positions the city accepted. We were
in a position to sell bonds and build the
extensions, or we were willing to sell
the plant. The city chose to buv the
plant after having had an investigation
made of its condition When the city
reached this decision. we went ahead in
good faith to clear the title As say
we have burned our bridges behind US
We have never had an intimation from
official sources that the city did not
intend to carry out its contract. Now
we are unable to get money to make
improvements and extensions any acN
tion of that kind would have come from
our stockholders
Mr.. Street was ION the rack most of
the time answering questions propound-
ed by various members of the commit
tee. The rack did not seem to bother
the waterworks president much. ne
seemed to rather enjoy telling the CITY
some things which have heretofore
been somewhat shrouded in mystery.
What are you going to do with
these insurance suits % was asked of
him.
"They viii be so arranged that thew
will not in any way constitute a cloud
upon the title of the property we
are absolutely certain that the title
we Will offer you will be good and
valid. If we were not able to give Won
a good title We would not offer any
at ALL"
Col. Hughes said: ''You folks agreed
to give us possession of this plant on
April /. You didn't do it, and now
there are some of the councilmen who
think the city is not obliged to carry
out its part of the contract to buy the
plant How about that %
THE date of April 1 was selected
only because it was the end of the
quarter. We told you at the time that
It might be April IS or May l before
we would be able to give you possess
sion, but we simply took April / as