The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-04-22
PLANT is SOLD.
WaterwOrks Is Formally Pur-
chased Today.
Charles F.. Street Bids $780,
600, the Upset Price.
TO CLEAR THE TITLE.
That Is Purpose of the Present
Action.
Steps Taken to Issue the City
Bonds.
TO CLEAR THE TITLE.

me nrst step was taken this morn
Ins 10 clear the title of the Topexa
WAterWorks property, when c. F.
street, president of the Water com
pany' bought the plant for 100000 as
d result OF a special decree of the fed
eral court, ordering a public auction
winch was held this morning on the
south steps of the Shawnee county
court house H P. Dillon conducted
the sale as special master.
Ihere was only one qualified bidder.
ana ne was Mr.. Street. A guarantee
of good faith of $4,000 was required
before anyone was eligible to offar =
price The court decreed that the sum
realized must not be less than 500 600
Mr- Street, finding himself without A
competitor, bought at the upset" fig
ure.
The question will naturally be ask
ed; Why did not the city buy the
plant That is answered plainly with
l1e statement of the municipal officers
VINO declare that they do not want the
properey 20 until the title is clear. There
are are PROBABLY few cases on record
/ tangled up as badly in the courts as
| the Topeka Water company has been
FOR several years.
The sale this morning had y 5is+i,,,+
result It satisfied the first consoIidat-
feu mortgage and wiped out the third.
| ieaVlng the plant in such a shape that
lhe city can buy it subject to the first
/ mortgage This was the intent of the
court, and this mornings proceeds
lsupserved Judge Pollock's order
/ Ine water plant had three MORTGAGES
against it, known as the first mort
gage the first consolidated mortgage
and the third mortgage. The first still
stands and is for $27O, 900; the first con
solidated with accumulated interest
was for $6O7. .652.62; the third rnortgage
| was for $3.50, 900. The court ordered
| that the sale is to be made subject to
the hrst mortgage, meaning by that,
that the buyer assumes it. The pro-
ceeds are then to be applied upon the
first consolidated mortgage and if any
money remains, it was to be paid on
the third mortgage. The last is prac-
/ tically wiped out, for only 800, 600 was
realized at this mornings sale, and
that sum must be applied on the con-
solidated mortgage which totals over
$500, 0GO.
A definite, advantageous thing was
1 however done this morning for the
benefit of the city. A long step was
taken towards clearing the title. It is
understood that the city is willing to
buy the plant and assume the first
mortgage if all other membranes are
removed.
Another factor has however since en-
tered into the matter which will mean
delay to the city's obtaining the plant
The big Parkhurst-Davis Mercantile
company, whose store was burned on
the night of February 13 has filed a
suit for indemnity against the Water
company. because of the low fire pres
sure at the time of the destruction of
the big building.
William schick. owner of the mattress
factory which was destroyed a { the
same time, has also sued for SIS, ,O00
JOab Mulvane, owner of the building
in which the Parkhurst-Davis COM
pany carried on its business. has ask
ed for $65,000 damages, making in all
a total of a list of claims aggregating
a total of 1885. 900.
The attorneys for the parties suing
for indemnity succeeded yesterday in
getting the court to accept an inter-
vening petition to protect the proceeds
of the sale, from any distribution prior
to the satisfaction of their claims. The
court went a step farther. It made j..
W. O'Nei1 the receiver, defendant in
all the suits against the water com
pany, and extended the intervening
petition against him in all cases now
pending.
Still a second factor will now come
and enter into the matter within few
days, which may have paramount eff
feet. The parties claiming damages
are going after the S10O, 600 received
this morning, according to the state
ment of one of the attorneys. I'VE
have have a right to it, he said, fand
we shall get it. That money received
this morning will be applied to our
claims. All of the lawyers interested
are agreed on that point"
proceeds of the sale estop any one
from getting further satisfaction from
> any subsequent sum which may be re
allied, when the water plant is bought
up by the city. That the water com
pany will fight such a move is not to
be questioned. By this mornings sale
. it laid 500, 600 wide open to the attack
of those who claim indemnity. From
| it must be taken the cost of the case
? | first however, and the special master,
H. P. Dillon must be paid for his SER
vices. What the latter's amount viii
! be is not determined by a percentage
; as in sheriff's sales. The court fixes
his fees.
1t is hard to say just what the next
r move in the entire matter will be- The
5 parties claiming damages will doubt
lessly fire the first gun in getting after
= the money received this morning. The
. water company viii probably step il
! cedure. Meanwhile the city viii stand
2 back and let the war clouds pass over,
5 before it pays any of its 100000 for the
I water plant
] the water company, when asked what
3 his next move would be, said: "We'n
Charles F. Street. representing the
Topeka Water company, hled with the
2 city attorney this morning a proof
S copy $1,000 denomination of one of
issue of s35O,000 worth of waterwOrSa
= bonds.
r The bond was prepared under Mr..
I Streets personal supervision and en-
: bodies some features which Mr.. Street
as representative Of the United States
: Mortgage e Trust company, which
s viii take the bonds was DESTROYS to
: the bonds viii bear on the back a GER
tihcate signed by Rossington, Smith &