The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-01-26
SEE A WAY OUT.
Plan to Adjust Topeka Waterworks
Controversy.

The attorneys interested in the set
tlement of h title to the w~aterworks
plant think that possibly they may
have hit on a solution of the problem.
At last nights session Of the council,
convened to discuss with Mr.. Street
and Mr.. Charles Blood Smith, his
counsel, the question of a settlement
of the title it was suggested by he
.city's attorney, Mr.. Charles Spencer,
that either one of two alternatives
might be applied to the matter and
lead to a solution. The one method OF
procedure is 20 bring suit
with the Topeka Water company as
plaintiff and the second and third
mortgage bono holders as defendants,
making publication of same, entering
in the names of every bond holder in
the publication. This Mr.. Street be-
lieves is impossible since he has not all
of the names of the second mortgage
bond holders, though having in his
possession $5O2.5O0 of the $4,000
bonds. h other alternative is to
bring suit to quiet title with the third
mortgage bond holders as defendants
to show why the a title should not
be Quieted. This it is believed can be
done without encountering the difh-
Guilty outlined in the other method of
procedure, since Mr.. Street has in his
possession the name of every holder OF
the third mortgage bonds. Inc X
LDdC UllS GAlSlO III LILY OdSC
of the third mortgage bonds and not
in the second is that the former were
registered while the latter were not.
In the event that the latter course
could be followed 1t Will take SIX
weeks for publication notice before
the trial can be commenced and prob
ably four months before a final set
tlement is reached. If a settlement is
hit upon Mr.. Street Will turn over the
second mortgage bonds of which he
is enabled to secur about 80 per cent.
The latter method viii probably be-
the one which Will be adopted.
There are some $50 of these third
mortgage bondholders though about
IS ner cent of these bonds are held
by the second mortgage bondholders.
Mr.. Street can secure 100000 of
these bonds in q transfer to the city
but this is the best that he can do.
If it were possible to turn over h
whole amount of s550,000 the suit
would not need to be brought, as the
transfer would liquidate n possible
claim which might arise from that
source.
The three points on which the at
torneys differed were the right of the
Metropolitan Trust company to act as
a successor to the Atlantic trust
comnany as trustee. the statutory
right of redemption and the rightful
appointment by the federal court OF
the Pioneer Trust p as trustee
for the third mortgage b~ondholderS-
The first two points are the n raised
by Special Counsel j. D.. Mcfarland
and in which the city attorney fails to
concur. on the latter point both of
the city's attorneys concur.
The suit to quiet title will settle
this latter disputed point while the
former two it is evident the council
men will pass up. An amusing feat
ure occurred last night when the city
attorney made a passing reference to
~frenzied finance which Mr. Street
ana his allies, he said, had perpetrated.
Mr.. Street, quick to feel the point,
to his feet and denied the
allegation that any attempt had been
made to freeze out" certain of the
bondholders.
A conference of the attorneys will
be held soon and OF a motion the city
left it to the attorneys to ar
at a settlement.