Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-08-27
OFFER SETTLEMENT
N GLUCOSE CASE
Members Of Council Agree on
the stipulations Recently
Proposed
BETTER UNDERSTANDING GIVEN
Situation as it Now Exists, After
Judge McPherson's Opinion on city's
Demurrer Explained by Counsel for
City = Resolution Receives AII-Aye
Vote.

vOb0s
BY unanimous vote, but with De-
vine absent, the city council at its
adjourned session Monday night,
adopted the resolution authorizing
settlement Of the case Of the Glucose
Sugar Refining Company against the
city, now pending in the United States
circuit court at Des Moines. The stip-
ulations as set forth in the proposed
resolution presented at the meeting last
Friday night are carried out completely
in the resolution adopted.
The council Monday night was CIV
en- a much better understanding OF the
proposition to settle the case, If such
settlement is accepted by the plaintiff
company Mr.. J. L. Carney, counsel
for the city in the case with Judge
Carr, Of Des Moines, was present and
explained at length counseTs position,
and also read in full the opinion OF
Judge Smith Mcpherson, in which he
ruled adversely on the city's demur-
rer. On the request of Councilman
Herman, Mr.. Carney also read a copy
of the contract between the city and
the glucose company, made in 1900,
when the deal to build the sewage dis
posal plant with $4,000 advanced as
loan by the glucose company was
made This is the contract that was
once supposed to have been lost and
was afterwards found.
Stipulations of the Settlement.
The stipulations of the settlement, as
proposed by the city, which Will be
forwarded to the Glucose Sugar Refin-
ing Company for Its approval or re-
lection, calls upon the city to release
to the glucose company all interest in
the taxes now in the hands of the
county treasurer, amounting to $2,-
5SS.17; for the glucose company to pay
allltaxable costs of the cause and dis
miss its suit against the city; the
county treasurer to pay to the city
$3.50 to cover costs and attorneys fees;
the glucose company to release all
claim Of right or ownership in the real
estate and the sewage disposal plant
itself, and to consent that the title
to the land and plant be vested by the
trustee d. T. Denmead, in the city of
Marshalltown, for It's use and benefit.
Carney Explains Situation.
Mr.. Carney was asked to tell the
council his views OF the case as it
stands today, and his opinion as to the
scitys chances Of winning If the case
were tried out Mr.. Carney said that
he would not say that the city did not
have a good case, but that there were
always chances Of defeat. He and
Judge Carr, however, had agreed that
with comparatively small amount to
sacrifice, in order to obviate the
chances of losing in the litigation, it
would be wise to effect settlement If
possible. Mr.. Carney said that the for
nation of the contract was against the
city, and by reading the contract
showed plainly that it continually stat
ed the needs of the city for a sewage
disposal plant, and that the request
came from the city to the glucose com
pany While the contract showed this,
the citys contention is and it issbased
on fact, that the city would not have
needed sewage disposal plant had It
not been that the glucose sewage had
to be cared for, and without the glucose
plant in operation the Sewage disposal
plant was dead letter. In other words
the demand for a sewage disposal
plant was FOR the sole use and beneht
of the glucose company; when IT ceased
operations the plant was useless. An
other point of defense that had been
raised was the city's excess Of its con-
stitutional limit of indebtedness.
Validity Of the Contract.
Mr.. Herman asked Mr.. Carney con-
corning the validity Of the contract. or
as to whether or not he considered it
a. legal contract. Mr.. Carney replied
that he had never seen such con-
tract before nor since, and he might not
consider it legal contract, yet the
court had held that, tho one clause
might not be borne out by the statutes,
it could be eliminated and at the same
time not vitiate the remainder of the
contract The city had, according to
the contract, obligated itself in ac-
cepting a loan. 1t, was considered I'M
perative that the sewage plant be built,
and because the needs were pressing
the court has held that the city had a
right to borrow the money in the way
it did. AS borrower the court holds
that it stands in the same light as
any honorable individual.
Mr.. Carney said that under the cir
cumstances altho he was ready and
willing to go ahead with the litigation,
he considered settlement, if possible.
a wise step to take. While the city
might recover in the end the money
already paid on the contract in cred
Its due to water rents and taxes,
amounting to between $1,700 and ST.
800, it could only recover in case it
won this action. With a chance of
losing, Mr.. Carney said he would not
like.to have to answer to the tax pay
ers; it was risk he would not advise
taking.
All the members were present Mon
day evening at the opening of the ses-
sion, but Devine was excused before
the business of the meeting was be-
gun.
Mistake in Street Number.
T,, 11rf peyvS pf Monday