Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-01-02
DUBUQUE WATER ROW
Trouble Over Debt Created by Trustees
Of Municipal Plant Will Raise New
Law Point In Iowa.

Des Moines, Jan. 2.-Suit Is being
threatened against the city OF Dubuque
for $4,000 by the Martin-Strelau Coal
Company for fuel furnished the munich
pal water works plant Of that city. The
city aldermen have refused to pay the
debt because they claim the trustees OF
the water works plant during the past
few years have continued to report the
concern was making money and have
deceived them whereas the plant Is
$4,000 in arrears. The city attorney
has given his opinion that the city Is
not liable and the council has accord
ingly invited the coal company to go
ahead with its suit. In the meantime
the mayor has published notice that the
city will not be responsible for any
debts hereafter contracted by the
water works trustees.
The question arises, IF the city Is not
liable, who is?" The claim is made by
some that the trustees are liable be-
cause they were the managers and re-
ported to the people that the plant was
in good condition financially, whereas
It was losing money. All Of the trus-
tees are wealthy men. The coal COM
pany contends that the municipal plant
is owned by the people, operated by the
people benefits the people, and, ac-
cordingly, the city, the treasury OF
which is replenished by taxes on the
people, should be responsible for the
debts OF the plant.
This is the latest serious difficulty
which municipal ownership Of the wa
lterworks has led Dubuque into. That
the trustees have wasted money OF the
people in attempting to- operate the
plant is being demonstrated by an exT
pert who has stepped into the plant
and is operating 1t on his own respon-'
sibility for three months for absolutely
nothing unless he decreases the run
ming expenses % per cent.
The great expense which has plunged
the municipal plant into debt, and has
consequently thrust the city into an
unfortunate position, Is caused 1t is
generally conceded in Dubuque. be-
cause the trustees in the matter Of
water rentals played favorites to con-
sumers, bought supplies which would
not be needed for many years with
money they had to borrow at 6 per cent
at the bank: employed an inefficient
superintendent at $500 per year, be-
sides drawing $500 per year for each
trustee, etc.
The trustees lost the confidence Of
the people about year ago. when 1t
was discovered they had been keeping
hidden the fact there was floating in
debtedness OF $1,000 When this was
unearthed, they explained by saying
the law did not require them to report
anything but receipts and disburse-
ments, and they urged that an unpaid
coal bill was neither.
During the several years preceding
the taxpayers had been deluded by the.
favorable looking reports of trustees
into believing that the plant was an
example of successful municipal OPP
Grafton and that they are saving
themselves money by the city owning
it. Whereas in truth they were
plunging themselves in debt all the
illIllG. Inc LIuSCcCS nave dShcU Cilc
city council to levy tax Of one mill
to pay off the debt, but 1t is doubtful
If the councilmen under the protests
being hurled at them by their consti-
tuent will dare levy any such tax.
The trustees are prominent business
men. Their retirement has been
demanded by council and citizens. But
their appointment lies alone with the
mayor and they have said that they
will not retire under the open fire
which is being made against them at
this time. They will stick to their
jobs.
The new legal phase of the trouble
promises to be interesting as the
Iowa courts have as yet never been
given an opportunity to pass upon the
responsibility Of city for debts con-
tracted, thru its trustees for the OPP
Grafton Of a municipality managed util-