Arizona republican., 1910-09-17
Injunction Proceedings
Against Municipal System
TWO ALLEGED GROUNDS
One Is Attempted Violation
Of a Contract With Thir-
ty-one Years to Run. The
Other u n la W f III Bond
Election Proceedings

The threatened action OF the BnOe-
nix Sewer and Drainage company
against the city of Phoenix to restrain
the defendant from proceeding with
the construction of a sewer system was
begun in district court yesterday. The
papers were filed by Thomas Arm
strong, Jr., attorney fer F. s. Lack. the
principal owner Of the sewer system.
The complaint begins with 4 reci-
tation Of the history of tne plaintiff
company, &.whoSe pEedecessor in in
terest. the Arizona Waterworks and
Sewerage company, a franchise was
granted February 8, 1892. subse-
quent ordinance or resolution estab-
lished sewer district No. /, including
that territory bounded on the west by
Yuma street, now Seventh avenue; on
the east by Pinal street, now Seventh
street: on the north by Van Buren,
and on the south by Harrison.
The contract of the city with the
company bound the former TO compel
persons residing within that district to
connect with the sewer. \ condition
on the part of the company was that
it should furnish sewerage facilities for
the city hall and all municipal build
ings.
The cost of construction of the sewer
il is alleged was $4,000. The plaintiff
succeeded to the ownership December
81, 1906, and it is alleged has complied
with all of the conditions of the con-
tract Since then improvements have
been made at an expense of $15,SOO,
and it is claimed that the system is
worth SOS. 1000, exclusive of the sewer
farm and of the value of the franchise
and contract which has yet thirty lone
years to run.
1t is said that within sewer district
No ! there are $50 houses, hotels,
residences and stores connected with
the system and that the revenue from
the rates over and above the expenses
is $4,000 annually, though the maxi
mum rates allowed by the ordinance
are not charged. 1t is stated that with
in the term the franchise has yet to
live il NAV be reasonably believed that
the revenues may be brought to $125,-
900.
The ordinance provides, among 9TH
er things, that any time after five
by giving notice of sixty days of its
wish to do so. Then the city shall ap-
point an appraiser and the company
shall appoint one, these two TO choose
a third The appraisers shall consider
the value of the system, the valuation
to include the cost of construction, the
value of the franchise and contract and
the appraisers shall also take into con-
sideration the Indebtedness of the sys-
TEN for which the system may be hy-
pothecated as security. 1t is else
where stated that the system is securi-
ty for mortgage bonds to the amount
OF 1000. 1t is alleged that the sys-
tenn is a taxpayer on a valuation of
S25,7OO.
Then the complaint comes TO the
grievance, resolution No. 439, the first
step toward the bond issue of 100000,
for the building of a rival sewer sys-
TEN which the proceedings are designed
to prevent.
The city is attacked on two main
grounds, one. that it is attempting to
violate it's contract, and the other that
50 far il has preceded illegally in the
matter of acquiring a system. The cir
cumstances leading up to the late bond
election are related. 1t is mentioned
that there were two registrations and
the belief is expressed that the first
one was cancelled by the city for the
reason that the council discovered, as
the plaintiff believes, that more than
one-thfrd of the voters registered were
opposed 10 the bond issue. The pro-
ceedings under which the second regis
tration was made are declared to have
been illegal.
In the conclusion of the complaint,
there is set forth a variety of damages
the plaintiff would sustain unless the
city should be enjoined from proceed
ings In the first place there is the
cancellation of its contract; it would
suffer along with all other taxpayers
whoFwouid have to bear the expense OF
the Mitigation which would ensue in
consequence of the action of the city;
it would suffer along with all other
taxpayers in litigation which would
ensue between the city and the pur-
chaser of the bonds; it would suffer
in physical damage to its property If
another system were to be put in along
j the narrow streets and alleys.
The court is asked to declare the
election authorizing the 100000 bond
issue void and all other subsequent
proceedings of no effect 1t is also
asked to restrain the city from Issuing
or disposing of the bonds and to re-