The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1911-08-31
ANENT The WATER WORKS CASE,

The past week witnessed interesting
developments in the water works pur-
chase matter. Manitowoc does not YET
own, or it might be more accurate to
say has not possession OF, the water
works. The imminent expiration OF
the period within which an appeal can
be taken brought matters to focus
rapidly last week. Under the decision
of the Railroad Commission filed June
28th, and which it must be understood
is binding upon the Water Company
under its acceptance of an indeter-
inmate permit three yearssago, subject
to a right to appeal only upon the
question of the amount of compensation
to be paid, the company was awarded
S236,OOO There is against the plant a
$500, 900 bond issue, maturing in l9l''
The order of the Commission provided
for an unconditional payment OF S236,-
900 which the Company would accept
and leave the incumbrance against the
plant. The Company claims that the
expense of retiring the bonds before
maturity without the consent OF the
bondholders would be about $1,000
Under the public utility act as it was
when the local proceedings were had
no manner of getting service upon the
bondholders in the valuation matter
was provided. The Company claims
that this alleged defect would enable
the bondholders to take the matter in
to the federal courts and delay pro-
ceedings long time. The fact that
stockholders of the company now own
95 per cent of the bonds leaves the
matter as it would be if strangers own
ed the bonds, the stockholders assert.
They say that their rights as bond
holders are not affected by their owning
stock so far as notice on bondholders is
concerned. The Company further
threatened an appeal to the state court
from the valuation fixed. The issue
raised was: Will the city pay the
$4,000 which it is alleged it viii cost to
retire the per cent bonds against the
plant, and in addition thereto pay a
considerable sum as the price of avoid
ing further litigation and delay, and
avoiding bare possibility of a higher
valuation on appeal. Immediate,
amicable settlement appealed to the
city officials as being worth something
and after long negotiations ar offer of
$1,000 was finally made for an IN mediate
settlement subject to approval OF the
council The company's ultimatun
was $l4, 900 and the earnings to October
/, 1911. The offers were withdrawn
and negotiations ceased. Wednesday,
following conference between the
city council and Malcolm Jetfris and E.
G. Gray for the company the night be-
fore, the mayor and city attorney
hurried to Madison. Messrs. Jeffris
and Gray were equally prompt. All
met in the waiting room of the Rail
road Commission and later all had an
hours pow-wow with Commissioner
Roemer. No agreement could be
reached. Rumors of what Mr.. Roemer's
attitude was on various phases of the
controversy will strengthen the
opinion here that his appointment to
the Commission was a happy choice for
the people of the State. Two methods
of procedure appeared most feasible to
the city to force things; first; Tender
the 1926, 900, take possession, and then
sue the Company to compel it to retire
its bonds itself with such security as
the law may provide to protect the
city against the purchase money so
paid not being available to retire the
bonds; or second: Petition the Rail-
road Commission for rehearng. The
latter appealed to the city as liable to
produce practical results quicker and
was adopted Friday evening the
council voted unanimously to demand
rehearing. If rehearing can be had
the city officials say they expect to ac-
complish several important things.
Among them are:
|. Notice will be given by publca-
tion under new amendment to the
utility act to the bondholders to appear
and protect their rights.
2. The new order of the Commission
on rehearing will protect the city
against the mortgage in making its
tender of payment.
3. Even If an amicable adjustment
is reached new order will be advis-
able permitting the city to pay the ad-
ditional compensation for avoiding
trouble and delay.
There has been not the slightest
suggestion in these negotiations that
any present trouble is due to any fault
OF the city in prior proceedings. The
difficulties arise through an apparent
defect in the law; now apparently
remedied, and in the failure of the
order OF the commission to specify how
the city should protect itself against
the Company's outstanding bonds An
adjustment may be negotiated shortly
or the affair may drag its weary way
for months.
LATER.--City Attorney Kelley re
ceived notice Wednesday from the
railroad commission that the petition