The daily sentinel., 1913-07-18
Grand Junction. Colo,

July los= y
To Messrs. Ben Griffith. william
Campbell, r. NJ. Todd, j. w. Buck
lin and D. W. Aupperle. Sub-Com-
mittee of Citizens Committee of
Seventy:
Gentlemen: In compliance with
your request and in pursuance OF the
intent and purpose of the general
committee of the citizens of Grand
Junction. as understood from the res
olution for your appointment. adopt
ed at its meeting of July no. 1918,
and the correspondence with YOU un-
der date of July IA. 1913, relating
thereto, the Grand Junction & Grand
River Valley Railway Company, OWL
ing and holding the following prop
critics in the city OF Grand Junction
and Mesa county, Colorado. to-wit:
The Grand Junction 4 Grand River
Valley Railway tknoWn as the inter
urban railwaSt. With all real estate
i i1cfd' III Zee, by ieaseiIoid- risiltssUf~dri-
der contract for purchase; the Grand
Junction Electric, Gas & Manufacture
ing Company, consisting of the elec-
tric light plant, ice plant. gas plant
and all property or property rights
held or used in connection with said
plants; the electric power and lignf-
ing rights in the town of Fruita;
hereby offers for your consideration
the following proposal, viz:
TO sell and transfer all the forego-
ing properties to the city of Grand
Junction upon the following terms
and conditions;
l. The city of Grand Junction to
agree to purchase and pay for same
a punnl n the fnan pNigtinU
outstanding obligations or indebted
ness OF the company, it being under
stood that such purchase price Is
without consideration of values at
taching to the several franchises
granted by the city of Grand juno
tion to the said companies. or either
OF them, or other intangible values.
If the price is agreed upon and the
city issues 8 per cent municipal
bond for the purpose, the company
will agree
/. To accept cash to the extent of
its outstanding bills and accounts
payable, or short-time paper approx
imating $250,O00;
.. The balance of its Indebtedness,
represented by first-mortgage bonds.
to be exchanged for the municipal
bonds at par where possible. We
guarantee to exchange over so pc"
cent of the bonds upon the consum
nation of the purchase, and exchange
the balance as they can be surren-
dered.
In ether words, the property would
be first conveyed to the city upon
assumption OF its Indebtedness by the
city with a contract that sufficient
municipal bonds will he issued to re-
tire the Indebtedness either in cash,
as above stated, or by exchange OF
securities. Provided, however, that
the city at its expense will furnish
the company the opinion of Judge
John F. Dillon of New York. Messrs.
Wood and Oakley of Chicago or X. X.
Babbitt of New York that such issue
of bonds would be legal and bind
ing obligation of the municipality.
The outstanding and contracted
bond issue of the company at this
date is approximately S1,0S3,000.
The committee to have the right,
at its expense, to designate a compe-
tent certified public accountant, ac-
ceptable to the company. to examine
the books and records of the coin
pany. to confirm the amount of its
Indebtedness.
In making this proposal to your
committee, it is the purpose of the
company to recognize what may be
a controlling demand of the citizens
of Grand Junction to establish NIL
nicipal ownership of public utilities
as a fixed element of city govero
ment This being true, 1t logically
precludes the company from securing
further investment of capital in the
completion of it's enterprises, and
compels a situation involving sacri-
flee by its shareholders of any pros
pect of future profit.
Respectfully submitted, subject tn
the approval of our board of direc-
tors and stockholders of the cor,-
pany.
Yours very truly.
e. A. SUNDERLIN,