The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-04-18
Giark viii Not Put Price
On Plant Wanted by City;
Council Receives Answer
Missoua Light and Water Company Tells City Affairs Are
Too Involved to Make Sale Possble-Commission
Orders Investigation by Campbell.

The request Of the city Of MISSOURI
for . price on the water supply system,
Of the Missoula Light and Water COM
pany was denied yesterday by w. NJ.
Bickford. vice president of the Clark
corporation. In a letter to the city
council. opened at u meeting yester-
day morning. Mr.. Blckford declares
that the company cannot put a price !!
on Its water plant. He says. indeed.
that the plant cannot be sold and de- |
clares in conclusion. as far as he can
nee that no reason for municipal pur- |
chase exists.
Early in January the city council
announced Its intention of seeking to
acquire the water plant. The first step
was the passage Of an ordinance ask
ing the Missoula Light and Water
company to set a price on the plant.
The company repeatedly asked for ex-
tensions Of time and ended by re-
fusinig to set any price whatever.
When they began their campaign.
city officials indicated that they would.
II necessary. carry the matter into
court. They were unwilling yesterday
to say what their course will be-
Action awaits q report from City At
torney John Campbell. who was in
structed yesterday to investigate the
situation. The attorneys report will
he received Saturday.
The company's letter is as follows:
The Letter.
To the Honorable Mayor and Council
Of Mhsoula:
conference.-the Missoula Light and
Water company finds it impossible to
fix q price at which it can sell to the
city Of Missoula the water rights. plant
and distributing system owned by it.
The reply is made in response to your
favor Of January "a. 1917.
The demand made that a price be
fixed at which the named property
could be sold to the city at first
seemed an easy one to respond to, but
a consideration of the affairs Of the
company convinces the officers that 4
reply is impossible.
A full explanation is due you.
At the time wien the present com.
pany purchased the property now
owned by it, all of the holdings of the
old company passed by the sale ant
this consisted, not only OF the water
rights. water plant, distributing sys.
tenn and franchises. but also Of all OF
the property used in connection will
~ mo- ;ver Inc
BY the old company.
At the time OF the transfer there
was a mortgage or trust deed upon al
OF the property conveyed to secure thu
payment OF outstand ding bonds to tn
extent OF $500. 900. The mortgage GOV
cred all OF the property then owned
and any other property thereafter t.
he acquired by the company. Thes'
bonds do not mature until 1924 ant
are now owned by various persons
eight in number, and six OF them ar
not owners of stock In the presen
company. Four Of these owners re
side In Oregon and California, and NJ
outstanding encumbrances. The con
sent Of the trustee named in the mort
gage must also be obtained.
One of the clauses Of the mortgag
or trust deed given to secure the issu
OF bonds read as follows: (See pag
555. book 80 Of deeds. records OF Mis-
scula county:
1.-THE party Of the first part cove
nants and agrees that, having posses
sion as aforesaid. it will diligently pre-
serve the rights and franchises now o
hereafter granted or conferred upo
1t by the laws of the state of Montana
or by the ordinances or laws OF an
city or town municipality or count
wherein its property and plant or an
part thereof. shall be constructed. an
that in using and operating it's prop
erty and plant as the same is now con
structed, or as the same may hereafte
be constructed or extended, it will q
all times maintain and preserve sam
and every part thereof, together wit
the fixtures and appurtenances. in re
pair. working order and condition an
fully supplied with equipment"
An Obligation.
The party OF the first part name
In the mortgage or trust deed is tn
old Missoula Light and Water com
pany. BY the terms Of the clause quot
ed the present company is bound I
diligently preserve the rights an
franchises now or hereafter granted
II it should sell or offer to sell it woul
not be doing so.
The present company upon acquirin
by purchase the property owned by tn
old company, and other property neces
sary for the conducting of it's bushes
including extensions and imrovement
was compelled to and did borrow add
tional sums Of money with which I
prosecute its work so that now tt
total bonded Indebtedness is one mi
lion dollars secured by n blanket NOR,
gage or trust deed upon all its pro!
erty.
II any part Of the property Is sol
the part SO sold would be subject to II