The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-11-09

the city reached a
agreement with the Bismarc
" ater Supply company shortly bt
lore S P. M. The price was $3.50
100 and exemption from 1928 tlxe'
It is expected that this ends tn
OF years sanding.
Members of the city commits
SION and representatives of the
H,smarck Water Supply Com
pany apparently were deadlocked
on the matter Of purchase
price for the present water
plant, late this afternoon. I'm
less there was some change of
attitude. which would be unex-
rccted. the deal will not 60
through.
i.e company representatives
asked that the sale price of
$265, 900 agreed on last summer
stand, that the city pay about
4S23,00O expense incurred in liti-
CATION before the railroad COM
mission some three years ago
and that the city pay this years
taxes, about $4,000.
The city offered to pay the pur-
chase price of. $265, 900 and pay
the taxes from June 8, the time
when under the former agree
mont it would take over the
plant.
This was the situation when
the parties met this afternoon.
After conversations the city was
willing to compromise by assum-
ing all of this years taxes.
The water company represen-
tatives asked that the city pay
half the litigation expense, or
about $4,000. This, according
to city representatives, together
with the taxes, would represent
b. an increase of about $4,000 over
, the original $2e5,0oo purchase
price.
Judge Flannery Informed men,
bers of the commission that q
bond holder insisted upon the
city paying part Of the litigation
expense. Members of the city
commission flatly refused to
bear any part of It.
The situation was, SO far as
the sentiment Of the city COM
missioners was concerned, that
if the deal did not 60 through.
the city would proceed to build
a complete new plant which It
could do, according to engineers
estimates, for about $4,000
more than taking over the old
plant and improving it, and also
would begin fight for lower
water rates and other litigation.
While the parties we're at the
city hall, States Attorney Allen
and Sheriff, Hedstrom served q
Rarnishment Oh the city for the
water company's 1921, 1922 and
1928 taxes, Of approximately
$3s,00o.
The city commission and Judi
George P. Flannery, head of the Bi
marck Water Supply Company, al
Pierce Butler, Jr., attorney Of :
Paul, held their first meeting on II
question of the purchase of the plal
of the company. ~
The commission, with P. C.. Rer
ineton and H. J. Duemeland of II
citizens committee, discussed Il
proposition in the, commission NEE
ing last night before Mr.. Flanner
Mr.. Butler and Alfred Zuger WEI
asked to meet with the body. II
original agreement had been that tt
city was to take over the wat
plant as of June 9, but could NAL
the payment as late as September
This was not consummated becau
of delay Yin completing financil
plans. 81
Both parties stated that they d
sired to approach the proposition 4
acquiring the old plant in c"nside
ate manner. Mr.. Flannery said tn
he was responsible to bond holde
and stockholders and was not. e
tirely free in the matter. He al
Mr.. Butler raised the question
$4,000 Of expense incurred in Il
litigation before the railroad col
mission some three years ago. Th
expense the railroad commission Q
dered amortixed and added to Il
bills, Of consumers in the fixing.
the rate over q period q years. N
Flannery said this was consider
by the stockholders as . debt again
the city and the city should assun
it.
The question Of taxes also car
up. The taxes for 1921, 1922 81
1928 amount to about $83;000.S
suggested that when the city was
take over the plant on June 8 Il
taxes had not been spread and I
serted it was customary in such
situation that the purchaser shou
assume the tax. He asked that t,
city assume the taxes for this yes
Continued on rage 81 /.
. / 1e . sF n ~, :.