Court Orders Water Works Sale

Court Orders Water Works Sale

Receiver M. K. Fletcher, of the Beaumont, Tex., Water Works Company, has been ordered by the local Federal District Court to sell the local water system to the city of Beaumont for the consideration agreed upon, the sale to take place as soon as possible. The terms of the sale were formally agreed upon by counsel for the city and company. The city has completed every arrangement for taking over the water works. The money with which the properties will be bought was secured through a $500,000 bond issue and the remainig $100,000 will be expended in improving the system. In view of the fact that an application for judgment, filed against the water company by the Josey-Miller Grain Company, is still pending in the State District Court, the Federal Court ordered the purchase money be paid subject to its order.

The Josey-Miller Grain Company, Beaumont, Tex., had filed a petition in court for an injunction restraining the city of Beaumont from paying the money for the plant of the Beaumont Water Works Company, for which bonds in the sum of $500,000 were voted some time ago, also to enjoin the latter company from receiving the money and from going out of corporate existence. The petition is incident to a suit for damages filed against the Water Company for $77,000 by the Josey-Miller Grain Company, following a fire in which the grain elevator of the latter was destroyed. In the suit for damages the grain company alleged that the destruction of the property was due to the failure of the water company to provide service through private mains.

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