On March 9, 1908, an earlier recommendation by Councilman O.J. Taylor, of the special committee, to put the matter of a new waterworks to a vote was adopted with the passage of two ordinances. Ordinance 2927 authorized the mayor to call an election on April 7, 1908, to consider, "Shall there be issued internal improvement bonds of the city of Wichita for the cost of construction of a waterworks system for the city of Wichita, Kansas for $750,000?" Ordinance 2928 raised the question of buying the existing plant, "Shall there be issued internal improvement bonds in the sum of $500,000 of the city of Wichita for the purpose of purchasing the waterworks system now operated and maintained in said city?" (Ordinance Books).

Before anything else could happen, however, Mayor S.H. Graham vetoed both ordinances on March 16, believing that more time should be spent investigating the matter. An attempt to overrule the veto failed by a narrow margin, 5 to 4.

Despite his veto, Graham still considered the issue crucial for Wichita, saying in the mayor’s annual report on April 20, 1908, "The most important matter that is before the council for consideration at this time, is the waterworks question." (City Council Minutes). He called further meetings with the Water Company, hoping to improve the water rates. For the next few months negotiations continued, but to no avail. Graham appointed a new Special Waterworks Committee to investigate alternatives on May 4, 1908, after the new council elections.

When negotiations finally fell through, the City Council took further action to pressure the Water Company. On September 8, 1908, Mayor Graham recommended an ordinance setting water rates, which passed. The council also called on the city attorney to prepare an ordinance to submit bonds for the construction of water works,...again. The previous election, held in 1906, had apparently not allowed enough money and too much time had passed, so another vote was required.

The imminent passage of the ordinances finally prompted a reaction from the Water Company. On September 11, Hoffmaster came to meet with the City Council to respond to a letter dated May 21 from the Special Water Committee asking for a price of the water plant, a reduction in water rates, and a statement of the expenses and receipts for 1907. The letter had been prompted by the January 27 executive session on the water issue.

Hoffmaster answered the requests by setting a value on the company's property of $1,077,449.80, plus the cost of improvements and extensions since May 1, 1908, with the offer to be open for one year. He commented that he offered the cash price in spite of the fact that "The present contract has more than 14 years to run and under this contract the city has the right to purchase ten years after completion, then every five years thereafter at an appraised value by three disinterested parties." The last five-year period ended January 2, 1908, and the next would expire January 2, 1913. He added that, since Wichita meter rates were 20% lower than the average municipal plant, "it would be unwise to jeopardize the present high standards of service by reducing the rates still further." (Gunter, 1939; City Commission Minutes). He reiterated the company's proposition of January, 1907, and handed over the 1907 financial statement. The council filed the report and appointed a three-member committee to confer with the Water Company. Negotiations failed, however, as the council considered the asking price to be too high and on September 21, 1908, passed Ordinance 3046 calling for an election to be held on November 3, 1908, on the issuing of $860,000 in bonds for the construction of a new city water plant. The proposed ordinance to fix water rates was referred to a committee. At the same meeting, Phillips' report, on the value of the Water Company property was first made public in an effort to persuade the citizens to vote in favor of the bonds by showing that the appraised value supported the city's offer to the company.

According to the Eagle on September 22, 1908, the report "of the expert" now estimated a total cost for the new plant at $857,896, significantly less than the company's offer for the old one. The paper stated the estimate was "for a city of 100,000 population, which will give Wichita a chance to grow some without making enlargements all the time." (Eagle, 9/22/08). Apparently the publicity convinced the public, as the results of the November 3 votes favored the issuance of the bonds by a 2 to 1 margin, 4835 to 2329. According to the Eagle, the results on November 5 indicated the city intended to use the vote to enhance its bargaining position, "If the Water Company decides to make the city a reasonable price on the old plant, it is likely that plant will be purchased instead of erecting a new one. If the company insists on their first named price, however, it is intended to immediately commence work on the new plant." (Eagle, 11/5/08).

Since no satisfactory proposition was made by the company, the council instructed the city clerk to advertise for bids in eastern papers for the new waterworks on January 6, 1909, to be purchased with 20-year bonds at 4 1/2% interest. Bids for the construction of the waterworks were received on March 15, 1909, with only two participants: Wurster Construction Company for $853,790, and Municipal Construction Company for $849,754. The council awarded the contract to Municipal.

On March 22, 1909, as a result of the January 6 action, the Wichita Water Company made an offer through a letter from Hoffmaster to the city council: "Gentlemen: In view of the complications and possible disaster to the city and the Water Company, certain to result from the construction of a competing water plant, I beg to advise that if such action is deferred that the Wichita Water Company will, within 30 days from date, enter into direct negotiations for a sale of its plant to the city of Wichita at a substantially lower price than named in our previous communication." (Gunter, 1956). The announcement was followed by a motion to reconsider the contract awarded to Municipal Construction. When this failed, Mayor Graham vetoed the contract. He read a statement explaining his actions, "This is probably the most important matter that has ever come before any mayor and council in the history of this city, and I think it has not had the consideration it should receive." He continued, "There are many good reasons why it is unwise to let this contract at the present time." He specified a number of justifications for his vote. A change in the form of government was scheduled to take place on April 6, 1909. Wichita citizens had voted on February 2, 1909 to change from a mayor-council form of government to mayor-commission, by a 3503 to 1293 tally. Graham felt the new commissioners should have input and a voice in such a vital decision. In addition, he felt it was poor business sense to let such a large contract with only two bidders, relying totally on "the integrity and judgment of one engineer." He added, if the city could wait, money could be saved with an upcoming adjustment on the tariff. Finally, he concluded, "I am personally in favor of city ownership of waterworks when it can be brought about in a business-like manner." And he added, "A few weeks or months is a very short time in the life of a city and we can well afford to wait a little longer to avoid a serious mistake. I think it is poor judgment to enter into a hasty contract for a competitive water plant until every reasonable effort has been made to purchase the present one at a fair price. For this reason, I deem it my duty to disapprove the contract and veto." Once again his vote was not overturned, and the city would have to wait 50 years to own its own waterworks. (City Council Minutes).

The Eagle later asserted on September 17, 1956, that the action by Graham led to his demise in local Politics. "About two years later (after