City of Wichita - Chapter 5 Page 69
Saturday, March 20, 2010 :: Currently 30 degrees in Wichita

Cover of Water History book

Water Utilities
City Hall, 8th Floor
455 N. Main
Wichita, KS 67202


Leaving City Of Wichita Website

appeared before the commission and expressed his views on annexation and water legislation. Mr. Madden expressed the opinion that the city should purchase the Wichita Water Company." Madden claimed after his vote, however, that "if the minutes say that, they lie. I always have been opposed to municipal ownership." The Beacon reported that a check of the stenographic record of the proceedings proved that the minutes were indeed correct. (Beacon, 10/23/57).

A former commission analyst claimed that, if he was rehired, the water ordinance would be passed. Al Hennessy had served as an analyst for the commission until October 1 when he was fired, and his job abolished by a 3 to 2 vote, with Madden and Stevens voting no. One factor of his firing was that he was actively seeking the job of chief of police while being employed by the commission, and was accused of meddling in the police department. In a statement read on the day of his dismissal, Hennessy admitted that while serving as an analyst he had been spying on Howse, Gardner, and Baird for Madden and Stevens. He said, according to the Beacon on October 23, 1957, that "the spying was the job he had been hired to do."

Gardner reported that Hennessy told him that if Baird, Howse, and Gardner would support reinstating him he would see that Madden and Stevens "voted right" on the water ordinance. According to the Beacon on October 23, 1957, "Gardner said that he is convinced that both Madden and Stevens are attempting to wreck the Water Company purchase as their revenge over the City Commission's action in firing Hennessy."

All of the speculation became irrelevant when Baird interrupted his vacation to fly back to Wichita. It was the first time he had even been in an airplane, a result of his fear of flying, but the need to return in a short period of time persuaded him. After returning late in the night on the 23rd, Baird called a special session of the commission the following morning. "Much legalistic maneuvering preceded the specially called meeting," stated the Eagle on October 24. Prior to 7:30 a.m. on the 24th, City Attorney Aley, Special Counsel Morton, and Assistant City Attorney Eugene Pirtle met to draw up the necessary papers.

It was necessary for a majority of the commission to sign a special request for the meeting to be held. Howse and Gardner joined Mayor Baird, which allowed him to call the special meeting for 11:00 that morning. In addition, the city attorney executed two declarations of emergency regarding the water ordinances, which gave the mayor the backing to pass the ordinance in one meeting. Finally, in order to call the meeting, all of the commissioners had to be notified at their usual places of residence at least two hours before the scheduled meeting.

Baird, Howse, and Gardner, who were at City Hall, were served their notices shortly after 8:00. City Clerk C.C. Ellis affixed his seat to all of the papers and Aley told the commissioners, "Now don't go out and get run over by a car. Be here at 11:00 a.m." (Eagle, 10/24/57). Ellis subsequently instructed police sergeants on serving papers, and they went to the houses of Stevens and Madden to present them with notices.

The meeting convened at 11:00 and by a 3 to 2 vote, with Madden and Stevens again voting no, the two ordinances passed, "allowing them to make good on its promise to deliver $41,825,000 in water revenue bonds on October 30 in New York City." Baird reported that he was shocked at the actions of the two minority commissioners. "No one fought harder than I," he said, "to keep the city from buying out the Water Company. But the voters last November approved that purchase, and I will do everything I can to see that the wishes of Wichita citizens are carried out." (Eagle, 10/24/57).

With the passage of the ordinances, and their publication, the stage was set for consummation of the deal. Much had to be done in the week prior to the transaction, but by the morning of October 30 it was all set. A two-circuit telephone hookup with New York, Topeka, and several local offices was necessary before filing the sale. Shortly after 9:00 a.m., Fizzell, counsel for bond purchasers from Wichita, informed New York that all the necessary papers were in order, including the deeds, titles, and other necessary documents. A slight delay occurred as they waited for the abstractors certificate, and by Wednesday morning there had been no litigation filed affecting the transaction. When that was received, Wichita Treasurer John Pierce received a check for $41,141,314.39 in federal reserve funds, deposited in the account of the Fourth National Bank with Chemical Corn Exchange Bank in New York.

Upon receiving notification of the deposit, Finance Director Wulz deposited $836,500 in the Fourth National Bank from the First Boston Corporation. Then checks were delivered to pay off the temporary notes used for the 66-inch pipeline and treatment plant extension. A check for $1,011,333 paid two notes in New York and one for $1,517,000 paid three held by the Northern Trust Company in Chicago. At 9:30 a.m., as recorded in the bill of sale in the Sedgwick County Court House, a check for $31,250,769 was turned over to Barr, president of the American Water Works Company, with the city of Wichita officially buying the Wichita Water Company. Immediately after, the Wichita Water Company paid off holders of Water Company mortgages with a $10,725,767 check to City Bank Farmers Trust Company, and a $1,806,062 check to Fidelity Philadelphia Trust Company.

The final acts were then performed, with Wulz delivering the additional checks. Kansas State Bank received $608,620 for temporary water notes, $1,011,333 went to Southwest National Bank, $2,362,666 to the First National Bank, and $2,358,916 to the Fourth National Bank. Fizzell notified New York to proceed with closing the deal and by 9:45 a.m., CST, it was completed. The $31 million check was the largest single financial transaction in the city's history. The entire transaction also represented the largest single transaction involving the Fourth National Bank, as well as the largest involving the sale of a waterworks property by the American Waterworks Company.

Although the sale had occurred in the morning, the city had actually assumed the management responsibility at 12:01 a.m. All Water Company employees transferred to the city's payroll at midnight, October 30. After discussions of public ownership ever since the initial consideration of a waterworks in Wichita, as well as numerous debates and public votes, and 17 years of public/private partnership in the water business, Wichita owned the entire water system from production to distribution.

With the city taking over ownership, the Water Supply and Sewage Treatment Department became the Wichita Water and Sewage Treatment Department on October 30. Robert Hess became the first director. One hundred and eight employees shifted from private to public payroll when the city began managing the system. The department became the first city branch to move its office into the new City Hall Annex, formerly the Hinkel Department Store at 104 South Main, on November 27, and began operation there December 2.

For many years the Wichita Water Company had avoided takeover by way of "diversionary efforts, delay tactics, and counter proposals." (Corbin, 1972). But finally, as a result of a variety of legal and natural circumstances, along with the singleminded persistence of Howse, whose involvement could be an entire story itself, the action was consummated. In an editorial on October 31, 1957, endorsing the purchase, the Eagle proclaimed, "For as water is absolutely vital to life, it is one function where there cannot be any competition. Because it deals with the very stuff of survival, government inevitably plays a part."

Printer Friendly Version

Related to
Chapter 5
Page 53
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
Page 60
Page 61
Page 62
Page 63
Page 64
Page 65
Page 66
Page 67
Page 68
Page 69


  © Copyright  2010 City of Wichita / 455 N. Main, Wichita, KS 67202