A Judgment Against the Man in the Moon: Tacoma's $2 Million Water Bond Fight
Judge Stallcup tried to invalidate $2,130,000 in water bonds. The water company's lawyer shrugged—and warned that bondholders would haul the city into court if interest went unpaid.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
Tacoma, Jan. 5.—Special.—Galusha Parsons, attorney for the Tacoma Light and Water Company, on being asked this evening if C. B. Wright proposed to oppose the suit recently instituted by Judge Stallcup of the superior court, to invalidate the $2,130,000 water bonds, and to enjoin the payment of interest thereon, said:
"It is my opinion Mr. Wright will do absolutely nothing. The suit is directed against the city, to prevent the city from paying interest, or assuming the bonds. Well, the city is the debtor, and this proceeding against the debtor is unheard of."
"Then you anticipate Judge Stallcup will secure judgment in his favor?"
"Of course, of course. What good will it do him? What are you going to do about it, is the question. It will be no more valuable than a judgment against the man in the moon."
"But assuming that the city will refuse to pay interest on the bonds?"
"Whenever the city fails to pay interest on any bond the holder of the bond will no doubt bring an action to compel the city to meet its obligation."
It is understood that the action to compel the payment of interest will be of much greater importance than the suit instituted by Judge Stallcup, to prevent the city from paying interest and to invalidate the bonds.
“It will be no more valuable than a judgment against the man in the moon.”
Municipal water systems and the debt that built them remain a political fault line: who owns the utility, who pays for it, and what happens when a city tries to escape its bond obligations. The Tacoma fight anticipates today's battles over public utilities, privatization, and municipal bankruptcy.
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