Chapter Iv 1890-1899 History of Denver Water System
Total Page：16
File Type：pdf, Size：1020Kb
••bi^iir CHAPTER IV 1890-1899 HISTORY OF DENVER WATER SYSTEM "' •'•••••th i' ''lift " '^. •.*" J INDEX CHAPTER IV # 1890-1899 Subject Page Nuir^ber American Water Company 30 American Water Works, Dennis Sullivan Receiver 51 American & Citizens Water Co,, Rate War ended 1894 62 Beaver Brook Water Co. 1891 73 Bonds, Proposed Water 1899 142 Cherry Creek, New Plant on 31 Citizens Water ompany 87 City Ditch & Platte Water Co. 143 1^, CityG overnment I64 Conduit No, 1 and 2 103 Denver Union Water Co. 1894, Moffat President 4 Denver Union Water Co., Newly organized . 71 Denver Union Water Company II5 Denver Water Company, The - ' • 22 Denver City Water Works, Co., Incorporation of Beaver Brook Water Company & Mountain Water Co. 37 Denver Water Company vs. Citizens Water Co. , Injunction _. 36 Eastern Capitol Hill Water Plant 60 Farmers & Gardeners Ditch, The I6O Filters, Willard 105 Galleries, Platte River 31 Goose Creek Dam 1899 X4'Q Subject Page Number "^^.^ High Line Canal, Northern Colo. Irrig. Co. 155 Injunction, Denver Water Co. vs. Citizens Water Co. 36 Marston Lake 108 Mountain Water Company 1890 74 Northern Colorado Irrigation Co., High Line Canal 155 Ordinance No. 54 - 1894 re South Denver Water Co. 84 Platte River Galleries 31 Platte Water Company, City Ditch 143 Purification, Water l62 Rate War, American & Citissens Water Co. 62 Schuyler, J. D., Construction Engineer Report 7 South Denver Water Works 76 % South Denver Water Co., Ordinanace No. 54 1894 83A St 84 Session Laws of 1891 164 Session Laws of 1893 165 Session Laws of 1895, 1897 & 1899 167 Sullivan, Dennis, Receiver of American Water Works Co. 51 Venner Suit 54 Willard Filters 105 11 CHAPTER IV 1890 - 1899 1890 Franchise Renewed-Competing Water Companies-Free Water-1893 Panic-Reorganization and Receivership Proceedings, American Water Works Co. -End of Water War-Cons olidation and Formation, The Denver Union Water Company-South Denver and Other Annexations-Plant Expansion- Mar ston Lake -Cheesnnan Dam-Rate Contr overs y-Court Decisions -Municipal Plant Agitation-Irrigating Ditches-High Line Canal-Charter Changes. The closing years of the nineteenth century were extremely difficult ones for the water utilities serving the Denver area. Although the prosperous times of the late eighties continued on through the year 1892, the panic of 1893 brought on partly by the de- mionetization of silver, hit Colorado, the great silver producing state -!»• with an Impact that had a lasting effect upon the economic, political and social structure of the city in commion with that of the state and nation as a whole. The great free silver issue during the early nineties brought about new political alignments in Colorado. It caused rifts in parties and made fusion of factions necessary for victory at the polls . Itwas responsible for the election of Davis H. Waite, a populist, as Governor, who took office in January 1893 when the price of silver was still on the decline and business was in a dangerous condition. "As^spring advanced, business began to tighten, uneasiness became more apparent. The gold reserve in the United States Treasury sank to the danger point. President Cleveland fought frantically to maintain it at the accustomed figure of $100, 000, 000. Commercial houses began to fail, banks Z'/cC ' contracted their loans and speculators dumped their holdings on the falling market. In May, there was a stampede for safety. In June the report that the mints of India had ceased the coinage of silver sent the price of that metal to new depths. In four days silver dropped from 83 cents an ounce to 62. This was a great blow to Colorado. The leading mine and smelter owners of the state announced that they must cease activity until a recovery in the silver price would permit profitable operations. "The Populist Governor, honest, sincere and headstrong was thoroughly distrusted by many and was looked upon as radical and erratic. His political career was hectic, his difficulties legion. No sooner had the legislature adjourned (March 2).than he became ennbroiled in a conflict with the Fire and Police B oard of Denver. B oth sides resorted to armed enforcemients, cannon were trained on the City Hall, and there-was grave danger of a clash of rival forces. Federal troops from Fort Logan were brought upon the scene. Business men and the courts intervened and finally put an end to this "City Hall War" before actual bloodshed occurred."- "The panic broke in full furiy/ in mid July 1893. People swarmed the streets. They stormed the banks amid scenes of wild'disorder. In three days, ten banks closed in Denver alone, while throughout the state banks came down with a crash. Numbers of other business houses went to the wall. When the real estate bubble in Denver burst, building and loan associations went bankrupt. Men who were considered wealthy suddenly found themselves empty handed. The goods of the merchant and the manufacturer were in small demand. Economy was forced upon households that had almost forgotten its meaning. 2. y^/, y "The closing of mines and the contraction of business resulted in the discharge of thousands of workers. When these began to drift into Denver, the army of unemployed and moneyless men caused serious public concern. R obberies and holdups were common; a brutal murde r and a lynching in Denver gave rise to further apprehensions. "The Panic of 1893 was general throughout\r. the United States and the world, " "With the panic, hard tinnes, unemployment, strikes, dry farm disasters and defeat of free silver, the general outlook in the middle' ninety's was dark for Colorado. But there was one bright spot, the rise of the new mining camp of Cripple Creek, resulting from the discovery of gold there by William W. Womack in January 1891. "During the late ninety^ there was a noticeable improvement in nearly all lines of endeavor. People, regaining confidence were launching new enterprises. Crops generally were bountiful. Prices improved. Fruit production onthe Western Slope was assuming large proportions. As reservoirs were constructed to store water for irrigation purposes, more land was brought under cultivation. Introduction ofthe sugar beet crop, with the construction and putting into operation of the first sugar factory at Grand Junction inl899, was but one ofthe significant factors in the general business revival of the time. Real estate in the cities and towns was recovering its lost value and business generally.^ was showing signs of prosperity. " For more on this interesting decade in Colorado's history see Volume I, Chapter XXIV, "Colorado and its People" by Hafen, from which 3. iD much of the above has been taken. It goes without saying, that this great upheaval in the economic,, political and social life of the coinmunity had lasting effect upon the several water corporations operating in Denver at the time. This unsettled condition of affairs continued until the fall of 1894, when all of the various connpanies were consolidated into one under the name of the Denver Union Water Company. This company was incorporated on October 20, 1894, with David H. Moffat as its first president. An account of the events leading up. to this historic event follows in s ome detail, since the struggle for control of Denver's water system in the early ninetys, laid the foundation for extended litigation between local and eastern capitalists, as well as between the corporations they represented and the City itself, that did not end until after the city purchased the privately owned water system some twenty four years later. The granting of a twenty year franchise by the city to the Citizens Water Cornpany, approved on November 22, 1889, put that newly organized local water corporation in direct competition with the Denver Water Company, which had served the city since the year 1872, and at this time was operating under a franchise not due to expire until May 9i 1891. The best information available about the condition of affairs, as far as the connmunity water supply was concerned in this competitive era comes from the daily press, even though the editors thereof took sides in the bitter struggle for supremacy then just begun. For instance, the Republican of January 8, 1890 reported on the plans of the Citizens Company, as released to it by Mr. Richard Holmes, Manager 4. ^f-^lf in part as follows: "We have let the contract for a high service pipe line from the Canyon to the city. It calls for 19 miles of 30 inch pipe to be comipleted by May 1, 1890, "We have sufficient water developed to supply that pipe line for service to 400, 000 people. "We have a reservoir site located between the foothills of the mountains near the mouth of the Platte Canyon, consisting of 640 acres of land, which includes a natiiraU. reservoir site of a capacity of 10 billion gallons. " - 30, 689 acre feet. "We have secured the water rights from the Platte River and propose to fill the reservoir b.y-. extending a full pipe line from the forks of the Platte River in the canyon to the reservoir. This reservoir will hold about a two year supply for Denver, and will be filled from the surplus waters of the Platte during the winter,, taking about 5 months to fill it. "The water in the reservoir will stand fronn an elevation of about 500 feet above the head of our high service pipe line at the head of Platte Canyon, thus giving us an .^enormious head at all times to supply all parts ofDenver and surroundings. "The company proposes to have the water in the reservoir next fell so that by the spring of 1891 it will be ready for the city's supply and protection.