It took Santa Rosa awhile to realize it was under attack, but a no-holds-barred war was being waged against it by the man in the mansion on the grand boulevard.
You could say the conflict began in May 1893, when voters approved a bond to build a water plant. At the time Santa Rosa was getting its water from a private company owned by Mark L. McDonald; the water came from Lake Ralphine, which the Board of Health said was so fetid that his company was “criminally negligent and indifferent to our welfare as a city.” McDonald offered to sell his waterworks to the city at such a ridiculously inflated price it would be cheaper to start from scratch, even though it meant laying another set of water mains beneath every street. All of those doings were covered in “THE McDONALDS vs SANTA ROSA.”
Stepping up to buy Santa Rosa’s bonds was Robert Effey, a modest investor who happened to be mayor of Santa Cruz. While deciding whether to put the water bond on the ballot, Santa Rosa’s mayor and city attorney had visited that town’s very successful municipal water plant and met him. He offered to buy our bond for $161,000, being the lowest of only two bidders.1
A few days later, a lawsuit seeking to block Santa Rosa from making a deal with Effey was filed by a retired farmer named John D. Cooper. Most unusual about the case was that besides the city, he also sued the City Council as individuals plus the city clerk.2
Another suit to stop the city’s deal with Effey followed shortly. This time a retired rancher named John M. Jones was upset because construction plans had been updated since the bond measure passed. Mr. Jones likewise sued the city and Council members personally.
That was hardly the end of the anti-waterworks lawyering. Less than a month later, William Guisbert Skinner went after the city, the Council, the assessor, treasurer, and tax collector along with Robert Effey. His gripe was the terms of the bond had been slightly changed, and the city was increasing property taxes by 25¢ per $100 to pay for the bonds – although they hadn’t actually been yet sold. (As further explained below, the bond sale was delayed by both these lawsuits and the nation’s economic problems.)
Three different lawsuits over about six weeks is a lot of suin’ for little Santa Rosa. Who were these guys who were so upset about construction of a water plant they wanted to drag everyone into court? It appeared they must be well off, as they were represented by some of the top legal talent in the county: A. B. Ware, Calvin S. Farquar and the infamous Gil P. Hall.3
But Cooper, Jones and Skinner were hardly wealthy Sonoma County movers and shakers; one has to scour the old newspapers to find any mention of them at all, and then it was almost always for some small scale real estate transaction. There can be little doubt, however, they were acting as part of a coordinated attack on building the waterworks by the “Tax Payers’ Protective Union.”
The supposed grassroots organization was formed at the time of the Cooper suit but few members were ever named (usually just A. P. Overton, H. W. Byington and A. B. Ware). The Democrat wrote only it was “composed of well-known and reputable citizens of Santa Rosa” and “members comprise many of the heaviest taxpayers in this city.” Judging from signatures on a later petition, my guess is there were under fifty members, split between the investor class and elderly anti-tax cranks like our litigious trio. Skinner, by the way, didn’t even own property in Santa Rosa, although his suit was the one to complain about the increase in property taxes.
The Taxpayers’ placed an ad in the Democrat to trumpet their manifesto, which is a Thing to Read. It painted the City Council as recklessly draining the city treasury on “official extravagance” such as testing the safety of well water and buying a rock-crusher for street gravel, the Council meanwhile conspiring with Effey to screw over taxpayers because there was no intention to actually sell bonds or build the waterworks. Nice to know (I guess) a faction of our ancestors were just as paranoid and irrational as some wacky loudmouths today.
A later item in the Democrat reprinted a Taxpayers’ resolution revealing the group’s single real objective – demanding the city buy McDonald’s water company. Among their points was that “a water system supplied by gravitation” (meaning a higher source of surface water such as Lake Ralphine, not a water tower) is always better than using water pumped from the ground. Also, the city was to be blamed for “factional strife and expensive litigation” because they hadn’t made a deal with McDonald to take over his service and pay for long overdue upgrades and maintenance. Some brain-busting logic, there.
At this point Gentle Reader might be pondering whether Mark McDonald had something to do with the Taxpayers’ Union – and was he also paying for the lawyers in those many lawsuits?
We get a peek behind the curtain after attorney Farquar filed a lawsuit because he believed he had been shortchanged for his services. But he didn’t sue the litigant he represented: He sued Mark McDonald. The response from McDonald was that the lawyer was mistaken; legal bills were being paid by the Taxpayers’ Union, and Mark knew this because he said he had the receipts – which revealed he had control over their bank account.
This is an important (yet neglected) chapter in Santa Rosa’s history. It’s somewhat tricky to tell, in part because it sprawls over a decade. Also making research difficult: A question raised in a lawsuit sometimes wasn’t resolved until a court hearing for another suit years later; there were six different suits and some were so entangled with each other it can be unclear whether the plaintiff’s original complaint was modified, merged, minimized or dropped entirely. There’s enough material here to write a book but I advise any future scribe to keep a bottle of aspirin handy. Maybe a bottle of scotch as well. Maybe two.
Historians face a further obstacle because newspaper coverage was unusually slanted. Most of the events in and out of the courtrooms were covered only by the Democrat, and the problem wasn’t just that the paper showed heavy editorial bias (which it absolutely did, favoring the McDonald faction) but that it also selectively reported what was happening at City Council meetings. As a result, the overall picture is simply impossible to understand from reading the newspapers alone, making some key actions by the Council seem impulsive and reckless. Fortunately, we now have available thorough coverage of what was said at those meetings to fill in blanks. 4
The last big piece of the puzzle was the national recession, which is discussed in the section below. The banking world had turned upside down in the months between the bond vote and when the city was ready to actually sell those bonds. At one point the city found itself in the odd position of having to rewrite ordinances because there was no longer an agreement on what constituted “legal tender.” The economic system was in complete disarray, forcing our elected officials to navigate a volatile situation which had tripped up even professional bond traders.
For these reasons and more, few historians have even mentioned those events, and what little has been written portray it as a roadbump in the town’s otherwise steady progress towards the future. But I’ll argue the story isn’t about the lawsuits or even the water supply – the crux of it concerns the character of Mark L. McDonald.
DOWNLOAD52-page PDF file of newspaper articles related to the McDonald water lawsuits
Often during that ten year span Santa Rosa was scurrying to respond to the latest edict from a judge overseeing a particular lawsuit and sometimes there was a crisis because money was simply not to be had. And throughout it all McDonald and his cabal were in the background, hoping the turmoil would steer the city into such great financial peril they would come begging to buy his troubled company – or perhaps the goal was to have the city sell the municipal waterworks to him, cheap. Either turn of events would have proven ruinous to Santa Rosa yet he not only didn’t seem to care a whit, but it appeared that was a key part of his strategy. It was all about money, or power, or whatever else it was that motivated him to wage a dirty war against his own community.
In no way is this article intended to present the whole narrative, but should provide enough detail to follow what really happened. In the SOURCES section below a chronological index is provided, and selected newspaper transcripts can be downloaded in a separate PDF file as shown to the right.
THE HARROWING ’90s
The “Panic of 1893” was a economic crisis in the United States which became a major recession that lasted five years. As summarized on Wikipedia there were several causes behind those woes, among them the crash of overvalued railroad stocks and the collapse of crop prices. As a result there were widespread farm foreclosures, hundreds of banks failed and unemployment lingered at double-digits. The Western U.S. was hit the hardest.
What initiated the panic in April and May of 1893 was fear President Grover Cleveland, who had spoken about wanting a more “flexible currency,” might seek to resolve the growing array of problems by abandoning the gold standard. This started ongoing bank runs as people sought to cash in their paper dollars for hard money and foreign investors sold their stocks and bonds only for payment in gold.
By early 1895 the stockpile of gold held by the Treasury was nearing exhaustion. With only days (maybe hours) to spare before the nation slipped into default, President Cleveland made an emergency deal with financiers to privately buy $62 million of treasury bills at four percent.
Cleveland and his cabinet, who only had been considering the usual sort of advertised bond sale open to the public, were hesitant at first because they weren’t sure it was legal. Financier J. P. Morgan – whose banking career began during the Civil War – assured them Lincoln had signed a statue allowing private bond sales in times of emergency. The attorney general fetched a book of Revised Statutes which proved Morgan’s memory of this long-forgotten rule was accurate. (I encourage you to read the entire account of this episode, as it is a quite remarkable story.)
So far we’ve covered about a year of the story between Oct. 1894 and the following August. It had been a rough ride; aside from the usual court hearings grinding away on the three ongoing lawsuits, part of the Skinner case even reached the California Supreme Court.5
It was now September 1895 and construction was about to start on the new municipal water plant. Santa Rosa mayor Woodward and the attorney for Effey took the train to New York with the mission to resell Effey’s bonds on the bond market. With the economy still very much in a wobbly state, bond traders were not fighting a bidding war over a low-yield muni bond from a pipsqueak farmtown few could probably find on a map. Effey had to sell them for less than the $161k he had paid, losing about $21,000 on the deal.6
No sooner had work began on the new water system that autumn when a fourth aggrieved taxpayer decided he was so darn mad over the water issue that he had to file a lawsuit of his very own. Like the other guys, this fellow was elderly, a retired farmer/rancher, and didn’t seem likely to have deep enough pockets to hire top attorneys.
And here, ladies and gentlemen, we now commence the entertainment portion of our program. The Wesley Mock lawsuit and court hearings were – to use highly technical legal terminology – bonkers.
Among Mock’s many allegations, both criminal and civil: The entire city administration was engaged in “illegality and fraud” in the sale of the bonds; the bonds were never actually sold; Robert Effey was colluding with the only other bidder, who he would hire to actually construct the waterworks; the city was negligent because the bond offer only attracted two bidders; that Effey’s bid was at least $31,000 (later increased to $41,000) higher than the estimated cost to build the project, and the city knew it; Effey was actually broke, as was the city treasury. Whew!
Once in the courtroom, Mock’s case wandered even farther out into the weeds. There was a day devoted to handwriting analysis intended to show Effey had written the other bid as well as his own (the results were inconclusive). Effey’s lawyer was brow-beaten by the judge into testifying about the New York trip, quite possibly violating attorney-client privilege (he deftly seemed to have forgotten nearly all details). And Mock’s lawyer tried to get the Republican publisher Allan Lemmon held in contempt for writing a “contemptible and scurrilous” editorial which pointed out everyone trying to block the municipal waterworks curiously happened to be a member of the Democratic party, even though it was apparently (?) written tongue-in-cheek.
These were all efforts to gin up controversy and make everything about the water project appear suspicious – if not downright sinister. There was testimony about mysterious sealed envelopes and a late night meeting at a bank where documents changed hands several times. Witnesses were called to the stand but couldn’t be found in the courthouse. There was so much dirt to reveal the Democrat didn’t even attempt to write it up as a regular news article but instead just published the court reporter’s raw notes, something I have never seen in a newspaper from that era.
Representing Mock at these court hearings was a heretofore uninvolved gunslinger: Edward Lynch, a famous San Francisco criminal defense attorney. Lynch also represented Mark McDonald in related water lawsuit matters, including that dustup over whether the money to pay the local lawyers should come from the Taxpayers’ or McDonald, and would also be McDonald’s attorney in yet another lawsuit discussed below.
But never, ever, suggest that someone else was behind Mock hiring such an expensive San Francisco litigator, or the 69 year-old would give you a sound thrashing. “I am acting in my private capacity as a citizen for the good of the community and am not the tool of a corporation,” he insisted to the SF Call. Yeah, sure: Dude, you’re living in a little 10th street cottage near the railroad tracks.
The Wesley Mock hearings went on for over two months in early 1896. Besides hinting darkly at covert skullduggery by Effey et. al. his lawsuit was amended during the hearings to ask the judge to hold the City Council in contempt of court. Angering him this time was the Council passed a motion to accept the waterworks even though the project wasn’t completed.
Of all the charges made by Mock’s lawyer, this accusation seemed to deserve scrutiny. Why the devil would the city pay for unfinished work? Maybe there was something shifty going on, after all.
But it was actually a key example of the Democrat revealing its bias via omission of facts. In the City Council minutes it showed they were concerned about sabotage by “some evil disposed persons” and the construction site needed to be under city control and guarded by a policeman. (This and other cites from City Council minutes come from John Cummings’ study available under SOURCES.) Readers of the Democrat – and modern historians who rely only upon what appeared in that paper – didn’t know there were now threats of violence being made.
The general election two weeks later saw turnover of nearly half of the City Council seats.7 Mayor Woodward’s final remarks regarded “utmost vigilance” will be needed to deter “those that are trying to destroy the efficiency of the new water system.” The new Council was even more determined to fight McDonald’s shills in court and vowed to “combat every suit.”
They wouldn’t have long to wait for that combat. Soon after that the judge in the Mock case approved an injunction to block the city from taking possession of the water plant. To do that, the court required Mock to put up a $4,000 bond which he obviously couldn’t afford – so McDonald and a banker from Santa Rosa Bank put up a surety bond for him. Ironically, this was announced in the same edition of the Democrat where Mock insisted (again) he had no ties to McDonald or his water company.
The municipal waterworks had been partially operational since the start of 1896, and there were still the concerns over someone trying to monkey-wrench the operation. The Council’s end run around the injunction was to pay the guy who built the pump system $400 per month to keep the water flowing.
That was an astonishing monthly salary for then (over $13k today), particularly because it came at a time the city treasury was bleeding dry. Santa Rosa had to hire outside legal counsel to help defend itself in the four lawsuits, especially because the judge allowed Mock’s hyper-aggressive attorney Edward Lynch to turn court hearings into a ten week fishing expedition. As a result, the city found itself borrowing from Santa Rosa Bank to stay afloat.
And then there were five: The same week the Council made the deal to keep the waterworks going during the injunction, Mark L. McDonald stepped out of the shadows as his water company filed its own lawsuit against Santa Rosa. It was mostly a greatest hits rehash of the Cooper-Jones-Skinner-Mock complaints, but it ran on for 125 paragraphs. The Democrat printed every word (of course) with a full month required to dump the whole thing on its readers, the newspaper filling up most of a full page per week. New to this suit was a Donald Trump-like whine that no one respected how much money Mark had spent building his waterworks and that there were dark forces within the government conspiring to hurt him.
(LEFT: Judge William R. Daingerfield of San Francisco presided over the Wesley Mock hearings and trial because Sonoma county Superior Court judges recused themselves for conflict of interest. Drawing from Sonoma Democrat, Dec. 19, 1896)
The Mock trial began in mid-December and took three weeks. It covered much the same ground as the March hearings with new accusations that the city’s contractors were all fumblebums and chiselers. To refresh everyone’s memory on the background of the case the Democrat published an updated version of the Taxpayers’ Union manifesto on the front page, in all its conspiratorial glory. And as before, the paper printed every detail of the plaintiff’s arguments and little to nothing from the defense – but you can, however, read their coverage and be able to stun guests at a dinner party with your comprehensive knowledge of 19th century pipefitting. The Democrat did at least share the opening statement from the recently elected City Attorney.8
In an extraordinarily forthright courtroom speech, attorney Webber said his primary obligation was to find out for the citizens of Santa Rosa whether or not there was fraud – but regardless of the verdict, all of the litigation must end. We ought to cancel any portion of the water bonds should it be possible, as it would be better to cut the losses than spending another 2-3 years fighting lawsuits.
Equally remarkable were Webber’s subtexts aimed directly at the Taxpayers’ Union: “Hey, don’t you jokers realize that taxpayers are footing the bill for the city’s legal defense in all these nonsense suits coming from your group? And do you really know what you want? For the city to be forced into bankruptcy? For Santa Rosa to abandon the nearly completed waterworks?” (Considering the Taxpayers’ had earlier demanded the city acquire McDonald’s company, their true goals certainly seemed obvious.)
Judge Daingerfield spent five months musing over the case before issuing his 44-page decision, which “created a great deal of surprise and considerable excitement and comment on the streets,” according to the Democrat. And the winner was… Wesley Mock. Sort of.
By letting Effey modify the plans to hold down construction costs after they had been approved by the voters, the City Council had committed fraud. This meant that while the bonds were valid, they had been unlawfully sold. The judge ruled members of the Council were personally liable for the difference between the actual value of the waterworks and how much was due to repay the bond. The city was to keep operating the system and hold it in receivership until its worth could be determined. All of the the Taxpayers’ wild-eyed nonsense about the bonds not actually being sold, secret meetings and the like were not even given consideration.
The court’s later judgement held that Santa Rosa could keep the waterworks if the defendants coughed up what was due between actual vs. bond value. Otherwise, the sheriff was ordered to sell the water plant to the highest bidder.
And we all know who that would be.
Nearly two years passed before the California Supreme Court ruled on the city’s appeal. During that time the national economy mostly recovered yet in Santa Rosa the outlook remained cloudy.
The city was still relying on its credit line to operate, particularly during the lean weeks before property tax payments were due. Thus the City Council minutes reflects their alarm when bankers suddenly demanded payment of the city’s $5,000 note along with interest. The bank in question was Santa Rosa Bank, which you might remember was the co-signer with Mark L. McDonald of the bond for Wesley Mock.
And still, McDonald continued plowing ahead with his Ahab-like determination to kill (or own?) the municipal water system. This new round of trouble began in 1896 shortly before the Wesley Mock trial with a notice the Fountain Water Company had been formed. Yes, in addition to the McDonald waterworks and the city’s own, Santa Rosa was now to have a third water supply – supposedly.
The water for this project was to be from Peter’s Spring, which at the time was mistakenly believed to be the source of adjacent Spring Creek. (Peter Springs Park is still there.) It was so named because it was on the old Jesse Peter ranch which was now owned by Mark McDonald’s brother James, who also had several stone quarries in the area.9
All was quiet on that front for nearly two years until August 1898, when the McDonalds put up a dam across Spring Creek just upstream from one of the city’s water pumps. Even if the source was actually Peter’s Spring on private property, it was clearly illegal to obstruct such a public waterway.
The newcomer Press Democrat, which did not inherit the old Democrat’s bountiful love for the McDonalds, remarked “…there has been an opinion pretty freely expressed in this city that the action of the Fountain Water company at this time was done so as to diminish the city’s water supply.” That was proven when it was discovered the McDonalds hadn’t just constructed a simple dam; they had made a deal with other property owners to let them dig a ditch to divert the creek around the city pump before rejoining its natural watercourse.
The city waterworks were not dependent upon Spring Creek water at the time so this irksome stunt had no real impact. But some on the City Council may have considered this dummy corporation as the last straw; according to their minutes, there was a discussion about suing Mark McDonald for all he and his gang had done to obstruct the city water project.
But come a year later, the city’s water supply was nearly maxed out and they needed to tap Spring Creek again.10 The mayor and city attorney went to the Fountain Water company in San Francisco (it was not mentioned who they met) to offer to buy the spring and surrounding ten acres. They were told the price would be $100,000. Back in Santa Rosa they countered with a written offer of $6k, but there was no response. So the City Council voted unanimously to pay a fair appraised price and take the land via eminent domain.
Mark McDonald’s response: Total War against Santa Rosa, and damn the expense.
The McDonald water company sued the city again, but this effort was quite unlike their suit from three years earlier (which was apparently still ongoing). This time Mark was represented by Jefferson Chandler, a famed Washington D.C. attorney who had argued and won cases before the U.S. Supreme Court. And this time he was filing suit in federal court in San Francisco. There were three points in his complaint:
ENTITLED TO MONOPOLY In 1874 Santa Rosa had signed a 50 year contract with the water company he acquired. McDonald argued that gave him the exclusive right to provide the city with water until 1924 and the city must immediately cease and desist operating its waterworks, while paying $100,000 in damages. (This part of the suit also rehashed his familiar moaning over how much he spent on construction.)
TAKING PRIVATE PROPERTY If the city used eminent domain to buy Peter’s Spring it would violate McDonald’s company rights by losing its access to a critical resource (although the company was not yet using the spring and there was no obvious way to pipe the water over to Lake Ralphine).
UNFAIR COMPETITION The city was unfairly providing residents with “free” water. (Santa Rosa did not have water meters at the time, but anticipated each resident used 115 gallons per day. Instead of charging directly for water, there was an assessment and monthly fee for every water fixture in your home or business, the size of your lawn and garden, etc. See this article for more.)
At the City Council the Mayor urged they file a countersuit to revoke McDonald’s water franchise, according the Cummings review of the Council minutes. “[F]ight to the bitter end,” Mayor Sweet said, “with a view of ascertaining whether the majority should rule or whether a few Capitalists should manipulate the fair City of Santa Rosa.” The Council unanimously agreed.
That moment in early October, 1899, was the nadir of McDonald’s dirty water campaign; it had been five very long years since the launch of his first proxy lawsuit and fighting back had drained the city coffers. Besides the incident when Santa Rosa Bank demanded repayment on the $5,000 credit line, there was also a period in 1897 when the city completely ran out of money and couldn’t borrow any more.
But all that was about to change. Surprisingly, our story has a happy ending – for almost everyone except Mark McDonald.
The new McDonald suit was the greatest threat yet to Santa Rosa. A protracted battle in federal courts – which Mark would probably appeal all the way to the U.S. Supreme Court, should he lose initially – could be ruinously expensive and might even force the city into bankruptcy. But whatever might happen there was of less immediate concern than the final ruling on the Wesley Mock lawsuit, as members of the City Council and administrators were to be held personally responsible to pay back any excessive debt on the water bond.
Word from the state Supreme Court came down later that October. There was bad news: The Court upheld Judge Daingerfield’s overall ruling. There was good news: The city, not the individual officials – was to be held liable for the debt. Other parts of the decision allowed the city to take control of the waterworks (which presumably meant they could stop paying that engineer $400/mo to run it) until its value could be determined. Once that was known, the city had the option of paying the difference from the bond price; otherwise, the sheriff would auction off the waterworks (with the proviso that the city couldn’t make an offer). It was considered around town as quite a fair decision.
Next was holding an advisory jury trial to set the value of the waterworks. This was to be held in Santa Rosa with Daingerfield presiding, and those who thought he showed bias against the city during the Mock trial were concerned because he said this jury could only consider the worth of the water plant itself, and not the land it used.
The trial began in January 1900 and took exactly a month. The jury wasted no time and returned with a unanimous verdict after only twenty minutes: The waterworks were not worth the $161,000 amount of the bonds – it was worth far more, valuated at $190,000.
“When the verdict was read the courtroom was crowded and the crowd applauded vociferously. The local papers issued extras and the streets were crowded until a late hour by citizens who discussed the verdict and congratulated the defendants upon the outcome,” reported the San Francisco Chronicle.
Now the city’s attention turned back to Peter’s Spring, and it began condemnation proceedings against the Fountain Water Company and James McDonald. Court hearings and a trial consumed the rest of the year 1900. The McDonalds again tried to claim the ten acres were worth $100k while Santa Rosa argued the market value was no more than $50/acre. The city won again, and Spring Creek water was finally being pumped into the city’s reservoir, but the case would drag on until 1904 as the McDonalds sought a new trial. It was eventually settled they were to be paid only $4,515.55.11
And also in 1904, McDonald’s last-gasp federal lawsuit was laughed out of court – a private corporation claiming it could dictate the shutdown of a public utility wasn’t even worth consideration. Sweetening the decision, McDonald was further ordered to pay Santa Rosa’s court costs.
So endeth Mark McDonald’s long and often underhanded fight against Santa Rosa’s water system. A couple of takeaways:
Aside from the scale and relentlessness of McDonald’s legal assaults, what he was trying to do was not unique in that era. In 1899 a letter writer to the SF Examiner noted Palo Alto and other cities had faced costly lawsuits from private water companies seeking to block municipal water works.
It’s worth taking a step back and looking over what had really happened here. As I wrote earlier, this story is really about the character of Mark L. McDonald. Over a quarter century, he had lurched from being Santa Rosa’s champion to becoming the town’s pariah, all in his obsessive drive to control what came out of our faucets. Why a man of such wealth and influence would throw away most of the goodwill in the town where his family lived we can only wonder.
|1 Robert Effey was mayor of Santa Cruz 1884-1888 and again 1894-96. He was a watchmaker and jeweler by trade. In the 1890s he was a bidder on several California muni bonds but aside from the Santa Rosa water system, the only bonds he seemed to hold were for Stockton’s sewer. His Dec. 1930 obituaries did not identify him as an investor, but mentioned he was the last surviving member of the “Bango club,” which was a ten member hiking and drinking club that regularly walked from Santa Cruz to San Jose or Watsonville. At a prearranged location they would be met by as many as 300 of their friends to engage in “conviviality.”|
|2 Believe-it-or-not! There were three, maybe four John D. Coopers living in or around Santa Rosa in the late 1890s, all unrelated. This farmer died in 1917 and was buried in the Rural Cemetery; another died in 1925 and was Windsor’s Justice of the Peace; another spent his last years at the County Poor Farm and died in 1909. The most well-known J.D.C. at the time had a Fourth street wine and liquor store along with a saloon. Was he the fellow who died at the poorhouse, or individual #4?|
|3 In 1895, the year following these events, Gil P. Hall would be indicted for felony embezzlement over $4.6k that went missing during his term as County Recorder.|
|4 Ample and Pure Water for Santa Rosa, 1867-1926 by John Cummings; Prepared for the Department of Utilities, City of Santa Rosa, 2002|
|5 Skinner v. Santa Rosa concerned how the city was to make interest payments on the water bond. In Nov. 1894 the Council had changed the terms of the bond to make payments in gold only, semi-annually instead of annually, and payable in New York City. The California Supreme Court ruled the Council couldn’t do that unless they issued new bonds, which the city did in Sept. 1895.|
|6 Robert Effey had planned to use Coffin & Stanton, the New York bankers who had handled the bonds for the Santa Cruz water system. But that firm failed in Oct. 1894, so Effey approached Seligman & Company, one of the largest investment banks in New York City. After buying the bonds at a discount of $144,601.87, the bank tendered them for sale at 53⁄8 percent.|
|7 Two City Council members (both Republicans) lost by a narrow margin and two didn’t run for reelection, but Mock’s attorney Edward Lynch insisted the election results showed public belief of malfeasance.|
|8 Partial transcript of statement by City Attorney O. O. Webber at the Mock trial, December 18, 1896: “…The complaint on file in this action alleges fraud. I want to say right here if there is any fraud, or any has been committed by the Council or anyone else during all the leading up to, or the construction of the waterworks, or disposition of the bonds, I, as city attorney, representing the taxpayers of the city, want my clients to know the truth of the charge in this case. I am the attorney of the city, which I interpret to be the taxpayers and the city officials, but I believe my first duty lies to that people that had the confidence to place me in that position. I am not forsaking the officials who are the defendants in this action. I have consulted part of them and asked them to tell me if there was anything wrong done by them, or anything that should be covered. They informed me that everything is perfectly straight. I therefore have no alternative but to believe them and I therefore will do all in my power to lay this case before the taxpayers of this city as plainly as I can. The truth is the whole expense of this litigation regardless of who wins or who loses the suit must be borne by the taxpayers of Santa Rosa. The attorneys employed in this litigation must be paid by the taxpayers of Santa Rosa and I believe it is now time that we should begin to realise the true status of this whole affair. This litigation should be stopped. If the bonds can be brought back we can do it today cheaper than we can by litigating two or three years. If they cannot be recovered and the proceedings have all been legal and according to law I want the citizens to know that fact so that they may act intelligently as a community in this whole affair…”|
|9 The rancher was Jesse Peter Sr., not his same-named son Jesse who became an archeologist and taught at SRJC.|
| 10 The city water works initially had an intake on Spring Creek, but it was disconnected in July 1896 because the volume of water provided by the wells was sufficient.
|11 In a surprising turn of events, the city sold Peter’s Spring to McDonald’s waterworks in 1909, with his company intending to pump “water from the spring to an elevated point between it and the present reservoir of the company,” according to a 1911 Press Democrat item.|
Besides contemporary newspaper articles, references to the City Council minutes are drawn from Ample and Pure Water for Santa Rosa, 1867-1926 by John Cummings. The chronology below covers most of the key events discussed in this chapter, but there are over 200 items related to this topic just in the Sonoma Democrat/Press Democrat. Transcriptions of selected newspaper articles mentioned there are available for download in a 52-page PDF file.
CHRONOLOGY OF KEY EVENTS IN McDONALD WATERWORKS LAWSUITS
(Dates reflect publication and may lag event by 1-6 days)
6 October 1894 Effey bid accepted
13 October 1894 Cooper suit vs city – not enough money to pay bonds
13 October 1894 Taxpayers’ Union formed
(C. S. Farquar and Gil P. Hall, Attorneys for taxpayers)
27 October 1894 Jones suit vs council – Effey plans are different
3 November 1894 Taxpayers’ manifesto
24 November 1894 council changes terms of bond to payable in gold
1 December 1894 Cooper, Jones and others file amicus to Skinner
(William F. Russell atty for Skinner AB Ware and Farquar for others)
8 December 1894 Skinner case only on validity of bonds
15 December 1894 Skinner not in good faith
22 December 1894 change in bond terms valid (Cooper vs. Steadman)
29 June 1895 change in bond terms invalid
6 July 1895 Taxpayers’ resolution for city to buy McDonald’s works
27 July 1895 ordinance 162 adopted: annual interest payment
5 October 1895 Effey contracts with Perkins to begin work
19 October 1895 Mock suit collusion between city and Effey
(A. B. Ware, C. S. Farquar and Gil P. Hall attorneys)
19 October 1895 construction underway
16 November 1895 J. M Jones dropped
4 January 1896 city accepts unfinished waterworks
25 January 1896 Democrat printed entire Effey testimony
1 February 1896 Mock wants council held in contempt for accepting works
2 February 1896 Mock will thrash
22 February 1896 court hearing: council shouldn’t be held in contempt
29 February 1896 court ruling: council not in contempt
18 March 1896 Lemmon contempt threat
21 March 1896 court hearing: handwriting questions
21 March 1896 court hearing: trip to NYC for bonds – Effey lost money
28 March 1896 court hearing: bonds sold in NYC for $144.6k
4 April 1896 Mock hearing closes
(election: Woodward, Collins out; Harris and Tupper didn’t run)
30 April 1896 Farquar sues McDonald
16 May 1896 Mock letter: I am not a shill
16 May 1896 restrain orders Perkins to stop city not to accept
20 May 1896 McDonald says Farquar was paid by taxpayer union
12 June 1896 contract with Perkins to maintain and supply water
13 June 1896 McDonald first suit against city
18 July 1896 amended to seek tax refund for illegal tax
14 November 1896 Fountain water company incorporated
28 November 1896 Democrat claims city is running a deficit of $1000-1200/mo
19 December 1896 Mock trial begins
2 January 1897 lengthy account by Taxpayers’ Union
9 January 1897 Mock trial ends
5 June 1897 Cooper v. Steadman suit thrown out
19 June 1897 Mock wins
20 June 1897 Examiner: Mock wins (includes history)
18 December 1897 judgement (city contract with Effey void, bonds were unlawfully disposed of)
17 August 1898 Fountain builds dam on Spring creek
20 August 1898 Fountain dam intended to hurt city
17 September 1898 Fountain diverts water around city pump
6 September 1899 McDonald wants $100k for Spring creek
4 October 1899 McDonald sues city to stop free water for 25 years
21 October 1899 Supreme Court: City cannot buy, Council not liable
10 January 1900 advisory jury trial begins
10 February 1900 Mock overturned – value of work proper – celebration
17 February 1900 fundraising for council defendants
17 March 1900 city sues Fountain to condemn land
13 December 1900 start of condemnation suit
11 March 1902 Fountain land only worth $4k
3 June 1904 court throws out 1899 McDonald suit
15 September 1904 city drops Fountain suit
22 July 1911 McDonald buys Fountain