the metropolitan utilities district (mud) was founded in 1913, and was intended to consolidate the city's utility services under public control. however, mud faced severe opposition from american, which refused to sell their interest. the city persisted their case, eventually taking the case to the united states federal courts. after a federal ruling in their favor in 1916, mud acquired the works. it continued to produce ice for several years. in 1917, the city of florence reported to the nebraska state legislature that it was unable to pay its bonds due to the loss of tax receipts from the privately owned american water works. this effectively bankrupted the town, and it was annexed by the city of omaha the following year.