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The leak through the porous north bank of the city's great reservoir on the Cedar river was still sluicing away tons of earth yesterday, cutting back towards its source. Damage estimated at $250,000 has been caused by the break, which occurred at 2 o'clock Monday morning. Although if the stream gushing from the side of the north bank may, unless it is stopped, eventually eat back to the reservoir itself, city officials have not decided that it will be necessary to cut through the masonry dam to relieve the pressure of the water. Members of the city council believe, however, that the leak can be stopped from the reservoir side by sealing with silt. Councilman Oliver T. Erickson last night said that the sealing had been done with the surface of the water in the reservoir at an alititude of 1,553 feet. The leak, in his opinion, is therefore above the 1,500-foot level. He believes the sealing can be done without lowering the water in the reservoir.