Omaha daily bee., 1903-02-18
HOW SHALL THE PURCHASE BE MADE,

HOW SHALL THE PURCHASE BE MADEi
The consensus of opinion among all
classes of citizens and taxpayers is in
favor of the municipal ownership of the
water works. We doubt very much,
however, whether any considerable
number of taxpayers would favor the
immediate purchase of the water works
unless they can be acquired at n rea-
sonable price. Under the contract made
with the water company when its fran
chise was granted the city of Omaha
has a right to purchase the works at an
appraised value to be fixed by three en-
gineers, one Of these to be named by
the city, one by the water company and
the third to be chosen by the two. If
the appraisement is made by these ar
bitrators the city is to pay only for the
tangible property of the company with
out making any allowance for the unex-
pired franchise. An appraisement made
under these conditions an. however,
only be made on or after September 4,
1903.
Under the existing charter the city of
Omaha is empowered to take the water
works by condemnation under the right
of eminent domain. In taking the
works by eminent domain proceedings
the city would have the right to appoint
all the appraisers, but the valuation
made by these appraisers would Include
not only the tangible property but also
the value Of the unexpired franchise.
The problem which now confronts the
city is whether it shall avail itself of
the privilege embodied in the purchase
clause of it's contract with the water
company, namely, to take the works at
the price fixed by the three appraisers,
or whether it shall proceed under the
right of eminent domain. The ordi-
nance drawn in response to the resolu-
ton of Councilman Hascall in conform
ity with the Howell Gilbert water works
bill contemplates the purchase of the
works under the three appraisers clause
of the contract. This method of acquir-
ing the works is doubtless most advan-
tageous to the water company and most
dangerous to the city of Omaha. While
the city and the water company each
have one representative on the %appraise.
ment board. the chances are one hun.
bred to one that the water company will
control the third man. In other words,
the water company will be able to place
its own value on the works.
Attorneys who rank high at the bar
contend that an acceptance of the pur
chase privilege by the city binds the
| city to accept the valuation fixed upon
the works by the arbitration board OIL
two of the three arbitrator, ever If the
appraisement exceeds by two or three
millions the actual value of the works
To be sure, the city may refuse to ratify
the purchase by voting down the prop
osition to issue the requisite amount OF
bonds. In that case the water company
might institute proceedings in the courts
and under it's contract secure a judg
ment for the full valuation fixed by the
appraisers.
Condemnation proceedings under the
right of eminent domain would not In
vOlve the city in any such risk. In the
first place, the city has a right to ap
point all the appraisers, and if the
amount allowed for the works and the
unexpired franchise is excessive the city
would nave the right to reject the ap
praisenent and have the property re
appraised by a new set of appraisers
If the aporaisement is satisfactory tC
the city and a sufficient amount OF
bonds is voted to cover the full valua
ton agreed upon by the appraisers the
city would have the right to take pos
session Of the works by depositing the
money in the courts, leaving the water
company the option to accept or appea
to the courts for a final adjudication o.
the compensation to which 1t would b,
entitled in payment for the property.
The good people of Council Bluffs arr
having a taste Of railroad tax shirkinI
In tho V.ofY,gnI ,P fHo TT-lo., n,.aa. 4