Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-07-08
ELIMINATION OF LONG, TEDIOUS PROCESS
After Three Years PreIimtnRries TO
Acquisition of Plant by the City
Have Becn Brought TO
Head.

The waterworks appraisers in session at
Chicago have at last made an appraise-
ment Of the Omaha waterworks, liking its
value at S6263,OOO, This information was
received yestetd day by the Water board.
Engineer Alvord, the appraiser, APP
pointed 10y the board, refuses to concur
either in the appraisement or in the valua-
tion and has declined to sign the appraise-
mcnt, deeming It too high. Appraisers
Benzenberg and Mead both concur in the
above valuation.
Ii is believed here, however, that the
appraisemcnt will be returned, though it
is an open question whether or not two
Of the appraisers can fix the valuation
without the concurrence Of the third one.
1t is said to be almost c6ertain that the
Water board will not give its assent to
valuation as high as this and more
litigation probably will result II the re-
turn is finally made at this figure.
1t Is a question whether the appraisers
will make a return in which only two of
| them concur or not, but It is believed they
will do so, in which case the Water board
probably will find it necessary either 20
accept the award or go into court and
| have II set aside.
| City Engineer Rosewater, in an address
/
provement clubs declared he would not
recommend the acceptance OF a valuation
Of 36,OOO,OOO or 100000.
| End of Tedious Process.
This appraisement is the elimination OF a
| tedious process preliminary to the acquisi-
/ tion by the city under a clause I'm the
| original contract Of the company that built
the water works. The plant was built I'm
1881 by local capital organized by a. man
named Cook. The terms provided that he
! should construct the works subject to GER
| tain tests and an ordinance was passed
giving him contract to supply the city
| with hydrants for fire-nghting purposes
for period not to exceed twenty-five years
! This ordinance also contained a schedule
of maximum rates TO private consumers
to obtain as long as the contract held out.
| Another clause in this contract provided
for the city's purchase of the plant by
appraisement Of three appraisers. the valua-
4 tioi TO be exclusive OF the franchise The
city had an option to institute an appraise-
ment after the expiration OF twenty years
and before twenty-five years from the ac-
ceptance Of the works as completed The
method of appointing the appraisers was for
the city to name one. the water company
one and these two to choose the third
serious dispute arose as to the date
on which the citys option became operative
The works were actually completed In 1881
but were not formally accepted by the city
until 1888. The company. therefore, insisted
that the purchase option was not available
until 1903.
Brought 10 Head by Bonds.
The question Of buying was brought to a
head in 1900 when the city council sub
mitted a proposition to vote bonds to the
amount Of 100000 for the purchase of theN
water works. This proposition was ratified
by the voters but the question of the right
to purchase held the matter in allegiance
until 1908, when the legislature was Induced
to enact a law out OF the water bill"
which became rather notorious because OF
the vigorous contest over it, This law pro-
vided for the purchase by the city and
the management of the plant after its pur-
chase by water board of six members
! originally appointed by the governor and
! elected by the people the terms of the
members expired.
Another obstacle presented itself in the
course of the long-drawn-out controversy
! in the question whether the city should
{ effect the purchase under the clause In
; the contract or by the right OF eminent
! domain. The latter would give the city
e the right TO name all the appraisers,
while the former method would enable
IL 20 name but one. and 10 accept or re-
, ject the appraisement, Just as it liked.
The purchase clause method was foreaI
upon the city, and now the city is told
: that the value of the plant It is to buy
is $4,000, 900 and more, Notwithstanding
only 100000 was the amount OF the
bonds voted for the purchase. When the
, city council decided in favor OF the pur-
= chase clause method Engineer AIyord was
. appointed as the city's appraiser. pha
: water company named Benzenberg ami
these two chose Engineer Mead.
= Delays OF All sorts.
This board Of appraisers was suppose.
TO 20 to work AT once. but IL added alon =
4 with all sorts Of delays, putting tho city
' OF from time to time with this and that
excuse for its failure TO act
The Water board tried TO anttclpste
the purchase by rcpudiatng the water
rate schedule contract and reducing the
rates to consumers. This threw the bur.
den Of vast litigation upon the city, in
> which the city lost Judge Munger OF
r the United States district court decided
a. the rates, as promulgated by tie Water
u board. were legal They were 25 cents
J. where the old rates were 35 cents But
the company appealed to the United
states circuit court Of appeals, and only
i two weeks ago Judge Sanboru OF 81
d
a court which reversed that Of the lowe,
p court The Water boards attorneys ther
~ declared they would appeal the case tc
" the supreme court
1r Meanwhile another complication aros,
n, by reason of the fact that the new char
ter Of Omaha, enacted by the last leEisla
m ture. cut out the levy for water hydran
- rentals and the city has had TO stanc
the burden and expense of suit by IN,
m water company TO secure the payment o.
-, these rentals.
All sorts OF guesses as TO the amour
m OF the appraisement have been made r
-, g. Howell. member Of the Water boar,
aud tho original promoter Of the watsl
m bill. maintained from the hrst that th,
d, valuation would not he fixed higher than
r 81. 900 900, the amount OF the bonds. Tn,
company has held its property 10 WORT
"a ~ as much as il Is capitalized fess