Omaha daily bee., 1906-08-02
NEW BID FOR WATER WORKS
o, b. Vsnnsr 4 Co. Of New York Offer to
buy the Plant.
Will PAY MIF MILLION FOR BARGAIN
Asks that City bid In Plant at the
Upset Prices and Turn n
over at 100000
Advance.

G. II. Venner g. Co, bankers Of New
York, in letter to Milton T. Barlow. chair
man Of the Water board, want TO buy the
Omaha water plant for Se,763,OOO IL the city
acquires IL at S6.26S,OO0 the figure fixed by
the appraisers
Il refer you to the Water company" said
Mr.. Barlow when asked what action the
board would take on this proposition
Have you received such a propositien?'
was asked Mr.. Barlow.
But he refused to answer, saying that he
had nothing 10 give out to the public on
this matter.
The Venner letter, a copy Of which was
sent to The Bee is as follows:
NEW YORK, July g. 19O6.-To the Hon
orable Water Board. Milton T. Barlow
Esq. Chairman Omaha: Just twenty years
ago we purchased the entire capital stock
OF the City Water Works company OF
Water Works company to take over the
property. During the time that we were In
control from 1856 to 1891 the new plant at
Florence was constructed and other large
extensions and additions to the property
were made involving an expenditure OF
nearly A.OOO,OOO OF which sum about Sl,2OO',
600 was represented by preferred stock and
floating debt held by us, which was sponged
out by the unjust foreclosure of the mort
gsS Of the the n n @ nS proved total
loss TO us. of which the present Omaha
Water company got the benefit.
We are advised that the board of apprais-
ers appointed to fix the value OF the prop"
erty In the proceedings by the city to &C
quire the water works have by majority
at S6.263OOO. and that some question has
arisen as TO whether that y fair value,
and whether majority report IS pindlng
upon the city. We express no opinion on
these contentious but from our informa-
ton 1t seems likely that they will lead to
protracted and extensive litigation, the re-
rr,TE 81 obi ,h rrrfn he lrRn a
conclusion. Meanwhile each party TO the
controversy may indulge the hope that II
We have been considering the situation
and devised a plan whereby we believe the
whole question can be speedily determlheu
with profit and advantage to the city
Terms of Venner's Ofer.
II the city shall take the property at the
appraisers value. S6,263,O00 we, through a
corporation to be organized for that pur-
pose. will purchase the pJo ops f5Sm t ts
26S,OOO in twenty year 4 per cent bonds and
$500, 600 in cash, the said bonds to be part
of an authorized issue of $lO,OOO,OOO secured
by first mortgage upon the property the
balance SO, 737, 600 bonds. to be placed in
trust and only issued and sold for the
purpose of paying the cost of extensions
and betterments; the city to grant the new
company n satisfactory franchise In lieu or
the present one, which Will expire on the
twenty year contract to pay 100000 a year
for the present number of hydrants, and $40
annum for each additional Migrant set upon
extensions ordered by the city, not less
than thirteen to the mile, the city agreeing
to pay all taxes assessed against the new
company, its property or income, in excess
of $4,000 a year.
Or we will, through company to be
organized for the purpose, take a twenty
FIVE year lease OF the property and pay rs
rental per cent interest upon the S. 900,
initial cost 10 the city, and the same rate
upon all moneys which may be expended
in extension and Improvement of the plant.
the city TO enter into a twenty-five year
contract with such new company to pay
hydrant rental as stated in the first prop
osition. ...H -
These propositions are now presented only
in a general or tentative manner, but IL
either of them shall be favorably received
by you, we will be pleased to confer with
you for the purpose of working out the de-
tails. Under the FIRST proposition It is clear
that the city will make an Immediate cash
profit of 100000 while under the second,
there will be municipal ownership with
private operation, and minimum profit
to the city of $62. 630 per annum for twenty
five years, assuming that the city can bor-
row at per cent the money to buy the
property. Respectfully yours
C. II. VENNER AND COMPANY.