Omaha daily bee., 1906-07-10
BOARD REJECTS APPRAISAL
Sets Out Numerous Reasons Why it is Not
Binding on the City,
WATER COMPANY DEMANDS PURCHASE
Files BiII in Federal Court 60 Require
City 90 Pay over Price Fixed
by Appraisers and Take
the Works.

thy 70 ray over Price t1Neu
by Appraisers and Take
the works.
Fraud is charged in resolution adopted
| by the Water board at an adjourned meet !
ing last night rejecting the report Of the
majority Of the appraisers fixing the value
OF the water plant at S., o5s, 1858. A reso-
luton arranging for the appointment Of
a new appraiser in order that another
appraisement may be had was adopted
also.
| Formal action was taken unanimously
| after long secret meeting Of the board
members and Attorneys John l.. Webster
! and Carl G. Wright in Mr.. Websters
| Offices The resolution rejecting the APP
/ praisment is long one and gives In de-
! tail number Of reasons. Among these are
| that the report is not unanimous; that
/ irregular and Unauthorized methods OF
procedure have been followed in arriving
! at a valuations that the findings of Ap-
! praisers Mead and Benzenberg are so eX-
cessve as to be irregular, wrongful and
fraudulent; that the two appraisers acted
upon deceptive and misleading evidence
! furnished by the water company; that the
| two appraisers permitted the company to
/
/ Water boards representatives were not al
lowed to see and that many other errors
were committed.
/ The board adjourned to meet again to-
night to discuss further plans for resist
| ing the enforcement of the appraisement
returned and to transact any other busi-
ness. including the election of a member
! to fill the vacancy caused by the death Of
James +. Boyd.
Reject the Appraisement.
The long resolution to reject the report
was introduced by Member Howell, after
preparation by the lawyers and the reso-
luton looking to a second appraisement
was presented by Member Coad.
The first named apparently sets forth all
the objections of the Water board to
the report and its processes and is as fol-
lows:
| Whereas, Pursuant to certain proceed
ings heretofore had between the city Of
Omaha and the Omaha Water company,
under and pursuant to section IA of ordi-
| nance No. 423 and subsequent proceedings
OF the city council of the city of Omaha
relating thereto, three engineers John w.
Alvord, G. II. Benzenberg and Daniel w.
Mead, were selected to ascertain the APP
| praised valuation of the waterworks, under
and by virtue of section IA of said ordi-
nance No. 423, and,
Whereas, Said engineers have this day
submitted to the Water board of the city
purporting TO be an appraisement of the
waterworks, is not the report of the said
three engineers and Is not an appraised
gineers and,
Whereas, said report. in the manner
and form as made, Is unauthorized, illegal
and void, and,
Whereas, ii appears upon the face of
said report that one OF the engineers so SO
IN said report nor In the values liked IN
said report, as appears upon, upon the ne iaGs afS
report does not represent an appraised
valuation ascertained by the estimate OF
the said three engineers, as required by
the said section IA of said ordinance NO.
42S, and,
Irregularities Charged.
Whereas The said engineers, Daniel w.
, Mead and G. IL; Benzenberg, IN arIlVl!ns
at their said valuations have pursued II
! | regular and unauthorized methods OF pro,
1 cedure, and have in many particulars acleu
in violation of law and OF their duty IN
) whereas, The Valuation agreed upon by
said engineers, Daniel w. Mead and o. II;
, Benzenberg, are so greatly above the real
/ value of the property, and so excessive
| as to be evidence that the same are irregu-
) lar. wrongful and fraudulent, and,
Whereas. Said engineers, Daniel w. Mead
, | and George H. Benzenberg, sitting as ap-
praisers. did not act upon thelr own luug-
ment to valuations, but upon eVidence
! presented to them by the Omaha water
7 company which said evidence was n islead-
ing and deceptive, and by reason whereof
. II Benzenberg. acting as appraisers, were
mised and deceived, and induced to give
the said property valuations which were
= greatly above their real value, which
. said evidence the said engineers were with
out authority to receive, and which was so
: received over the objection of the city of
Omaha and over the objection OF the Water
Y board of the city OF Omaha ana the pnr-
pose and object of which said evidence was
/ 10 give to the water works a fictitious val
uatiou over and above its real value, and,
Whereas The said enginsers, Daniel w.
Mead and G. II. Benzerberg, acting APP
prasers, in violation or their duty, and
against the continued protests ana opJec-
tiOns Of the city of Omaha and Of the Water
board of the city Of Omaha, did, by con-
tinuances and accommodations, and other
wis., grant and extend to the Omaha
! Water company a period of nearly one year
and half of time, so as TO enable the on
, GERS agents and representatives of the
0 Omaha Water company 10 prepare maps,
plans, diagrams and other detailed forms
. of evidence, some of which did not. in fact
y represent existing properties, and many
v Of which maps, plans, diagrams ana de-
v tailed statements purpOrted 20 represent
. properties. construction work and materials
> which were not within the personal knowl-
! edge or observation Of the persons who
prepared the said maps, plans. diagrams
and detailed statements, and which in
. truth and in fact, were not proper or com
o petent evidence of the properties, constTuc-
10 ton work and materials which they pur-
! ported to represent, and which were mis-
| leading and deceptive to the said engineers
: and yet were received and accepted and
: w Mead and C. H. Benzenberg, and with.
out original investigation on their part tc
3 know whether the said maps plans, dia
$ grams and detailed statements were cor.
, { rect or incorrect; and the said engineers
Daniel w Mead and G. II. Benzenberg
Z acting as appraisers, were in fact. misled
. and deceived by the said plans, diagra ms
. , and detailed statements, and by reason OF
U the same were induced to. and in fact
10 did, give to the properties OF the Omaha
: Water company, on account thereof, Valu,
i, ations far in excess of the real values OF
- the properties so estima ted, and,
e Whereas, the said engineers, Daniel w
Mead and G. H. Benzenberg, acting as ap
praisers permitted the officers and agents
of the Omaha Water company to presen
: to the said engineers i'm secret, in the cit,
Of Cincinnati, in the state OF Ohio at I
meeting there held by the said engineers
n books and other documentary evidences o.
the said water company, over the writer
protest and objection OF the Water boa T,
OF the city Of Omaha, and which secre
evidence consisting OF books and records
was presented to the said engineers bv IN
>. officers and representatives OF the Omahs
Water company. and was received - saiC
= engineers Daniel w Mead and G. H. Ben
n zenberg and considered by them. nOtwtth
4 standing the protest Of the Water board
4, and which evidence so submitted 10 tn
n said engineers, the Water board, its attor
y neys and representatives were refused per
. ,,,fsaior IN and which prOCeedfnR wa