Omaha daily bee., 1907-05-14
ARGUMENT ON WATER WORKS
Points for and Against the Compulsory
Acquisition Heard in Federal Court
SUIT IS BROUGHT 5Y THE COMPANY
Action Holds city should buy Plant
az Price FIXED by the Apprais-
era, over six Minibn
Dollars.
SUIT IS BROUGHT BY THE COMPANY

The arguments in the matter Of the COM
pulsory purchase OF the entire water works
system OF Omaha by the city Of
Omaha are being heard before Judge
w. II. Munger In the United states
circuit court They began at 10
O'Clock Monday morning and probably will
continue for several days The suit u
brought by the Omaha Water company TO
compel the city Of Omaha to buy the entire
water works system for the appraised
valuation as fixed by the board Of APP
pralsers, at over 100000 at Its sitting In
Omaha in the summer Of 1908.
The argument for the water company was
opened by Attorney Howard o. Mansfield
OF New York, general counsel for the water
company. President T.. c. Woodbury. OF
the water company and r. 5. Hall, the
local attorney for the company, were
present during the hearing.
the interests OF the water board and the
city are being looked after by special
counsel. John L. Webster and Carl G.
Wright. The arguments OF MIR. Mansfield
are in effect that the board OF appraisers
acting under the instructions Of the city
and water board and the ordinance OF
March, 1903 included In its estimate OF
appraisement the entire system Of the
water plant then owned and operated by
distributing systems OF South omaha,
Dundee Florence and all the property OF
the water company lying within the limits
of the city Of Omaha. The ordinance OF
March, 1903, contemplated the purchase OF
the entire system without any segrega-
ton Of outlying distributing districts.
Denies ApprHiaement Excessive.
Mr.. Mansfield also denied the appraise-
ment was excessive or unlawful. but that
II represented a fair appraisement OF the
value Of the property including its going
value. The final report of the board Of APP
praisers was made in July, 1906. Following
| the report OF the appraisers, the water
! company made a formal tender Of the
water plant with the requisite deeds for
| ali the property. which was refused by the
| water board and city of Omaha on the
! ground that the appTaisement was Excess
sive and unlawful and on the further
! ground that the purchase of the water
plant contemplated only such of the prop
erty as lay In the corporate limits Of
| the city Of Omaha.
1t is this contention that the water
company now seeks to deny and refute
on the ground that at the initial meeting
Of the water board appraisers at which
were present City Attorney Wright and
others representing the city and water
company and that there was distinct un-
Outstanding, and II was so expressed by
the late Governor Boyd. then president OF
the board. THE city wants to buy the en-
tire property IL 1t is possible, and expects
| to do it.
1t is further held by the attorneys for
the water company that no action was
taken then to modify or limit the ordinance
! relative to the purchase Of the entire sys-
tenn, nor did the water board prior to the
institution of this suit interpose any objec-
ton or seek TO an estoppel Of the appraise-
ment or purchase price as decided upon
by the board of appraisers.