Omaha daily bee., 1908-08-30
MUST GIVE WATER AT FIXED RATE
President of Company Claims 0rdi.
nance Still Holds Good.
BOARD TO MEET MONDAY NIGHT
Acting Chairman COnEdon Says Moth.
ing VIII BE Done UntiI Webster
and Barlow Return to
Ctr.

excess Of rates fixed by the same ordin-
ance. the Omaha Water company In a
statement signed by its president, Theo-
dore c. woodbury., made It known to the
Omaha Water board Saturday afternoon
that "any discussion OF the relations Of
the company to the city" would be with
out result. This being the case, the board
decided to adjourn Immediately upon
hearing the reading of the lengthy docu-
ment.
Two weeks ago the Water board adopted
a resolution requesting the officers OF the
Omaha Water company TO be present at a
meeting to be held on August 20, for the
purpose OF considering the relations Of
the Omaha Water company to the city OF
Omaha after the 4th day of September,
1903, and for the purpose of considering
the terms and conditions under which the
said Omaha Water company shall be per-
mitted to occupy the streets OF said city
and the rates and charges 1t shall be al
lowed to charge to private consumers
In conformity with this resolution, Pres
ident Woodbury. of the company and How
ard Mansfield general attorney, came
from New York, and were present at the
Saturday meeting together with e. M
Fairfield, general manager; A. B. Hunt,
in charge Of the works; and ]. F. Stout
local attorney for the company. Acting
Chairman /. f. Congdon. DR.. A. H. Hip
Pile r. B. Howell and ]. F. Coad were the
Water board members present. c. c.
Wright, one of the boards attorneys, was
also present.
statement by Company.
Upon calling the meeting to order, Act
ing Chairman Congdon explained the rea-
son for the conference, and President
Woodbury. then announced that he had
prepared a statement setting forth fully
the company's position and asked Gen
eral Mansfield to read it. The statement is
as follows:
To the Water Board of the City OF
Omaha: In response to the request OF the
acting chairman OF tae Omaha Water
board setting forth the resolution OF the
board adopted August ~ and expressing g
pany would see fit to have present" at
this meeting zone or more representatives,
50 that the company WITH st1 me 9oard, G Go1Id 1n
gether reach fair and mutually salts
factory arrangement, the president and
counsel of the water company are here.
They deem it essential, however, that the
position of the company with regard to
certain Fundamental questions be frankly
While willing to meet the water board
for the discussion of matters of mutual
assumptions contained in the resolution re-
ferred to.
Occupancy of Streets.
The resolution assumes that the occu-
pancy of the streets of the city OF Omaha
by the company's mains, after September
4, 1908, must rest upon permission of the
water board. The company cannot so re-
garu the situation. The fact, which must
be plain to all, is, that after that date, as
before. the company must continue to fur
nlsh water through those mains to the
city and its inhabitants, and. to consid-
cradle extent, to adjacent communities
Moreover, the ordinance of 1880 expressly
grants the right to occupy the streets for
that purpose. and during that time the
ate" the water works. The company could
not, IL IL would, remove the mains or the
hydrants connected with them, pending the
completion OF the city's purchase Of the
company's system of water works. Fol
the company is admonished by the United
States circuit court that, while it is under
no legal obligation meanwhile to make sub
stantial additions to the system, II is its
bounden duty to maintain this system as
IL was when the election to purchase was
made. AS a public service corporation, il
is also bound, as held by the United States
circuit court OF appeals, not only TO con-
tinue its service TO Omaha and its in.
habitants, but to South Omaha, Dundee
and Florence and their inhabitants. There
should be no question that, conversely. the
| city of Omaha cannot impair the integrity
OF the system, or the company's full rights
OF ownership, possession and operation, oi
the value OF the system to the company
| so long, at least, as the decree of the
| United States circuit court OF appeals di.
recttng the completion Of the purchase shall
remain in force.
Rejects Theory of Rates.
The company must, moreover, reject tn,
| theory which the resolution advances
\ that after September T. the rate which
the company may charge to private con
sumers will depend upon the allowance o.
the Water board. The ordinance of 1880 IL
| ha to ftnEfa ~
water tc citizens residing along its mains
! or contingent thereto, lat all times WheI
any such water works shall be main
/ tanned within specified rates, which tn
/ company has never exceeded, and with
which the United States circuit court o
! appeals has held that the company has tn
] legal right TO contract without lmpHrmen
| OF that right by the Water board. Wnil
| the company would long ago have heel
| released from this duty, and the fixing o
| rates TO prlVate consumers would hay,
| passed 10 the Water board had the cit!
made timely completion Of the purchas
It elected to make. both the duty imposes
| upon the company and the right secures
to II by the ordinance In this regard mus
necessarily continue so long as the compan
remains the owner OF the works.
In other words, the election TO purchase
| as held by the circuit court of appeals II
| the rates case, limited the term of tn
ordinsnce contract to the time preceding
| the completion Of this purchase" wheneve
that may be, and thus established a new
legal status. Upon the ascertainment O
the price through the appraisement, th
| contract of purchase became absolute "a
well as irreVocable as held by the circui
court Of appeals in the suit for specifi
pc performance of the contract and thus
! situation became crystallzed which ca
| neither legally nor equitably be change
| in aTy material respect by either the cit
OF the company pending that suit.
| In view of this situation the arrival o
September 4. 1903, becomes immateTial, an
any discussion OF the relations OF the com
pany TO the city after that date. base
upon a contrary theory, must evidently b
| fruitless Of any satisfactory result. Yer
| respectfully,
THEODORE c. WOODBURY..
August % 1905. President.
No Further Statement.
do you want to discuss the question
any further?" asked Attorney Wright.
mo. that statement is our answer" re
piled Attorney Mansfield.