Omaha daily bee., 1909-03-12
They Have Drawn Fifty-Four Thou
sand Dollars in Fees.
ONLY HOPE TO SCALE DOWN PRICE
Judge Shields Urges Legislation to
Settle Controversy.
ALL EXTENSIONS NOW BLOCKED
Assertion Made IL VIII Take
Eight Million Dollars to Buy
the Works Under the
Appraisement.
CFrom a staff Correspondent }


LINCOLN, March 11.-(Special TelO-
gram)-At a hearing on II. r. 394, by
Boland of Douglas which provides that
the Water board of Omaha may COM
promise its litigation with the water
company and grant franchise for water
rights, c. G. Wright, attorney for the
Water board. made the statement that he
knew after an examination of the water
company contract, IN company with r. J.
Mahoney and Isaac Congdon. that the
Water board could do nothing
You admit, Mr.. Wright, tn at you knew
all along that you could do nothing and
yet you continued this costly litigation
for all these years?" inquired Judge
Shields of Omaha, who appeared for the
bill.
Yes, sir" answered the Water board
attorney. I'VE have done the best we
could. Regularly we won our suits be-
fore Judge Munger. and just as regularly
have they been reversed by the court of
appeals, Others may have done better
but we knew we would have to buy the
water works, and the only question Is
in the price of the property"
Mr.. Wright agreed to accept the bill
provided 1t is amended so that the peo-
pie may have an opportunity to vote upon
the granting of franchise.
Judge Shields in talking for the bill
described the conditions existing in
Omaha at the present time, due to the
operation of the Howell water law. He
told how because of the pending litigation
the water works company would not ex-
tend it's mains and property owners could
not get relief from the Water board.
Property Owners Hit Hard.
IL had lot to which 1 wanted to get
the water mains extended" said Judge
Shields 'and l was told 1t would cost
me s4O0. 1 went to the Water board,
but could get no relief there. was told
that when the case was finally settled l
would be repaid my money, but no one
would sign statement to that effect.
1t prevented me from building on that
lot and also prevented me from selling
half of it for $1,000. Other property own
ers are against the same proposition"
Judge Shields told that when the water
bill was introduced 1t was the belief that
the water works could be secured for S3OOO,-
COO The appraisers valued 1t at $65OO,OOO.
Judgments and claims held by the company
against the city now amount to $50O,OO0
drawing per cent interest. with additions
made for mains laid by the company the
price OF the water works now will be, he
said, in the neighborhood OF $S,OO0OO0
Since the litigation started he told the
committee Omaha had paid to John L. Web
ster $4,000 for attorney fees, to Carl c.
Wright $4,000 and to experts $4,000. Mr..
Wright insisted that part of his fees had
been paid out by him for costs, but Mr.
Shields assured him that he had counted
only that which went to him for salary.
should the suit be finally won" he said.
'the city will be exactly in the position it
was before the litigation was started"
The people, he said, will never vote $780,
900 bonds to pay for the water works.
Mr.. Wright told the committee that the
Water board did not want the authority
granted in the bill, because should it effect
a settlement the members would be sub
ject to criticis. Mr.. Shields insisted that
the Water board did not have to make
compromises unless the members saw fit to
do so.
The committee took no action on the bill.