Omaha daily bee., 1909-02-08
CITY ANSWERS NASH SUIT
Challenges Right Of Plaintiff Com
pany to Bring the Action.
ASKED TO SHOW PROPERTY VALUE
Denial hat Proposed bond Issue
would Exceed the Constitu-
tIOnRI Limit of CIty's
Indebtedness.

The answer OF the city In the suit
brought In the United States court by the
c. B. Nash company Of Omaha to restrain
the Issuance Of the $4,000 water works
bonds has been filed. The allegations OF
the plaintiff company are denied In detail
In the answer, which asserts the city's
right to proceed with the issue OF the bonds
as contemplated, and asks the court TO dis
miss the complaint and to dissolve the
temporary writ of injunction.
In its answer the city in the first place
contends that much OF the property owned
in Council Bluffs by the Nash company is
without the benefits Of the present water
works, or OF the plant which the city pro-
poses to construct and that therefore II
cannot be taxed to pay for a water works
plant. The city asks that the Nash COM
pany be required to prove the value of its
property in Council Bluffs.
The city claims that the taxable prop
erty in Council Bluffs Is valued at 81, 2O1.
024. instead of S4.212 ,s15. as stated in the
petition OF the plaintiff company, and also
alleges the Indebtedness of the municipality
TO be $3.50. 900, instead of 1912. 900. as claimed
by the Nash company. 1t denies that the
issuance OF the water works bonds would
cause the debt OF the city to exceed the
constitutional limit.
Hearing on Terminal Tax.
Senator c. G. Saunders, who returned
yesterday from Des Moines to spend Sun.
day at his home in this city. brought word
that the hearing on the railroad terminal
taxation bin introduced in the state senate
by him. will take place Monday, February
is. before the senate committee on ways
and means. to which II was referred.
While Senator Saunders Is hopeful tina;
| 49, ,aoag.VHn 1vht1h vaAona no O.,
Council Bluffs and other similarly stu.
ated cities in the state. will pass, he said
yesterday that it undoubtedly would meet
with strenuous opposition. This opposition
| Colonel Saunders said, would come largely
from the country districts, which would
under the new system of assessment as
proposed by the bill, receive a somewhat
smaller apportionment of railroad taxes
than they now do. Members Of the legis
lature from some of the districts. however
after investigating the matter thoroughly
have declared to senator Saunders thai
they favor the new planks as they realize
that the present system does an injustice
to cities.
Proceeding Held to he Regular.
The answer not only admits the intention
OF the city council to issue the 1900 wa
/ terworks bonds, but claims that all pro
ceedings to date relative to these bondi
have been legal and in strict compliance
with the statutes. The meeting of thu
city council. at which the resolution order
ing the submission of the bond proposition
at a special election October IS is de
clared to have been a regular meeting
The plaintiff company alleged that thi!
meeting was irregular.
Regarding the allegation of the plaintiff
company that the petition asking for tn
, submission OF the bond proposition at
special election was insufficient and de
~fective, the answer sets up that the cit!
council judicially found that the petition
had sufficient signatures, and that tn,
court has no jurisdiction or authority t
review the city councils determination o.
this question.
other charges made by the Nash com
pany in It's bill of complaint. such al
rioting at the polls. voters being deprived
Of the opportunity to vote. illegal voting o
women. colluslve character of the test sui
brought in the name OF L. II. Jensen
in the district court. are all and eacl
specifically denied in the answer.