Omaha daily bee., 1909-02-24
CART AGAIN BEFORE THE HORSE.

Attempting to stem the rising tide
of adverse public sentiment over its
fiasco of Immediate" purchase of the
water plant, the Water board has re-
solved to submit at the coming city
election a proposal to issue $6,5OO,OOO
in bonds to consummate the deal.
1t seems to us this is again putting
the car before the horse. Assuming
that the city should lose out in the
specific performance suit, which would
compel it to take the works at the ap-
praised valuation of $~6,263,295.49, a
bond issue of $6,5 900 would be
only a starter. The status of our
water works obligation after such a
decision by the supreme court would
be:
Appraised value ......... se,2e3,as5.4s
Hydrant rental ana in
tersst to Jan. !, 1909. 4se,ee3.77
headed at once for better
ments and extensions. =. 100000
Total. 4. A.......... 3 ,a4s,95S.se
To complete the purchase under the
appraisers award would therefore re-
quire Omaha to raise no less than
$7,249, 959.26 as the initial outlay.
Assuming that Omaha 4 per cent bonds
could be sold at par, which is ex-
tremely doubtful, the annual interest
charge would be $2Ss,s9S.37. In ad-
dition to this the water works is now
paying in state, county, city and school
taxes approximately $4,000 a year,
which would be wiped of the books
the moment it became public property,
so that the total annual charge for in
$~S59,99S.37. This without anything
by way of occupation ak.
Against this the city would Offset
what 1t is now paying for water for
hydrants, parks, public buildings, ETC.,
in round numbers 500, 900, and what
ever surplus ven might remain
from private consumption ove and
above legitimate charges for operating
expenses, depreciation, wear and tear,
etc.
Before the taxpayers of Omaha will
be warranted in voting a mortgage
upon their property of not less than
$7.249,s5s,26, they ought to know
whether there is the remotest chance
of coming out even and, If not. how
much deficit will have to be made VI
annually by taxation.
In submitting the $500, 900 bond
proposition members of the Water
board explain that they want to FIND
out whether the people wish to com.
plete the purchase of the water works
or to compromise with a franchise ex
tension on new terms. II this is tht
purpose the submission of the PROPOSE
tion In that form will not accomplish
It. To get such an expression of pub
lie opinion the people should be per
; mitted to vote for one OF two PROPOSE
tions-either for the bonds or for
J compromise-and the terms of tn
compromise should be known so as L
permit of\intelligent voting.
{ We realize that this alternative can
not be offered without some prelim
mary legislation. AS the law nov
D stands the Water board has no optic,
; but to go on and buy the water work
: under the purchase clause. but tn
{ power ought to be lodged somewher
either with the Water board o
some other authority-to negotiate
compromise proposition. II desired
y subject 10 final ratification by III
e people.
= We doubt whether the people {
. Omaha viii want to pay t~7.24s.S5s.2
for the water works II there Is 40
other reasonably satisfactory way OF
: OF he dilemma. which the mismanag'
ment OF the Water board has bro1gl
upon them. Before they mortgal
their property with this colossal bon
d issue they ought to ascertain wheth'
y there Il any ether way OUT az
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