Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-05-10
PUTS BURDEN ON THE BOARD
Manager Fairfield Of Water Company
Makes Statement.
DELAY DUE TO C1PY OFFICIALS
Purchase Of Plant MiRht Have Been
Completed Long AGO but for
Tactics Adopted ny the
Novelties.

Water company makes this statement in
| regard to some Of the debated phases OF
| the present water situation in Omaha:
mir r. 3. Howell of the water board
| tells us that twenty-acre tract OF ground
| near the Omaha Country club site was
! bought a good many years ago by the
| Water company for the construction Of a
second reservoir that would assure the
city Of Omaha an ample supply OF water
| for day or two should the Florence main
break or be crippled for any reason and
\ says that this second reservoir is badly
needed but that no move has ever been
made to build it and adds why this has
not been done is for the company to an
swer
Up TO the time the city elected to buy
! the water works system the company was
able TO fulfill all the demands on its sys-
TEN but that was seven years ago, and
during the Intervening time the company
has added large number of consumers,
which consequently increased demand upon
It's supply line. In 1906 the company, real
lzing this, offered to put in an additional
supply main from Florence, provided the
city would agree to add the cost with
interest to whatever the city should pay
fo' the rest Of the plant Had the city
accepted this offer the company would
have been perfectly able to supply all tho
demands upon it up to this time and for
several years to come. The water board
however paid no attention whatever to
inns offer and The city finds itself now in
dilemma which the Water company fore
saw foup' years ago and did everything in
their power to avert. Until such additional
main is laid, IT. will not, in my opinion,
be advisable To- build a reservoir on the
land referred to by Mr.. Howell, which,
nevertheless. being the highest land about
the city. was secared with view to its
ultimate availability for : reservoir
Fought It Before Court.
may add that Mr.. Howell seems TO
nave forgotten that in a suit brought in
! 1905 by the Water board and the city
against the water company and the APP
praisers, It was stated in the bill Of COM
plant, verified by the then president OF
the Water board, that this particular prop
erty was not necessary or serviceabe or
useful in the operation of the plant and
the court was asked in that suit to decree
that 1t was the duty OF the board Of APP
praisers to exclude that property from
I their consideration and to return an
Q award without consideration of its value
e The company ceased to pay dividends
. Oh It's BLUM stNeTdl years ago out has
n paid the interest promptly on Its bonds out
r standing which amount at the present time
to about A,SO0OOO.
A AN editorial In the World Herald on the
/. water situation, with reference to the suit
0 for specific performance. recently argued
n before the United States supreme court
n says: II the decision is favorable to the
: city's contention that the plant was not
y fairly and properly appraised. then the
: supreme court will probably direct the
r United states court for this district, 10 pro.
coed. at once to determine its true value
4 Our counsel advises us that even II the city
: were to win on this appeal there would
e have to be new appraisement. The city
n has irrevocally elected to buy the system
g Of water works Of the Omaha Water com
n pany and the only method by which tn,
y price can be fixed is in accordance witt
v the terms of the contract between the city
4 and the water company. and that is by al
appraisement Of three engineers.
WOPld-HeraId's Attitude.
"One other matter that would like tC
touch on, is the statement reiterated In tn,
= editorial in the World Herald that 1t Il
the water company which stands in tn
y way of municipal ownership. Whoever
wrote that editorial must have been either
deplorably ignorant Of the water situation
during the last four years, or wilfully de
I. termned to mlslead the public, for every
l. one who is familiar with the water situa
10 ton knows that II is the city which ha
II been delaying completion of the purchas,
" of the works, while the company has beei
II insisting upon the completion. 1t is
d we'll known fact that Immediately upon tn
ID completion OF the appraisal the compan!
Is rendered it's deed of the property, and aske,
al to have the purchase completed and tina
,e the Water board, instead of giving som
" assurance or completion passed resolution
In repudiating the appraisement In the Iitl
ID cation which the company was compelle
to bring to make the city live up TO 1t
II contract, the circuit court OF appeals rem
? dered a decision which authorized in ever
particular the purchase which the citizen
a have declared their desire TO complete an
which the members OF the Water board pre-
tend to wish completed. and which, &C
cording to the members OF tho Water boar
a viii give the city at the appraised valua
nc ton, a revenue-produclng property whlc
,v will carry itself, paying interest on bonds
ry cost OF operationS and create a slnSln
at fund TO pay Off the bonds without add
er tlonal taxes.
en- II am utterly weary of the inslncerit
ne of the WRter board, as evidenced by il
spokesman. Mr., Howell 1t is only litt
ed less than seven years ago when he wer
h about the city of Omaha telling the cit
as 1ens that this property was worth onl
an S. 10000. and now he unblushingly come
W out in print with a statement that II
Is Omaha Water company is now paying il
IT. terest and dividends on about $1,000, 90
&C and that in his opinion. within six year
the property In private ownership. with
!. twenty-five year contract. would be alb
TO pay profits on capitalization Of abo,
. SlS,OOoOoo, and goes on to say that IL
syndicate can do all this and make a pr
n fit upon it. the city can do as much und
III municipal ownership. Where does tn
III leave the clamor OF Mr.. Howell. and othe
about an over-valuation OF the works
III the appraissrs?"