Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-12-04
Council Bluffs.
WATER PACT INTO COURTS
Settlement Of Council with Company
to Be EnjOined in Court.
ALICE SETTLEMENT Is ILLEGAL
Assertion Made, Expiration Of Frau
chtsc Leaves BiE Offset that
shouId Apply on Rental
OF fire HydrantH.

The city's water bui Is not to be paid
without a fight On the courts when Man
ager r. ". Hart returns from Boston early
Sunday morning he will not find a city
warrant lying on his desk bearing the
pleasing inscription Pay 70 the Council
Bluffs City Waterworlzs company So 81
In fun for hydrant and meter service to
NOvember l. 1870 He win find instead
some information about a district court
order restraining the city from paying the
bill.
The committee appointed At the meeting
q the Citizens Improvement club Thurs
day night yesterday afternoon secured
Attorney KIllpark 70 appeal 20 the district
court for a writ Of temporary Injunction.
The petition was filed late yesterday after
noon. but was not submitted to Judge
Green for the temporary restraining order.
This will follow today.
The plaintiff tn the suit IL former Alder
man J. Chris Jensen and Mayor Maioney.
all OF the members OF the city council. City
Clerk Casady. Auditor McAneney and
Z Treasurer True are named sc Defendants
The petition goes briefly into the history
OF the matter. and claims the action Of
the council on Monday night when a settle
ment was made with the company for
twenty months fire hydrant rental and
nearly two years use Of water metered
at public buildings. parks. schools. etc,
was Illegal for the reason that the last
rate ordinance adopted By the council.
dated January IS. 1903. fixed the rate at
50 per hydrant while the council settled
on a basis OF So The more serious claim.
however. lies in the charge that thirty
nine o. the hydrants upon which rental
was paid have been useless during the
whole o. the period covered by the bill.
wording Of Petition.
The petition charges the council with
Illegal action in these words;
THAT the proposed payment 50 far a.
! Il is in excess OF so is illegal fraudulent
and void. and is a Willful. fraudulent and
I Illegal attempt to turn over funds OF the
( city to the water company when such
amount has not been earned. and the same
/ II permitted to be contaminated win be
a fraud on the rights OF the plaintiff and
I other taxpayers
Mr.. Jensen. in his petition. insists thai
/ the city has an offset for the unpaid water
I bill FOR the reason that the company il
/ liable to the city for the use OF the streets
/ for ali Of the period since the expiration Of
/ its charter and this amount IL equal to
/ large part II not the whole OF said bill
but the defendants unlawfuliY refused e
present said bill and II not collected a.
such offset il win be lost to the eitl
on account OF the insolvency Of the com
pany."
The contention is further made that tn,
I council has no right to make . settlement
with the company al a rate higher than
the SO price fixed BY the last rate ord
nance. which the company refused to ae
/ oept. Attorney KnIpack says his is an in
1 vtncible point and the councils action Il
indefensible Another point Is that tn,
settlement includes pay for MIGRANTS tina
were not in service. or at least in service
able condition
Attitude of PubIie.
/ Public sentiment. 50 far as any expires
sion Of il has been made. appears 10 favo
the settlement made with the company Tn
price paid Tor fire hydrant rentals il
Omaha and South OmahG is 90 a year
ana BY the terms OF the settlement Counci
Bluffs gets the same service for $50 Tn
rate ordinance referred 20 was not &C
cepted b. the water company and the com
pany went into the hands Of q receive
before the ordinance went into effect 70
the Last two years there has been no Coun
ell Bluffs Water Works company in ex
istence. Its president George p. Sheldon
died nearly two years ago and no successo
had been named, and all OF the other Off
GERS have ceased to act Judge Smith NC
Phsrs0n 81 the federal court who ap
pointed Receiver Hart has been the lega
head Of the concern. Before the settlemen
with the city can Be fully made IL mus
be approved BY Judge Mcpherson and a
order issued BY him 20 Rscsiver Har
directing him TO accept the money and re
eeipt for IT,