Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-06-02
HOW SHALL THE PURCHASE BE
MADE?

MADE
(The Bee, February is, 1909
The consensus of opinion among all
classes of citizens and taxpayers is in
favor of the municipal ownership Of
the water works. We doubt very
much, however, whether any consider
able number of taxpayers would favor
the immediate purchase of the water
works unless they can be acquired at
a reasonable price. Under the con-
tract made with the water company
when it's franchise was granted the
city of Omaha has a right to purchase
the works at an appraised value to be
fixed by three engineers, one of these
to be named by the city, one by the
water company and third to be
chosen by the two. If the appraise-
ment is made by these arbitrators the
city is to pay only for the tangible
property of the company without max
ing any allowance for the unexpired
franchise. An appraisement made un-
der these conditions can, however, only
be made on or after September 4, a.,
1903.
Under the existing charter the city
of Omaha is empowered to take the
water works by condemnation under
the right of eminent domain. In TAX
ing the works by eminent domain pro-
ceedings the city would have the right
to appoint all the appraisers, but the
valuation made by these appraisers
would include not only the tangible
property, but also the value of the IN
expired franchise.
The problem which now confronts
the city is whether 1t shall avail itself
of the privilege embodied in the pur-
chase clause of it's contract with the
water company, namely, to take the
works at the price fixed by the three
appraisers, or whether 1t shall proceed
under the right of eminent domain.
The ordinance drawn in response to
the resolution of Councilman Hascall
in conformity with the Howell-Gilbert
water works bill contemplates the pur-
chase of the works under the three ap-
praisers clause of the contract. This
method of acquiring the water works
Is doubtless most advantageous to the
water company and most dangerous to
the city of Omaha. While the city
and the water company each have one
representative on the appraisement
board, the chances are one hundred to
one that the water company will con
troll the third man. In other words
the water company will be able t.
place its own value on the water
works.
Attorneys who rank high at the bal
contend that an acceptance of the pur
chase privilege by the city binds thu
city to accept the valuation fixed upoI
the works by the arbitration board o.
two of the arbitrators, even if the ap
pralsement exceeds by two or tire,
millions the actual value of the works
To be sure, the city may refuse to rat
ify the purchase by voting down tn
proposition to issue the requisite
amount of bonds. In that case tn
water company might institute pro
ceedings in the courts and under it
contract secure judgment for the full
valuation fixed by the appraisers.
} Condemnation proceedings unde
the right of eminent domain woul
, not involve the city in any such risk
} In the first place, the city has RICH
/ to appoint all the appraisers, and
the amount allowed for the works an
: the unexpired franchise is excessiv
Y the city would have the right to rejeC
/ the appraisement and have the prof.
4 erty reappraised by new set of al
Y praisers. If the appralsement is salts
s factory to the city and a suff1cier
Y amount of bonds is voted to cover tn
e full valuation agreed upon by the al
g praisers the city would have the rigf
to take possession of the water worl
e by depositing the money in the court
y leaving the water company the optic
0 to accept or appeal to the courts for
g final adjudication of the compensate
r to which it would be entitled in pa,
ment for the property.