Omaha daily bee., 1911-11-03

chase price The accumulation OF interest
on the purchase price since July 0, 1906.
to date amounts to more than 81, 10000.
As a result OF this appeal the city is
saved from payment Of this interest and
required only to pay the sum OF the
original appraisement.
I'VE regard this as a great victory for
the water board and one which will leave
the city ample money out OF the interest
OF the bonds to make extensions and i'm
provements."
Company. 20 Keep Rentals.
President Woodbury. Of the Omaha
Water company. when apprised OF the
decision Of the court OF appeals. stated
that the question OF interest was the
principal cause of the litigation that had
been carried on since July Q. 1906, the date
on which the appraisal Of the plant was
accepted by the water company.
The Rppssssed value OF thB plant was
~ 16S 1000. on this sum the water com
pany' claimed ana demanded interest at
the rate OF per cent per annum.
Not being fully apprised OF the full ex-
tent OF the decision OF the court OF APP
poals. President Woodbury. was of the
city would not have to pay interest, It
would probably be charged with all rem
tails from the date heretofore named and
up to the time Of turning over the plant
History of the Case.
| The history OF the purchase Of the
Omaha water works embraces long
series OF litigation In It's various phases,
most ob which has grown out OF the act
OF the Nebraska legislature of February
! 3, 1908 compelling the purchase OF the
water works and providing for the Gre
alton OF the Water board. which should
have charge OF the administration OF the
water works when they became the prop
erty OF the city.
To comply with the mandate OF this
law, an ordinance was passed by the city
council OF Omaha March 2. 1908. electlng
TO buy the water works plant under the
purchase clause. and directing the APP
pointment OF board OF appraisers TO APP
praise the plant one OF the appraisers
/ to be appointed by the city. a second by
the water company and the third to be
selected by these two. The appraiser APP
pointed by tho city was John w, Alvord;
by the water company, George II, Ben
benbetg, and these two selected Daniel
w. Mead as the third member Of the
board.
Under the so-called Howell bill. making
compulsory the purchase Of the plant, pro-
vision was also made for the creation OF
the water board TO be appointed by the
/ governor for various terms. two to be
appointed each year or until their sue
eessors we're elected. The first board
consisted Of James Il. Boyd. T. ]. Ma
honey. Milton Barlow. !. r. Congdon. ].
H. Coad and Martin. II was under this
board that the appraisement was com
menced, In May or June. 1908.
Tht appraisement was long drawn out
and involved considerable controversy
relative 20 the procedure. Carl c, Wright,
then city attorney. assisted by John Lee
Webster. speciality employed as attorney
for the Water board, represented the city
In the litigation.
AZ the ouset the question arose 20 TO
the scope Of the appraisament the at
torneys for the city holding that Il should
not include such of the property Of the
water company that lay within the city
limits Of Omaha. The Water board con-
tended that the Appraisement should EN-
brace the entire plant, including the ex-
tensions 20 Dundee south Omaha, over
khN HANRNlha " AhN LAST AAAaAa AfaAAA
company, and the pumping station ana
filtration plants and settling reservoirs az
Florence.
scope Of AppraisemeRt.
The question Of the "going" value OF
the plant was also pressed by the at
torneys for the water company. The at
torneys for the Water board held out for
the natural deterioration OF the plant and
! its inadequaey 20 fuinn It's contract re.
quirements with the growing demands OF
the city, and the disinclination OF thS
water company 10 enlarge its pumping
and piping capacity.
! Regardless OF these objections the ap
praisement continued until the matter
finally got into the United States eircui
court and a decree was issued direotinl
that the board OF appraisers should pro
coed with the appraisement as whol'
with separate findings for the plant a
) lying within the corporate limits OF TN
city OF Omaha; Of those portions Of IN,