Omaha daily bee., 1911-07-22
WATER BOARD DEFENDS BONDS
Mixes Official Statement Of Reason
the Bonds Should Garry.
GIVES HISTORY OF THE CASE
States Reasons Tor Calling = Special
Election 70 Have the BOnds
~ Again subraited 10 ~ Vote
M Z Of the People.

~
! The Omaha water board has issued a
signed statement Of it's position on tho
q,tstion Of the, wstsV. bonds. on which Il Is
aslting the tpublic 70 vete ts250.Ooo at an
election to ne held August q The board
pledges itself. in the statement, IL the
hends carry, not. 70 try to touch any por-
ten Of the water bonds heretofore author
ICED. -
statemenf Of Hoard.
Here is tine 5offIciaf statement:
$50 the Citixeps of Omaha: The Water
bosrd, in the performance OF what it be-
Heped to be its duty in protecting the in
tfrests OF the city, called the recent 'water
bond election for the purpose OF providing
for the taking over OF the water plant and
making necessary extensions and improve
Tpents thereto.
istIt transplred in that election that eleven
wards OF the city carried the bonds by q
'FFpfy large majority. and that the necessary
two-thirds would have been secured had Il
net. been for an adverse majority in local
ny where there lie great reason TO believe
the votes OF non-taxpayers were influenced
by some motive or reason other than that
Of the oity;s welfare.
H'Since this fact became known It has
been insistently demanded that the bonds
% immediately resubmitted. The water
hoard In recognition and appreciation of
this demand, and at the same time in the
performancs OF what IL believed to be its
duty In protesting the interest of the city,
has again called a special election to be
HELD betweep5the hours OF 8 q. m. and 6 p.
p.,yWednesdhy, August g. at which will be
sgsin subn1itted q proposition to issue
$4,000 Of water works bohds, payable in
thirty years ana bearing interest at not to
exceed 4iA'per cent per annum.
SIN 1903 the mayor and council elected to
J purchase the water plant at value to be
/ ascertained by three engineers. This APP
prajsement resulted I'm a valuation OF
Ss,2eo. S59.49. end the water company i'm
Inediately brought suit to compel the city
"a take the plant at that price The SUI
preme court Of the United States has ruled
mat the city.is required to take over the
property ut this valuation. That question
isssettled. The water plant must be PAID
for and there Ia no immediate method Of
making payment or possibility OF securing
possession of the plant except by the
authorization and sale of bonds.
Moreover. II the city had possession ot
the water plant extensions and improve
rnents of the plant would be impossible
without the authorization and sale Of
bonds.
IF the bonds are voted the water board
will take steps to secure possession of IN,
water plant as soon as possible and will i'm
mediately proceed TO carry out plans fol
the construction OF urgently needed water
mains without waiting for actual posses
zion of the plant
n Should authority to issue the bonds b,
granted no portion of the bonds will b.
issued and disposed Of until money or bond
are actually needed to take over the wate
plant and to make improvements and ex
tensions MS required. The income from tn
operation of the water plant will be Sc
aside 70 pay interest upon the bonds.
The water bonds heretofore authorized
by the city have not been issued and ar,
not available, those voted in 1900 having
been declared illegal. while those voted IL
1909 are pnmarketable because of the Low
rate OF interest they bear.
Sooner or later bonds must be vote,
as a matter of necessity. failure to vot
bonds at this time will postpone the da
when the city may come into possession
Of the water plant will postpone the tim
within which improvements and extension
shall be made, and will postpone the dat
~ OF terminating unnecessary loss to the cit
~ account OF per cent interest upon thi
judgment of 81, 26s. 25s.4s. II judicially charge
Herewith.
FINALLY, the water board deems IT bu
proper TO state that the water board
unanimous in the belief that'the interest
Of Omaha imperatiyely demand that thes
bonds be voted at this time; the waite
\board is confident OF the success Of muniC
fOal ownership OF the water plant; this
municipal ownership will not increase cit
taxes, but eventually reduce water rates
Further. the water board stands pledged
provided this bsnd proposition does carr!
that no portion Of any water bonds her,
tofore authorized by the city win be issue
or used by the board.
"OMAEA WATER BOARD"