Omaha daily bee., 1911-04-22
Council Bluffs.
PRICE FIXED ON WGTERWORKS
Board Appraises its Value at Over
Half Million.
CITY OFFICERS DISAPPOINTED
Valuation of $4,000 Expected and
city May Not Accept the Re
port of the District
Judges.

The three district court judges constitut-
ing the court Of condemnation, gave out
their decision last evening, fixing the value
OF the Council Bluffs water plant at $780,,
300 The decision was reached late yester-
day and formulated in time for the court
reporter to get out his official copies for
the city's representatives and the attorneys
for the water company shortly before
o'clock.
The valuation was considerably higher
than the citys representatives anticipated
and It is feared may arouse some opposi-
ton TO its acceptance by the council. The
contract between tive city and the water
company and the state law under which
the condemnation proceedings were brought
provide that If either side refuses to accept
the award of the appraisers the one re-
fusing must pay the entire costs of the
proceedings The hearing has been under
way nearly two months and the total cost
is approximately $50 OOO IL the city re-
fuses to accept It will not have to pay all
OF this sum. as the law provides for the
payment Of only 81 a day as fees for expert
Witnesses The cost, however, will be APP
proXmately $4,000.
The city may now accept the appraise-
menb and take Immediate possession Of the
plant or It may appeal to the district court
and continue to carry Il upward TO the
court Of appeals. entailing expensive liu-
cation and years of paralyzing delay, or
It may refuse at once to accept 1t and
proceed with the original plans to build
new plant.
city Attorneys Disappointed.
Attorneys Kimbali and FINLEY. represent
ing the city, said last evening:
we are both disappointed in the amount
of the finding. We did not expect finding
above $435. 900 We have not been advised
of the methed by which the court reached
its conclusions. but cannot conceive Of ar
irving at this value without allowing a
larger sum for going value than we an
tcipated. It is also evident that the court
did not allow as much for depreciation as
we believed should have zen allowed. We
prefer to first investigate the basis Of
the findings and then present our conclu-
sions and opinions to the city council"
Manager Edward w. Hart of the water
company and also it's receiver, expressed
lis disappointment. 1--WE thought the
award should have been at least $3.50. 600
We know the plant is worth that amount
and much more to the city" Manager Hart
said he had no authority to say what &C
ton the court and the bondholders would
take, but that the company went into the
arbitration court in good faith and was
prepared to abide the decision OF the
judges.
The tacit offer OF the company, made
through it's attorney George S. Wright,
while the hearing was in progress, to con-
slider an offer of $4,000 and end all ltiga-
ton, is now recalled with some regret 1t
would have saved nearly $4,000.
The board of judges stipulated in closing
its report that the earnings OF the company
shall be retained by the corporation until
the city pays over the purchase price and
takes possession. The conclusion OF the
report was follows:
cit is understood by this court that the
earnings Of the water company are to be
retained by 1t until such date as the plant
and property is paid for by the city and
turned over to the city of Council Bluffs,
at which time the title to all of said prop
erty shall vest in said city. Provided. how
ever. that the water works company shall
have the use OF the books OF current ac-
count for the purpose of collecting the &C
counts belonging to said company. We fur
Their find that the Witnesses in this case are
entitled to the fees as set forth in the
itemized account attached hereto, and that
the other costs as set forth therein and all
Of the costs in this proceeding to be taxed
TO the city of Council Bluffs"