The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-11-13
CITY ATTORNEYS
REJECT OFFERS
OF ARBITRATION
Fl. F. O'Hare and C.. l.. Young
! Would Delay Consideration
Until After Appeal
c H A r G E BAD FAITH
Assert Water Company Not
City Has Practiced Delay
Since Controversy Started

II. F. O'Hare and C. L. Young, in
letter written today to the board
OF city commissioners and published
elsewhere in these columns as ali adj
vertisement by the City of Bismarck,
recommended the rejection of the Of
fer Of the Bismarck Water Supply
company to arbitrate under the terms
!Of the franchise
Following the offers to sell the
water plant to the city through ar
bitration, the Bismarck Water Sup
ply company through its attorneys,
Miller Zuger & Tillotson, made the
offer formally by letter. This lette:
was referred to the city's attorneys
and the answer published today will
come before the city commissioners
Monday evening when it is expected
also that petitions will be presented
from citizens asking for arbitration
rather than continued litigation
The letter from the city's attorneys
follows in part:
You have referred to us for rec
onmendation a letter from the at
torneys for the Bismarck Water Sup
ply company, which was published
several times as an advertisement be-
fore it was transmitted to you, sug-
gesting sale of the companys prop
erty to the city at price to be de-
termined by arbitration. The amend
ed franchise under which the com.
pany now operates provides for pur
chase by the city, if it SO elects, on
the 2Gth day Of May, 1886, the price
to be fixed by arbitration. The COM
pany indicates readiness to sell now
Oh these terms, and urges arbitration
TO stop litigation. ...
"Whose conduct compelled this liti.
cation! The franchise of the company
requires it to furnish an adequate
supply Of pure water. The consumers
for years have been furnished dirty,
and often impure, water. Their fire
protection has been and is inadequate
Even the railroad commissioners have
sustained these contentious. The rates
charged were more than three times
the rates paid by Fargo consumers.
Orders of the city commission to
make extensions were persistently ig-
nored. In spite Of constant protest
tho company refused to furnish re-
lief in any respect. Complaint was
finally made to the railroad commits
soners and an investigation ordered.
"Why should such an investigation
have cost the water company $685.
10000 to $3O, 100000! The company I'M
ported large staff of engineers, most
of whom were here for weeks, some
for four or five months, and the chief
engineer for seven months. Our city
engineer was prepared to submit his
valuation within thirty days after he
started work, and only on account Of
the large staff employed by the COM
pany and it's elaborate preparation
was our engineer required to make his
valuation much more detailed than
otherwise would have been necessary,
and for the same reason the city was
forced to employ additional engineers.
The hearing should have been COM
pleted in four days. BY reason OF
the company's deliberate purpose to
the commissioners and the
people, and it's pettifogging tactics,
it was prolonged to thirty-five days.
There was no hurry then. Hence this
extraordinary cost. If the company
had been content with fair presen-
tation of it's case, 100000 would
have been ample for it's expense. But
an unreasonable high value had to be
fixed, whatever the outlay. Now after
many months two Of the railroad COM
missiOners have given to the water
an excessive valuation whicn
reflects upon the commissioners ana
destroys confidence in public regula-
lion. Litigation did not seem use
less, senseless or expensive until
such valuation was made.
"Why was arbitration not proposed
at the beginning. If it was fair to
arbitrate now, it would have been fair
TO arbitrate then. But the 'phycholo
gical moment had not arrived 1t was
necessary to wait until the railroad
could be induced in
disregard Of the evidence Of the city
and of the commissioners own en-
gineers to place fictitious value of
S446,0O0 upon plant which the COM
Dany in a suit brought in 1912 to can
eel taxes contended was actually
worth only $S5,000 This done, pres
o, the company thought of economy
and peace.
"An appeal has been taken from
he order of these commissioners. We
believe our cause to be meritorious.
The company's attorneys are anxi-
1us to arbitrate before the appeal is
determined. They are in a hurry
low. The reason is obvious. From
low on they must deal with the courts.
There is danger from the company's
point of view that the courts will
revise the valuation and deal justly
with all concerned, including the pub
ic."