Daily Los Angeles herald., 1882-02-18
Council Proceedings.

Council met In adjourned session
at 2 O'Clock yesterday afternoon,
President Moran In the Chair.
City Attorney Hazard presented
an ordinance revising the ordi-
napces relating to the revenues of
the city, and asked that it be re-
ferred to committee, to report at
the next regular meeting of the
Council.
| Messrs. Cohp, Moore and Null
lally were appointed said commit
| tee.
President Moran announced that
the meeting was called for the
purpose of establishing water rates
for the ensuing year
BY permission, Mr.. 1. w. He'll
man was heard on the subject. He
said:
Mr.. President and Gentlemen of
the Council:
I appear before you to-day and
ask your permission 10 be heard,
not as a party pecuniarily interest
ed, but as one representing number
of sharehO lders in the Los Angeles
City Water Company, pc SOILS who
are not living among you and who
have invested in good faith their
money in the water stock on my
advice and suggestion.
The honorable member from the
Fourth ward has introduced res.
0lution fixing water rates which,
if adopted, will not only reduce
the company's income fully one
third, but it will have the effect of
making valuable property. cost
ing large sums of money, almost
valueless.
1t will do another thing unwar-
ranted and contrary to law; it will
break contract duly entered into
between the city of Los Angeles
and the Water Company, which
contract was duly ratified at the |
time by the Legislature Of Califor. |
mia, and has since been confirmed
by the Supreme Court of the State.
1 cannot for O moment believe
that it is the intention of you,
honorable gentlemen, to doan ille-
gal or just act, and 1 doubt not
hut all OF you desire to do justice
alike to the people of Los Angeles
and to the shareholders Of the
Water Company.
From statement furnished you
by the Secretary of the Company
you will perceive that the works
have cost about $500, 600; the gross
income from all sources was, dur
ing the year 1881, about $4,000;
the running expenses, inclusive of
taxes, interest, repairs, etc., were
S26, 900, leaving a balance of SIS, 600;
or less than 6 per cent. per annum
for distribution among the stock.
holders.
The year 1881 was the most pros
porous in the history of the COM
paDy. We had the good fortune
not TO be compelled, as in previous
years, 10 expend the major portion
of our earnings in repairs on reser
voirs, pipes and bitches.
The expenses have been ret'Reed |
as much as possible. The Piesi.
dent and other officers o. sac COM
pany are giving their valuable
time without compensation; and,
Notwithstanding all this. the COM
pany 10 largely ia debt and the
shareholders earn but scanty inter-
est on their Investment.
In 1880 the company had, by
reason of heavy expenses, to mort
gage their property to the extent
of 100000. The dividends to
stockholders, at the rate of 5 per
cent. per annum, were omitted
and passed three months in twelve.
The year 1882 commences with
the relaying Of large portion of
our sheet iron pipes, now worn out,
with cast iron ones; the main res.
ervOir has to be strengthened and
enlarged, and number of our peo-
pie are demanding the extension
of our mains into districts where
little or no income to the company
can be expected for long time to
come.
Now, gentlemen, with these facts
before you, do any Of you desire to
invest money in the Water Com
pauy's stock? If so [ will only be |
too happy to sell mine at lees than
cost.
The water rates adopted by your
predecessors in 1881 were the ones
guaranteed to the company by |
their contract, and were adopt
ed only after long and tedious in
vesligatiOn and careful considera-
ton, and l venture to say that |
these very rates, adopted last year,
are lower and more reasonable |
than any other water rates paid to
any other company in the State of
California. The ones proposed for |
1882 are unjust, unfair and illegal
aud will be fought by the Water
Company to the bitter end.
But, gentlemen, have you the |
right or power to establish water
rates below those guaranteed and |
fixed by the contract? We claim |
you have not. Complying with |
the terms of the lease and the con-
tract between the city of Los An
geles and the Water Company, the
company has paid to the city reg.
ularIy its yearly rental; the COM
pany further supplies the city free
of charge all the water needed and |
required; and, further, over forty |
fire hydrants, at an expense Of
some $500O, have been put up and
more are continually called for, and
the city OF Los Angeles cannot,
without authority, without cause,
with one stroke of the pen, snnul
and cancel their engagement.
No, gentlemen, 1t cannot be
done. And allow me To remind |
you that there Is a law which is
above your ordinances or resolu-
tons, u law passed upon by every |