Los Angeles herald., 1890-07-23
The Plan Proposed by Judge
Allen
Considered by the Executive
Committee Yesterday.
An Apparently Feasible Scheme
4. Broadly Outlined.
How to Avoid Clashing with the Pro-
visions Of the Charter-The
Plan Approved.

oAAS N-NSOuUlNC VI ClUlZ6IlS dD-
pointed to act in the matter of securing
a water system to be owned by the city,
who gathered yesterday afternoon at the
office of G. M. Wells. This did not con-
stitute quorum, but Judge Anderson
read a letter from Judge M. T. Allen.
which it was claimed presented meas
ures by which, without conflicting with
the charter, the city could acquire it's
water system. The letter is herewith
given in FULL
Los ANGELES, July IS, 1890.
Hon. j. A. anderson, Los Anqeles, Cal.:
DEAR SIR-In obedience to your re-
quest that l reduce to writing the sub
stance OF certain suggestions made in
the course OF a recent conversation rel
atlve to the water question, permit me
to say: That in such conversation we
assumed that the city of Los Angeles is
the owner of the water in the Los Anpe-
les river, and that the present CITY
Water Company are but lessons under a
lease soon to expire, having constructed
certain improvements which the city is
entitled to acquire by purchase at the
expiration OF the lease, i'll a manner pro-
vided in said original lease. These mat
ters being assumed; the question under
discussion was: In what manner could
the city legally raise funds with which
to purchase these improvements and to
thoroughly utilize the waters owned by
the city without violating the provisions
of its charter, which restricts the bonded
indebtedness? 1t is fact, as l under
stand it, that the amount of water
owned by the city exceeds three thou
sand miners inches. That but a
small portion of it is being utilized that
a large part thereof is being wasted and no
revenue derived therefrom by the city :;
that the small fraction thereof used by
the present company is sold to the in
habitants of the city under an unsatis-
factory service, at a price more than
double the rates of eastern towns.
know from business relations in the east
that companies engaged in the construc-
ton OF water works are exceedingly anx
ious to organize companies and construct,
entirely at their own expense, water
works for small cities and take in pay
therefor bonds of the city; that the
longer the bonds have to run, the more
readily capitalists invest their money in
them. The construction of the works
referred to includes the development of
water by wells and guarantees upon the
part OF the company to maintain sup
ply sufficient for the use of the cities. 1t
certainly would not be difficult matter
to induce capital to advance sufficient
money to construct in thorough and
scientific manner water system for
domestic and irrigation purposes, with
aqueducts to convey water for manufac-
turing purposes where the water supply
is unquestiOned or title thereto owned
by the city seeking the construction of
the works.
The water supply owned by the city of
Los Angeles is sufficient in amount to
provide a supply for domestic and city
purposes to city of 100000 inhabitants,
with water sufficient to furnish several
Thousand horse power, which might,
after being used for manufacturing pur-
poses, be again used in the irrigating
system.
The peculiarly favorable topography
of our surrounding country would per-
NIT at a much less expense than that to
which other cities have gone the bring
ing OF large part of this water through
an aqueduct, by which power could be
supplied to large number of factories
at such cost as would afford an induce
ment for their location in this city. My
suggestion was that the inhibition as to
the issuance of bonds was not an OBJ
stacle in the way of the development of
this water supply; that contract
might be entered into between the city
and syndicate of capitalists by which
such syndicate should furnish an amount
of capital sufficient to purchase the
rights of the present company under
their lease, and conduct upon we'll
devised, thoroughly digested, practicable
plan complete system of water works,
including this aqueduct for power pur-
poses, at a total cost of say "a 1000, 900 );
that the city as one of the contracting
parties should agree that when these
works were constructed satisfac-
torily, according to the plans
agreed upon, to furnish and provide
water out of the supply owned by them
for the use of the inhabitants of the city
for the various purposes mentioned, at
fixed rental or price equal in amount
to the cost of maintenance, operation
and agreed rate of interest upon the
ascertained cost of construction and
money advanced that the city, as a
trustee for the syndicate, would under
take to collect these revenues and dis
bulse them in a manner agreed upon, for
twenty years from and after the compile
tion of the work; that in the said con-
tract it might be stipulated that at the
expiration of these twenty years the
municipality should have the option to
purchase said aqueducts, pipe lines and
improvements at the ascertained cost of
construction by issuing it's bonds there
for, payable in a stipulated manner, or
at it's election to continue for an addi-
tional twenty years as trustee to sell and
rent the waters supplied by said pipe
line and aqueducts, at such price from
which should be realized an amount
sufficient to defray operating and main
tanning expenses, with such agreed rate
of interest, and to annually place in the
sinking fund an amount equal to one
twentieth of the total ascertained cost
and money advanced. 1t thus seems to
me that the city would incur no liability
except that OF trustee for the syndicate
to collect these revenues from water to
be furnished by it and to make the dis
bursements in the contract provided. 1t
is altogether possible that at the expira.
ton of the twenty years the city would
be in position in which it could legally
issue it's bonds to pay the syndicate for
money advanced and the ascertained
cost OF construction. AS a legal PROPOSE.
ton it is as we'll established as legal
propositions can be said to be, that a
municipalitv NAV Act as trustee for pur-