Los Angeles daily herald., 1890-02-21
WATER RATES.
The Companies Do Not De-
sire a Decrease.
AN INTERESTING ARGUMENT
A six Per Cent. Income on the In
vestment is Wanted by the
Directors.

The committee of the Council on water
rates met yesterday morning, Messrs.
Summerland, McLain and Bonsall pres
ent, together with the following repre-
sentatives of the water companies: w.
h. Perry and VIM. Caswell, of the Los
Angeles City Water Company; @. J.
Richards, of the East Side Water Com
pany; E. Galbraith, Of the West End
Board of Trade; Col. @. E. Daley and
Messrs. Peter Mes, Merriman, Moss and
others.
The session was devoted to the discus,
sion as to whether the rates should be
lowered or kept where they are at pres
ent.
Mr.. Perry said he was willing to abide
by any action of the company that was
equitable and reasonable. He earnestly
protested against any schedule which
would prevent the Los Angeles City Wa
ter Company from earning less than six
per cent. per year on their investment.
He declared that the company was not
getting at the present time AZ per cent.
It was popular delusion, he said, that
the water company WAS amassing
wealth. The stockholders this year
would have to reach into their
pockets for $125,O00. 1t would
take five years for them to get even with
their losses caused by the late floods.
He would be willing to stand the rates
fixed for the Spring Valley Water Com
pauy in San Francisco. As for q meter
rate the consumers would never stand
it. 1t costs too much for meters which
on account of corrosion have to be re-
placed every year or two. There was a
great wastsge of domestic water, he said !,
in Los Angeles. AS an instance of the
waste, he stated that in June 2, 3 and A.,
1886, Mr.. Culver had carefully gauged
the amount passing through the mains.
He found that 5000. 900 gallons daily
passed through. In the following August
the people were taking 5000, 600 gallons
daily. The waste of water had compelled
the company to double their conduit Ca
pacity. He thought that it should be
understood that if the company's contract
with the city was impaired the city
would lose its option on the old water
works. Not a vestage of them was left,
yet the option was worth $3.50, 900. 1t
could be sold for that sum.
In answer to a question as to whether
the waste which was alleged was not
caused by an increased population, Mr..
Perry said that the population had not
doubled in four years.
Mr.. Galbraith said he favored giving |
he company rates that would be just to |
hem, but he wanted the rates made |
reasonable ior the consumers. The |
,eople ought not to pay extortionate |
ates in order that the stockholders |
night be guaranteed dividends of six |
per cent. 1t was easy enough to prepare |
locus pocus figures to show q big invest |
nent. The gentlemen who put their |
money into water stock took chances just |
q they would in any other form of in
estment. Other men made invest |
nents and were glad to get three per
ent.
Mr.. Perry said that he would sell all of
lis water stock for 25 per cent. less than
ts estimated value.
c. Richards said his company, the
East Side Water Company, operated
Twelve miles of pipe. They had not re-
C6lN60 OnO 0OuaA al 0ltluCAd6s 4dOy
could not afford to pay even book
keeper. Their entire force of employees
consisted of one man on the pumps and
one man to collect the bills. They had
developed their own water. They simply
wanted to be allowed to keep their money
invested. II she rates to be fixed were
not to be reasonable they must 90 out OF
business.
In answer to an inquiry as to what
reasonable water meter rate was, MIR.
Richards said he thought so cents per
1000 gallons was about right.
Mr.. Niles said he had used meter,
and so cents was too much. He would
rather pay 81 month than be compelled
to pay so cents l 200 gallons.
Col. Daley remarked that the repre-
sentatives of the water companies had
invested their money for profit. They
had been increasing their plant all the
time. And why? Because of the in
creasing demand for their water, and
the prospect thus opened for greater
profits. He said he understood a new
company was seeking water franchise
because they knew there was profit in
the business. He thought the city
should own it's own water works.
M. L. Wicks said that Stockton owned
her water works, and the average charge
to the consumers was $50 per annum
The Citizens Water Company had 2,60(
consumers. The collections averaged lest
than So month each. He did mo-
agree with Mr.. Perry that the com
panies here could deliver water
at the same rate as is charged in San
Francisco. He had paid SO, 400 last year
for the oil used in fuel for his boilers,
He could stand the rate charged in Oak.
land or in Sacramento, where the water
works are owned by the city. 1t was use
less to say that small business could be
managed as economically as large one
He would gladly see the rates scheduled
according to the size of the houses. The
superficial floor surface would be nearly
as just basis as could be got. AS for
sprinkling lawns, the proper basis should
be the superficial area and not the foot
frontage. Mr.. Wicks said he had $685..
600 invested in his plant, not including
Mr.. Besudry's losses.
After some few minutes spent in further
argument, the committee adjourned unit
10 O'Clock this morning.
N