Los Angeles herald., 1892-02-28

The following communication refer
ring to the purchase of the local water
companies, now under discussion, was
received by the special committee on
water supply yesterday:
Los ANGELES, CAL, Feb 27, 1892.
Messrs. w. H. Bonsall Daniel Innes, w. H.
Rhodes, Common Council Special Water
Committee, Los Angeles
GENTLEMEN: In answer to the request
of your committee, expressed to me
verbally on the 10th inst, and your
letter of the 25th, l have to reply That
on February goth | wired my principals
in New York the substance of your
request. | am just in receipt of the
answer to my telegram, the answer
being as follows
New YORK, February %, 1892.
DEAR SIR: Your telegram read in
connection with your letter of the 10th
inst, informs us that the special COM
mittee of the council desires us to sub
nit proposition stating what we are
willing to do in the matter of furnishing
a water works.
In the present state of our negotia-
tions with the water companies
OF Los Angeles, and the uncer-
tainty as to what the city can legally
do regarding the purchase or lease of
water works, or its power to guarantee
principal and interest of bonds, we do
not care to commit ourselves to any def
mite line of action.
You state in your letter of the 10th
"that the special committee of the coun-
Gil have inquired of the city attorney
how far the city can legally 60 in these
matters ?' Has that officer reported
yet? Ii he has, wire us via San Fran
cisco the substance of the report and
send it in full by mail.
If we make deal with the city it
must be in such way that the munich
pality shall be legally bound for the
agreed rental of the works for the entire
| period OF our bonds, i. e., thirty, forty or
| fifty years; or if desired we will accept a
lease at twenty years, the rental, as in
| the other terms or periods, to be equal
to the interest and principal of the
amount which we will have to invest in
the purchase and improvement of the
plants.
Ii the city can determine what it can
do legally, so that there can be no ques-
tion as to the security of our invest
ment, we can then inform the council
as to our proposition. If we improve
Jne plant without any arrangement
with the city, it will be in accordance
with our ideas of what is necessary to
be done. But if we can make an ar
rangement satisfactory to both sides,
we will adjust our plans as nearly as
possible to the views of the authorities.
We want to get through this matter
without friction, and it is better to
move slowly and know just what we
can do under the law We know where
we stand now, ana will make no move
which will in any way disturb, or place
our interests on any less secure footing.
You may inform the committee of our
views, taking care to promise nothing
without authority from us. But first OF
all, the city must determine what it can
legally 10, and our attorneys will confer
with the city attorney-if desired-and
| conclude just what can be done.
Yours truly.
As the foregoing fully explains itself,
have nothing to add beyond the state
ment made to you verbally, that my
principals are prepared to give-a bond
of 100000 to carry out any agreement
made with the city. Yours respectfully,
j. II. WooDARD.