Los Angeles herald., 1892-02-16

the volume OF water in the river is over
100000 gallons more per day than at
any place above it on the Los Feliz
ranch.
VALUE OF THE WATER.
The value OF The water developed upon
the Los Felz ranch depends upon
whether there is any use for it. 1t is
estimated by en- expert that this water
could be carried through the city and
put upon sufficient agricultural lands to
produce revenue OF 5000, ,0OO pei. year,
even if the city did not use one gallon of
the flow. There is no legal objection to
the CRYSTAL Springs Water company
doing this now if it should lay pipes or
construct proper bitches, for the City
Water company could supply the city
with the water taken from the river in
what is known as the City Water COM
pany's ditch.
Your committee asked me chow the
expert fixed the value of the water?'
and I think this answers the question; |;
but in addition to this the engineer
estimated that with turbine wheels, and
with the head which they could have
they could develop 1000 horsepower of
electrical energy without wasting drop
of the water, and this energy could be
utilized in pumping water upon higher
levels, or in lighting the city. Thus,
independent of franchise from the city
to use the water within its limits, the
water developed upon the Los Feliz
ranch and the pipes and tunnels through
which it is conveyed have value pro-
portioned to the income which might be
obtained,
Then follows a full statement from
the company's point of view on the suit
of the city VS.. the Crystal Springs COM
pany on the right of the city to sell
water, and the East Side Water COM
pany.]
WATER COMPANY.
The question of the validity OF the
contract between the city and the Los
Angeles City Water company is i'm
portant in many respects, because of its
far reaching influences.
First-If it is valid contract, then
the city has no right to take any step
toward the organization of separate
system of water supply until the con-
tract has expired, and the city has COM
piled with the conditions of the contract,
which are:
Second-That no franchise or lease to
use the waters OF the river shall be made
to any competing water company.
Third-At the expiration of the con-
tract the city twill pay TO the parties of
the second part, their heirs, executors,
administrators or assigns, the value of
the Improvements made in, by and upon
the said water works, in pursuance of
this contract, the same to be ascertained
by arbitration, in case the parties can
not agree upon the value thereof, the
said party of the first part and the par
ties of the second part, their heirs,
executors, administrators or assigns, to
choose one man each, and the two men
thus chosen will select q third, and the
Judgment of the three men thus Sc
lected shall be final in the premises"
Fourth-The city never having alleged
that the City Water company was not
complying with the conditions of the
contract, cannot set up failure to COM
ply until it has served notice with a
demand that the alleged omissions be
complied with. While the water COM
pany frequently charged the city with
breaches of the contract, the city has
never made such charge against the
company.
Fifth-Under these conditions (those
of the contract) can the council, or any
citizen, doubt the ability of the water
company to secure an appraisement
equal to the sum at which they have
offered their property for sale? And
can there be any doubt about their
ability to show value to the property
including all and singular the various
properties which they now own and
lease in supplying the city with water,
which could be greater than the amount
asked?
ELEVATION OF THE SOURCE OF SUPPLY.
Engineers will admit that there is no
elevation on the river below the Los
Feliz ranch, at which gravity supply
of water can be obtained for the city,
and that the cost of pumping would SO
increase the cost OF the water that it
cannot be considered hence, the city in
building it's own works would have to
take it's supply from the river as far up
as the origin of the present supply. l
mention this to show that all the pipes
and tunnels leading from the Los Feliz
to the city, have value equal to what
it would cost the city to duplicate them.
even if the water company had no
water to run through them.
THE BUSINESS PLAN.
All circumstances considered, it is ad-
mitted without an objection that the
best possible solution of this compli-
Gated matter would be for private cor
poration to be created which would ac-
quire the ownershipof OF all existing water
supplying companies; consolidate them
into one, replacing all insufficient pipes
or mains with those of adequate
capacity; extending the system
to meet all present and reasona-
BILE future requirements. That this
company issue bonds covering the entire
cost. That the council can then adjust
water rates so that they will give the
company reasonable interest on the
cost of the investment, provide means
for sinking fund to pay off the principal
OF the debt at maturity and provide for
operating expense, renewals and better
ments. That when such work is com-
pleted. if it is deemed best, the city
shall have the right to take possession
by lease, or any other legal means. of
the property so created and carry out it's
conditions and requirements.
The only difference OF opinion seems
to be as to the price which should be
paid for existing water works. the length
Of time the bonds should run, and the
rate Of intnraat thew shonld hear Tt ia