Los Angeles herald., 1892-03-15


For district No. .i................. ... 100000 0t
For district No. .2..+.............. 2. 438,OO0 OF
For For seOs ters and nd repairs Of streets $4,000 ot
Total. O79.00O OF
And that the total daily expenses for the
pumping would be $65.
As district No. is fairly we'll sup.
piled at present that item need not be
incurred at once and the same is true
of large portion of the other two dis.
tricts, but the head works and reservoir
should be built at once.
However, assume that 81, ,000, 900 were
expended in carrying out this plan, so
much as was built would be available
for all time and there would be no lost
money for makeshifts. We would at
once be provided with large supply ol
water, and under good pressure.
Two million dollars at per cent in
terest would have to be paid as follows
In twenty annual payments, dropping
from 100000 for the first year to $685.
600 for the last year, or an average
annual payment for interest and sinking
fund of $152, 500. The only guide as to
what revenues could be expected from
the water rates to assist in meeting
these payments are the present incomes
of the City and Citizens Water COM
panies.
1t seems to he generally conceded that
these are about $500, 900, so that if the
city got but small part of the business,
or if getting it all the rates were materi-
ally reduced, the rates from the water
would more than pay the interest on the
investment, and sinking fund, to pay
off the principal, besides the city being
inestimably benefited by having an ad-
equate water supply. r4Fts'-,
But, assuming that no revenue was
obtained from water rates, the increase
of taxation on the 500 valuation to
carry this whole debt and pay it off
would be So cents on the assessed valua-
tion at the present time.
The facts would probably be that the
income from the water works would not
only pay off these bonds and their in
terest, but afford surplus that from
year to year could be devoted to better
ments and extension of the plant as the
city grew and in the end we would have
our plant for an initial cost of 81, 900, 900.
If the net revenues of the water COM
panies of the city amount to $3.50, 900
per year, it is paying per cent interest
on S., 900 900; in twenty years it would
pay the interest at per cent and the en-
tire principal of SO. 27S,O00. No account
is taken of the increase of revenue due
to increased population during the com.
ing twenty years.
The city then could adopt such rates
as would be just and fair, and not occu.
py the humiliating position of adopting
rates which the water companies avow-
edly ignore and treat as nullities.
After giving series of objections that
might be raised, the committee recon.
mended:
First-That the city adopt plan No.
as presented by City Engineer Dock
weller, with such notifications as q
more minute study suggests. -
Second-That the proposition to vote
| $500, 600 bonds for this purpose be sub
mitted to the vote of the citizens.
| Third-That the city proceed to con-
struct the head works, conduit and reser.
voir as provided therein. Also such
mains and pumping stations as from
time to time are required.
Fourth-That the city request the
City Water company to submit de.
tailed schedule Of all property, pipes
and works belonging to and forming
part of the system covered by the con
tract OF 1868, which have been added to
the original system leased to them by
the city and which they would claim
that the city was bound to take under
the provisions Of said lease.
That il said company furnish said
statement, the council shall, after due
examination, offer to purchase the said
property and plant at such price as shall
to them seem fair and reasonable.
| Also that negotiations be entered into
with the Citizens Water company fol
the purchase of their plant, and if the
same can be acquired for fair and
reasonable price, that the city offer tc
purchase it. And that the question o.
| issuing bonds to the amount necessary
to purchase these properties be submit,
ted to the vote OF the citizens.
DANIEL INNEs,
w. FL. RHoADEs,
Special Committee on Water Supply
Major Bonsall submitted a minority
report in which he generally disagreed
with the above deductions and urged
doubts as to the legality of the city 60
ing ahead as proposed. He says:
Personally, I do not favor scheme
to have the city purchase existing plants
| by the issue of bonds Of the municipali
ty, even though we admit, for argu-
ment's sake, that the necessary amount
of bonds can be legally issued. Neither
do favor the building OF new works
that way.
The city might, if legal, haye water
company organized by having -individ
uals take the stock as trustee, and all o.
the stock can thus be put in possession
of the city so that it can control it. The
city can then determine the maximum
amount it will allow invested in the
water plant, with or without the exist
ing properties, as circumstances may re-
quire. When this is done, the city car
grant franchise or lease to it's owl
company, and provide that if the in
debtedness is ever increased beyond
that amount, the franchise will be- inop
erative. 1t can then issue mortgage
bonds to cover the cost of the plant, ane
put the whole matter up to be bid for By
| syndicates or capitalists. If the CITY
Water company's propertyImust be pur
chased, the bid would have to provide
for that plant. If On entire new system
should be decided upon, the plans ant
specifications could cover that. In thi
way the city would get competition il
the work. Bonds secured on the waite
plant would be good because the cit!