The herald., 1895-07-31
] BUYING 4 WATER PLANT
Why the Matter Is Being
Forced to an Issue
| PROSPECTIVE LIVELY FIGHT
It Is a Question That Must Be
Decided Soon
THE PURCHASE CLAUSE
Ia the Contract Which Was Entered Into
in July, 1868
Big Legal Guns Are Being Secured on
Both Sides
The City of Los Angeles and the Los An
geIcs Water Company Do Not See Alike,
So 1t Is On to the United States
Supreme Court
Big Legal Guns Are Being Secured on
Both Sides

The said party of the first part hereby
covenant and agree with che said parties
of the second part their heirs, executors,
administrators or assigns. that at the eX-
piration of the period of thirty years IRON
the execution of t..is instrument they will
pay to the parties of the second part.
their heirs, executors, administrators or
pssigns, the value Of the Improvements
made IN. about and upon the said water
works, in pursuance of this contract. the
same to be ascertained by arbitration IN
case the parties cannot agree upon the
value thereof the said party OF the first
part and the parties of the second part,
their heirs, executors. administrators or
assigns. to cnoose one man each and the
two men thus chosen to select third
man, and the judgment OF the three men
thus selected to be final in the premises.
Whether or not the aDove section in the
contract between the Los Angeles Water
company and the city. executed in July,
1868, is binding, will be determined in
the courts within the next ten years. or
perhaps before, and it was for the pur-
pose of forcing the matter to an issue as
soon as possible that the law firm of Lee
e. Scott has been retained by the city. No
matter what the result in preliminary
stages of the conflict, the fight is TO be
taken by the defeated parties through the
various phases of litigation until q decis-
ion has been finally secured from the
United States supreme court, the high
est tribunal in the land.
The contract which the water company
has with the city expires in little less
than three years. When that time arrives
the company will demand that its prop
srty be purchased by the city. The price
to be asked will not fall short of So, 500
900, as the option secured two years ago
on the plant was 81, 300. 900. Under the
section of the contract above quoted the
members OF the council claim that the
water company has the large end of the
bargain, in that the selection of arbitra-
tors to place valuation upon the prop
erty will make it almost impossible. to
secure an incorruptible board of arbitra-
ton.
About one and q half years ago the
council and Mayor Thomas f. Rowan
had all but employed ex-Supreme Justice
McKlnstry of San Francisco to assist in
prosecuting the pending litigation
against the water company. Juuge Nc
Kinstry's fee for his services in the CIys-
tai Springs case was to have been $4,000.
He was to have been retained for only
this one piece of work. The negotiations
fell through because several OF the council.
men opposed the employmnt of any but
Los Angeles attorneys by the city. That
is the story told on the one hand. On
the other the claim is made that the Re-
publican members of the council opposed
any action in the matter at the time for
fear of the political advantage the issue
would give in political way to Mavor
Rowan, Democrat. Be that as it may.
the claim IS now made that al the bot
tom OF the present proceedings lie several
Republican mayoraltv boomlets, the
players to the grand stand III the present
instance being. so it is alleged, Council
men Frank Munson. Colonel Freeman
6. Teed and Mayor Frank RAIDER. The
I.~% ..,sk
p. Dunn are generally looked upon as the
big junta of the present Republican ad-
minislration of city affairs and are be-
lieved to fully understand each other
for the present and SO far into the future
as is covered by the time leading past
the various Republican city and county
conventions to be held next year.
The selection of Lee & Scott to assist in
the prosecution of the water cases is
explained by the statement that the firm
is the best in practice hersaboutS with
the exception of such lawyers as are upon
the payiolls of the water company. the
company having regularly retained many
of the prominent attorneys.
The official title of the Crystal Springs
suit is the Crystal Springs Land and
Water company and S. G. Murphy. ver-
Sus the city of Los Angeles. The case will
come up for trial in the United States cir
cult court in about six weeks. The is
sue is the ownership of certain water
rights which are a source of supply. The
company claims he ownership of these
waters rights and the Crystal Springs
Water company is alleged to be an offshoot
OF the Los Angeles Water company.
The mayor will sign the contract with
Lee d Scott about the last of the week.
The firm is the same which fought to
successful conclusion the litigation which
recently knocked out before Judge Ross
the Wright irrigation law. The firm was
employed at the instgaton of City Attor-
ney Dunn, who is rightly of the opinion
that the city should have lawyers for such
litigation as that pending. who will not
be affected by any change of administra-
tior of city affairs, either political or
otherwise.