The herald., 1896-02-07
THE CLAIM LACKS EQUITY
What the Records Say About
the Water Company
THE COMING BIG STRUGGLE
Agents Of the Corporation Already About
the City Hall
sv@ Business Next WeeS-Old Timers
and Old Rates

and Old Rates
The water supply committee of the couu-
Gil has not yet received officially the water
company's annual statement of earnings
and expenditures filed last week, which is
TO be the basis for the fixing of the rates to
the householders of the city during the fis-
cal year beginning July L. The committee
consists of CounciImen Munson, Snyder
and Stockwell. The former said yesterday
that the subject would be taken up in the
early days of next week.
THE BONE OF CONTENTION
In accordance with law it becomes the
duty of thu council during the month of
February of each year to fix the rates to
be charged by any person or corporation
supplying water for domestic and
private purposes during the year
commencing July 1st following. The
contract under which the present Los An
geles City Water company controls the
water system and which was passed by the
council on the Goth of July,
1868, and approved by the mayor on
the 22d Of July, 1868, provides that
the mayor and common council of said
city have and do reserve the right
by said parties of the second part
(Los Angeles Water company or their as
signs, provided that they shall not 80 reduce
said water rates or 80 fix the price thereof
to be less than those now charged by the
parties of the second part for water" This
tention between the council and the repre-
sentatives of the City Water company at
the time of fixing rates. Those of the
council who are willing to publicly express
themselves upon the subject believe that a
reduction Of the rates, and a material re-
duction should be made. and a reporter of
The HERALD has made an effort to gather
data from the records of the city
which might assist in this matter.
The Los Angeles City Water company
has at various times presented a printed
list of the rates which the corporation
claims were the ones In force at the time
CT the adoption and approval Of this lease;
records discloses the fact however, that
these are not the rates which we're in effect
at that time, but are the rates fixed by a
commission at later date. The records
of the city council of the 14th day of
April, 1870. discloses the fact that on that
Workman and S. B. Caswell (the latter be-
ing the present auditor of the City Water
company, as commission on behalf of
the City of Los Angeles, and Stephen H.
Mott and John A. Downey, rs a commits
sion on behalf of the Los Angeles Water
company. presented report which was az
follows:
AN OLD-TIME REPORT
1.-THE undersigned commissioners, duly
appointed on behalf of your honorable
bodies to adjust, fix and establish the
Tates and Charges Of the Los Angeles City
Water company, a corporation duly inccr-
porated under the laws of the state of
California, for the purpose of supplying
the inhabitants OF Los Angeles city with
pure, fresh water, respectfully report:
That they have established water rates
and charges for domestic purposes, taking
as guide as near as can be the charges
and rates for domestic purposes charged
in July, 1868;
''That your committee have also fixed
the rates and charges for other reasonable
objects and purposes, and reports as fol-
lows" And then follows tabulated state
ment of the rates which have been ad-
justed, fixed and established. This report
was adopted and approved by the council
and ordered spread upon the minutes, and
approved by the mayor on the 10th day of
April, 1870.
THE CoMPANY's CONTENTION
The rates set forth in this report of the
commissioners, made in April of 1870, two
years after the approval of the lease by the
council and mayor, is now presented as the
rate intended by the contract between the
city and the water company as the rate be-
low which the council should be prohibited
from going in establishing new rates. This
contention, perhaps, cannot be dis
proved directly, yet, by indirect evidence,
1t would appear that even at this early date
the Los Angeles City Water company was
preparing to put on all that the traffic
would bear in the way of rates, in order
that it might reap rich harvest at the ex-
pense of the then people of Los Angeles.
Numerous residents were here at the
time that the lease was executed between
the city and the present water company,
and who at that time paid for the use of
domestic water assert that the rate charged
by Alexander, who assigned his lease to
the grantees and original holders of the
present lease, was $1.5O per month for
each house. and that they will SO testify in
an investigation. if such is held by the
council to determine the facts.
1t appears further that the rates sug-
gested by the so-called commission, three
OF whom are or were stockholders or en-
ployes IN the corporation whose rates they
were fixing, are higher than the rates in
force at the time OF the approval of the
contract, from communication which was
presented to the council on the 31st day of
March, 1870. The records of the council
allowing the presentation of this commune
cation read as follows:
THE PETITION OF 10.
"Petition was presented, signed by
number of citizens in relation to the rails
ing of the water rates by the Los Angeles
City Water company. On motion the pe-
tition was received and the clerk instruct
ed to notify the company that the council
at its next regular meeting will be ready
to fix the water rates and request the com
pany that they should not make apy
changes meanwhile" The original peti-
ton to which reference is made in the min.
utes of March 81. 1870, is signed, among
others, by j. B.Winston. William Ferguson,
W.Woodworth, Herman Heinsch and Nj.
Kramer, and after setting forth that they
are property owners, tax payers and water
buyers within the limits of the city, states
as follows:
''That there is an existing contract bind
ing between the city and the Los Angeles
Water company, by the terms whereof
your body is vested with the power to reeu-
late and control the rates to be charged for
water and the manner and mode of their
collection.
.That at present and for long time
prior, to wit, for a period of two years, the
rates charged, the manner of their coIiec-
ton and the mode of payment for water
has been agreed to by your honorable body
and said company, and has been cheerfully
and faithfully paid by your petitioners.
That now without tho consent of your
body and without action upon the part of
the city, the said Los Angeles Water COM
pany proposes to charge new rates and to
enforce in an extraordinary and unheari-