The herald., 1897-11-27
THE PUBLIC PULSE

THE PUBLIC PULSE
evmmunlcations. but does not assume re-
CORRESPONDENTS are rsquested 10 cultivate
T. s:s = q them win 'n'
Judge Wright on the Water Contract
To the Editor Of the Los Angeles Her
aid: This mornings issue Of The Her
aid. contains an editorial sharply critl-
cising the position which took before
the city council in presenting the petit
tion Of those who believe that Immediate
action Is necessary In the matter Of the
acquisition by the city of q water sys-
tenn. The editorial referred to is a fine
specimen Of special pleading which pre-
sents but one side Of the point, while 1t
omits what would at once render unten-
able its position. You say that action at
this time Is premature" and that the
city must wait until the contract with
the water company expires before any
steps can be taken by the city under it's
provisions. The absurdity of this posi-
ton becomes apparent upon full read
ing Of the contract. The basis of that
contract was and is a lease Of the old
water works. then and ever since and
now owned by the city for term of 30
years from the I'd day Of July, 1868. Let
us quote from the contract, which was
executed July 2, 1868:
"The said party of the first part for
the above consideration, and one dollar
~, ho nd ka t.
hereby acknowledged, hereby covenants
and agrees with the said party of the
second part, their heirs, executors, ad-
ministrators or assigns, to deliver and
concede to the said parties Of the Sec
ond part. their heirs, executors, admin
istrators or assigns, the exclusive use
control, possession and management of
the Los Angeles city water works. so
called, together with all and singular the
pipes, fumes, wheels and other personal
property composing and appertaining to
said water works, in any manner what
soever, with all the rights. easements
and privileges and covenants as de-
scribed and contained in a certain In
strument of lease, executed by the may
or and common council of the said city Of
Los Angeles. of date October 16. A. D..
one thousand eight hundred and sixty
five, to Jean L. Sansevaine for the pc
riod of THIRTY YEARS FROM THE
SIGNING AND APPROVAL OF THIS
CONTRACT and ordinance, with the
right to sell and distribute water for
domestic purposes and to receive the
rents and profits thereof for their own
use and benefit"
And further along in the contract Is
found the following:
1.-The said party of the first part (the
city of Los Angeles by it's mayor and
common counciD hereby covenant and
agree with the said parties of the Sec
ond part, their executors, adminstra-
tors or assigns, that AT THE EXPIR-
ALTON OF THE PERIOD OF THIRTY
YEARS FROM THE EXECUTION OF
THIS instrument, they will pay to the
parties of the second part their heirs,
executors. administrators or assigns,
the value of the improvements made in.
about and upon the said water works, i'll
pursuance of this contract"
(The capitalized lines in both quota
ton are of course my own.)
From the above quotations are not
two propositions self evident? Namely:
First-The term of the lease was ex-
pressly limited to so years.
| Second-The payment to be made for
| improvements was to be made AT THE
| EXPIRATION Of the term.
| In the editorial referred to you say:
| "In the first place the. contract with
| the water company has not'yet expired,
| nor under the terms of that atinstrument,
can there be arbitration until it does ex
pire, which will be in July of next year"
There Is absolutely no provision of
the contract which justifies the conclu-
sion that arbitration cannot be had un-
til after the contract has expired, while
on the other hand the provisions of the
contract which limit the term of lease
to 30 years, and require that AT THE
EXPIRATION OF THAT TIME the re-
quired payment shall be made, seems
conclusive of the fact that the determi-
nation of that sum, whether arrived at by
| arbitration or otherwise. must, under
| the contract, be arrived at before the
lease shall expire. The quotation which
you make from the contract does not
| provide that arbitration shall not pre-
cede the expiration of the contract, but,
on the contrary, by expressly providing
| that payment Of the price to be fixed
| Shall Oc maui "A liza 1OAN
| OF THE TERM does require that arbi-
| tration, if had at all, shall precede the
expiration of the lease. There are
| other matters of common notoriety di-
rectly connected with the contract which
must not be ignored in considering this
matter. Payment of any price which
may be agreed upon must be provided
for by the issuance and sale of bonds.
If the improvements made by the water
works company are to be purchased it
will take months of time to provide the
necessary funds. Do not all these con-
siderations lead to the conclusion that
the contract, reasonably construed, re-
quires that whatever agreement is to be
had between the city and the water
company, as to the price to be paid, shall
be had a sufficient length of time prior
to the expiration of the lease, so that
the necessary funds can be provided by
the issuance and sale of bonds, so as to
be ready to carry out the contract with
out extending the term OF the lease?
What said to the council when,I pre-
sented the petition was that it is not
within the power Of the water company
to force an extension of the term of its
l