The herald., 1898-07-12

In time reach such an amount that at the
end Of the contract for which we ask the
city will be enabled to purchase the water
plant without issuing bonds or using any Of
the public moneys.
Fifth-Ws propose, in consideration Of
obtaining the contract for which we are
asking, to acquire by purchase the present
plant Of the Los Angeles City Water COM
pany and its affiliated companies, and the
property of the Crystal Springs Land and
Water company, including all the rights and
claims Of that company in and to the Crys-
tai Springs waters, which are now in liti-
cation between that company and the city.
and we propose to have Judgment in that
litigation entered, whereby the title and
ownership Of the city of Los Angeles to the
waters Of the Crystal springs will be quiz
eted and settled In favor of the city. and
turn over to the city all right and title to
the water of the Crystal springs forever.
Sixth-The contract by US desired is for a
period OF fifty years, during which time the
city of Los Angeles is to grant to us the use
of all of its waters that now exist or may
be hereafter developed during the term of
that contract, necessary to abundantly and
properly supply the municipal needs of the
city and the domestic wants of its inhablt-
tants. That contract is to be in such man.
ner and form as will secure to Messrs Kess-
Ter & Co.. their nominees, successors and
assigns the sole right to supply the city
and Its inhabitants with water during the
life of such contract, and to secure to them
for the term Of such contract the use Of all
the waters of the Los Angeles river and Of
the Crystal springs, and Of such other wa
tiers owned or controlled by the city of Los
Angeles as may be necessary for the pur-
pose of supplying the said city and its in
habitants with abundant water for munic-
ipal and domestic uses.
t1aa v~tvot fov rf he nnrfr art
the city Is to purchase all the property that
may then be In existence. which shall be
necessarily and properly used by Messrs.
Kesser & Co. or their successors in supply
ing the needs of said city and its inhabit-
ants under this contract. The price to be
paid therefor shall be the actual cost of re-
placing the property as 1t shall then exist,
without reference to the cost at which such
property may have been acquired or con-
structed by Messrs Kessler & Co. or their
successors or assigns No amount what
ever is to be included in that purchase price
for the good will Of the business, nor for
any of the water rights which shall be re-
ceived from the city of Los Angeles under
the terms hereinabove set forth, so as to
specifically exclude the right OF Messrs.
Kessler & Co., their successors or assigns,
to receive any compensation for any water
rights in the Crystal springs or in any Of
the waters of the city of Los Angeles.
We propose as basis of settlement as to
the price to be paid the following manner
of arbitration: Messrs. Kessler & Co.. their
successors or assigns, shall appoint one per-
son, the city shall appoint second, and
these two shall appoint a third, and the
Judgment of any two Of the three arbitra-
tors thus chosen shall be final in the prem
ises. This arbitration agreement, In the
light of the present experiences of your hon.
orable body, can be so drawn as to make the
matter Of arbitration, when the time ar
rives. speedy safe and effective for all con-
cerned, and shall be In accordance with
similar arbitration agreements as they pre-
vail at the present time In many cities of
the United tSates. Respectfully submitted,
(Signed.) MAX LOEWENTHAL.
Attorney for Kessler & Co.
Dated Los Angeles, CAL. July II. 1898.
' AS to the provisions of the city charter
preventing the acceptance of either this or
the Burbank proposition, 1t is believed that
the companies in question must have found
a way by which these provisions can be
ignored or gotten around. Otherwise, they
would never have expressed a willingness
to invest millions Of dollars in a contract
which the city could cancel at any time by
giving six months notice.
The water supply committee meets this
afternoon at o'clock, and all water prop
ositions will probably be taken up for consid-
Grafton at that time. although the primary
object Of the meeting is to receive the
communication from the Los Angeles City
Water company, In which they are to name
the price for a three years. lease on the
Crystal Springs water supply.