The San Francisco call., 1898-07-09
MAY END THE
 WATER FIGHT Proposal to Los Angeles
 City Council. EASTERN SYNDICATE'S OFFER GREAT RELIEF FROM PRESENT
 CONDITIONS. Would Save Much Money to the Pub lie and Insure a First Glass
 Supply Under All Cir
 cumstances.
EASTERN SYNDICATE'S OFFER
GREAT RELIEF FROM PRESENT
 CONDITIONS.
Special Dispatch to The Call.

LOS ANGELES July S.-At last it would seem that there was some pros pect of the City Council considerin~ a proposition which will at least have the effect of settling the much vexed water question, which for ten years has been a subject of local discussion here. As The Call has t-"oro stated, the city has been utterly unable to enforce its rights under the contract made with the water company thirty years ago. This fact Is due to the loose manner in which the contract was drawn and to the further fact that the municipality has not been properly protected in it's rights under that contract, which 1t should have enforced.
 The contract expires on the 22d inst, and there is absolutely no possibility of the city purchasing the water com pany'S improvements to its plant A deal cannot possibly be made between the two narties owing to the complica- tions surrounding the case. If the con- tract expires Mayor Snyder holds that the city cannot give another party a franchise for more than six months In any one period. If the city enters into litigation with the water company over the contract and endeavorS to get possession at a reasonable figure there will be weary years of litigation during which the company would retain pos session of it's plant and the city would be at it's mercy.
 This afternoon Kessler & Co., through their representative, E. Waltman, made proposition to the Council which is substantially as follows: In considera- ton of a fifty-year franchise they will agree to take the plant of the present company and immediately improve it by the expenditure of s400, 900 to S500, 000 to bring 1t up to date sufficient to sup ply the wants and needs of the city. They will furnish the city with all the water it needs for municipal purposes, fire, parks, streets, etc, free. This would amount to about $75, 900 per year. They will pay taxes on their plant to the amount of about $30,000 per year, which under municipal ownership would not be paid. They will give the City Council the right to regulate water rates, and will guarantee that they will never be higher than they are to-day. They will give to the city percentage of their gross income, commencing at a low figure, say ? per cent, and increas- ing thereafter. This money could be placed in a sinking fund for ultimate purchase of the plant. Lastly, they will agree to clear all clouded title the city has to the property and vest the
 
 city.
 Under no circumstances would the people of this city be satisfied if the present water companyS franchise were renewed This Is owing to the strong prejudice in the community eX- isting toward the corporation. Recog- nizing this fact, Kessler & Co agree to give a bond in the sum of S100,000 that the present company has nothing to dc with the proposition they are making to the Council.
 Kessler & Go. are firm of New York bankers, who have been in business since 1S37 They represent largely Ger man capital and have handled many business deals in North and South America, representing millions of dol lars.
 At the session of the City Council on Monday the proposition of Kessler & Go. will be considered. It will be re- ported by the Water Supply Committee and will come LID for discussion.