The herald., 1898-05-08

States, and the litigation with the West
Los Angeles Water company in the su-
perior court not yet tried.
THE dangers. expenses and delays or
this litigation mean, on the part OF the
city, the outlay Of large sums OF money
to say nothing Of the loss of years of time
During this period the present works
would necessarily be at standstill, be-
cause It must be evident that the owners
could not reasonably be expected to invest
further large sums of money for improve
ments or extensions while the dispute or
litigation concerning their rights might
exist.
1.-THE plan which Messrs. Kessler & Co.
are prepared to submit to you will give the
city all the advantages which might ac-
crue from municipal ownership. unattend-
ed with any Of its burdens or risks and
without any increase Of the municipal in
debtedness. Messrs Kessler & Co. have
in the course Of business, acquired consid-
erable interests in the city OF Los Angeles,
and hence are disposed to invest further
capital here. Being convinced that an ar
rangement can be proposed to the city OF
Los Angeles satisfactory to said city, they
have already commenced preliminary ne
gotiations with the Crystal Springs and the
Los Angeles City Water companies. and
have become satisfied that II they can
make suitable arrangements with the city
the entire situation could be adjusted 10
suit all parties and all litigation ended sat-
isfactorily.
"If a contract can be made with this
city, Messrs. Kessler & Co. would be will
ing to at once expend whatever sums may
be necessary to put the present plant IN
frst-class condition. cover the reservoirs
and otherwise improve the plant so as TO
make 1t thoroughly modern and adequate.
They would supply all the municipal build
ings and municipal needs of the city Of
Los Angeles abundantly with water, In
Guiding that required for fire protection
and for street sprinkling, free Of charge.
and in addition thereto would pay the city
an annual revenue based upon percent
age on the gross income Of the company.
The income thus derived by the city would
If properly invested, in time enable the
city to acquire and pay for the works
without the outlay Of dollar or the Is
suance of bonds.
"If a contract upon the terms above In
dicated could be made for period sur
flciently long to protect Messrs. Kessler q
Co., we believe that the city would there
by obtain all of the benefits Of municipal
ownership without its burdens, and as the
constitution of this state for all time gives
to the city council the power to regulate
the rates to be charged to the consumers
no rate can be charged by the company
arbitrarily, but only subject to the reason
able regulation of the council. Unless
contract were sufficiently long and cer-
tain, Messrs. Kesser & Co. would not be
justified in expending the amounts imrne-
diately necessary to put the water plant In
proper condition. nor to arrange for an ex-
tension Of the system in the future as in
crease Of population might require.
st am authorized to say to you by
Messrs Kessler & Co. that II In your opin-
ion a satisfactory arrangement can be
made they will feel justified in incurring
the additional expense Of further inves-
tigation, including examination Of plant by
an expert engineer, as also the exaulina-
ton of titles Of the companies properties
and similar matters. These expenses will
be large and the time at our command to
make these necessary Investigations Is
short. Prompt action Is therefore desira-
BILE, and as this enterprise will call for a
complete reorganization, under entirely
new management. and the providing Of
largo sums of money, the honorable mayor
ond council will doubtless see the need of
a determination upon this matter at the
earliest practical moment.
II am able to state that the ehtire capi-
tai for the purchase Of the present water
companies plants and for the expenditures
incident thereto, will come solely from
Messrs. Kessler & Co. and from certain
European banking houses, and that the
corporation through which they may oper-
ate such waterworks will be absolutely
distinct from the present water company
or water companies. and the company
formed will be under absolutely new man.
agement, with new officers, new stock
holders and new capital. Respectfully sub
mittcd.
(Signed) MAX LOEWENTHAL.
Attorney for Kesslsr & Co.
Dated Los Angeles, April Is. 1SsS."