The San Francisco call., 1898-05-24
RESTS WITH
 THE COUNCIL Cheaper Water for Los
 Angeles. STAND OF THE COMPANY. WILLING TO SELL TO THE
 CITY. If a Price Cannot Be Agreed Upon the Monopoly is Ready to
 Resort to Arbi-
 tration.
Special Dispatch to The Call.

LOS ANGELES, May 2S.-At last the Los Angeles City Water Company has made a fair and open statement to the City Council as to what 1t will do in the matter of releasing it's improvements to the city's water distributing plant pre- paratory to municipal operation. The communication is a lengthy one, and contains many points which have never before been admitted by the water company It is specific in the facts set forth.
 The communication opens with a de- claration of the entire willingness to sell to the city Then follows a twelve page typewriter description of the water company's franchise, easements, rights of way and titles to lands, reser- voir sites, etc. The communication says:
 Properties claimed by the Crystal Springs Land and Water Company, 1n- cluding developed water, we do not claim are included within the property which the city is to purchase and pay for under the contract of July 22 1868.
 The conclusion Is as follows:
 We have kept before the Council all the time the fact that. without regard to what Is or is not included in the con, tract of July 22, 1868, we are ready and willing to sell the whole property of all the companies to the city, if the city intends to carry out its plan of municipal whole property of all of the companies will be available to the city, no matter what plans it may have in view. If the city ultimately acquires lands above the Crystal Springs tract and conducts it into the headwaterS we believe that 1t Is known to all that 1t will not obtain all country, which we have designated as San Fernando Basin. If the estimates made by engineers on behalf of the city in the various trials which we have had, should prove correct, the city will not obtain at that point a sufficient supply of water to meet the demands existing at this moment The developments made by the Crystal Springs Land and Water Company and its conduits and system generally, would be needed by the city, and could be utilized from the beginning and at all times. These properties taken all together are. of course, of greater value to anybody than the various parts would be separated from one another, and, we think, would be of greater value to the city, if 1t finally decides upon municipal ownership, than it would be to anybody else.
 should make an effort to agree upon a price to be paid for whatever of this property the city chooses to take, whether 1t be that which Is included in the Los Angeles City Water Company's contracts or the whole. If we agree upon price the companies, or either of them, will agree 10 accept that price and the city can proceed to raise the money to make the purchase.
 Attention is called to the fact that the matter is one involving an expense that is beyond the annual revenue of the city. By law, therefore, the city could not enter into a binding agree ment for the pure --ase of improvements and properties until a bond election is held. The company says:
 Any scheme which the city has in view vastly greater sum of money than 1t will to buy our entire plant at the valuation that we ourselves would fix upon 1t and be willing to take. We think, therefore, it would be proper for the city to be looking to the question of taking steps to provide for payment.
 Attention is called to the difficulties of a legal bond issue in this State.
 We say, finally that we are prepared to furnish you with all information and data that are within our reach, and agree with you on price when you are ready to make the payment or meet the award of arbitratoTs; that we will, if we cannot agree on price. arbitrate the matter with you in the manner provided by the contract; that if the city desires we will sell the whole property of all the com panies, if we can agree upon a price.
 The communication created a sensa- tion. It was entirely unexpected. At the afternoon session it was referred to the Council committee on water supply