The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-07-01
! CANNOT AGREE
~ ATTs1xrrs AT ARBITRATION
WILL FAIL,
50 BELIEVES THE WATER co.
~ Submits q Communication to the
City Council and Reviews
the Situation


City Council and Reviews
the Situation
The water supply committee of the cit,
oophcil and representatives Of the Los An
geles City Water company held an execu
Tive session yesterday afternoon and dis
cussed the situation for over an hour. i
could hardly be said that the meeting wa.
productive of any progress whatever to-
ward the settlement of the water question
- not single point was agreed upon, SC
Tar as can be learned, and, as the compan,
has now announced itself to be of the belief
that arbitration will not bring about a set
Element Of the matter, the question as te
whether. under this belief, 1t will make a
sincere effort to bring about an agreement
aripes.
The main point Of contention yesterday
Was as to the manner in which the value
ot the plant is to be arrived at and, Incl
dentally, as to what constitutes the plant.
The council will probably hold that the
plant includes everything that is needed
in the conduct Of the water-supplying busi-
ness-in fact, everything now in use by the
company-and that its valuation should be
based upon what the property is worth as
ansimprovement' and not what it is worth
asa commercial Investment or dividend
paying institution. The company undoubt-
edty values the good will of the establish
ment at very high figure. but since the
city's patronage necessarily constitutes a
large portion of that good will. and the
city will soon be in position to control it,
the company will find it somewhat difficult
to demonstrate wherein 1t can claim very
large consideration for what it does not
really possess.
The city claims the water supply of the
Crystal Springs company on the ground
that the spring is one Of the sources of the
Los Angeles river, and the river is the prop
erty of the city.
The company yesterday submitted COM
munication to the citys attorneys, in an
swer to previous communication SUBJ
mitted by City Attorney Dunn to the COM
pany's attorneys. 1t defines the situation
in part, reading as follows:
Yours Of the oath inst. came to our hand
on the afternoon of the Path, and owing to
the pressure of other matter and the alb
sence of one of our attorneys from the city
for a somewhat longer time than was an
ticipated, we have not been able to give
the attention to your communication that
the difficulties that 1t presents demand. We
md 1t no small task to discover exactly
what was meant by 1t. We supposed that
the object Of discussion of this matter be-
fore the water supply committee and with
yourselves, and the subsequent commune
cations, was to agree, as far as we could,
upon the mode of settling the transactions
between the Los Angeles City Water COM
pany and he City of Los Angeles, and
that, looking to that end, some proposition
would be made by you to US o. what you
considered to come within the contract, and
what mode Of arbitration you would be will
ting to agree to. The communication does
80 far as the property which is to be paid
for by the city is concerned.
you will remember that the City Of Los
Angeles in its first communication to us Of
its action requiring a schedule Of the prop
erty requested US to state our construction
Of that contract, which we did, and. as we
supposed, In manner that would be dis
tinctly understood. At the same time we
intimated to the city that we would have
its construction. and we think that an ans
wer. to that request will be necessary for
us to make much progress in the settle
ment of this affair. In your communication
of the oath you say: In the first place we
think that we may concede that all of the
property described in your schedule as be-
longing to the Los Angeles City Water
company Is improvements within the con-
tract Of 1858. even including the personal
property Now, with reference to the per-
sopal property, we would say that 1t was
not originally our intention to make any in
ventory Of our personal property at all; but
that, after we prepared a schedule of the
property which we considered included
within the contract, we were orally notified
that the council would insist upon an in
ventory of our personal property We,
therefore. got up that inventory and SUBJ
mitted 1t to the counc. after we had sent
In the report, simply because. we supposed
that we were complying with the desire of
the council. We did not consider that it was
Included as property which the city was
bound to buy at all. We knew, of course,
that II the city paid us for our property and
( was transferred over to 1t that this per-
sonal property would be of very considera- |
Bile value to the city. and that under the |
same circumstances 1t would not be of |
much value tous. We were, therefore, then
willing and are now to sell it to the city. |
but we DO not insist upon its being con-
Iidered as in the contract at all. On the |
contrary, If the city objects to it we would
1t once admit that the objection was well |
taken.
again. while we gave you our construc-
lion and stated the property distinctly
which we included within it, we were not
unaware at the time that there was some
property included therein about which there
might be some doubt; some portions of it, |
Il the city should decline to consider as in |
the contract, we would at once abandon.
Other portions would be Of such doubtful
character thai while we might erdeavor to
persuade you that It did come within the
contract. yet we might be very far from
letting difference Of opinion in that mat !
ter prevent us from coming to settlement
With you. II, now, the city should give its
construction Of the contract and should
specify any particular thing which in our
opinion came within 1t, but which the city
would decline to SO consider, we would be
ylad to meet you and talk the matter over,
and 1t is highly probable that as to some
luch things that the city might object to
Ne could agree about them.
Hence. we again say that we would like |
to have you make us a statement In writing
81 THAT you consider included Within tha