The San Francisco call., 1898-04-26
The Los Angeles w ater Company Advances a
 Proposition.
Asks the City Council for a Re- newal Of It's ran
 chiSe.
Taking Advantage or tho War Ex citenent to Quietly Promote
 Scheme.
Special Dispatch to The Call.

LOS ANGELES, April 25.-The Los Angeles City Water Company has at last shown its hand, and with the ex- position has come a revelation which simply verifies the prophecy made by The Call in the early days of January, and which Is nothing more nor less than a petition to the City Council for an extension of it's franchise. At the time the prophecy was made 1t was ridiculed by the Times, Herald and Express, members of the water company's local syndicated dailies, but time has shown that The Calls prophecy was correct and that it was simply warning the people of this city, 90 Der. cent of whom favor municipal ownership, of what they might expect when the water com- pany disclosed its hand. AS stated by the water company officials, the prop Osition made to the City Council to-day is like this:
 An option was taken by New York, London and Berlin capitalists several months ago not only on the plant of the water company, but also upon every other source of domestic water supply within a radius of several miles. Ne gOtiatiOnS have gone so far that a prop osition is ready to be made to the city by the promoters. The terms of the proposition are such as to compel thorough investigation by the Council. It embraces in its details free water for sprinkling, fire hydrant, public school and other municipal purposes and a guarantee of pure mountain water for domestic use In return, the promoters of the new scheme request a franchise for twenty or thirty years, with guar antee of a fair percentage to be paid into the city treasury of its total gross receipts every year.
 The promoters reason that under their offer they turn into the city treas ury not less than $40000 a year from the start, in cash. So far as rates for water are concerned, they say, they can always be regulated by the Council un- der the State law, as is done at present.
 The local agent for the big syndicate at the head of the proposed new deal is the Farmers and Merchants Bank. Experts, engineering and otherwise, from New York and Europe have been here for several days thoroughly in- Vestigating the new proposition and have reported to the principals it's ab- solute safety from a financial stand point. Their report has been that the feeling for municipal ownership is not so deep-rOoted as has been made to appear. and that by proper education of public sentiment it can be wiped out tul4It Ills SlLllplE means d wheel within a wheel and recalls the days of the Credit Mobilier. The Farmers and NGs-,.ants' Bank is a heavy stock holder in the present City Water Com pany and it has a new deal on nand.
 When the statement is made that the demand for municipal ownership has ceased to be general it is simply a cold booded misstatement of facts. The present City Council has it within its power to grant this petition and to re- new the franchise. II is made at this time because the idea is prevalent with the water company stockholders that citizens and rate payers are engrossed with the war excitement, and possibly the most favorable moment has been selected. No reliance can be placed on the local press, for it is owned and con- trGlled by the water company. The Call Is then the only medium of reaching the people and giving unbiased infor- nation of sly deals that are now about to be effected to secure a renewal of the franchise.