The herald., 1898-07-08
ANOTHER STEP TAKEN
THE NEXT MAY DEFINE WATER
CoMPANY's POSITION
PRICE FOR THREE-YEAR LEASE
On Crystal Springs Water Supply to
Be Named by Water Company
Next Tuesday

| The conference between the water supply
committee and the representatives OF the
Los Angeles Water company yesterday af-
| ternoon was a decidedly long winded one,
lasting as it did from little past until 5
o'clock. The principal point under discus
sion was the leasing by the city of the Crys"
| tai Springs Water company's source OF sup
| ply The situation with respect to the
water right has resolved itself into pc
culiar complication and until the matter
| is untangled or agreed upon, all talk of arbi-
tration may as we'll be suspended.
| The company contends on the one hand
| that the supply of water controlled by the
Crystal Springs Water company cannot be
considered as an improvement under The
| terms of the contract of the Los Angels
Water company with the city, and therefore
is not subject to the conditions of arb,tra-
ton imposed by that contract. The city
on the other hand claims that the supply
in question is an improvement within the
terms of the contract and is therefore sub
ject to the terms of arbitration jus: the
same as all the other property of the com
pany which the city seeks to acquire.
| Without this supply the city would not
have a sufficient quantity of water for its
arrangements to secure it at some other
point. But this would tale time, and that
is an important factor tina. is sadly lacking
| in the city's position, Besides, the question
of ownership of this supply is already in the
| courts and the city cannot deliberately con-
| fiscate the property without rendering Itself
| liable to further litigation and an indefinite
postponement of the settlement of the en-
some agreement as to what disposition is
to be made of the supply in question is abb
! solutey necessary before fur:he: ak Of
arbitration of the purchase OF the general
water property by the city need be INDUCED
in.
AS one means OF getting around theiques-
ton, the city suggested, without relinquish-
Ing its claim, that it has right to confis-
cate the water. that an arrangement might
be made by which a lease of the supply
would be secured from the company.
In communication answer.n. this sug-
gestion, the company Wednesday expressed
| q willingness to make the desired lease, but
before Stain gthe price at which they would
grant 1t, the communication asked the city
to nama the time to be covered by the lease.
The city, at the meeting yesterday, an
swered that three years would be the prob
able time for which the lease would be
made. The matter was discussed pro and
cor for three hours and the meeting ad-
iourned until next Tuesday afternoon at
o'clock, when the company has promised TO
name price at which they will lease the
supply in question for the designated time.
In case the lease is entered into and the
city buys and obtains possession of the re-
mainder of the water company's plant as
PEI the old contrao-, the city, Of course
would pay the rental money only, with the
| understanding that in the instance of de-
cision of the courts sustaining the city S
claim the money paid as rental under the
terms of the lease would be paid back by the
company. The city would then purchase
the water supply by the arbitration method.
AS the contract expires on July 23d it is i'm
lportant that an agreement be arrived at
soon and the price which the company will
demand for this lease is looked for with
considerable interest. If It Is a prohibitive
one, the true position Of the water company
will be defined; if it is reasonable enc, it
will indicate that the company's claim of a
desire to settle the whole matter amicably
: sincere