The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-07-01

t1yots-ox-Way that would be Appraised IN
the same manner as II they carried no right
OF developing and storing wataer. And then,
a. way out of subsequent difficulties. you
suggest that when you had paid for them
at the price fixed and 1t should be finally
| determined In the suit now pending in the
superior court of this county between the
city and the company to quiet the title
Of the city to the waters In the infiltration
pipes, that upon six months notice we
could take back the property, If the de-
cision were in our favor. at the same time
at which the city had taken It.
I'VE would remind you here that we also
have a suit In the supreme court Of the
United States, brought by the Crystal
Springs Land and Water company against
the City of Los Angeles for the same pur-
pose, and that we intend to press It to a
final conclusion; and the suii now pending
In the superior court when a judgment
comes may not be the end of the contro-
versy between us; but aside from that the
Crystal Springs Land and Water company
cannot concede to this proposition. The
thing, we imagine is impracticable with the
company, and for many reasons, some of
which we do not object to state One Of the
things that renders 1t impracticable is that,
as you know, large amount of the bonds
Of the Crystal Springs Land and Water
company are still outstanding. II we make
any sale we would have to pay these bonds
off, and when the time came If it.should
come, when we would be entitled to buy
the property back we would have to pay
you back the money; but II we had already
paid a large portion out to bondholders we
would have no means of raising 1t except by
assessments on stockholders, and we might
meet with great.;ifficulty in doing so. Be-
sides, the stockholders would not probably
be willing that we should hold the money
until final determination of litigation,
which may last many years. II the prop
erty were taken by you, the company would,
Of course, go out of business. They would
be receiving no dividends on their stock,
no interest on their money, and they would
doubtless insist upon its being distributed
among them.
1.-The Los Angeles City Water company
would doubtless be unwilling to enter into
an arbitration of that kind, because it
would be, of course. an entirely new agree
ment for arbitration. We have already in
formed you fully Of our opinion upon the
subject Of arbitration under the contract,
In view Of the change in the constitution and
laws of this country. We do not believe
now, any more than when we
talked to you, that the arbitration
Will amount to anything, practically. |
In the end. But if you insist upon it,
we can as easily undertake it as yourself, |
and will do SO, and will appoint an arbi-
traitor, but as to making any new contract
for arbitration we should have no doubt |
that 1t would be absolutely void, and, there |
fore, when the arbitration is had between |
us 1t must be under and In pursuance of that |
contract.
1--WE have taken occasion several times al |
ready to say that we do not concur with you |
in many Of your interpretations Of the con-
tract. We suppose, of course, that 1t is un-
necessary for us to keep saying it, yet, |
we would not like to have 1t
implied that We are conceding to any in
depreciation which you put upon it, and that
we are now negotiating with view, ID pos
sible, to an amicable conclusion; but, of
course, we look only to the contract for the
relations existing betweeN the city and the
Los Angeles City Water company. and are
not waving any rights that we have under
that contract nor is our action in any man
ner to be considered as affecting its inter-
pretation by any step that we take, in en-
deavoring to settle the matter without
further litigation between US.
I'm regard to the water right in the East
Side spring, we take it for granted that you
are appraised Of the situation that upon the
lot that the spring is situated the pump.
plant is located. The pipe, Of course, con-
necta with it, and through them the waters
are pumped to the reservoir on the hills to
he east We do not see very we'll how the
ct could be taken without necessarily in
,luding the spring. A reservation of the
water to us with the lot and pumping plant
Ind the pipe all being transferred to the
City of Los Angeles would seem to make
he property of each of no value to either.
yours,
WHITE & MONROE,
~. s. CHAPMAN,
Attorneys for Los Angeles City Water
Company"
The water supply committee and repre-
,entatives of the water company will hold
.khor ~ oo<;pr ~, "Wednesday neyf