The herald., 1898-09-11
TO COLLECT RATES
FRANK A. GIBSON APPOINTED
RECEIVER BY THE COURT
WILL NOT MANAGE THE PLANT
Judge Oster Makes Five Orders in the
. Water Litigation-Grants Con-
ditional Stay Of Execution

Judge Oster, in making final disposition
OF the water Mitigation. so far as the cases
heard by him two weeks ago are concerned,
| yesterday filed five orders. The first Is one
appoin ing Frank A. Gibson to the receiv-
ership, and enjoining the Los Angeles City
Water company, the Crystal Springs Land
and Water Company and the East Side
| Spring Water company from collecting wa
| ter rates. The second enjoins the city from
selling or taking possession of the plant
and properly of the Los Angeles City Wa
ter company. The third Is a similar order
| with reference to the Crystal Springs
property. The fourth grants stay of ex-
ecution in authorizing the receiver to col
lect the water rentals, and the fifth grants
a similar stay with reference to the COM
pany's being required to turn over 20 the
| receiver all moneys now In It's hands as the
result Of collections made since the li:iga-
| ton was started.
| The order appointing Frank A. Gibson to
| the receivership does not give him the con-
troll Of the plant and business of the COM
panies, as was supposed by some when the
cour; rendered It's opinion originally. He
| is merely authorized to collect and receive
rents, issues and profits (excud!ng charges
| for service connection9 and moneys paid 20
| the company since the filing Of this action.
For making such collections Mr.. Gibson Is
authorized 20 employ a sufficient number
| of persons to properly perform that SER
| vice. For his services the receiver Is al
lowed a salary of $500 per month as hong as
he may act in that capacity, and his bond
| Is placed at $2OO,O The same order EN-
joins the water companies and all connected
| Iy,.i- bsn Col1ep N
| Interfering with the making of such collec-
| tons by the receiver. The company is al
lowed, however, to draw from the receiver
such an amount from time to time as certi-
fed vouchers may show the actual rum
| ming expenses Of the plant and business to
require. The receiver Is required to make
4 detailed monthly report of all receipts
and disbursements. the same to be filed with
the court between the 1st and 18th of each
| month.
The second order enjoins the city, the city
council and the mayor from taking possess
sion of or in any manner interfering with
the plant of the Los Angeles City Water
company: from operating he plant or in
terfering with the delivery Of water. and
from collecting water rentals. In consider
a ion of the granting of this injunction the
water company is required to give bond
| of $4,000 20 cover any damages which might
result to the city in consequence of its
operation.
The third order Is like one with refer
| ence to the Crystal Springs company's
property, and requires that company to
give bond Of $4,000 20 cover possible dam
age TO- the city
The fourth order grants stay of execu-
lion in the appointment Of the receiver to
collect the water rents. The companies
have notified the cour. of their intention to
appeal the cases to the supreme court, and
| therefore asked stay of execution. The
| court orders that the receivership be stayed
| upon the fling in court by the companies
of bond for $3OO, 900. The fifth order refers
% the requirement of the court that the
companies shall turn over TO the receiver
such money as they have collected since the
beginning of the litigation. A stay of ex-
| ecution is granted pending the decision of
| the supreme court on this point, the COM
| panies being ordered, however to give
further bond in the sum of $4,000 should
they decide to avail themselves of the stay
When the contents of the orders became
known, 1t was claimed by some that the
| las. two made the receivership appointment,
wholly ireffe fectual; that the companies, by
fling the required appeal bonds for $3.50, ,OOO
could practically undo all that the city had
| gained by the litigation. Attorney Scott
of the ciy's counsel contends that this is
not true, and says:
"If the companies avail themselves of
the stay Of execution, so far as the receiver
is concerned. by filing the $3.50, 900 bond the
injunction which prevents them from COL
lecting the rentals still remains. The city
is also enjoned from making the collections,
ard, therefore, the money would remain un-
collected. 1t Is likely, for this reason that
I he recei1nersh hin will G nd