The herald., 1898-07-12
THE KEssLER PROPOSITION
Offer to Run the Water Works for the
Next Fifty Years

The proposition of Kessler & Co. for ac-
curing the water system of Los Angeles
and conducting the business under fifty
year franchise, as first presented to the
city council by Attorney Max Loewenthal,
on April rs, came before the city legisla-
tors again yesterday In the form of sec
ond memorial on the subject, the water
supply committee having, last Friday, sug-
gested that the details Of the matter should
be submitted In writing to' the full coun-
Gill;
The document was presented at the morn
ing session and read In full, after which
without remark or debate 1t was referred
to the water supply committee for consider
alton. The text of. the revised offer Is as
follows:
To the Honorable the Mayor and Council
of the City of Los Angeles, and to Messrs.
Nickel, Toll and Blanchard, Water Sup
ply Committee of the City Council:
Gentlemen-On April 25th of this year I
had the honor to submit to you on behalf of
Messrs. Kessler & Co., the New York bank
ers, a proposition for supplying the city and
Its inhabitants with water for domestic pur-
poses. Reference to that proposition is
hereby respectfully made and copy there
of is hereunto annexed.
That proposition was by the council re-
meeting held by that committee the gen.
eral plan was discussed between us, for the
purpose of more fully indicating to the COM
mttee the views and intentions of Messrs
Kessler & Co. in the premises.
On that occasion 1t was stated by Mr..
Woltmann the representative of Kessler &
Co., that they would prefer to allow the
proposition thus made to remain before the
council, it's committee, the public and the
press. In its general form-for reflection and
consideration; and that Mr.. Woltmann, who
was then about to leave for New York.
would return to Los Angeles. prepared to
make definite proposition stating in de-
tail those matters which were merely set
forth In general in the said proposition, of
April 25th.
In accordance with this understanding,
Mr.. Woltmann is now here to submit to you
the details of said original proposition, as
follows, to-wit
First-The present plant will be improved
at once so as to bring II up to the standard
of first-class modern plant In all respects.
which will fully supply all the needs Of the
city itself and its inhabitants To carry out
these Improvements Messrs. Kessler & Co.
will agree to expend, during the first year
OF the contract which they hereby ask for,
the sum of two hundred thousand ($200 ,0O0)
dollars. and such additional sums thereafter
as may be necessary and proper to maintain
the efficiency of the plant and to improve 1t,
We name the sum of two hundred thousand
($20O,OOO dollars as the minimum under the
present estimates of Messrs. Kessler & Co.,
which are based upon the plans of your city
engineer The further improvements con-
templated are to be in line with the general
plans OF the city engineer, SO that the entire
plant. during its reconstruction, shall be
such system as will be in accord with the
requirements of the city of Los Angeles.
The further details of these matters cannot
be more fully set forth until they shall have
been discussed and agreed upon with your
honorable body and with the city engineer.
We would. however, add that among the i'm
provements contemplated we propose to put
In filter gallery, whereby the "riley" con-
dition of the water at certain seasons of
the year, against which there is now so
much well grounded complaint, will be OBJ
Waited and the water furnished will be clean
and pure. We also propose to increase the
fire pressure. especially in the business part
of town, where the present service is by
no means adequate in this respect. Further
more, we propose to cover the reservoirs
wherever desired by the city.
Second-We propose to furnish to the city
of Los Angeles without charge an album
dant supply of water for all municipal needs.
This includes all schoolhouses and other
municipal buildings. water for fire protec-
ton and for street sprinkling. This item
will be made more definite when the city
will specify its various needs in this re-
spect.
Third-We will agree that the rates to be
charged to the consumers of water shall not
exceed the present rates. We state this item
in that particular form to indicate the max
imum charge under the contract desired by
us at the same time calling your attention
to the provision of the constitution of this
state. which for all time gives to the city
council the power to regulate the rates to
be charged TO consumers.
Fourth-We propose to pay to the city of
Los Angeles a percentage on the gross re-
ceipts for water rates collected during the
life of this contract. VIZ: 2% per cent for the
first five years. per cent for the following
five years and per cent for the balance of
the term of the contract.
In explanation of this item we beg to
state that during the first five years the per-
centage cannot be as high as during the BAL
ance of the term. because during that period
large sums must necessarily be expended
in bringing the plant up to the standard
above set forth. The revenue thus derived
considering the growth of the city. should