Los Angeles herald., 1905-03-28
PURCHASE
Of LOWE PLANT
MAYOR SUBMITS PROPOSITION
TO COUNCIL
Says That the City Can Well Afford
to Acquire and Operate
lts Own Gas
Works

Considerable comment and a warm
discussion was occasioned In the coun-
Gil chamber yesterday morning by n
communication from the mayor in
which he advocated the purchase by the
city of the Lowe gas plant on North
Main street and the river, lately re-
ported to have become the property Of
the Peoples Gas company. The plant
is small one and Is said to have about
200 meters installed.
Councilman Smith, Immediately on
the conclusion of the reading of the
message, moved that it be filed, but his
motion was not sustained. He then de-
clared that he wanted to go on record
as being strongly in favor of municipal
ownership, but that when the time
comes for the question to be decided
the people should vote on it. He urged
that when the city acquires plant 1t
should build one of a suitable size so
that the citizens of the city might be
supplied with gas.
Says Idea Is Preposterous
1.-THE idea of the city buying this
plant at the present time with the in
tention of charging it as the funds are
available is preposterous to my mind"
declared the Fifth ward councilman,
land 1 will fight it from start to finish.
When the people are ready to vote
money to build a plant to supply gas
to the city L~will do all can to aid the
movement"
The communication from the mayor
was finally sent to the committee on
municipal ownership. Following is the
letter:
Communication of Mayor
II beg to call the attention of your
honorable body to an opportunity which
seems now to exist for the acquisition
of gas plant to be operated by the
city. 1t is reported that corporation
has been recently organized by num-
ber of prominent and public-sprited
citizens for the purpose of establishing
a gas plant in this city, and it is under
stood that they have in view the ac-
plant of the Los Angeles Independent
Gas company, commonly known as the
Lowe plant.
"If this plant can be acquired 1 think
it would be wise to investigate the
feasibility of the city purchasing it. !
am of the opinion that it would be prac-
ticable for the city to purchase at fair
valuation plant of the size of the one
in question without the necessity of
issuing bonds therefor, and after it's
tend the system as 1t should be finan-
cially able to do So No obstacle to the
citys purchase of this plant would, I
believe, be interposed by the gentlemen
who compose the corporation just
formed.
Demand for Public Ownership
"The demand for the public owner
ship of such utilities as the distribution
of water and artificial light and heat
by means of conduits laid in the streets
is becoming more and more pronounced.
In our case we have demonstrated by
experience that we are able efficiently
and economically to operate such
"Our water department has been able
to reduce the cost of water to the con-
sumer, to extend and greatly improve
the plant, to meet all payments of in
terest and principal of the purchase
price out of the revenue and earn a
profit in addition without
adding anything to the burdens of the
taxpayers.
II believe that equally satisfactory
results could be obtained from the pub
lie ownership and management of gas
plant and 1 earnestly commend the
suggestion here made to your favor
able consideration