Los Angeles herald., 1905-03-10

3 posterous thing about this is that +
+ they complain because the present I
& agitation is spelling their chances !
I of floating bonds."-C. o. Hawley, s
< Manager California Underwriters i
Z Association. Z
4+Aas.s.Fs.s.s..sss.s l. s.s.sS..*s.**s.++s.s I.
Belief is general that the representa-
tives of the gas company are doing
their best to quiet the storm which is
gathering and are making strenuous ef-
forts to have action on the gas ordi-
nance put off and all agitation on the
subject hushed, at least until they can
float an issue of bonds amounting to
S4,0O0,000. 1t is said by men high up
in political circles and officials of the
city that the council will not take any
action on the ordinance, despite the
evident demand from the people that
they shall act. If the question is ham
died at all the people will have to ham
die it seems to be the opinion in the
city attorneys office.
''It is plain what the gas company is
attempting to do" said c. o. Hawley,
manager of the California Underwrit-
ers' association yesterday. "They
want to float this $4,000,000 bond issue.
get the money and then sell out to the
city, and thus gain S4OOO,OOO. Then
they talk about being out of funds, and
beg that the agitation be hushed until
they can sell their bonds and get money
enough to lay new mains.
Thinks Sale Likely
"Their trick is clever one. but peo-
pie have seen through it. They want
to sell to the city and know that the
city will buy their old plant some time
and have adopted this scheme to annex
the $4,0OO,OOO to their bank roll
"As near as 1 can figure from facts
ascertained by careful investigation
the gas and electric company has been
robbing the people of Los Angeles
through overcharges of between $75, 900
and 100000 a month and their plant
must have paid for itself half a dozen
times.
Now for electric light they charge
me, or any other private individual, IA
cents kilowat hour, while they put
in bid for lighting the city at SA
cents a kilowat hour. There must be
big profit somewhere. The light bill
for my Office, which is a small one, and
is used only six days in the week,
from o'clock in the morning until 5 in
the afternoon, is from three to five dol
lars a month.
Believes People Will Act
There is no doubt in my mind but
that when the people take the question
up a regulating ordinance will be pass
ed, fixing the price and quality of gas
and providing for the inspection of
meters and laying of mains.
IF the regulation of the price, etc,
does not suit the gas company, and it
will not be drawn for that purpose,
the company of course will take it to the
courts where they will be forced, be-
fore they are through, to furnish full
information regarding the cost of the
plant and of the manufacture of the
gas, along with a complete record of
sales and profits.
Say the commission should fix the
price at 80 cents a thousand instead Of
IS, the company would be forced to
furnish gas to the people of Los Ange-
les at that price until the case was de-
cided in court, which of course would
take some time. They would have to
keep on furnishing gas, because if
they quit they would forfeit their fran
chise and the city could then buy their
plant cheap. for they could not use 1t
any more"