Los Angeles herald., 1905-07-22

ing q reasonable margin for the In
vestors, the undersigned begs leave to
submit the following:
Your honorable body is requested to
prepare and present for ratification to
the electors of the city an amendment
10 the charter removing the present in
hibition against leasing the city's wa
ter rights and distributing system, and
thus afford an opportunity for the
presentation in due form of a propo-
sition to lease the domestic water sys-
tenn of Los Angeles.
Burdens Of Consumers
Seemingly necessary, but in reality
unnecessary burdens are now borne
by the water consumers which can be
avoided under private management,
and the present pressing demands of
other improvements and extension of
the water system which the municipal
ity be, without capital, cannot meet,
could promptly accomplish through
private enterprise with ample capi-
tai.
The persons on whose behalf I am
dCIlIlBs buOuBu primarily SSchih6 o.
profitable investment for their capital,
are convinced. as every man who rec
ognizes the working power of ready
money, that. a lease could be drawn
between the city and private corpora
tions or individuals which should be
vastly preferable over present condi-
tions. The city must depend upon the
earnings of its water department,
which, necessarily must not greatly
exceed the amount necessary for op-
Grating expenses and sinking fund;
this leaves little or nothing for ex-
tending the distributing plant or in
creasing the water supply unless the
rates are so increased as to impose a
heavy burden on private consumers. 1t
is manifestly unjust that the consum-
ers of today should not only pay for
the service which they receive, but
also for the construction of a plant
for the benefit of future consumers.
My principals make the following
proposition:
First: To pay reasonable and prof
| liable rental during the life of the
lease. Such rental would necessarily
create sinking fund which can be
| used in the acquisition of additional
water supply without unduly burden
ing the taxpayers with the interest on
enormous bond issues. Private man
agement is necessarily more economi-
cal than public control for the reason
that private management must have
an eye single to it's business and econ
omize in every direction in time and
labor, and yet be ready to make all
necessary outputs of money looking
to the future for it's returns. Hence,
while reducing costs to consumers,
such management will be able to pay
fair rental to the municipality.
Fair Treatment of Patrons
Second: A fair. just and impartial
treatment of consumers. For instance,
we should be able to do away with the
really unjust, though under municipal
control necessary. charges of connec-
tions Of private houses with the sup
ply system. The municipality finds it.
self obliged to charge price for these
connections which is more than double
what they cost the city. This compels
an unequal tax upon new consumers
to pay for property the ownership of
which remains in the municipality.
With ready cash on hand we could
distribute such charges equally and
while placing them in the charges for
water yet keep the price of supply
lower than it is and more nearly the
| level of prices in other large cities.
With the interested energy which nat
urally attends upon private manage
ment, and which is also naturally alb
sent from municipal control, we would
be able to follow up and collect the
consumers bills from those who owe
them and not be obliged to resort to
that eminently unfair and impolitic
method of compelling any tenant to
pay his predecessors delinquent water
bill before he can get water service.
Municipal officiallsm of course never
feels the direct personal interest in
the collection of water bills which
private management feels because the
profit of the latter depends upon 1t.
Neither can municipal management
exercise that degree of leniency in
granting reasonable time to consumers
in which to pay which watchful pri-
vate control is able to maintain.
We would also be able for the same
reasons to hasten Ga thing the munich
pality cannot always do. for want of
sufficient money for operating ex-
penses) the laying of mains to new
districts and impatient would-be con-
sumers.
To Lay New Mains
We would also find 1t advantageous
to install and operate ample testing
apparatus for testing the correctness
OF meters, where meters are used, a
thing which under municipal manage
ment appears TO be impracticable, or
considered unnecessary.
Your petitioner believes that the
time has come when the rapidly