Los Angeles herald., 1906-08-17
BUILD PLANT
FROM TAX LEVY
PASADENA DEVELOPS AN0TH-
Err SENSATION
Bond Issue for Municipal Lighting
Plant Cannot BE Sold and City
Adopts Surprising
Measure
Pasadena. Agency,
i6h East Colorado Street.
Telephone Main 752.

PASADENA, Aug. 16.-Mayor Water
house and the city administration
sprung the greatest sensation of his
term of office this afternoon when steps
were taken looking toward the con-
struction Of a municipal electric light
ing plant paying for the same out of
the tax levy instead of out Of the bond
issue authorized by a recent vote of
the people.
The matter came up at a special
meeting of the city council this after.
noon when the annual budget for the
city was adopted.
The tax rate was fixed at $1.30 per
500 for all funds, a little less than last
years tax rate, but on account of the
large Increase In the amount of taxa BILE
property on the tax rolls q rate call
culated to raise an income all out of
proportion to the amount called for
and used by the city during the past
year.
The administration estimates that out
of the 81 per 500 allowed as'the maxi
mum for general purposes only 81 cents
on the $10O will be needed to supply
the money needed for other purposes,
the remaining Is cents on the 500, or
in round figures cbout $52,700, being
ample for the construction of a muni-
cipal electric lighting plant
Q. c. Glass, the electrical expert en-
BoSSu SOiie llIile ago Dy Lne city, eSt1-
mates that 1t will cost not to exceed
$51,700 to construct and equip the cleo
trical plant needed for the good and
suft1ctent lighting of the streets of the
city. He estimates that it will cost
$1,000 for the running and maintaining
OF this plant every year, providing an
even better service than that which
now costs the city $4,000 under con-
tract with the Edison Electric COM
pany.
Carefully Guard Plans
These various estimates, supported
by the figures of electrical contractors
of repute, were laid before the council
this afternoon With them came three
ordinances, the first establishing a
municipal electric lighting works de-
partment and the office of general man
ager of such department, the second
fixing the tax rate as indicated above
so as to provide the necessary income,
and, third, osta blishing the various
funds and percentages of the city. par
tfcularly the electric lighting works
fund required under the new arrange
ment. These ordinances were adopted
without discussion, evidently having
been prepared in executive session and
with the full knowledge of most Of the
councilmen.
When they are read for the second
time at the regular meeting of the
council next Tuesday they will become
law and then will be safely launched
the latest, experiment of the Water
house administra ton. So carefully has
the mayors secret been kept that the
plan is tremendous surprise to prac-
tically everyone, although it was known
that some step was about to be taken
by which the municipal plant might
become certainty in spite of the Edi-
son suits, which first enjoined the SELL
ing of the lighting bonds and then
asked the federal courts to determine
the city's right to go ahead with the
sale of the bonds.
1t seemed likely for time that the
administration would try to sell the
bonds by popular, subscription, it being
impossible to -selY them to eastern CAPT.
talists with the cloud hanging over
their validity, but it now appears that
this plan has been abandoned. The
scheme of going ahead with the work
of construction is an audacious one,
and, according to Mayor Waterhouse,
is to be credited to the city attorney,
J. Perry Wood, whose work in this diff
ficult position has been of the highest
order.
II should be understood in viewing
the plan of the administration that as
soor as present legal difficulties are
cleared away 1T is contemplated to issue
ana sell the $125, 900 bonds now in liti-
cation, the money to be used in improv-
ing the lighting plant and in extending
ti.e lighting services so as to provide
commercial lighting and power.
Taxpayers May Protest
The administration hopes by it's profit
from this commercial service to more
ttan provide for certain items of muni-
cipa; expense, notably street work
which it is hoped can under this plan
10 Ultimately done without expense to
the Taxpayers.
Just how the taxpayer is going to
look at the scheme is enigmatical
Under the budget adopted today, which
by the way is quite liberal, only one
item Of note being cut away from the
eStimates-the emergency hospital de-
sired by Chief of Police Pinkham-
something over 100000 is to be raised
for the expenditures Of the city during
the coming fiscal year. Roughly speak
ing. II is stated that this lacks only
about $4,000 of being twice the amount
raised by last years budget. alb III.
100000 more thai the city spent las.
year. 1t is believed taxpayers will do
come hard kicking when they come to
ss'e the tax collector next year.
Friends Of the movement, and there
are many, insist that the advan tages to
be gained by this form of establishing
lighting plant are so great and 80
many that 1t would be neither wise nor
consistent to oppose 1t on the mere
ground OF temporary expense.
1t Is certain that the city now stnds
pledged TO the venture by the action Of
the city council today and that the ad-
ADMINISTRATION appears to have missed
nothing which will stand in the way