Los Angeles herald., 1907-10-24
EXPRESS THEMSELVES ON THE
WATER QUESTION
PRESIDENT MAY ADMITS HE HAD
CONVERSATION
Declares No Thought Of Profit Entered
His Head In Bidding for
Bonds or Suggesting
Deposits
Pasadena, Agency,
II North Raymond Avenue,
Phones: Sunset 1907. Home 2l2A

PASADENA. Oct 23.--President Ernest
H. May of the First National bank takes
the position that he should have been
first consulted before the part the bank
played In the water deal was brought
out In the columns of The Herald.
While there is truth In the reported
conversation / had with Mr.. Waterhouse
concerning the $4,000 bonds for which
our bank had bid, yet one thought Of
profit had never entered my head" said
MIR May.
y .sWhcn the bonds were advertised for
sale our bank bid for a portion OF them.
Other institutions also bid for portions,
but the entire issue was not sought.
While the council was considering the
various bids Mayor Waterhouse talked
the matter over with me. when he sug-
gested that it would be better to sell the
entire issue at once, as he believed the
water companies would not accept a par
tial purchase price.
II suggested that 1t might be well for
the city to accept the offers made for a
portion of the bids and later on 1t would
be easier to dispose OF the remaining
bonds. He then asked what the city
would do in the meantime with the
money received on the bids offered. 1t
was natural for me to suggest that the
money be placed in our bank, as the
city was not prepared to take care or
suc- large amount. When this con-
versation was had there was no thought
that the bank might have use of the
money for two years or more as has been
inferred.
II feel that I have been misrepresented
in this matter I am heartily In favor
of the city buying the water plants at
the lowest price they can be secured for
OF course there are two sides to every
question, and there are opponents to the
= Lon IL or,n Gnr
that have been brought into the mat
ter in the light indicated by The Herald
story. The First National bank has
always stood by Pasadena and the in
stitution has heretofore offered to buy
the city's bonds when there was no
market for them, purely from local
pride"
Councilman HotaIing
Councilman III. c. Hotaling believes the
water deal will be consummated on the
plans advanced by Mayor Farley. He
said: an his canvass for election Mayor
Farley made 1t plain that he was In favor
of buying the water plants at the prices
agreed on and j have faith that he Will
live up to his promises. am stock
y holder in the First National bank ana
am sure that institution has no connec-
ton with any of the water companies
or has ever tried to dictate as to now
in the purchase of the plants"
Councilman crandaII
Councilman c. J. Crandall said he pre-
ferred to keep out of the fight" as ne
axnSessed IT, "You can quote me, how
ever. as holding the same opinion re-
gsrding the legality of the proceedings
\ as did Mayor Waterhouse when he went
out Of office"
v;u p Smith
Will B. Smith, who has followed the
water question from it's inception, said
.rhe Herald is on the right track and
I will have more to say on the subject
later
w. D. MedilI
w D. Medill city commissioner, who
makes a special study of all municipai
nroblems. declares that under the ruling
of Dillon & Hubbard the city cannot
now acquire the water plants under tne
old proceedings. THE fact tnat there
was no agreement with the water Soiii- !,
nanies pior to the vote of the people is
s,,fficient to uphold the contention raised
bv Mavor Waterhause," said Mr. Medill
oIt is also a. fact that the water COM
1,anies cannot give the city clear titie
without membranes to all the assets
To be considered in the transaction. The
fact that the city of South Pasadena IS
entitled to share in the West Side water
nrevents that company from entering into
r,n6ine agreement according to the re-
ouirements of Dillon & Hubbard. 1t Is
easv TO see why some people are eager
S,r the CITY to buy the water plants and
~ ,s also easy to see why some were op-
nosed to the city acquiring municipal
lighting plant. In one case they would
he realizing from the deal and In the
other they had no interests TO reahze on