Los Angeles herald., 1907-10-26
UNSALABLE
PROPERTYE
APPRAISED
PASADENA CANNOT ACQUIRE
WATER RIGHTS
MAYOR DEPENDS UPON A MORAL
OBLIGATION
Voters of Crown City Are Eager for
Full information on What
They Are to
Buy
BY L. GEO. THOMPSON


The disclosures in The Herald of the
past few days on the water question In
Pasadena have created great degree or
interest among all classes of citizens in
the Crown City.
The story of how the valuation was
placed on the plants by the experts en-
gagged by the city will be revelation Of
facts that have not been even guessed at
save by few.
When public sentiment in favor of NUM-
cipal ownership of water crystallized and
torS definite form the plans of the group
Of men who had control Of the majority
of the water stock were already well
laid.
When the council decided to have an
appraisement of the properties made 7.
u. Allin was city engineer, and at his
suggestion the firm of Lippincott & Par
ker was engaged to make an appraise-
meet ir conjunction with Mr.. Allin
1t is a significant fact that Mr.. Allin
was at that time the consulting engineer
fer the two companies on the east and
west sides. These rhen were to pass on
the value of the water works only. and
another set of men was engaged to pass
or the value of the realty property of
the companies. 1t Is also significant that
John Mcdonald, one of the realty experts
for the city, Is holder of considerable
water stock and land that will be ma
tsrlally increased in value when the mu-
ricipslity shall own water system. The
two men with whom Mr.. Mcdonald was
to act were Robert Strong and w. G..
Benedict
Engineers Give Advice
Jn submitting their report to the city
tie engineers offer some information and
advice that seems at this time valuable,
but was not asked for by the council in
80 h tod
In the report the engineers say:
'It ould manifestly be possible at the
present time, with full knowledge of
the present condition of Pasadena, to de-
sign comprehensive system which would
he more adequate to meet the demands
of the municipality both as to capacity
Of the pipe system and the character of
construction"
The engineers then assure the city,
though just how they came in possession
of the knowledge is not stated. that ut
SHOULD be remembered. however, that the
pre- sent owners (of the water properties)
have acted wholly in good faith In the
construction of the plants; that they have
beer public benefactors, and, in fact,
constitute a very large proportion of the
property owners of the city.
"If these corporations insist on radically
higher figures than we present we would
advise the council to proceed with great
caution in accepting them and base its
Judgment upon the ability of the city to
build Al modern and comprehensive NUM-
cipal plant for your entire territory. In
the event of the complete municipal own
crship of the systems, the = city must
necessarily assume all the obligations of
the pre- sent companies to the water con-
sltmers outside the city limits, as well
as inside thereof. BY the purchase the
. city is virtually forced into the position
of purVeyor for the city of South Pasa.
dena without the power to enforce the
collection of rates outside of the city S
boundaries"
Why Pay Twice?
Their the value of the water works was
estimated, the books of the west side
company were examined and the cost to
the company of it's water works was as
ce1tained. From this amount 20 per cent
was deducted, but to the final amount
the sum of 20 per cent was added for the
cost of maintenance and administration.
AS rhe cost of maintenance and admin
istraIion was charged to the consumers
and paid in the shape of water rates it
seems pertinent to ask why the city
shculd be asked to pay the amount a
second time to the company.
When the east side company's books
we're examined it was found to be i'm
possible, according to the statement of
the engineers, to learn from their books
what the cost of the works had been, and
the ontimate was based on the rate of
cost of the west side company. In the
case of the east side company the usual
20 per cent was subtracted and then
added. One of the items of appraisement
for the west side company reads: Water,
water rights and water-bearing lands,
s63, 1850, and yet there was another
group Of experts who were engaged to
pass on the value of the water-bearing
lands as well as all other realty.
AS te amounts estimated by the en-
gineers and the realty men were added
ii looks very much as though some of the
property had double appraisement.
Water Rights Can't Be Sold
The value Of the west side company and
also the east side company was to be
based on their holdings in the city of
Pasadena, vet part of +he holdings of the
west side company ar used exclusively
for supplying water to South Pasadena.
Mayor Farley admitted to The Herald
representative that a part of the real
property of the water companies was not
used in supplying the inhabitants of che
city of Pasadena with water This ad-
mission is as significant as the ract that
the engineers and realty men appraised
all OF the properly VI liie w.
The water flowing from DEVILS Gate Is
appraised at $20O,OOO and yet this water IS
ir 1ipssense the property of the companies.
nor can it be sold, as it has become ap-
purtenant to the land and the right to the
water is inalienable and cannot be sold.
There also appears in the report the
two items of $4,000 and $4,000 which are
to be allowed the companies as tne vaiue
of being in possession OF the properties'
Voters Want to Know
Even If the appraisements were not
doubled in some instances and overvalueSl
in others it is not fair that the city should
be asked to pay any such price as was
agreed upon. for the reason that the nnal
adjustment Of the price was based on a
valuation of the entire properties OF the
two companies and the proposition as
voted upon, even If a binding contract mad
(Continued ON Page TWO.I