Los Angeles herald., 1907-03-05
TAKE NO ACTION
ON UTILITY RATES
COUNCIL DELAYS QUESTION
ONE WEEK
Mayor K.rper Sends Veto Message
and Gives Reasons Why He
objects to Findings Of
the Council

For an hour yesterday afternoon the
city council debated what to do with
the public utility ordinances.
After having fixed the telephone and
electric lighting rates at a figure which
provoked popular Indignation a move
ment to reduce the Sunset rates had
gathered strength In the council, but 1t
was finally determined to lay the ques-
ton over for week. The Sunset may
be reduced still lower
Mayor Gives Reasons
Mayor Harper sent his veto message
in to the council early, as follows:
People of Los Angeles have looked
forward to lower rather than higher
telephone rates. The raise came as a
great surprise. Since the ordinance was
passed have been appealed to by many
people who want a lower rate fixed
believing the earnings of the companies
warrant you taking such action.
1T is the desire of the chief execu-
tive to be fair with all corporations
but at the same time 1t is not fair Ito
the people that he should sit by and
see them mulcted out of money which
should remain in their pockets while
corporations grow richer and richer. If
these corporations were experiencing
difficulties in getting their Investment
to pay profitable dividend 1t would be
q different matter In such case the
people would be willing to pay a fair
rate. Such is not the case. 1t is com-
mon knowledge that the stockholders
and the bondholders of these companies
have made money-some have gotten
rich.
1.-THE purpose of the ordinance pro-
viding that the city council should each
year investigate the condition of public
utility corporations and fix rate which
i l. %. vNN.O NFrf1A
corporations getting rich too fast at the
peoples expense. With this ordinance
in effect, the people at least had the
right to expect that the rate would re-
main where it was, for both corpora
tions show outward evidences of pros
porous condition.
Makes Investigation
"Slnce the ordinance was adopted 1
have caused an investigation to be-
made. From what have learned am
satisfied that the people of Los An
geles are entitled to rate of SIS a
month for business phones, with un-
limited service.
1.-THE council has statements of cor
porations showing earnings, etc., and
1t is my suggestion that the question
of establishing rates be brought up
again for the purpose Of making more
thorough investigation with a view of
fixing a rate applicable to both corpora
tions and not in excess of S5 month.
people of Los Angeles invite honest
competition. When the second telephone
company asked for a franchise to Go
business it's coming was hailed with de-
light. The people thought they would
get better service and more cheaPly.
One rate for both companies believe
will encourage this competition. The
weaker corporation will strengthen it's
weak spots. and the stronger will en-
deavor to add to its strength"
After it's reading the councilmen got
into snarl over the point whether they
had to act on the veto at once, or
whether reconsideration had to be voted
on, then final action taken on the utility
rates.
Yonkin said last week was the first
time he had taken cognizance of the
rates. The question was rushed in and
passed without consideration. He
wanted a weeks time now to look up
the problem. saying he did not want to
take hasty action on any more legisla-
tion.y'
Councilman Wallace said he was pre-
his colleagues.
Dromgold said he preferred to wait
and learn more, as hasty action was al
ways expensive.
Wren said he was ready to vote now.
but consented to wait
Clampitt feared the companies might
take srap judgment and raise the rate
to $40 month if some action was not
taken at once on the mayors veto.
President Pease said he hoped the
question might be settled today.
1t was finally decided to act next
Monday.