Los Angeles herald., 1907-05-24
FIGURES SHOW
TAXES LIGHT
FEW CENTS MONTHLY PAY
WATER BONDS
Sale of First Issue of Securities Guar
anteed-NeW Laws Are Great
Help in Disposina
of Bonds

N/'I v v v v y y v " = v v y v y " - x
o IL you own house and lot @
@ worth $4,000 and assessed at 30 @
O. per cent of it's valuation, or S250O, @
@ this is what you may expect your @
@ total annual Owens river tax to @
O. be for the next five years, when @
@ the aque duct will be in operation @
@ and able to take care of its own @
@ finances, @
O. The first year the total tax will @
@ increase your present taxes not @
O. more than $1.33, the second year @
@ 1t will not be more than $31S, the @
O. third year 1t should not exceed g
O. $40, the fourth year 1t should @
O. not be more than S5.0S and the g
% fifth year 1t should not exceed g
@ S7,O5. @
<3 This is average of 81 cents g
@ n month for the five years. @
% @ 900 @ @ @ @ @ 9
Among the many queries that are
coming daily to the Owens river cam
paign committee is one that is being
asked many times: "Is the issue of the
$23 900, 900 worth of bonds going to hurt
the city's credit, and is it going to pile
up taxes on the Individual property
owners?"
These were the first questions asked
by the members of the committee, and
with the vigor that they are showing
in placing every bit of information at
their command before the public they
went to work to investigate this sub
ject The first was quickly disposed OF.
1t was found that Los Angeles is fully
capable of taking care of the issue.
The results of their investigation,
which were approved as conservative
by Walter Mallard, city assessor, as
we'll as other tax authorities of the
city and county, show that for every
s1Oo of assessed valuation the Owens
river tax the first year should not ex-
ceed 5 cents, the second year not more
than 12 cents, the third year not to
exceed 10 cents, the fourth year not
more than "a cents and the fifth year
the tax per $100 should not be above 2S
cents. After the fifth year the aque-
duct authorities assert that the aque-
duct will be in operation and fully
capable of taking care Of It's own
finances.
Makes Practical Example
To put the results of their work In
form which every one can understand,
the campaign committee has taken a
practical instance of taxation ana
of the five years. AS Is shown In the
foregoing, the total monthly taxation
imposed on a $4,000 residence property
by the $23, 900, 900 bond issue will amount
TO not more than 81 cents a month.
A parallel which was drawn to TINS
the other day by taxpayer Is IN tne
water rates. Before the city bought the
property of the Los Angeles City Wa
ter company the consumer was paying
on an average of So a month for his
water service. AS soon as the city un-
dertook to supply its own water it was
not long before the consumer was
agreeably surprised to learn that ne
was paying on an average OF $l:oo a
month for the same or better service.
"Thinking the thing over" said the
citizen. ~ came to two conclusions.
One. that the city by furnishing me
water for the past five years has been
saving me more per month than VIII
now have to pay per month 10 prlng
a larger and better supply or water
here from the Owens river; the second
was that, although there was howl
that NV property would be eaten up
with taxes if we bought the water
works for $2,OO0000, it hasn't cost me
one cent to pay the water works bonds.
The system has been paying for itself.
has taken care of all its bonds, has
been making a tremendous amount or
improvements to keep pace with tne
growth of the city and has reduced
water rentals at the same time"
Sell Bonds in Parcels
\ Aoueduct officials say the $4,000, 900
hond issue will carry by big majority.
The bonds, if passed, will not be sold
IN block, but only in such amounts
as are necessary to keep the construc-
will work on the move. The first issue
viii probably be $3,OO0,OOO, to be sold
Ia To this year or early in 1908.
payment on the principal will be de-
ferred until the aqueduct is in opera
tion so that the only tax will be to
defray the interest When the aque-
duct is in service aqueduct officials as
sert that it will be perfectly capable
of taking care of it's own finances.
The bonds will bear interest not to
exceed 4 per cent. The city will have
little trouble in disposing of it's bonds,
saw bankers The sale of the first is
sue has been practically guaranteed
and at rate of interest not to ex-
ceed 4 per cent.
The ST, 500, 900 Owens river bond issue
of 1905 bearing per cent sold at par
and brought premium of $4,000, Con-
ditions have improved since that time
owing to the new state laws which have
recently gone into effect.
The most important of these is that
which permits city to deposit it's idle
money in banks on municipal bond Sc
curity. This act of the legislature has
cleaned up most of the municipal bonds
in the state.
"Tf California municipal bonds are.
seeking a purchaser today" says w. b.
Mathews, head of the aqueduct's legal
department, "it is probably because
there is some doubt as to the legality
of the procedure under which the bonds
were issued"
Another new law almost as important
as the foregoing permits city to make
It's bonds payable in any city in the
United States, which saves the cost of
collection.