Los Angeles herald., 1907-10-05
COUNCIL
OPINION
REVIEWS
BOND ISSUE HELD LEGAL BY
JUDGE WORKS
City Has Power to Buy and Companies
to Sell, He Declares, but
Contract Is Essen-
tIaI
Pasadena Agency.
n North Raymond Avenue.
Phones: Sunset 1907. Home 2l24.

PASADENA, Oct 4.-The opinion of
Judge Works on the water question was
reviewed by the council tonight in execu-
tive session, after having been gone over
by the city attorney and the mayor.
It is the opinion of Judge Works that
the bond issue was legal, as he holds that
the city has the power to buy and the
water companies have the power to sell,
but that no bonds can legally be sold
until there is g. legal contract Of sale be-
tween the water companies and the city.
At present there is only the moral obli-
cation on either side, and this. Judge
Works holds, causes no liability for either
party.
There is grave fear in the minds of
many of the voters that an agreement
cannot be reached with the water COM
panies to sell at the price originally voted
upon.
g. G. Brown, one Of the largest stock
holders in the Lake Vineyard company,
says that he will never agree to sell at
the old figure, as his company is in, a
much better condition and has made cost
ly improvements.
To Declare Dividend
October 20 dividend of SO will be paid
on each share, and another dividend of 81
? is expected soon after.
Mayor Farley who is also stockholder
in the same company, thinks that such
an agreement can be reached. In CONVEX
sation with various holders of stock in
the two companies he has learned that
there is faction that feels as he does
that there is moral obligation that
should bind both the water companies
and the city to the former agreement.
even though it was never reduced to
writing.
Judge Works makes the statement that
box hold hot for
pany cannot sell it's plant when such
plant is necessary to the conduct of the
business, unless every stockholder is
agreeable to the SALE Such being the
case, it Is next to impossible to acquire
the plants without resorting to condemna-
tion proceedings as 1t is not probable that
a unanimous agreement can be reached.
The money voted for the acquisition OF
the plants cannot be used for paying FOR
the permanent improvements and addi-
tions made since the election, as such
proposition was not specified at the time
of the election, there being only parol
agreement on that matter that was en-
tered into by the council after the cleo.
ton. This opinion of Judge Works. II
sustained by the courts, would necessi-
tate the provision of funds either by
new bond issue or by taking them from
the tax revenues. The latter course was
strongly opposed by the mayor during his
49, O'-o-'
campaign
The 100000 included in the bond issue
for betterments and extensions, is held
in the opinion, can be used only by the
city after the plants are acquired, such
being the intent of the voters.
Gould Collect for Service
The city would have to supply South
Pasadena or any other place outside the
corporate limits with water If they were
already depending upon the same source.
but remuneration could be collected for
the service. Any clause inserted in the
deed of the property to insure fthe same
rate for the outside consumers as for
those inside the city would be void, as
the rate could only be fixed according TO
the law already provided. This would
make it possible for South Pasadena to
fix the rate for water used there, and the
only recourse possible to Pasadena to
change it would be through the courts.
The clause inserted in the agreement OF
the west side company to protest the
south Pasadena consumers Judge works
thinks was intended to minimize the op-
nosition of the outside consumers to the
sale. !,
In regard to the resembling ordinance"
The opinion states that 1t Is OF no conse-
ouence. even if it were legal as he holds
that the council had no power to vacate
,,.ocaedings taken on the vote of the peo-
nIe He does hold that the former ad-
ministration had the right for sufhclent
cause. TO refuse to proceed, but could not
"vacate" The present council has the
same right to go ahead with the proceed
@ ings as the former council had to hold
them up.
made the statement the day after the
election of Mr. Farley that ANY council
that sells the bonds under the present
conditions is liable to go to the peniten-
tiary."
yith Judge Works on all essential points
and thinks that the plants can be ac-
ouired Under the former proceedings