Los Angeles herald., 1908-09-22
BONDS
BY THE EXPERTS
PASADENA WATER ADVOCATES
MAKE STATEMENTS
NIGHT MEETINGS HELD; AelTA-
TIoN GROWS HOURLY
Mayor Farley Gives Facts and Figures
to Support Contention That Plants
Are offered City at Fair
Valuation
nyL. GEORGE THOMPSON

grown the discussion of the water ques-
tion in Pasadena, and it is common
sight to see many little groups of men
about town discussing the merits of the
different sides of the matter.
The affidavits of the two representa-
tives of the water companies sent out
In circular form by the citizens conl-
mittee caused CONSERVATION in the au-
ministration camp and the tactl0h III
control of the board OF trade OF Pasa~
dena has issued an answer IN an en-
deayor to explain the matter
THE EXPLANATION is that the assessed
valuation of the two companies on
which they paid taxes is nearly nan OF
the price asked by the water companies
for their plants.
In a signed statement prepared Ior
The Herald by Mayor Farley ne gives
the figures for the three companies AS
fhe affidavits referred to the sworn
valuation of the east and west side
con,nanies as made by Walter Wot-
kyns and w. S. Wright on behalf OF
the directors of the respective conl-
panies. the figures furnished by the
mayor relative to those two companies
only will be given.
The total assessed valuation af the
Pasadena Land and Water company IS
given by Mayor Farley as $151,715, Whlcn
if estimated on a basis of 90 per cent
of the actual cash value, would put
valuation on the plants OF $685. ,55O, 10
which is added the franchises, $lO,oOO.
This is based on the 1907 assessment.
In 1905 the assessed valuation of the
west side property was $13S,770 and the
franchise was valued at Sl6,S0O. H1gur-
ing the cash value on the same basis
as before it would be $13S,77O plus the
franchise, or total of $294,34O.
Would Take County's Figures
The price that the city will have to
nav for the property is given by the
MAYOR as 1921, S6O,A which includes all
improvements made prior to January
%, 1908.
A comparison of the figures shows
that the price stated by the mayor as
offered by the city is $22,290 less than
the cash value, as estimated from the
assessed valuation. In view or the
fact that the city could not buy a
franchise which it had granted itself
that difference should be reduced to
$11,790
As the list of tax receipts given by
Mayor Farley in his statement refers
to numbers only it is impossible to tell
whether the value of the franchise is
included in the total assessed Yalua-
ton, and therefore figured twice.
A similar statement was prepared py
the mayor in reference to the assessed
valuation of the east side company In
which it is shown that the cash value
of their property is estimated on a
basis of being twice the assessed Valua-
tion will exceed the estimated cash
value by 15,150.S9. If the value of the
franchise, $3.50, is added TO thls the
difference would be SIC, 6,400.89
In closing the statement the mayor
says: THE price the city has agreed to
pay to buy out all three companies, in
Guiding the betterments up to Septem-
ber 1, 1908, is $3.50, ,475.26, which is $2995
less than the valuation made by the
county. And very few property owners
in Los Angeles county would be Wiling
to take the county's valuation as the
basis upon which to sell their property"
"Pro" Makes Statement
Judge H. w. Magee, who has always
taken keen interest IN the water
question and supports the bonds, said:
II am surprised to hear that the OPP
ponents of the bonds claim the city
can't acquire a title to the water
rights. Dillon and Hubbard are GER
tainly competent experts, and they have
approved the bond issue, which depends
on the assumption that the water
rights can be transferred.
"It is true that abstract of title COM
panies in Los Angeles county never
issue titles to water rights, and OF
course the land now receiving water
has an inalienable right to continue to
receive it. But the city can certainly
get control, and distribute all the rest
of the water as it pleases by buying
the land where the water originates.
"In the early days" Judge Magee
continued, 1.-The water companies were
all mutual, but later they Incorporated
and sold stock. Now the stock GER
tainly controlled all the water and the
plants, consequently if the city buys
the stock it acquires the same con-
troll"
Mayor Farley is authority for the
statement made to the writer that the
city would not buy the stock of the
property. The opposition makes the
claim that all that the city could pur
chase is a control of the companies,
and they assert that as the companies
are organized on non-profit making
basis the control is hardly worth the
price asked by the companies.
The water being as Judge Magee
says an inalienable part of the land it
cannot be sold.
A Bankers Opinion
In the option given by the companies
to the city they describe their prop
erty as consisting of "land water,
rights to take water, rights of-way a
system of water pipes, storage reser-
voirs and pumping plants. 1t seems
evident from this, claims the oppost-
tiou, that they will try to sell the
water and water rights that are in
alienable from the land of Pasadena.
One conservative banker of Pasadena
has refused TO loan money on water
stock in the local companies, as he
says that it has no real value.
The value of the property of the east
side company was given as $S5 per
share for 5000 shares. This would
make the total of S425O00 which was
the price agreed upon when the first
bond election was called The price
has been raised since then to $479.-
$50 49,. In the sworn affidavit of w.
s. Wright the value Of the stock per
share is said to be no more than S60
and that the company controls 1924. So
shares. That would make the property
valuation as sworn to by Attorney
Wright for the directors of the water
company 1854, ,077.80 The purchase
price which the city will have to pay
would divide up among the stockhold-
ers at the rate of $113 20 a share, or
nearly twice as much as the value as
sworn to in the affidavits.
Think They Scent Danger
AS Mayor Farley. according to his
statement. got only about $103 for the
stock which he transferred to DR..