Los Angeles herald., 1909-10-01
SCENT PLAN TO
UNLOAD ON CITY
QUESTION METHODS OF H0L'
LYWOOD WATER COMPANY
ANNEXATION PLANS APPEAR TO
FIGURE IN INJUNCTION CASE
Attorney John w. Mitchell Says That
Extortionate Water Rates viii
Not Be Tolerated After
Annexation

That the real purpose of the Union
HOLLYWOOD Water company in bringing
its Injunction suit against the board OF
supervisors is to obtain court de-
cision upholding the valuations Oh lts
property as fixed by the officers OF the
company in order that the plant may
be unloaded upon the city of Los An
geles at an enormous price should the
territory supplied by the company be-
come annexed to the municipality Is
the belief expressed by many water
users. ,
Hearing of the preliminary proceed
ings in the injunction SUIT was con-
cluded before Judge Bordweu yester-
dav. Hartley Shaw, chief deputy dis-
trict attorney and legal ADVISER IoI Cl,e
board of supervisors, closed ms argu-
nent and was followed by j. w.
Mitchell. who. with W. ]. Hanlon, rep
resents the water consumers. Sheldon
Borden, attorney for the water COM
pany, made brief reply and the mat
ter was then submitted.
Mr.. Mitchell in his argument voiced
tbe belief which has become general
among residents of the territory sup
plied by the water company outside OF
the city of Hollywood, when he I'M
pressed upon Judge Bordwel the neces-
sity of taking into consideration Wheh
making his order the fact that con-
solidation election was penang II tlle ~
high valuation placed by the company
on its property was approved, he sald,
IL v-ouId mean that the water users
must continue to pay high rates, even
if tho plant should be taken over by
the city. ..,,,
when we come into the city we VIII
not stand for these unreasonable rates,
when
different conditions prevail, to be con-
fronted with a court order continuing
these extortionate rates in force" said
the attorney.
Mr.. Mitchell also submitted tabu-
lated statement showing the value or
that portion of the plant needed to sup
nly water to the districts outside or
HOLLYWOOD and the allowances for ex-
penses and profit. The value OF the
nlant he said, should be determined by
the value of the stock, which is $780,
900, on which the per cent rate or m
terest allowed by law would be $l5,OoO'
Nothing should be allowed for the COM
pany's bonded indebtedness, he con-
tended. For depreciation, he fixed the
annual amount at $500, or 3 per cent
of the value of the plant, and inVesti-
cation, he said showed this to be a
high margin, as other plants in various
portions of the state claim that their
allowance for depreciation ranges llolA
IL to 1 per cent. For operating ex-
penses the sum annually expended
should not be more than $25,775, against
10000, as claimed by the water COM
pany. Mr.. Mitchell said the taxes on
the company's property outside OF
Hollywood amounted to $1773.
In every instance these figures are
much lower than those submitted to
the court by the water company's at
torneys. By his figures, said Mr.,
Mitchell, the company would receive
$56, ,O122S, or per cent on the plant
outside of Hollywood city.
An affidavit signed by G. E. Berg
strom, an architect, gave comparisons
of rates charged by the Hollywood
company and those of the company
supplying ColegroVe, showing that the
formers concerns rates were about SO
per cent higher than the Colegrove
company's, while facilities for supply
ing water were similar