Los Angeles herald., 1910-10-21
POWER COMPANIES
HESITATE TO BID.
Uncertainty of AqueduCt Supply
Delays Negotiations of Coun-
Gil with Corporations
TRASK EXPLAINS SITUATION
Mayor Alexander Says Arrange
mentS Must Be Conducted
with PubIic'S knowledge
TRASK EXPLAINS SITUATION

AS the power companies failed to
make a definite proposal to take over
the power to be generated by the
owens river aqueduct at the meeting
in the council chamber held for the
purpose of discussing the matter last
night the sentiment seemed to get
farther and farther away from the
proposal to lease the power to the pri-
vate companies for resale. 1t ap-
peared at the meeting last Thursday
night that there would be a disposi-
tion to consider a fair offer and the
power companies were told to have one
ready, but they claimed they could
not.
So many factors enter into such a
proposition, according to Walter j..
Trask, attorney for the power COM
panies that it is difficult to make
one. He, said the power companies
want to know how much power will
be delivered in Los Angeles and
whether it is the intention of the city
to maintain the present rate and make
a profit or to cut the rate to the low
est possible price.
POWER COMPANIES CRITICISED
As there was no such proposition
to consider the meeting took a turn
against the power companies, speakers
declaring it was absurd for the city
to sell the power to the companies at
any price and then buy it back again;
for the power companies would have
to have their profit and that profit
might as we'll be saved by the city
selling direct to consumers.
At the conclusion of the meeting the
mayor insisted that Mr.. Trask be pre-
pared to tell what it will cost the city
to buy out the distributing systems of
the three electric corporations doing
business in Los Angeles, SO that there
lrAa UaR4w1 HvNr
what to do in this matter. Mr.. Trask
and other speakers for the power COM
panies had previously suggested a
committee empowered to make nego-
tiations, rather than presenting any
proposal in open meeting.
The mayor objected to this.
I'VE are not going behind closed
doors with representatives of the pow
er companies and have 1t said that
we fixed up some deal" said the
mayor. 1--WE want you to present what
you have to offer right here in the
open meeting where it can be consid-
cred by the people"
CITY's GIGANTIC UNDERTAKING
Mr. TFask was one of the first speak
ers at the meeting last night. He said
in part: :
great undertaking, and which is far
from being consummated. If the
aqueduct is completed at the estimated
cost, about $11,50O00O more will be
necessary The limited development
of power contemplated for the present
and harboHt improvements will require
an additional $6,500.000. Let us not
forget that the water problem is far
from being settled, that is, the meth
cd of its disposal. That there is a
market for it, we all know; but who
can tell how much additional expense
may be incurred to conduct 1t to the
purchasers, or what demand may be
made upon our resources in that be-
half? We have had many interesting
meetings for the discussion of the
water problem, but we are as far from
a solution as ever. Interesting and in
structive as these meetings have beens
in the final analysis it will be neces-
sary for the city government to evolve
a definite plan which 1t can recon-
mend to the people for the adjustment
of both the water and the power ques-
tions The most we can do now is to
offer suggestions. But as was stated
by Mr.. Loucks, until a definite plan
has been submitted there is no real
question before the house.
"Some have urged that the city
should buy the distributing plants of
the power companies. When you con-
panies has been conveyed to trustees
to secure their bonded indebtedness,
and that the bonds are held by large
numbers of persons scattered all over
the country, you will appreciate the
difficulties in this regard, and besides,
for some years to come the companies
must rely on these distributing sys-
TENS in the city to convey light and
power to their patrons; that is, the
companies could not possibly be in a
position to retire from the city until
the market is sufficiently developed
within the radius of their systems to
consume the city's product as well as
theirs. If the city we're proposing to
buy their entire generating and dis
trlbuting systems a different question
would be presented. Condemnation Of
the distributing plants in the city has
been suggested-and as 1 understand
from Mr.. Andrews questions to Mr..
Anderson, he wished to know whether
that could be done without taking into
consideration the earnings OF the COM
panies. Manifestly it could not. AS
we'll might it be said that the ter
minals of railway system could be
condemned by paying the market val
ue thereof, without taking into con-
sideration their use in connection
with such system. 1t is easy to sug-
gest difficulties, but it is hard to find
solutions.
WHOLESALE SYSTEM ADVISED
"The question that the city has in
hand, apart from its obligations to the
power companies, is purely financial,
and considered in that aspect alone,
in view of its bonded Indebtedness and
the uncertainties of the future, which
no one, however gifted, can foresee
or foretell, would it not be for the best
interests to make an arrangement-for
a time at least-with the power COM
panies for the sale of its power, pro-
vided that it can be done so as to in
sure the city practically as much rev.
enue and its citizens as cheap rates as
could be reasonably expected, were it
10 establish an independent distribut-
ing system itself? Can there be any
doubt about that proposition. There
is no magic in the delivery OF electric
ity by a city. The ownership would
be none the less municipal-the light
would be neither better nor worse It
would simply be selling it at whole
sale instead of retail.
"I appreciate that complaints are
made against the power companies,