Los Angeles herald., 1910-06-30
DECLARES LIGHT
COS. POCKET ALL.
Atty. Eddie Answers Arguments
Advanced by LuCkenbach
in the Rate War
TAXPAYERS NOT benefited
Shows Difference Between Water
Extension Charges and
for Illumination
TAXPAYERS NOT benefited


yesterday. .,o,oe
The differences between charges
made by the city for extensions Oh ils
water system and those made py tlle
light corporation for it's extensions are
clearly stated. Mr.. Eddie puts einpna-
sis on the fact that property owners
oct the benefit of water extension
ebarges In decreased taxes, while the
light corporation pockets all II gets
and taxpayers derive no dement's III
lower taxes.
June 20. 1910
Mr. q A Imckenbach, Manager Of Construc-
ton Los Angeles Gas and ElectIic CO... DoiiP"n1 ~
Dear sir: Your letter OF the 27th inst, a9-
dressed TO Mr. c. NJ. Taggart CITY TAX Coi- 1i
lector. and myself Jointly received III IN, ms
letter you give excerpt from as you , say'
newspaper reports of a public ADDRESS pui
rortIpg 20 have been delivered by myself
her in answer to say that did not make any any
such statement the one credlteo 10 nie; ~
onv other statement bearing any resemolahce
win say now, however, since you nave
raised the question, that l do Know oi ~ ~
stances where bonuses have peeh rsqMuil M -, -
nnw tract extensions by certain hsh'iHs - ~
nonies of this city. I will not try TO mehtloh
the particular names of the companies eo .n,,
eerned as 1 not absolutely sure NV @
which companies they were; however, 20"
easily get that information again.
In your letter you seek TO make comparl-
son between the propriety of the city water
department charging for extensions win .he
propriety of the lighting corporations uolns
the same thing You say: Dpes a,,en. 'n retard the
growth Of the city and the same pollcy py
your advocated administration or CITY anal 'a,ns
(referring to the city water department rS assisSs
Its growth? The official reports of the boaro
~ water commissioners show that from De
cember l. 1905, to June 80. 1902 the WAFER ue-
partment ran 15323 services. Tor whleh
charge of Sl47 077.04 was MADE Durlhs VIC
same period the Los Angeles Gas ana Elec-
tric corporation ran %, 292 services, for whlen wh
no charge was made. Which most seriously
retarded the DEVELOPMENT of Los AngelesF
In this attempted comparison of yours you
forget that whatever the city charges for the
service mentioned is for the beneht OF an lne
people. and not merely 1ew prlaa,e as,. root,es
these charges II is taken from all the people
OF the city who have no interest IN tne cor
poration and appropriated to the pront OIL
small handful OF persons In that corpora'ioh'
ALL ARE AFFECTED
You also forget that the people of the city
have no complaint against the lighting cor
porations for doing anything they please, SO
long as what they do does not af1ect others
than the stockholders Of those corporations
But that is not so; your acts extend out pc
vond the stockholders Of your corporation ana
affect all the people of the city. Whereas the
water board of the city, In making any
oh for performing any OF llS dClSt NoN'
NOT do SO for the benefit of just few people
but for everybody in the city. In other WORDS
what the water board is doing Is being done
by the people themselves for themselves anu
thew are getting the benefit of it, and II Is
not being done by an outsider who is doing
1t for its private gain and its own oeneht.
l might also call your attention 10 tne Iac'
that your comparison falls GOWN III '"i'
Whatever the city makes from its water rate
charges and extensions II merely taxes out
In
by the amount 1t makes over and above tne
cost OF operation, II reduces the taXatoh upon
the public. So, II man pays rev cents
more for water and a few dollars more lor
extensions by that much does he reduce his
taxation But If he pays the lighting COM
panies a few cents more for llghtlhg rates
and several dollars more for extensions ne is
not taking 1t out of one pocket and putting II
back into another; he is taking 1t out OF
his pocket and putting it into the pocket OF
another person. He does not reduce ms own own
taxation any thereby, but he increases 1t that
much, and Furthermore by that much enrichqs
private individuals. Very respectfully yours
GUY w. EDDIE,
Prosecuting Attorney.
LUCKENBACH'S LETTER
Mr.. I,uckenbach's letter to Messrs.
Taggart and Eddie was as follows:
Guy Eddie Esq, City Prosecutor,
C. NJ Taggart Esq, City Tax Collector
Los Angeles, Cal.
Gentlemen: In the newspaper reports OF
tion you are quoted substantially as fol-
lows:
"The lighting corporations are making
threats that they will retard the develop
n,ent Of Los Angeles They trying to
bulldoze and intimidate the voters into sus-
tanning the present exorbitant lightng rates
by holding as club over US the statement
that II the 7-cent rate ordinance is not re-
pealed they will refuse to lay extensions TO
all new tracts and that by other curtailments
they will check the prosperity and growth OF
city. =,
Everyone knows that except for few in
stances in which they have shown faVoritlsm
to several real estate interests, they nave
never made extension for Whlch they ulu
not charge l make the assertion based on
the proof of our city records, that they have
grossly Disseminated against many new tracts
and that in the past they have seriously re-
tarded the development of Los Angelo" "
Speaking for the Los Angeles Gas ana Eiec-
tric corporation, l challenge you to show one
single instance in which this corporation or
its predecessors, has ever charged one penny
for either a gas or electric extension any
where on it's system. either within the city
of Los Angeles or outside of the city limits
or when charge for a service under htty
feet from the property line has been MADE.
Both of you gentlemen appear to be high
in the councils of the present city admins
work for ALL If the alleged policy Of exten-
sions adopted by the lighting companies Is so
abhorrent to your sense of fairness and JUS
tice II the alleged policy Of these companies
has so seriously retarded the growth and de-
velopment of Los Angeles why do you not
devote a portion Of your time and energies
to changing the policy of charging for ex-
tensions In the water department of the city
of Los Angeles? Water service is more es-
sential than electricity or gas, presume you
will admit without argument
MADE NO CHARGE
Does the alleged policy Of the lighting cor
porations retard the growth OF the city, and the
same policy by your advocated administration
of city affairs assist its growth. The official
reports of the board of water commissioners
show that from December J. 1905, to June 80,
1909 the water department ran IS 1923 services,
for which charge of S147077O4 was made.
During the same period the Los Angeles Gas
and Electric corporation 23,292 services,
for which no charge was made.
Which most seriously retarded the develop
ment of Los Angeles?
During the same period the water depart
ment required deposits amounting to SELL
346 20 extensions of mains and the Los
Angeles Gas and Electric corporation neither
asked charged nor received one penny from
any property owner consumer for the lay
ing or extending any main or electric line.
Which most seriously retarded the devel-
opment OF Los Angeles?