Los Angeles herald., 1910-11-04
Municipal Affairs
BONDS WILL BRING
MILLION FOR CITY
Negotiations with New York Syn
dicate in AqueduCt Case
Nearly Concluded
REPRESENTATIVES NOW HERE
General Chaffee Presents State
ment of Finances Which Is
Approved by Board
REPRESENTATIVES NOW HERE

Negotiations for the sale of $1,OOO,oOO
of aqueduct bonds, which have beeh
pending between the city officials and
the New York bond syndicate for the
last two weeks, are about concluded'
and W. ]. Washburn, chairman OF the
council finance committee, hopes tllat
in a few days the sale will be mace.
A representative of Kountze Bros
and A. b. Leach 81 Co., the pond puy
ing firms which have an optlon on an
4be owens river securities, has been IN
los Angeles for the last two weeks ana
has been in frequent consultation VIII
Mr.. Washburn and other members u
the finance committee.
The money the city expects TO get a.
once from the bond syndicate VIII p9
an advance of a part OF the amount
due February /. In exercising IT'S op-
+ion the bond syndicate would take up
S4 0S0 600 February 1. But a part OF TINS
1nonev is to be advanced before tnat
date There is a probability that more
than the million suggested Will De
forthcoming.
RApIDITY IN WORK ASSURED
The additional money will permit the
work TO be carried on with acceleratlon.
1t will be completed year soollei
than the first estimate, and at a hlah-
cial saving as we'll for the board OIL
public works finds it can spend ABOUT
500. 900 month to better advantage
than it can S250,000. A statement oL
ae1,ed,1c+ finances was made out by
cen A. r. Chaffee and approved py
tha hoard of public works Wednesday,
1t is as follows:
In response to the request OF tle
finance committee for a statement
of the financial requirements OF the
S25O, 900 by ,008.4S-$3S,67 $3.50 ana
having in view also the tentaliYe
agreement with Mr.. Bullard WIN
resDect to additional funds from Ihe
hond syndicate, beg to say that
commencing August l, when, by
suggestion OF the council, our eA-
Denditures were to be held TO SzoV'-
non a month, we endeaVored 10 COM
ply with this suggestion, but hho
that the expenditures nave peeh as
follows:
August. were ...............$ $267.O0S.4S
srta1,har sus a9o, were ,,....... 2S3,67505
0ctober. were, approximately. Soo,Ooooo
Showing that in each OF these
months our expenditure eXceeueu
S15O.OOO by $17,008 48-$33, 615,0o ana
100000 a month respectively. IhlS
in the face of every effort TO con-
form to the suggestion OF the coun-
Gil to keep expenses at not TO e8-
Cee6 S2DU,UUU d 1llOiIIAA' AN-Nt'O'N
tures are now proceeding atsthe rate
Of approximately, S293,5bl.l8 d
month. and in order that we may
come nearer to the scale OF $2oo0oo
a month we have arranged 10 cios9
down the raw end of the aqueduct
cement mill.
FUNDS FOR AQUEDUCT WORK
At this date we have net cash
balance Of S663, 900. Add to this the
proposed S1,000,000 from the synal-
cate, will give us $1,663,0OO. By post
poning the next option date from
February l to March l, as suggest
ed in your memorandum, and haV-
ing on hand at that date funds Tor
two months operations require
that we take into consideration
period of six months. Therefore
81 663. coo spread over six months
allows $277, 166 a month, which prac-
tically continues operations on the
basis of expenditures for the past
three months. an
from the syndicate, plus $35O,OOO IN
the sinking fund, will give us 81
O13,OOO, which. spread over SIX
months from the first day of No
vember, will allow us $335.6OO a
month. This would be $4,000 ad-
vantage over the present restrlc-
tlOn OF SZ0U,UUD Maui SoLAS w 49,
anxious to expedite the work. We
have four shovels that are idle, and
estimate that it will require $2O,-
600 a month, each shovel, to set
them in operation, or $4,000 for the
four shovels. This, added to the
present monthly expenditures,
amounting approximately TO $685.
561.18 a month; or the $2Ol3,00o
would finance operations on the ba-
sis of S2S3,561 for five and half
months, from November !. and on
March 1, 1911, when the option
would be exercised, as proposed in
the new agreement, there would be
on hand lust about enough for op-
erations for period of a month
and a half.
The suggestion that the syndicate
furnish $1,250,000 for the purchase
of steel seems to be satisfactory, as
it would enable us at once to adVer-
tise for contracts, and obtain de-
Iiveries in sufficient time to COM
mence operations on the Syphons
about one year from this date; but
the money for the syphons would
not aid in current operations.
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