Los Angeles herald., 1910-06-22
OELUGE VOTERS
WITH CIRCULARS
IN LIGHT FIGHT
Huntington, LiSSner and Corpora
tionS Issue Statements
Concerning Rates
BOARD DEFENDS CUT CHARGES
Companies Show That Average in
Fifty-Seven Cities Is
Over II Cents

There were things doing in the light
rate fight yesterday.
H. q. Huntington gave out an open
letter to the citizens of Los Angeles
in which he deplored the movement to
reduce rates charged by public service
corporations as tending to make their
shares unstable, injure the markets
for their bonds and hamper the growth
and expansion of Los Angeles.
Meyer Lissner, president of the board
of public utilities, issued statement
in which, on behalf of the board, ne
takes exception to the use of state
ment embodied in the boards report
recently in the interest of the light
corporations. The board stated that 1t
had not had time to go into all phases
of the questions involved and the light
corporations have used this to support
their argument that the action taken
SAME RESULT
While admitting that the board did
not have time to go into all the de-
tails, Lissner says that 1t does not ad-
NIT that the board was not warranted
In the recommendations made. he
points out that further investigation
could not have altered the findings OF
fact.
A third development OF the day was
the issuance of circular No. by the
light corporations in their campaign Of
argument which they nope VIII
persuade voters to cast their bal
lots in favor of light at cents per
kilowatt hour the present rate, instead
of cents, the rate fixed by the city
council. The gist of circular NO. z.
which contains table of rates, SAID
to be charged in flfty-seven cities, Is
that the average rate In the cities
enumerated is liza cents per kilowatt
hour.
HUNTINGTON'S STATEMENT
In his letter Huntington asserts that
the Los Angeles railway has more
mileage than the Market street railway
of San Francisco, but because or the
scattered population does not earn one
half the returns on the investment
He also states indirectly that he Is not
closely allied with the lighting corpor-
ations Of Los Angeles in the battle
over the rate.
The Pacific Light and Power COM
pany, in which he is interested, was
organized to furnish power TO the
Huntington lines, and less than per
cent of it's product Is sold for lighting
purposes in Los Angeles.
Huntington takes the position that
he is like the average voter of the city
outside of the lighting business ana
states frankly that he has made no
study of the plants or of their earning
capacity or investment. His letter
follows: .uu,,
TO the Citizens OF the City Of Los Angeles'
fully expect that among those who do me
the honor of reading this letter there will be
few who will give me credit for thinking
only OF my private gain In expressing my
views publicly upon the question of the rates
However / sim
cerely hope that most of you will feel that
the question OF the great good OF the city OF
Los Angeles, and it's general prosperity is OF
far more Importance to yourself and to me,
both from a financial and civic standpoint,
than the very small comparative gain to be
made by the proposed reduction of rates
became very much interested in Los An
EeIes at the time of my first visit here many
years ago and have never, for a moment,
wayered from my opinion formed then that
this particular part OF California had future
beyond the widest dreams of the most en-
thusinstic real estate man. I am proud Of the
part that have taken in the upbuilding of
the country and I believe I can say to you.
without being accused of egotlsm, that the
expenditures that have been made by myself
and many other men in the development of
public utilities has been of the great fac
tors in our enormous growth and generaa
prosperity.
This growth OF the city and surrounding ter
ritory has made It necessary to extend rail-
way light and power lines, gas pipes and tele-
phone lines far beyond the expectation of the
owners of these various properties when their
original plants wers installed, and the present
ratio Of increase In population and business
leads us to believe that the growth has only
just begun.
SECURITIES MARKET NECESSARY
%
various properties and to care for the future
growth makes 1t absolutely necessary that
all these public utility corporations shall be
able to market their securities In large
amounts. and this market must, OF necessity.
to some extent, be found in the east. and even
in foreign countries.
In eastern cities the territory covered is
much more densely populated and the invest
ment in any public utility company is much
less. comparatively, by reason OF the fact
that where the houses are built close to-
gether and without lawns and grounds, a very
much larger population is served with much
less equipment than is the In our city.
where almost every man, whatever~h his walk
may be in life. has his own home. on COM
Portable lot, with lawns. flowers. shubbery.
etc.
To illustrate this point: Most of you ara
undoubtedly familiar with the city of San
Francisco and will be surprised to know that
the Los Angeles railway has great many
more miles of track than the Market Street
railway in San Francisco, and that the Market
Street railway earns on its much less trackage
more than twice much per annum as does
the Los Angeles railway. In short, all the
public utility companies of the city of Los
Angeles serve a very much larger territory
than similar companies in San Francisco and
other cities and in covering this territory
reach very much less number Of patrons.
Constant agitation for reduction OF rates
has created and will create an impression
among investors here and in the east that our
securities unstable and uncertain. and
know of single thing that Will contribute
more to general depression Of the prosperity
Continued on Page Thirteen)