Los Angeles herald., 1910-07-13
CHARGES PLOT TO
DELAY AQUEDUCT
Mayor Alexander Says Financial
Interests Are Working to
Hamper City
MESSAGE DVULGES J0KERS'
Declares Light and Power Com
panies Fear Adverse Effect
of Projects Completion
MESSAGE DIvULGES g0KERS'

Mayor Alexander, in his annual mes
sage to the city council yesterday,
frankly charged that powerful finan-
cial interests are striving to delay the
completion of the aqueduct and the
municipal power plants which are to
follow it. He charged, also, that these
interests have large holdings in local
light and power corporations, which,
they fear, will be affected adversely by
the completion Of the municipal pro-
jects.
More than this, the mayor made pub
lie the inside of the aqueduct bond sit
uation by including in his message the
various propositions made by the syn
dicate which holds an option on the
bond issue, and explaining the "jokers"
hidden in each.
Chairman Washburn Of the finance
committee voiced objection to the
mayors exposure of the tactics of the
bond syndicates in his message, claim
ing that public knowledge of these
facts would tend to hamper the work
of the finance committee and the re-
Gently appointed special advisory COM
mittee in securing funds for the COM
pletion OF the aqueduct
"Do you think for a moment that the
public should be kept in ignorance of
what is going on in our city govern
ment?' said Mayor Alexander, when
told of Washburns remarks. Il be-
lieve that the time has come that the
public should be let into the real facts
of the situation. I am not in favor of
secrecy when 1t concerns a matter in
which the people are so vitally inter
ested We should have given out this
information a month ago. Does Mr..
Washburn think that I am not part
of the city government as well as Is
the finance committee?'
Councilman Washburn on the read
ing of the mayors message said:
ct do not think 1t was necessary for
the mayor to recount all of the propo-
sitions that were made to the commit
tee that went to New York to confer
with the bond syndicates. These Incl
dents occurred two months ago. The
propositions of the syndicates were de-
clined, and are no longer a matter for
consideration.
"The finance committee, aided by the
special advisory committee, is rapidly
getting pledges of money. The negotia-
tions are in the hands of the finance
and the special advisory committees,
and 1 object to the work being ham
pered by treatment by other city Of
ficials.
This is a matter that requires deli
cate handling and not q subject for
newspaper controversy. 1t hurts the
credit of the city to have such matters
become public"
The portion of the message which
Washburn objected to was that dis
closing propositions one, two and three
as made by the bond syndicates in New
York to the councils specially ap
pointed committee, consisting of Coun-
Gilman Washburn, Attorney w B.
Mathews and William Mulholland of
the aqueduct board, on May 10. The
mayor states that the acceptance of
these propositions would enable the
bond syndicate to prevent the sale of
the power and harbor bonds for three
years, and at the end of that time 1t
could refuse to take any bonds. 1t
would also enable the bond syndicates
to tie up the city's sinking fund so
that it could not be used for the pur-
chase of power or harbor bonds. The
fourth proposition was similar to its
predecessors only that the city would
be compelled to withhold its power and
harbor bonds only for one year.
The various subjects taken UP in the
mayors message We're referred to ap-
propriate committees. A full text Of
the message follows:
'"q7o the Honorable the City Council:
"Gentlemen: In this, by annual report
for the fiscal year 1909-1910, 1 wish first
to express my appreciation of the work
of the various commissions. Los An
geles is to be congratulated upon the
fate that SO many Of her best and most
capable citizens, without compensation
and without hope Of reward other than
the approval of their own consciences,
patriOtiCally have consented to serve
upon these commissions. All the mem
bers of the various commissions, ex-
cept the president of the board of
water commissioners, serve without
pay. The work Of most Of these COM