Los Angeles herald., 1910-10-14

with the city's best interests. 1t
may be said that the people here
have made the city in which they
live rather than to have been born
in ii, and have a good understand
ing of civic affairs, and the city
has had successful experience in
handling municipal works Of mag
nitude. Cheap power Is not and
will not be over plentiful in this
section and is a matter of sufficient
Importance to justify public in
terest.
John B. Miller, president of th'
Southern California Edison company
said that the power companies attend
ed the conference in q spirit of coop
Grafton and helpfulness.
SPEAKS FOR COMPANIES
Attorney Trask appeared as the rep
resentatiVe of all the power compa.
nies. He said in part:
The subject under consideration
in it's entire scope is not easy Of
comprehension to understand
many of its details, to appreciate
the difficulties and uncertainties
attending the business require a
technical knowledge which but few
possess. But there are many facts
involved that we can ell under
stand and which will be of assist
ance in reaching a just conclu-
sion, and 1t is to such facts that
propose to address myself tonight.
1 shall assume that the power ex-
pected can be generated and for
the expense contemplated, and you
will bear In mind that the bonds
thus far authorized do not include
the expense necessary for a distrib-
uting plant in the city of Los An
geles or an auxiliary steam plant.
It is estimated that at the present
time it will cost the city about
five millions to construct such a
plant, and to meet the required
extensions including underground
conduits for the next three years,
an additional expense of more than
two millions. 1t is also estimated
that an auxiliary steam plant will
cost at least s1,00000 The bonds
of this city at present issued and
authorized aggregate more than
$33, 900, 600. which is the largest
bonded Indebtedness of any city
of our class in the United States
except Cincinnati.
The rapid growth of the city is
constantly requiring the extension
of electric light plants to supply
outlying districts. The expense Of
underground conduits in the city,
amounts to from 100000 to $780,
900 annually. 1t goes without say
ing that in the present unsettled
state Of affairs the companies can
not afford to make the required
extensions. If 1t would be the pol
icy of the city to enter the field
as q competitor Of the companies,
1t follows that they will not be JUS
titled, in extending their systems
in Los Angeles. There is but one
course for them to pursue in such
a contingency, and that is to stop
all extensions, husband their re-
sources and prepare for the best
fight they can make to hold the
business they now have.
FAvoRs PROFITABLE RATES
The problem in hand cannot be
solved by competition in rates, nei-
ther can 1t find solution by an
agreement as to rates. To compete,
the power companies must Of ne
cessity make a lower rate than
the city. Otherwise, from con-
sideration Of self-interest, consum-
ers would patronize the city. Such
a contest must necessarily be in
furious to the city and possibly
ruinous to the companies And,
gentlemen, / respectfully submit
that the companies are entitled to
a better deal from the city Of Los
Angeles than ruinous competition.
I have suggested some reasons
why there should be an amicable
adjustment between the power COM
panies and the city as to the dis
position OF the Los Angeles aque-
duct power, for a time, at least
1 have no special plan to offer at
this time, but L respectfully sub
NIT that If one can be evolved
whereby the city will receive as
much net gain as 1t would by dis
tributing it's light and power to the
consumers direct and at the same
time securing to them just rates,
and also the protection Of the in
Vestments of the power companies,
1t should be adopted. And 1 would
further suggest that 1t would be
well to call to your assistance, in
addition to the able men you al
ready have, and for whom weg all
have respect, some expert from
the east--a man from some of the
public utilities commissions who
has practical as well as theoretical
lknowledge-and with such assist
ance and such other light as you
can get by the advice Of a board
appointed for that purpose or other
wise. determine what profit the city
can make II 1t constructs a dis
tributing plant itself and deals di-
rectly with the consumers, ana
then you will be in position to
take up the subject with the power