Los Angeles herald., 1910-10-14
Leasing Arrangement Between
City and Electric Concerns
Broached at Meeting
CONDITIONS ARE DISCUSSED
Chief Engineer SCattergoOd Says
Municipality Will Have Big
Surplus of Electricity

electric corporations to make a pro-
posal for taking over the electric pow
er to be developed by the Owens river
aqueduct, at meeting held in the
council chamber last night to discuss
the matter. Another meeting on the
same subject is to be held next Thurs
day night and it is confidently expect
ed that Attorney Walter ]. Trask, who
represents the power companies at
these meetings, will be prepared to
make some proposal that will solve the
question of how the private corpora
tions are to live when Los Angeles
has more power to dispose of than all
of them combined.
In an address before the meeting
last night Mr. Trask tentatively sug-
gested that it would be the right thing
for the city to lease this power to the
power companies to be resold. He put
forth the position in a gingerly man
ner to see If it would be considered at
all and was pleased when nearly every
speaker showed and inclination to
treat his idea with consideration. But
what will the power companies pay
the city for this power, and what will
they charge the consumers, are ques-
tions that must be answered, and May
or Alexander cautioned the power COM
panies that whatever was done would
be done by a two-thirds vote of the
people and it would be useless to put
forth a proposition that the people
would not indorse.
E. F. Scattergood, chief electrical
engineer for the department Of pub
lie works, who has had charge of the
suggestions for the disposal of the
power His paper was similar to the
one submitted by William Mulholland
on the disposal of the surplus owens
river water. in that it was intended
only as basis of argument. Mr..
Scattergood said:
THE CITY's FINANCES
The state of the citys finances
must necessarily be considered in
connection with suggestions as to
the utilization of the Los Angeles
aqueduct power. The amount of
bonded indebtedness of municipali-
ties in this state is limited by an
act of legislature to 15 per cent. of
assessed valuation. This leaves
margin for the city Of Los Angeles
at the present time of something
like $40. 100000 over and above all
outstanding bonds and together
with those authorized by the peo-
pie but not as yet issued. 1t is
true, however, that it is not de-
sirable to increase the bonded debt
of the city beyond that which is
absolutely necessary, and for this
reason it seems appropriate in dis
cussing the power question to point
out the desirability of giving every
consideration to the policy of re-
curing a considerable bonus in
connection with rental in max
ing up the total compensation to
be received by the city for sur
plus water. The amount suggested
by Mr.. Mulholland may be increas-
ed or decreased, but, as suggested
by him, it would mean something
like $6,00000O which would pro-
vide the necessary S2,500,000 for
main distributing conduits from the
San Fernando reservoirs to this
city and to various irrigating dis
tricts, and at the same time, very
materially relieve the city's bonded
debt. From these remarks it ap-
pears that the city is free to adopt
whatever policy seems best, having
in mind the city's interest and the
public good in this community, ana
that it is not necessary for the city
to consider sacrificing its best in
terests in order to avoid additional
Indebtedness in the utilization of its
power.
AMOUNT OF POWER .,
The amount of power which may
be developed at the various power
sites along the line Of the aqueduct,
together with some 1000 horsepower
from the Cottonwood and division
creeks in the Owens valley is such
as to deliver in the city at a central
substation an average of $4,000
horsepower, after making liberal
allowance for all losses, and owing
to the provision of regulating reser-
voirs in connecting with two OF
these power sites it will be possible
to deliver this In accordance with
the demand during any twenty
four hours up to a peak load or
100000 horsepower.
AS shown in the preliminary re-
+ port of the consulting board, made
for the information of the public
previous to the bond election of
April last, this power is not only
unusually reliable as hydro-electric
power, but can be delivered here at
a very low cost as compared with
the average hydro-electric power
projects in the west. The assur-
ance, then, of a large amount of
hydro-electric power under public
control, susceptible of development
at very low cost, should go long
way toward encouraging capital and
toward encouraging manufacturing
in this section, especially in connec-
ton with an assured water supply
and ample harbor facilities under
public control. The average peak
load for all purposes as supplied by
the various electric companies with
in the city limits is at the present
time something like $4,000 horse
power and for this section. includ-
ing Pasadena, Long Beach, Santa
Monica and the intervening terri
tory, is something like $4,000 or 85,-
OO0 horsepower, from which 1t ap-
pears passible power to the extent
Of a 10000 horsepower peak should
very materially affect the cost to
manufacturers and consumers. The
city should realize a direct profit
from the development Of this power,
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