Los Angeles herald., 1910-07-15
APPROVE PLAN To
SELL BONDS HERE
City Council Members Favor the
Idea of Disposing of Aque-
duct Securities at Home
NO DELAY IN BIG PROJECT
Amount Available lnsureS Com
pIetion of Water System Be-
fore the Expected Time

lore tne Expected llnle
The plan to dispose of the Los An
geles aqueduct bonds at home instead
of in the east yesterday received the
unanimous approval of the city coun-
Gil, which adopted a resolution author
izing the issuance of SS,604,000 of the
aqueduct securities of the series of
1912.
Inasmuch as the leading business
men and representative organizations
of the city have given their indorse-
ment to the present plan to expedite
the aqueduct work, and as the larger
banks of the city. with other concerns,
have agreed to purchase enough bonds
to insure the city of an aqueduct fund
of at least 100000 a month, there Is
no longer any cause for worry, and Los
Angeles may be said to have entirely
overcome the serious crisis which so
recently threatened it's most import
ant enterprise.
It was agreed yesterday by a num-
ber of prominent business men who
have looked carefully into the situa-
ton that the New York bond syndi-
cate has acted unfairly. and that its
refusal to make further payments on
the bond installments until next Feb
ruary-claiming that it already has
purchased bonds in excess of tie
amount called for by its contract with
the city-is due to the fact that the
syndicate is also handling the bonds of
several Los Angeles power and light
ing corporations. operated and con-
trolled in Wall street, whose securities
may be affected, the bond syndicate
believes, by the action of the Los An
geles administration in reducing their
lighting rates from 9 to cents per
kilowatt hour. which reduction was re-
Gently indorsed at the referendum
election.
1t has been charged, and it is claimed
that an investigation has confirmed
the accusation that these corpora
tions have influenced the bond syndi-
cate to refuse to make further pay
ments in the hope of tying up the
aqueduct project, and of delaying for
another year, at least, the completion
of the enterprise, which will give the
city an almost unlimited water sup
ply and electrical energy and which,
naturally, 1t is claimed, eventually may
result in the municipal ownership of
the lighting and power distributing
systems.
LARGE SUM ASSURED
Developments yesterday removed all
doubt that the city could raise $4,000
900 between now and September / at
the latest, to keep the aqueduct work
going at about the present speed. The
finance committee of the city council
which worked in conjunction with a
special advisory committee, after one
DAYS conference with the city's lead
ing bankers received guarantees
which. with other sums to be secured
from municipal funds. insure an in
Il fAr
the aqueduct work.
Assurances have been given. also,
that there will be plenty Of additional
funds If the committee continues its
labors. At o'clock yesterday after
noon it was stated at the city hall that
there is already more money in sight
than is needed under the minimum
plan. Not only the banks, but many
private individuals have come to the
rescue with offers to purchase the Sc
curities.
The prompt manner in which the cit
izens of Los Angeles have, come to the
aid of the city in its aqueduct pre-
dicament demonstrates that Los An
geles Is an exceptionally wealthy city
and with a population having more
than $122, 900, 900 on deposit here, it is
in a position to finance its own pro-
jects, however large or costly they
may be.
IT was in order to make it possible
for the city to meet the generous Of
fers that have come from its citizens
and business concerns that the city
council yesterday authorized the is
suance Of series H of the aqueduct
bonds of 1912 to the extent Of $36O4,-
900, which will comprise the bonds OF
the latest date in the entire issue. II
the bond syndicate had lived up to the
terms of its contract with the city
these bonds would have been the last
issued and probably would not have
been sold until the fall of 1911 AS II
is, they will be issued at once as Sc
crrity for the banks, private capital
lists and business men who have guar
| anteed $2,OO0,000 for the aqueduc'
work
The committee announced yesterday
that 1t has S1,720,000 already available
| for the auueduct, to be derived as fol-
| lows: Bank purchase of bonds, $780,
| 000. aoueduct balance, $270,00O sink
| ing fund balance, $4,000; fall sinking
| fund, $3.50. 900: December purchase OF
bond syndicate, $4,000 This money
used at the rate of 100000 a month
which is necessary to maintain the
| present rate of progress, would last
until March, 1911, and keep the project
going even if the bond syndicate for
| feitS its option next feDTudIy
It was apparent yesterday from in
uuiry among the members of the
| finance committee, that that body has
not yet decided definitely whether it is
desirable to raise more money and
keep the aqueduct work going at the
rate of $450,0OO a month, which, it is
claimed, would put it on much more
economical basis and permit of al
| most the maximum force of men and
machinery, and yield the maximum re-
suit.
At present the committee is working
along lines consistent with the slowest
progress and least fund possible which
figures We're given as the minimum
by the aqueduct board.
Mayor Alexander states that he be-
lieves the amount called for by the
minimum plan should he doubled or,
in other words, that the city should
provide n fund of not less than S400,