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Municipal Affairs of Los Angeles in Hands of Good Government Forces NEW COUNCIL FINDS MONEY IN TREASURY FINANCES OF CITY IN GOOD CONDITION MUCH CREDIT IS GIVEN TO A. J. WALLACE Chairman of Committee That Handled; Cash Tells How Los Angeles Came to Have Bal. ance on Hand WITH half a million dollars to supply the wants of the munic ipality for the rest of the fiscal year, and until next year's taxes are available, the new city council comes Into office in better shape than any previous council. Never before has tln> city treasury shown such an abundant amount of cash on hand for a new council to handle, and candid members of the council and other city officials give the chief credit for this state of affairs to A. J. Wallace, chairman of the finance committee, who has clone wonders with the resources of the city. Only the finance committee and the city auditor even knew of the exist ence of this reserve fund, for It VU known that if some members of the council had an idea there was any money in the treasury the balance would not be as large. Councilman Wallace and Auditor Mushet both had reports to submit on this matter, and both reports were submitted with some pride. In his re port Mr. Wallace reviewed the situa tion as the council had found it when it went into office. He said, in part: Finance Committee Report "Previous to the election of this council in IM6, the public press and tbe civic bodies of Los Angeles had frotn time to time indulged in criticism of the financial methods of the city. Some of them contended that the city's necessary permanent improvements, such as bridges and fire eugine houses, should be paid out of the tax fund in stead of out of bond money, as was usual. Others found fault with the deplorable condition in which the city found itself at the opening of each fiscal year, when it was unable to meet Its current expense bills for a period nf several months until the tax col lections of November were made. "The fiscal year of this city and the calendar year do not coincide. The term of councilman harmonizes with the calendar year, but it begins and it ends in the middle of the fiscal year. "This is not the end of a city year, but it is the end of this council's ad ministration, and therefore a resume ol financial condition is desirable. When the present council had been in office six months, and had reached the end of the fiscal year that its predeces sors had begun, it was faced with the following facts: There were several continuing contracts callng for large payments, such as firehouse, lot and incinerator purchases. Additional to these and much more serious was the condition of the outfall sewer fund. The work was Incomplete and the bond moneys voted for its construction were exhausted. The old sewer by its repeated breaks was a source of dam-1 ige and a constant menace, and more than half the city was entirely without sewer connection. "We decided that $500,000 was needed for that purpose, but with the out fall sewer depleting the treasury that | amount could not come out of the first; year's revenues without crippling the I city's business. So the aim was to lay up $250,000 during the first year. This ■was accomplished and from June to November of 1908 all wages and sal aries were regularly paid, but contract payments and merchandise bills had to be postponed till the new taxes came into the treasury. Tax Brought Relief "This $200,000 was in effect a loan from a reserve fund and was divided amongst the various departments "ii July 1 to meet their necessities until the November tax payments brought relief, at which time it was returned to the reserve fund. Then between that June of 1908 and the following June of 1909 a further sum of $250,000 was saved and added to this reserve, making a total of $500,000. This half million dollars, with the current in come from licenses, etc., enabled us to pay all bills during the four finan cially dry months that ended sixty diixs ngo on November 1. "The amounts expended for material mid permanent improvements during the three years of this administration deserve consideration. The chief items are bridges, real estate acquired for future public buildings and tire houses with equipments. For these purposes this council has made an average ex penditure of about $500,000 each year. This has been done out of regular tax funds and without the use of any bond money. The charter allows a levy of ono dollar and our council made it ?!i cents. This grew out of the trans fer this year from the city to the coun ty of all responsibility for school funds. This relieved the city of 15 cents on the one dollar but added that much to the county and so brought no relief to the taxpayer. It simply means that an 85-cent rate now is as heavy for the taxpayer as a 100-cent rate was in previous years, and you will agree with me that hereafter the sr>-eent l^vy should be as strictly adhered to as the 100-eent levy formerly was. "This report shows that our suc cessors in office begin their public business $800,000 better off than we were three years ago, but it by no means follows that we have done any thing remarkable, unless it be remark able in the transaction of public af fairs to use ordinary business pru dence. "To this city congratulation that its funds are in as good condition as here indicated is tendered. To you nine men who in half an hour begin your term :is r.ouneilmen of Los Angeles, con gratulation that enough of the tax payers' money is turned over to you to enable you to maintain the city's c redlt until November, 1910." In his report the auditor said: Auditor Makes Report ■r deem it opportune and proper that f should, as the city's fiscal agent, make a plain statement concerning financial matters to you at the close of your administration, and through you to the taxpayers. "As you are aware, the charter of the i it-.- of Los Angeles states that th< iunt of tax that can be levied for any one year for all municipal pun shall not exceed $1 on each $100 worth ■"^v^^JnT^x^ N~<:^\l^* rißrv"'' ■■"■—" i .11 ■■■■•■ i ■ —-— - -■■- \y,j|W/* - |-|,|,||i I I|iij.^^,^,, v .,iiijii.i imi.,, , .im«— urn ■■■ 'I'll flf -■m'-^F act im It J SlSfm;iaLflHi^9l v.,-. . - - _^,//^.^, = y^« SECOND FROM THE LEFT IS JUDGE JOHN D. WORKS.. CONTINUING FROM LEFT TO RIGHT, R. W. DROMGOLD, W. J. WASHBURN. E. A. CLAMPITT, GEORGE WILLIAMS. WALTER WREN.:f, RICHMONDPLANTT A. J. WALLACE, T. L. O'BRIEN, H. H. VONKIN, ROBERT M. LUSK. BETWEEN O'BR.EN AND YONKIN ARE BARNEY HEAL'AND MILES GREGORY. DIRECTLY BEYOND YONKIN IS HENRY LYON ftiUlU BY JrVKllNlil, of taxable property, and In addition thereto whatever Is necessary for the payment of interest on and the re demption of outstanding bonds. Dur ing- the three years immediately pre ceding your administration hundreds of thousands of dollars had been di verted from interest and sinking funds and used for expense purposes. ]n this way consieruble more than $1 on each $100 worth of taxable property was levied, collected and used im properly. "This administration has not been guilty of any such action: In fact dur ing your first year in office it was necessary for you to provide money out of your expense account to take care Of interest and sinking fund payments, on account of the depleted condition in which yon found them. "You have always levied within the dollar limit for expenses, even when providing money for schools, and now that school funds arc raised by state and county tax only you have reduced the rate for expense purposes to 85 cents of each $lmi assi Bsed valuation, whereas you might have levied an ex pense tax of $1 and still have been within, your legal rights. "It is to be hoped that the pr< you haw established in this regard will not be ignored by future councils. "When you took office in January. 1907, the general expense or contingent fund had been practically* exhausted by the previous council, whereas you have a balance of over $80,000 in cash in that fund. Indeed, the balance is even greater, for part of the calls on the fund provided for by the resolu tions passed during the last six months Will not be needed during the present fiscal year. This is invariably the case. In fact, during the first half of this fiscal year you loaned out of this gen eral fund about $15,000 to the opening and widening of streets fund, which, of course, will eventually come back into the general expense fund and aug ment tills cash balance of jsn.ooo. "Again, the heavy draft on the gen eral expense fund is always more dur ing the first half of the year than the last half. Take the last fiscal year aa an example: Of an expenditure o over $200,000 from the expense fund $135,000 was authorized during the first half of the year and $65,000 during the last half. "On this basis $SO,OOO in the genera expense fund at this time gives the new council the benefit of over J1.'.000 more than you had for the correspond ing period last fiscal year. Pay Large Deficit "On July 1, 1907, at the time of mak ing up your first budget, you discov ered that there was a practical deficit Of some $280,000 in the outfall sewer fund. Since it required that amount n : addition to $1,000,000 bond issue raisei for the outfall sewer, this amount hai to be provided for out of the tax funds "This council found a depleted ex pense fund and practically a deficit of $80,000. It turns over to the new coun cil a very generous balance in cash In the expense fund and a reserve fund in cash of over $500,000. This fund, if the same care and economy is used by the incoming council, will again approxi mate $500,000 by the end of this fiscal year. "But this is not all—not even the belt part of the story. During the past three years you have constantly re fused to sanction the issuance of bonds for any purpose whatsoever (except the $23,000,000 Owens river bonds, (al though you have been importuned time and again to do so. for (ewers, bridges, engine houses and similar improve ments. Instead, you have saved out of the taxes levied fur current expenses enough to do :i!l these things; in fact, during the lasi threp years there has been set aside for outlays—that is, for expenditures for which there is si thing to show—amounts approximating one and one-half million dollars. "This has been done without the jug gling of funds or the improper use of money raised for the retirement of bonds-. "I cannot let this opportunity pass without the expression of my sincere appreciation to this council and to its committees for their uniform kindness to me personally, nnd for the confi dence and help which they have so often extended to me." COMMISSION SEEKS ROOMS The public utilities commission made its first nport to the council yester day. In its report the commission asked that the council provide it with rooms In which to hold its meetings, and stated that until such rooms could be provided It had secured room 508 in the Lissner block as a meeting place. Til.' new council was Intrust ed with the duty of providing pi rma nent quarters for this commission. A suite of rooms in the Temple block will probably be selected, as there is no room in the city hall. ENTERTAINS OLD COUNCIL Following the adjournment of the council yesterday, President Pease led all the members of the retiring body to Levy's, where in a private dining room he entertained them a t a well ap polnted luncheon, xo speeches made, but there was a (low of good spirits and an underlying current of regret, for those nine men had shoul dered heavy responsibilities together for three rears, and they realize,! it was probabl) the last time they would ever be together. The AnKn: .9 him excellent serv ice and better food. Fourth and Surln*. LOS ANGELES HERALD: TUESDAY MORNLNG, JANUARY I, 11)10. WORKS PLEDGES BEST ENDEAVORS ; PRESIDENT OF THE COUNCIL SPEAKS OF FUTURE Says Grave Responsibility Rests on Those Who Have Been Chosen by Good Government Forces (Continued from Par* On«) tunate, as under our present system the councilmen cannot Rive all their time to the affairs of the city. I would recommend to the new council that they carefully consider an amendment, to the charter providing for the election nf councilmen for four years, as nearly half the number going out every two years as possible, so there will be some need men to help the new ones. Th.> pay of the councilmen ihould h increased to about $300 a month and the council should be organized on the same plan as the board of public works, constantly at work In the city's interests." Councilman Blanchard was called for, and actually made a speech of about a minute and a half, which breaks every record for "Pop." He declared he had never learned to be a speech maker, as he had never had a chance to practice, becausp Wallace and Dromgold took up all the time. Must Carve Own Way Judge John D. Works of the new council responded to the welcomes in a short speech. "This is no time for speech-making, said J'.kllt*- Works. "You people have done something, but we have not yet accomplished anything to boast about. We come into the council under pecu liar conditions. We are nine wholly Inexperienced, untried men. In the past there has always been some one left over to give the new men the ben efit of their experience, but we must carve our own way alone, We feel keenly the responsibilities falling on us nn your retirement. All we can say is we will do the best we can. We con gratulate you on laying down the cares and responsibilities we are called to take up. and in so far as you have set us good examples we will be glad to follow." Councilman-elect W. J. Washburn said: "There never has been a time in the "History of this city when so many nffairs demand mature deliberation. Every dollar must be made to go as far as possible and every employe of the city will be expected to do his-full duty." Mayor to Submit Message Mayor Alexander was sitting at the right hand of President T"ase and he was called on for a- few remarks. "What I -have to say to the new council I will say in a message to morrow." said the mayor. "To the old council I will say we have not alv agreed, but we had got along well. We 'vill have to practice economy and exercise careful judgment in the future. Bui v.ilii'- practicing economy our pub- He buildings should be of the besl and our bridges should be concrete. By the end of this administration T want to see the city occupying a new city hall. "We must carry out the promises we have made to the people on tic harbor and the development of the Owens river power, l as satisfied these two projects are in safe hands, one of th" first appointments T will make will be the reappolntment of Mr. Hul. bard to the board of publls works. That means Bill Mulholland and the nst of them. "We m ist give this city a good ad ministration. Providence h;is placed us here for that purpose, We have the best, people in the world in Los Angeles, and we must give them good government." It was a happy little spec. h thai President Peaie made after all the others had expressed their views. The remark with which he concluded his short address probably will not be forgott " for sometime as it was easi ly the hit of the occasion. "A hard struggle ha;: been required," ■aid the ri tiring president, "to bring the city's unancea to their pi pood condition. We have accomplished re "Its of which any council might be proud. » have endeavored, as presl v- la, to treat the cottncllmen in a manner that would encourage them to do their best. We hftve had n<- quar rels, no deadlock*, no retail. Volume of Business Great "A greater volume of business has passed through this council than any other .Tunril in the same length of time and it has been business that h:in required careful deliberations and sound judKment. "T wish to thank the councilman I'm their uniform courtesy to me. I would thank the clerk, who has been all that a clerk should he and of the most valuable members of this body, r would thank the reporter*. They have nid some things in thatr papers, that have not always been kind, hut I hay« paid but little atten tion to them. ■•Hut shove all I am thankful we are fining out in the natural way, by the expiration of our terms." When the good-natured laughter that followed the president's veiled al lusion to the recall the members of the outgoing council has escaped had subsided, Councilman Dromgold moved the council adjourn sine die, and at 11:68 yesterday morning the old coun cil passed out of existence. At noon H. J. Lelande, city clerk, called the new council to crder. The members of the new council had sat beside the members of the outgoing body all through the last session of the old council and as soon as the new was called to order they took their seats according- to the alphabeti cal arrangement of their names. .1. J. Andrews, Martin Betkouskl, Miles S. Oregory, R. M. Lusk. T. L. O'Brien, Richmond Plant, W. .1. Washburn, George Williams and John D. Works Is the rollcall of the new council. New Council Organized The city clerk acted as temporary chairman and opened nominations for president of the council. K. M. Lusk placed the name of Judge Works in nomination, speaking of his services on the superior and supreme benches and of his record in the army. This nomination was seconded by J. J. An drews and as there were no other nominations the clerk was instructed to cast the unanimous ballot of the council for Judge Works for presi dent. Lusk and Andrews were ap pointed a committee to escort Judge Works to the chair. When he had as sumed the presidency Judge .Works said: Gentlemen: I thank you for the honor you have conferred upon me in making me the president of this council. I will endeavor, as your presiding- officer, to maintain and enforce the rules of the council, but with fairness and impartialty and a just appreciation of the rights of each member and of the public. I hope and expect each of you to assist and support me in the effort to make this a dignified and orderly deliberate body, worthy of the respect and confidence of the people by whom we have been placed in office, and all others har ing business with us. The city lias the right to expect this of us. and I sincerely hope that this expectation may not be disappointed. The city has a right to expect much more of us than this. Good Government Promised We have been elected to office by the. of our fellow citizens who stand for good, clean, economical and efficient government. They have been promised in advance that the new administration of city affairs now coming into power will give the city such a government. It is a grave responsibility. The city has great interests at DESMOND'S Corner Third and Spring Streets, Douglas Building Men's Suits Regular $18 and $15 Values We have a large assortment to select from. These high-grade suits are all from our own lines, marked to sell as high as $18 V See Our 235 Feet of Show Windows Sl<t\r>nnl Slnlr> this week of broken lines of Men's Shirts— PJ CSs* special >3aie resuiar si.SOand 51.25 values, allsizes. for JOC stake. The principles of good rov ernmeht, for which we have been and are still contending, are of vi tal importance to the people. We are confronted with conditions that must be overcome if we are to make good our pre-election pledges. This city has been under misrule for many years. The offices are tilled with employes selected by fa vor, and often at the behest i a corrupt and unprincipled political machine, and not upon their merits or qualifications for the positions to which they have been appointed. Many of them are competent men and under right Influences will make good public servants. Under Machine Rule Some of the officers re-elected a 1 the last election have grown accus tomed to conduct their offices In the extravagant manner charac teristic of the controlling influence of i iiy affairs under machine rule. Unless they are able and willing to rise above the pernicious en vironments and influences of tlte past and conduct their offices In a businesslike and economical way our work will be. made much more difficult. If they can once be assured that they are absolutely free to choose whom they please to serve under them except as restrained by civil service rules, without interference or dictation on the part of any other public officer, or any politi cian or political or other organiza tion, their work will be made eas ier and they should be held to strict accountability for the con duct of their offices. They should —and I am sure they will—have the earnest support and encour agement of this council in every effort to elevate the public service. It might reasonably have been expected that the civil service commission would supply better men and insure better service In the conduct of the city's affairs. But, like every other department of the city, it has, in great part, been the product of the political machine and under its Influence. It has not been a success, and never will be until it is entirely free from such influences and is composed of men who will con duct the examinations it is called upon to make without fear or fa vor and with the sole object of se curing as competent and reliable employes for the city as they would If selecting men to conduct their own business. , 1 hope and trust that this coun cil will, in so far as its power and duty extends, inquire strictly into the present condition of the city's affairs and Its offices, and expose and eradicate as far as possible all the evil Influences and Improper methods of which the people have a right to complain. In doing this work we should know no friends, hut look alone to the best interests of the- city we have been chosen to represent. There is much complaint of ex travagance and corruption in the public service. These complaints are not with out foundation, as we know to our sorrow. Expose Corruption corruption should be exposed, eradicated and punished swiftly and unsparingly. Economy of the right sort should he established and maintained with unwavering firmness in every department of the i-iiy. Bui we must bo watch ful that this dc>".-» not Had us Into false economy. This is a growing and progressive city. The city government must keep Step with its progress and not hin der or retard its growth by a par simonious or niggardly conduct of its affairs. We should see that the city has enough competent and re liable officials and employes to conduct its business promptly and efficiently, that they perform their duties with llilelity and industry, and that they are paid reasonable and just compensation for the serv ices they render. But no surplus age of officers or employes should be allowed, No man should be allowed to remain in the service because he is some cither man's relative or friend, and no inefficient or Irre sponsible employe should be paid the compensation due to one who is capable of and is actually doing good service. What is saiil Of employes should apply to everything that the city has to pay for. Reasonable and .just compensation should be paid for that which is good, and noth ing else should be accepted or tol erated. The duty we owe to the city In preserving its morals and suppress ing vice In all its forms should not be overlooked, now or at any time while we remain in the public service. It Is one of the most dif ficult problems with which we will be railed Upon to deal. [t BhOUld be our purpose to deal with it just ly, humanely and not unreason ably and radically. We cannot suppress evil, all at once, by penal ordlnan'ces. It is largely a question of edu cation and regeneration, and i-- the work, not of this council alone, but of the whole people. It is not a work of fanatics, but of reasonable, conservative men and women, who can extend their sympathies to tha victims of evil while trying to overcome the rvil it- ir. 'lii this end We have the right to eaii for the sympathetic help and support of the good men and wo men of the city to aid us in the elevation of the murals and civic righteousness or the city. We have MAYOR CHOOSES POLICE BOARD Topham Is Holdover, and Three Other Appointees Are Noted for Dili. gence in Good Govern. ment Work «_^__—-~—_—^_——_-_ NEW POLICE COMMISSION ! John Topliam. A. V Davidson, • ii.nir-. Wellborn, I*. M. johwMm. 1 ..- I Mayor Alexander yesterday an : nounced the names of his new police • commissioner. They are John Top ham, A. N. Davidson, Charles Well , bom nnd P. M, Johnson. I Topham is the only holdover from j the police commission that wag ap ] pointed by .Mayor Alexander when he | first took office. Topham has been one of the hardest workers who ever Bat on any of the city commissions and is the terror of evildoers in the liquor traffic. A. x. Davidson is a well known real estate man who operates on- a large scale. The rapid development of the western part of the city has been large ly due to his efforts. Charles Wellborn is a son, of Judge Wellborn and although a young man is a prominent attorney. P. M. Johnson has been active In Good Government work. He is a real estate and oil operator and is a brother of O. T. Johnson, who was a member of McAleer's police commission. There are three members of the park commission to name and one member of the lire commission, mid the mayor expects to announce some more ap pointments today. He will send them to the new council for confirmation. The first meeting of the new commis sion will be held Wednesday night. voluntarily taken upon ourselves great responsibilities. It is for us to meet those re sponsibilities unflinchingly, courag eously and with the firm purpose of giving the city the very best service that lies within us. To render such service will call for watchfulness, integrity and promptness on our part. Watch fulness to protect the city's Inter ests, integrity of purpose in the administration of its affairs and promptness in the performance of our duties. To be late at the meet ings of the council or of commit tees is a breach of duty to the city, a violation of the rules of the council and an injustice to mem bers that are prompt in attendance. I shall expect every member to be in his seat at the time appointed to call the council to order, and that they will aid me in every way in the dispatch of all business that may come before us: and I am sure, from my knowledge of the members of the council, that I shall not be disappointed. Councilman T.usk reported the rules the new council bad prepared. The most important change from the old rules is that the council will meet at 9 o'clock in the morning- Instead of 10 O'clock, and that they will be there on time. This rule cannot be effective at the meeting today and the council will meet at 10 o'clock as usual be cause there is an ordinance in force fixing the meeting time for the council at 10 o'clock. The new council yes terday instructed the city attorney to present an ordinance this morning changing the meeting time to 10 o'clock. Committees Announced Following the adoption of the rules President Works announced his coun cil commit They are as follows: —Washburn, Andrews, Wil liams. Public buildings— Betkouski, Lusk, Plant. Andrews. O'Brien. Sewers—Plant, Williams, OBrlen. Fire and water —Andrews, Betkouski, Gregory. Boulevard*—Gregory, O'Brien, Plant, Williams, Lusk. Land— Lusk. Betkouski. O'Brien. Supplies Williams, Andrews, plant. Legislation—Lusk, Andrews, Wil liams. Gas and -Plant, Betkouski, Washburn. Water supply—Andrews', I.ask, Greg ory. Bridge*— O'Brien, Andrews, fJrogory.