anaheim-gazette 1921-01-27

ANNUAL REPORT OF BOARD OF AUDIT For Year Ending December 31, 1920 Of The Anaheim Union Water Co. ANAHEIM, JANUARY 31, 1921 TO THE STOCKHOLDERS OF THE ANAHEIM UNION WATER COMPANY: GENTLEMEN:—YOUR BOARD OF AUDIT SUBMITTS THE FOLLOWING REPORT FOR THE YEAR ENDING DECEMBER 31, 1920. STATEMENT OF LOSS AND GAIN—1920 I. WATER AND GENERAL ACCOUNTS: Water deliveries ... $81,403.69 Rentals and sundry items ... 2,872.23 Cleaning ... $11,838.11 Electric power ... 18,460.90 General expense ... 12,979.05 Tools and sundry expense ... 1,779.63 Pumping ... 2,678.12 Repairs ... 37,764.74 S. A. R. D. Co. ... 7,454.16 Salaries ... 3,113.70 Superintendent and zanjeros ... 17,082.30 Taxes—Real estate (except oil property) ... 942.04 Taxes—Federal Capital Stock Tax ... 939.00 Taxes—State corporation % ... 102.00 Depreciation, plants, machinery and trucks ... 18,462.53 Interest ... 24,090.92 Total general income ... 84,276.92 Total operating expenses ... $157,685.20 Net loss ... $73,408.28 II. OIL ACCOUNTS: Taxes—Federal Capital Stock Tax 939.00 Taxes—State corporation 102.00 Depreciation, plants, machinery and trucks 18,462.53 Interest 24,090.92 Total general income 84,276.92 Total operating expenses $157,685.20 Net loss $73,408.28 II. OIL ACCQUINTS: Oil royalties $31,666.26 Oil expenses and repairs $1,591.31 Oil salaries 1,920.00 Oil taxes, real estate 4,622.39 Oil taxes, Federal income 385.32 Oil taxes, State tax on oil protection 42.72 Depreciation (oil construction) 2,500.00 Total oil expense 11,061.74 Net gain $20,604.52 Net loss in operations $52,803.76 III. ASSESSMENTS: 79,840.00 $79,840.00 Gross income 195,783.18 Gross expense 168,746.94 IV. DEPRECIATION: Real estate 49,090.00 Final net loss $49,090.00 $22,053.76 $22,053.76 TOTALS $217,836.94 $217,836.94 $101,893.76 $101,893.76 RESOURCES Real estate and improvements (appraised at double assessed value): Lot and office building City of Anaheim $9,100.00 La Habra reservoir site 400 acres 214,400.00 Tuffree reservoir site 28.02 acres 67,890.00 At pumping plant No. 1 683.65 acres 22,860.00 At pumping plant No. 2 40 acres 6,830.00 At pumping plant No. 3 37.20 acres 6,600.00 Yorba tract 40.11 acres 5,610.00 Yorba reservoir site 81.80 acres 9,600.00 Yorba Linda tract, adjoining above 2.22 acres 550.00 Sundry rights-of-way (in fee simple) .39 acres 260.00 Lots in Placentia 2,000.00 Adjoining pumping plant No. 3 7.19 acres 1,650.00— 347,350.00 Pumping plants 70,645.33 Oil construction 7,500.00 Water rights, ditches, pipeline, rights-of-way 1,054,855.81 Tools and implements, including well rig 7,200.00 Ford trucks 300.00 International truck 3,542.60 Furniture and fixtures 300.00 Stock, S.A.R.D.Co. 1,400.00 Stock, Yorba Linda Water Company 100.00 Accounts receivable (Consumers) 489.95 Accounts receivable (Sundries) 5,304.16 Accounts receivable (Anaheim Sugar Co., Doc.Oll) 933.74 Notes receivable (S.A.R.D.Co.) 75,500.00 Pumping plants ... 70,645.33 Oil construction ... 7,500.00 Water rights, ditches, pipeline, rights-of-way ... 1,054,855.81 Tools and implements, including well rig ... 7,200.00 Ford trucks ... 300.00 International truck ... 3,542.60 Furniture and fixtures ... 300.00 Stock, S. A. R. D. Co. ... 1,400.00 Stock, Yorba Linda Water Company ... 100.00 Accounts receivable (Consumera) ... 489.95 Accounts receivable (Sundries) ... 5,304.16 Accounts receivable (Anaheim Sugar Co., Doc, Oil) ... 933.74 Notes receivable (S. A. R. D. Co.) ... 75,000.00 Notes receivable (Sundries) ... 112.55 Cash in hands of Secretary ... 9,218.54 Total ... $1,584,253.18 LIABILITIES Capital Stock ... 800,400.00 Surplus ... 355,505.29 Bonds—Issue of 1909 ... 145,000.00 Notes payable ... 255,050.00 Accounts payable, December bills ... 3,236.27 Accounts payable, due consumers ... 5,412.88 Accounts payable, Sundry ... 1,795.07 Overdraft ... 17,853.67 Total ... $1,584,253.18 WATER DELIVERIES—1920 January ... $2,042.15 February ... 1,384.60 March ... 325.00 April ... 2,933.50 May ... 13,310.75 June ... 12,230.15 July ... 13,272.60 August ... 12,697.55 September ... 11,133.45 October ... 5,977.00 November ... 3,366.04 December ... 2,739.90 Total ... $81,403.69 STOCK We find that there are now... as per Stock Ledger, 8,004 shares of the Capital Stock of the Company. ANAHEIM GAZETTE BONDS The bonded indebtedness of the Company is as follows: Issue of 1909 outstanding $220,000.00 Amount of 1909 issue in treasury 75,000.00 Total amount bonds outstanding $145,000.00 Bonded indebtedness reduced during year 13,000.00 Bills payable increased during year 32,200.00 Overdrafts, less cash differences 11,000.00 Total indebtedness increased 30,290.00 CONSUMERS' ACCOUNT 1920 Due from consumers, January 1, 1920 715.40 Due to consumers, January 1, 1920 5,000.69 Received from consumers in 1920 -82,480.43 Water delivered in 1920 81,403.69 Refunds, etc. 439.10 Due from consumers, January 1, 1921 489.95 Due to consumers, January 1, 1921 5,412.88 Totals $87,971.07 $87,971.97 OIL PRODUCTION Barrels Our Royalty 1913. Gross production $73,122.02 1914. Gross production 64,335.31 1915. Gross production 59,594.65 1916. Gross production 39,458.58 1917. Gross production 59,510.36 1918. Gross production 52,966.68 1919. Gross production 43,136.51 1920. Gross production 31,666.26 The production of the Amalgamated lease for Dec. 1920 was 6,891.19 bbls. (52 per cent of Dec. 1919) and of the St. Helens lease 3380.73 (83 per cent of Dec. 1919). Almost the entire production from the Amalgamated lease is from four wells on the westerly side of the tract which produced for December 4750 bbls., or almost 70 per cent of the total. The well on the Gomber tract has reached a depth of 3118 feet, and drilling has been held up by lack of casing. The company has leased the tract of 683 acres at pumping plant No. 1, drilling to start by February 12, 1921. DISTRIBUTION OF FUNDS FORD BETTERS RAILROAD'S EARNINGS Inspect 454 Miles of Track In Automobile—Profits 20 per cent More During its first month under Ford control, September, the Detroit, Toledo & Ironton Railroad increased its gross earnings more than 20 per cent over any previous month, October, 1919, the next boat month, showed gross earnings of $430,830, whereas September, 1920, brought forth $664,-492, an increase of over $133,000. The fact that the road was taken over by Henry Ford on September 1 makes this particularly noteworthy. Mr. Ford plans first to put the D.T. & I. in order to assure Detroit of a coal supply all the year round. But he has a much broader view of the future activities of the road than merely supplying fuel and materials to his own factories. He expects to use it for the development of the country which the road traverses. In order to complete his plans by which solid coal trains may be run continuously, he made a personal inspection of all the grades and bridges over the 454 miles of main track. In his automobile, he traversed a considerable length of the line, visiting the roundhouses and shops, and conversing with the mechanics. He went out with repair gangs and examined every unit of the road's motive power. He made decision about rails, new shops, and loading points even before 1920, Gross production ... 161,768.72 ... 31,666.20 The production of the Amalgamated lease for Dec. 1920 was 6,891.19 bbls. (52 per cent of Dec. 1919) and of the St. Helens lease 3380.73 (83 per cent of Dec. 1919). Almost the entire production from the Amalgamated lease is from four wells on the westerly side of the tract which produced for December 4750 bbls., or almost 70 per cent of the total. The well on the Gomber tract has reached a depth of 3118 feet, and drilling has been held up by lack of casing. The company has leased the tract of 683 acres at pumping plant No. 1, drilling to start by February 12, 1921. DISTRIBUTION OF FUNDS Receipts Disbursements Cash on hand January 1, 1920 ... $ 2,396.60 Water deliveries ... 82,480.43 Notes increased ... 32,200.00 Overdrafts less cash on hand ... 8,635.13 Rentals and sundry collections ... 3,395.99 Oil royalties ... 31,666.26 Bonds paid off ... 13,000.00 General operating expense less depreciation ... 139,212.67 Oil operating expense less depreciation ... 8,561.74 $160,774.41 $160,774.41 Assessments ... $ 79,840.00 IMPROVEMENTS: CONSTRUCTION IMPROVED: Dam at Head Gate ... $ 2,484.25 House at Yorba Resesvolr ... 2,693.39 House at Pumping plant No. 1 ... 836.84 Main ditch ... 13,521.04 Orangethorpe line ... 2,354.15 Skinner-Sparks line ... 2,842.01 Warehouse at pumping plant No. 2 ... 1,661.80 Strain line ... 400.00 House at No. 3 ... 3,587.31 House at pumping plant No. 4 ... 2,958.30 Miscellaneous construction account ... 1,319.71 34,658.80 PUMPING PLANTS IMPROVED: Pumping plant well No. 1 ... $ 1,514.08 Pumping plant well No. 2 ... 1,511.68 Pumping plant well No. 3 ... 11,143.39 Johnson pump ... 2,408.80 Motors ... 2,099.92 New pumps ... 9,676.94 Casing ... 737.97 Transformers ... 587.55 Miscellaneous pumping equipment ... 1,649.42 31,329.65 Accounts paid off ... 7,602.87 Well rig ... 1,200.00 Tools ... 1,000.00 International truck ... 4,048.68 Totals ... $ 79,840.00 $ 79,840.00 It will be noted that the loss in operations was met by increasing the indebtedness of the company $30,200.00; and that the amount received or assessments was practically all used in new construction and in addition to the pumping plants. We feel that this money has been invested wisely, and that the expenditures were necessary; for we realize that this company must depend more and more in future years upon pumped water. The needs In order to complete his plans by which solid coal trains may be run continuously, he made a personal inspection of all the grades and bridges over the 454 miles of main track. In his automobile, he traversed a considerable length of the line, visiting the roundhouses and shops, and conversing with the mechanics.* He went out with repair gangs and examined every unit of the road's motive power. He made decision to rails, new shops, and loading points even before the deal was concluded. Completely convinced that the D. T. & I. is able to supply Detroit and Michigan with fuel, Henry Ford made all his plans with this in mind. SUPERVISOR'S PROCEEDINGS It was ordered that the bonds of the Fountain Valley School District be sold at private sale. The First National Bank of Santa Ana, offered par and accrued interest, bonds were sold to them. It was ordered that the bonds of the Paularino School district to the Anaheim Union High school district, be rescinded and that a tax be levied upon the property of the said Alamitos school district according to law. It being necessary to re-adjust the boundaries of election precincts affected by the incorporation of the City of Orangethorpe the Board ordered that the County Engineer be authorized and instructed to prepare a map of the boundaries of precincts affected by the incorporation. Resolution was passed to change County Road Crossings on the Southern Pacific Railroad. Franchise of Union Oil Company of California, was ordered advertised for sale. Bids to be submitted March 15th 1921, at 10:00 A.M. Listing of trial jurors was made for the year, 1921. It was ordered the order annexing the Centralia school district to the Anaheim Union high school district, be rescinded and that a tax be levied upon the property of the said Centralia school district according to law. COMPANY WILL GROW TOBACCO ON BIG SCALE A new industry for California is assured as the result of the decision of the newly organized Continental Waste Products Corporation of Delaware to undertake the growing of tobacco and the manufacture of nicotine insecticides and other tobacco products in this state. The company It will be noted that the loss in operations was met by increasing the indebtedness of the company $30,200.00, and that the amount received on assessments was practically all used in new construction and in additions to the pumping plants. We feel that this money has been invested wisely, and that the expenditures were necessary, for we realize that this company must depend more and more in future years upon pumped water. The needs of the district will continue to increase, and there is little probability of additional surface supply. There is the further problem that the increased demand comes from the higher part of the district which has had to depend entirely upon the surface flow, and to which the company has not been able at all, times to deliver its pro-rata of the water, inasmuch as the pumped water is not delivered east of Placentia Avenue. We cannot, however, approve of a policy of meeting a deficit in the cost of operations by increasing the indebtedness of the company as was done last year. Each year should take care of its own expenses, either in the line of regular income, or by assessments. Neither do we feel that the company can safely continue to carry a floating indebtedness of over a quarter of a million dollars, $82,000.00 of which matures in one period of less than thirty days. At least $25,000.00 of these notes should be retired each year so that at the end of the ten year period the indebtedness would be paid off. You further notice that the returns from the oil leases did not quite cover the one item of interest on indebtedness, and with the constantly declining oil returns, it is probable that the best that can be expected of the oil will be to take care of the interest, even if other arrangements are made to retire the principal of the debt. We suggest that the water rates should be raised sufficiently so that the sale of water will cover operating expenses. Let the oil returns take care of the interest, levy one assessment of $5.00 per share each year to be set aside explicitly for the purpose of retiring the notes and bonded indebtedness which would be accomplished in ten years, and that all new construction should be taken care of by further assessments. The undersigned, members of the Board of Audit, have carefully examined all books, papers and other records appertaining to the business of the Company for the year ending December 31, 1920, and find that the same have been kept in a correct, neat, clear and intelligent manner, and that the foregoing is a full, true and complete report taken from the books covering the above mentioned period. Respectfully submitted, ARTHUR STALEY, C. H. SEAMANS, Board of Audit, A new industry for California is assured as the result of the decision of the newly organized Continental Waste Products Corporation of Delaware to undertake the growing of tobacco and the manufacture of nicotine insecticides and other tobacco products in this state. The company was organized by William H. Kennedy of Los Angeles and has acquired rights to patents and formulas for extracting nicotine, potash and other by-products from tobacco originated by him. Mr. Kennedy announces that three plants are projected by the corporation in California, one to be started in the very near future, or as soon as a suitable site can be secured. The first plant, he says, will be placed in either the San Fernando or the San Joaquin valleys, and will represent an outlay, with machinery, of around $200,000. The company wants to acquire at least a thousand acres in the immediate vicinity of the plant with the view to growing a large part of the tobacco supply used in manufacturing activities. This supply, Mr. Kennedy declares, grows to great size in this state, leaves forty inches long by a foot wide having been secured by experimental plots. No effort will be made to produce good quality tobacco, quantity being the sole aim. The process of manufacture calls for the extraction of the free nicotine for insecticides, this to be followed by the roasting of the residue for the purpose of securing potash. The latter is sold for use in arts, being in the form of potassium carbonate, and will also be used later in the manufacture of a special blasting powder for which the company has patents. METERS BIS EARNINGS Miles of Track Mobile—Profcent More month under Ford er, the Detroit, Tonilroad increased its more than 20 per cent month, October, most month, showed of $430,830, wheres brought forth $564, over $133,000. The was taken over by September 1 makes noteworthy. first to put the D. to assure Detroit of the year round. But broader view of the at the road than merand materials to his expects to use it ment of the country traverses. complete his plans by trains may be run made a personal ingrades and bridges of main track. In he traversed a conof the line, visiting shops, and conmechanics. He went gangs and examined broad's motive power. on about rails, new points even before CRIME ON INCREASE IN CALIFORNIA Sheriff Jackson Says The Jails are All Overflowing In Every County Sheriff C. E. Jackson returned Thursday from Sacramento, where he attended a convention of county sheriff's of the state. "We found that crime is on the increase throughout the state," said the sheriff, "and we formulated a program confidential, of course, that is designed to curb this crime wave to some extent at least. I learned that practically every jail in the state is filled to capacity. We have over seventy prisoners in the Orange county jail. The Los Angeles county jail is so full prisoners are sleeping on the floors and in the hallways. Some suggestions were made for relief of this condition." Jackson said that the sheriffs went on record as being in favor of sending all second fermers direct to Folsom instead of to San Quentin penitentiary. This action was taken, he said, in line with the retrenchment policy that is being worked out by the state legislature now in session. He explained that all first termers go to San Quentin, but that there is no use in sending the second termers there only to have them trasferred to Folsom at a cost of $25 each. This, he says, costs the state thousands of dollars every year. Several sheriffs in the northern part of the state, must THE PEOPLE MUST WORK AND SAVE LeRoy Holt A Prominent Banker of El Centro Tells His Reasons Leroy Holt, president of the First National bank at El Centro gave a most interesting interview to a reporter of the Imperial Valley Press of that city. "The tremendous losses caused by the World War, coupled with extravagance, in my opinion, are primarily responsible for the existing conditions. The approximate money loss is placed at two hundred billion dollars; the known dead at ten million; the seriously wounded at six and one quarter million; the total property loss at thirty billion dollars; the loss in man-power, measured in money, at one hundred eighty billion dollars, and an increase in the debt of the world from forty-four billion dollars in 1914 to two hundred fifty billion dollars in 1920. "During this period the per capita circulation of the United States increased from $37.31 in 1914 to $59.48 in 1920. This increase in circulation caused a wave of speculating and extravagant buying by domestic consumers and at the same time, there was an unusual demand for foreign countries for American made goods." In 1918 we felt that 1919 would see a retrenchment in buying and a reduction in prices, but people continued buying—and the merchants complete his plans by trains may be run made a personal ingrades and bridges of main track. In he traversed a conof the line, visiting shops, and conmechanics. He went orange and examined broad's motive power. on about rails, new points even before included. advanced that the D. T. supply Detroit and mel, Henry Ford made this in mind. PROCEEDINGS that the bonds of Valley School District sale. The First Naanta Ana, offered parrest, bonds were sold that the bonds of school district to the High school district, that a tax be levied by the said Aladict according to law. ary to re-adjust the action precincts affectoration of the City of the Board ordered that engineer be authorized to prepare a map of the precincts affected by passed to change crossings on the Souroad. Union Oil Company is ordered advertised be submitted March 00 A. M. jurors was made. the order annexing school district to the high school district, that a tax be levied by the said Condict according to law. GROW TOBACCO ING SCALE for California is assumt of the decision organized Continental Corporation of Delaware the growing of to-manufacture of nicco- and other tobacco state. The company This action was taken, he said, in line with the retrenchment policy that is being worked out by the state legislature now in session. He explained that all first termers go to San Quentin, but that there is no use in sending the second termers there only to have them transferred to Folsom at a cost of $25 each. This, he says, costs the state thousands of dollars every year. Several sheriffs in the northern part of the state, must take their prisoners directly through Folsom on their way to San Quentin, when they might as well drop them off at Folsom and save the expense of making a transfer. The crime wave which was discussed at length at the convention was attributed to "hard times." The high cost of living and the large number of unemployed are the principal factors. THE ORANGE SHOW Joseph E. Rich, president of the Eleventh National Orange Show can, be held in San Bernardino February 18 to 28, inclusive, has issued the following statement regarding the exposition and its prospects: "It is with a feeling of infinite satisfaction that the management of the Eleventh National Orange Show can, at this early date, announce that the exposition will be larger and more complete than ever before in the 11 years of its history. Applications for space in the fruit and industrial departments have already exceeded the total space allocated last year—and the opening of the show is almost a month away. The only problematic thing about the Eleventh National Orange Show now is the weather, which is important because it regulates the attendance. With clear weather during the most of the exposition period the attendance record of 160,000 established last year should easily be broken by the coming show. "It is important that the people of Southern California understand that the National Orange Show is in no sense a commercial enterprise—that it has no pecuniary interest for its sponsors. There is no money to be made from the Orange Show by any individual or group of individuals—profits of one year are put into the exposition of the next; thus the improvement and enlargement from year to year is accounted for." The National Orange Show was originated a decade ago with the sole idea of being an asset to the whole "During this period the per capita circulation of the United States increased from $37.31 in 1914 to $59.48 in 1920. This increase in circulation caused a wave of speculating and extravagant buying by domestic consumers and at the same time, there was an unusual demand for foreign countries for American goods." In 1918 we felt that 1919 would see a retrenchment in buying and a reduction in prices, but people continued buying—and the merchants soon found their stocks exhausted, with no indication of a return to pre-war prices, with few people feeling any apprehension concerning business for 1920. If we had stopped to think of the orgy of spending and the waste of man power that had been going on since the beginning of the war, and that the reconstruction of Europe was beset by danger, we should have been forewarned. Today the stabilizing of the European credit presents a puzzle that none of our best financial minds care to hazard a guess. The vast sums spent by the armies of Europe among their tradesmen and peasants during the war, seems to have lowered the morale of their people, making it hard for them to get back to normal production, which is essential to the reestablishment of their credit. Neither the banks nor the government can create credit. Credit is the product of enterprise and operations in commerce; it is the means by which real wealth is transferred and not wealth itself. Wealth consists of goods and service. The vast destruction of wealth by the war can be replaced only by creating new wealth and not by creating more credit. When the people of any country become idle spenders, it will prove fatal to the nation and the individual. "I believe one of the most important much today from the past few years of extravagance and idleness. When we stop to think that the opportunities of this nation have been greater than those of any other nation, yet only three Americans out of every hundred save enough money by the time they reach the age of 65 to support them for the balance of their lives, without assisted from relatives or the community. "I believe one of the most importante duties of the education of American young people concerns the simple matter of 'thrift'. Personally, I do not believe that there is any considerable proportion of workers in America today—who could save, out of their income a tenth, without suffering in the..." for California is as result of the decision organized Continental Corporation of Delaware the growing of tobacco and other tobacco state. The company William H. Kennedy has acquired rights formulas for extracting and other by-products originated by him. Announces that three related by the corporation, one to be started for future, or as soon as can be secured. Theays, will be placed in Fernando or the San Bernardino will represent an machinery, of around company wants to acquire thousand acres in the city of the plant with building a large part of only used in manuaries. This supply, Mr. M., grows to great size lives forty inches long having been secured by its. No effort will produce good quality being the sole aim. manufacture calls for of the free nicotine this to be followed by the residue for the potash. The latter in arts, being in the carbonate, and will later in the manufacturing blasting powder for company has patents. Southern Orange Show is in no sense a commercial enterprise—that it has no pecuniary interest for its sponsors. There is no money to be made from the Orange Show by any individual or group of individuals—profits of one year are put into the exposition of the next; thus the improvement and enlargement from year to year is accounted for. "The National Orange Show was originated a decade ago with the sole idea of being an asset to the whole of the California citrus fruit industry, and that thought has remained constantly in mind. The various districts of California receive benefit from the exposition in proportion to the interest they take in it in placing citrus fruit displays. No one district is favored by the management. The exposition is held in San Bernardino for two principal reasons: First, because it originated here and there has never been reason for moving it; second, San Bernardino is the geographical center of the Southern California orange belt, making it the logical place for the holding of any exposition for the development of the orange industry." Burglars broke into the room of Louis Tripp at the Palace rooming house on North Los Angeles street Thursday afternoon, getting away with more than $100 worth of clothing. A bill folder taken from the room was found in the postoffice lobby. WANTED—Position on ranch, with house furnished, Twelve years experience in ranch work. Address A. J. Norris, Glendora, Cal., Box 496. Can give references. 10-3t. FARM WANTED—Wanted to hear from owner of farm or good land for sale worth price asked.—L. JONES, Box 551, Olney, Ill. County Clerk J. M. Backs received from Sacramento anglers' licenses for the present year. Backs will distribute the licenses to his deputies throughout the county at once and all who enjoy the sport of fishing may avail themselves of a license. Backs received 1,600 licenses. He says that approximately 1200 were called for during 1920 and that in all probability that many more will be demanded this year.