The Influence of the Los Angeles “Oligarchy” on the Governance of the Municipal Water Department, 1902-1930: A Business Like Any Other or a Public Service?

The municipalization of the water service in Los Angeles, in 1902, was the result of a (mostly implicit) compromise between the political, social and economic elites of the city: the economic elite (the «oligarchy») accepted the idea of municipalizing the water service, and helped the Progressive politicians and citizens to put an end to the franchise of the private LA City Water Co, a corporation obsessed with financial profitability: a return of «100 cents for every dollar invested» was how William Perry, the CEO, used to sum up his company's activity, and this very often led to under-investment and the construction of a network of relatively modest scope and efficiency. The «oligarchy» accepted to partake in the municipalization on the condition that the water service remain a «healthy business proposition», self-sustainable as far as investments and operating costs were concerned …