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Trends in municipal government activity for the City of Los Angeles, 1910-1955

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Trends in municipal government activity for the City of Los Angeles, 1910-1955

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Content TRENDS IN MUNICIPAL GOVERNMENT ACTIVITY
FOR THE CITY OF LOS ANGELES, 1910-1955
by
James Dale Burton
A Thesis Presented to the
FACULTY OF THE GRADUATE SCHOOL
*
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
\
Requirements for the Degree
MASTER OF ARTS
(Economics)
June 1956
UMI Number: EP44743
Ail rights reserved
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789 East Eisenhower Parkway
P.O. Box 1346
Ann Arbor, Ml 4 8 1 0 6 -1 3 4 6
U N IV E R S IT Y O F S O U T H E R N C A L IF O R N IA
G R ADUATE SC H O O L
U N IV E R S IT Y PARK
LOS A N G ELES 7
'S
go- '56 B?7f
This thesis, w ritte n by
JAMES DALE BURTON
under the guidance o f h.%3~.Facuity Comm ittee,
and approved by a ll its members, has been p re
sented to and accepted by the F a c u lty of the
Graduate School, in p a rtia l fu lfillm e n t of the
requirements fo r the degree of
...........MASTEfi~OE..iLH.TSL...........
.......
Assistant Dean
D ate... .June..l95.6.
Faculty, Committee
Chairman
2)
TABLE OP CONTENTS
Chapter
I :u INTRODUCTION .................................
Nature of the problem . .
Statement of the problem . ..............
Significance of the problem........... .
| Objectives of this study............. . . .
Areas of greatest municipal growth . . . .
I
| Service to the Los Angeles citizens . . .
Effeets of the growing population . . . .
Literature and source material in the field.
Literature on municipal economic activity
Plan of study
II. THE ECONOMICS OF PUBLIC EXPENDITURES ..........
The theory of governmental expenditures . . .
The government economy ......................
Overall level of public expenditures . . . . .
National defense expenditures ............
Veterans• benefits ... ................ .
Education and economic development ........
Interest on the debt . ....................
Trends of municipal expenditures .......
Expenditures on the municipal government
level .....................
Municipal expenditure policy ..............
910
CHAPTER
A trend of government expenditures . .
Summary of government expenditures . . .
III. THE ECONOMY OF LOS ANGELES IN 1910 AND 1955
A COMPARISON ..........................
The City of Los Angeles in 1910 ....
Los Angeles population growth prior to
Economic and financial aspects of 1910
Cultural aspects in 1910 ........
Municipal economic activity, 1910
The Los Angeles economy of 1955 • •
Economic growth of Los Angeles . .
Total Los Angeles sales .....
Industrial activity in the Los Angeles area
The aireraft manufacturing industry
Construction industry in Los Angeles
Growth in utility activity ..........
Electric energy • • • .
Use of natural gas........... . .
The increasing use of the telephone
Transportation activity ..........
Problems of growth in Los Angeles ...
Problems of food supply ............
Growth of the school dilemna ........
Will smog hinder Los Angeles economic
ivj
I
PAGE
35
36
38
38
39
40
41
42 |
441
45!
4 9!
49:
54
!
56'
56
59
60
60
63
63
64
V
CHAPTER PAGE
i activity? ............ ........ 65
Summary of Los Angeles economic growth ... 66
IV. INCREASE IN LOS ANGELES MUNICIPAL ACTIVITY ... 68
Growth of total city activity............ 68
Growth of the several departments ...... 75
General government activities . .............. 78
Department of public works.............78
1
Other general government activities ........ 83
1
Protection to life and property ........ 85 :
The police department.................. 86 I
i
The fire department 89 !
Other protective departments 90 1
Conservation of health 90 ;
Education ......................... 92
Los Angeles City School Districts....... 93
Recreation activity of Los Angeles....... 94
Miscellaneous activities ..... .......... 98
Public service enterprises ............ ... 101
Relative municipal expenditure growth ........ 101
Summary of municipal activity ......... 103
Causes of growth of municipal activity . . . 104
V. PUBLIC SERVICE ENTERPRISES........... 108
Water works of the Department of Water and
Power......................... 110
CHAPTER PAGE
Physical make-up of the area ..............Ill
Ocean River Vally and Mono Basin ...... 112
The Colorado River, and the metropolitan
water district of Southern California . . 113
City use of water................... 113
Electric works of the Department of Water and
Power..................................11^
Electric system description .......... 116
Hoover Dam power......................Il6
Steam generating plants.............. 117
Hydroelectric plants............... 118
Operations ............................118
Harhor department ........ ......... 118
Early history of the harbor ........ 119
Harbor operations........................ 121
Growth of value of harbor department
property.............................. 122
Department of airports.................... 123
Public service enterprises summary • ........ 127
VI. CONCLUSION ....................................128
Areas of municipal growth • • • . . ...... 129
Municipal groups with the greatest
absolute growth .................... 129
vii.
CHAPTER
Intensive activity growth, of the public
service enterprises . ........
Extensive growth of the public service
enterprises ........................
Municipal groups with the greatest
relative growth ......................
Growth of other municipal groups ....
Services to the Los Angeles citizen ....
Services of the public service enterprises
General municipal government activities •
Services incorporated since 1910 . . •
Municipal effects of the growing population
Trends in municipal activity for Los Angeles
BIBLIOGRAPHY ...................................
PAGE I
t
130
131
132
133
134
13^
135;
136!
I
137 j
139!
142:
LIST OP TABLES
TABLE
I. Combined Federal, State, and Local Government
Expenditures, and Net National Product for
Selected Years, 1902-1952, by Purpose of
Expenditure......... . . ...............
II* Total Sales for the City of Los Angeles ...
III. Manufacturing Industries in the Los Angeles
Metropolitan Area Ranked According to Size
in the Third Quarter of 1 9 5 4 ............
XV. Electric Energy Use Los Angeles City ....
V. Electric Energy Used In Kilowatt-hours per
Capita, City of Los Angeles ..............
VI. Telephone Stations In Service City of Los
Angeles ..... ........................
VII. Inventory of City-owned Property, Dollar
Value, 1910-1955 ............ ..........
VIII. Total City Expenditures, 1910-1955 ........
IX. Inventory of City Property, Dollar Value,
1910-1955 .......... ....................
X. Protection to Life and Property Inventory,
Dollar Value, 1910-1955 ..................
XI. Financial Data, Los Angeles City Schools
Districts, 1930 to 1955 (Selected Years). .
PAGE
22
48
50
57
58
61
69
71
79
87
95
! TABLE
i
i . ..
| XII* Inventory of Education, Recreation, and Public
i
I
Service Enterprises Departments, Dollar
Value, 1910-1955 ..........................
XIII. Miscellaneous Activities Inventory, Dollar
| Value, 1910-1955 ..........................
I
XIV. The Ratio of Municipal Government Activity
to Assessed Valuation, City of Los Angeles,
Selected Years, Dollar Value ..............
PAGE
I
96
99
105
CHAPTER I
INTRODUCTION
The value of municipally-owned property of the City
iof Los Angeles In 1954 was equal to thirty-five per cent of
I i
| the assessed valuation of the City. The working popula-
j p
ition of the City in 1954 was estimated to be one million,
with over three per eent of this working force employed by
the municipal government.3 These figures indicate that for
the year 1954 the municipal government of the City of Los j
I ^For 1954, inventory of city property was |
!$1,084,149,172.83; assessed valuation $3*055,936,214. j
IAnnual Report of the Controller. - City of Los Angeles,
I June 30, 195^, PP. 123* 102.
j o
| Total employment figures for the City of Los
j Angeles are not available, employment being computed for
I the Metropolitan Los Angeles Area. The Researcher. First
Quarter. 1954. published by the Los Angeles Chamber of
Commerce, p. 6, indicates that 45-6 per cent of the manu
facturing value of the Los Angeles Metropolitan Area was
accounted for by the City of Los Angeles in 1947• 45.6
per eent of the total civilian labor force of 2, 279,800
for Metropolitan Los Angeles for 1954 would make a City
working force of 1, 039, 589. Labor force for Metropolitan
Los Angeles from The Aircraft Indus try: Its Size and
Importance in the Los Angeles Economy. mimeographed by j
the Security-First National Bank of Los Angeles, September 1
30, 1954, p. E 100-2A. |
3Number of employees of the City of Los Angeles |
for 1954 amounted to 32,446. Information contained in a j
letter to the author from Mr. Conacher, Civil Service j
Commission, City of Los Angeles, dated December 8, 1955* I
1
i
2
Angeles accounted for a sizeable portion of the economic
activity of the City*
! I. NATURE OP TEE PROBLEM
i
| It may be naturally assumed that expenditures for
| city activity were greater in 1954- or 1955 than they were
in 1910. It may be well to ask qualifying questions on
this matter. Are they greater, relatively, for services
rendered by the city? Do they reflect a change toward
i
city government activity, or are they merely an enlarge- j
i . i
| ment of activities in progress at earlier dates? Do we j
1 ■ (
1 ■ \
\ expect more from our city government? Are we getting more?|
I ' '!
s To answer these questions a wide range of municipal
government activity must be reviewed. The economy of the
city of 1910 must be considered to determine the obliga
tions of the government as understood by the populace at
that time. It is suggested that concepts of 1910 may be
far different than those of 1955• If this is so, what has
changed the government activity requirements?
The standard of living for the population in general
is higher now than it was in 1910, and it may be assumed
that this increase is in some part due to the framework of
the government on various levels. An inventory of muniei-
I
| pal government property indicates that the Los Angeles City
1 government itself contributes a large amount to the real__
3
value of the city. The size and range of activity of the
municipal government Is much greater than in 1910. This
thesis will be concerned with an examination of this area.
Statement of the Problem
The problem in the field of municipal government
activity is similar to that of other governments. It is
a problem of securing an adequate return for monies ex
pended for government activity. In this thesis the
activity of the municipal government of the City of Los
Angeles will be considered. The various departments of
i
| the City will be examined to attempt to determine which j
! . S
| have been the areas of greatest economic increase. Exami- j
j nations will be conducted for several departments and for !
j the City as a whole to question economic trends and
results. The greatly increased population will be borne j
1
in mind, with results compared on an absolute level, and
also on a relative, and per capita basis.
Significance of the Problem
In the broad overall field of government expendi
tures and activities, the importance of municipal govern
ment activity must not be overlooked. Granted, a city
i
!
government will not spend such great amounts as will the
federal government j it has neither the spending nor taxing
powers of the larger facility. It can, however, provide
I
jus with an indication of the general activities expected
j of government* If much more support and activity is ex-
i
i
peeted from the federal government, the local governments
will also he expected to expand their range of actions.
This thesis is expected to provide some insight
into the growth of municipal government activity. As Los
I
Angeles is one of the most rapidly growing cities of the
nation, a comparatively liberal government might be ex
pected— aggressive in its desires to fulfill the needs of
i
i the City. It Is hoped also that areas affecting increases
i i
i ■ *
:in federal government expenditures and activity which !
i |
japply on the local level will be perceived. j
l
i
Objectives of This Study j
j
In this study an attempt will be made to discover j
5
i
trends of growth of municipal government for the City of J
Los Angeles during the period 1910-1955. The form of
government will be accepted per se, with all examinations
and comments directed to published material relative to
the City. Ho recommendations will be made for alternative
types of government nor will others be used as a criterion
for comparison.
Areas of greatest municipal growth. Which areas of
municipal activity represent the greatest growth in the
City of Los Angeles? By using available data, the_________
departments of the City will be considered to indicate
which sections have shown the greatest expansion* Differ
ent aspects will be considered to see if there is a direct
I relationship between absolute and relative growth for the
several departments.
Service to the Los Angeles citizens* The service
i
j to the citizens of the City by their government will be
i
j examined to see if the growth of economic activity by the
| City has been paralleled by an increase in service. It
i
' may be expected that those departments exhibiting the i
! j
j greatest growth would also increase their services by the
I ;
1 largest amount. This will be borne in mind in comparing j
I the various departmental growths. j
i
i
i
Effects of the growing population. The great in- J
crease in population for Los Angeles will be examined. In
what areas has this growth caused greater municipal acti
vity and how has this activity affected the citizens and
their livlihood? Has the larger population been served in
a better manner by the muni el pal government due to larger
i
City expenditures, or were they better off relatively be
fore the Municipal government expanded?
II. LITERATURE AND SOURCE MATERIAL IN THE FIELD
_______Previous work in the field of government expenditures
; has dealt mainly with general government activity. Pro-
j
j fessor Henry Adams in The Science of Finance stated that
! i
I
i total government expenditures would tend to increase with
I economic progress.** Adolph Wagner formulated a "law" ex
pressing his belief that economic progress brings a rela
tive increase in the importance of government activities .5
Later studies appear to confirm more than contradict these
i
’ early prognoses. In "The Growth of Public Expenditures in
J the United States, lSSO-l^S," Musgrave and Culbertson j
' Indicate the great increase in governmental activity in J
; the United States. They suggest, however, that this in- j
, crease in scope, while costing more relatively, also j
provides a much wider amount of service than was evident j
{ i
in the nineteenth century. ^ j
I
In a more detailed study, Soloman Fabricant, in
^Henry G. Adams, The Science of Finance: An Inves ti-
gation of Public Expenditures and Public Re venue~Tnew York:
! Henry Holt and Company, 1898), Part I, Book I.
i - * M . • • an increase regularly takes place in the
J activity of • • • governments. This increase is both ex-
' tensive and intensive.*1 Adolph Wagner, Grundlegung der
Politischen Oekonomie. Book VI, Chapter 3, Third Edition,
lS93. Quoted in translation, C. J. Bullock, Selected
I Headings in Public Finance (Hew York: Ginn and Company,
! 1906), p. 2K,
j ^R. A. Musgrave and J. M. Culbertson, **The Growth
I of Public Expenditures in the United States, 1890-19^8,”
i Rational Tax Journal. June, 1953*
; i
I Trend of Government Activity in the United States Since
i1900 indicates several causes for the increase of general
J '
!government expenditures.' Expenditures are affected by-
population change, advancing science and technology, and
j relative movements of activity within the economy with the
I f t
[resulting growth of economic inter-dependence.°
i
|
Literature on Muni r , trial Economic Activity
Detailed studies on the subject of municipal govern
ment activity are rather difficult to find. Most litera
ture on this subject is the result of a specific study for
individual cities, and is not widely circulated.
A monthly magazine, The American City, occasionally
carries articles on this specific subject. Even this j
magazine fails to devote considerable space to the problem !
•j
of rising municipal expenditures. Material from this i
source indicates that municipal expenditures are much
greater for most large cities since 1940.9 The greatest
expenditures have been for permanent improvements, such as
i
^Soloman Fabricant, The Trend of Government Activity
iln the United States Since 1QQ0 (New York: National Bureau
of Economic Research, 1952).
Q
Ibid.. p. 144.
I 9«j£OW cities Get and Spend Their Money,” The Ameri
can City. November, 1953, p. 9«
o
schools, water and sewage, and other facilities. 10 Muni
cipal governments are finding it increasingly difficult
to find new sources of income to provide them with the
revenue necessary to fulfill the increasing desires of
the growing popula tions
No published reports on the increasing activity for
municipal Los Angeles have been located. As a result,
primary source material for this report has been the Annual
! ~
j Report of the Controller, published by the Controller's
| office of the City of Los Angeles. This is an all-
!
iinclusive financial report of city activities, covering
i
I most of the financial transactions of the various depart-
|
jments. All monies of city departments under the financial
| control of the City Council are disbursed under the close
j supervision of the Controller. City activities maintaining
control of their budgets are required to make periodic
reports to the Controller. As this department operates in
accordance with accepted accounting procedures, its annual
report contains most of the statistical information re
quired for an economic evaluation of the municipal
10,,New Census Bureau Report on City Government
Finances,” The American City. September, 195^a P* 17*
11”Municipal Revenue— a Second Look after Twenty
Years,” The American City. November, 1953, P* 9*
9
government*
The problem of* using such a comprehensive report for
primary source material is at once apparent* Great diffi
culty is encountered determining what material is relevant,
and the problem is compounded by trying to separate the
'
| relevant data from the extraneous* Data which may be
i
necessarily viewed from a political standpoint may have
no common ground economically.
The Controller's Report has taken two definite
changes of content since 1910. When the present City j
I
Charter was enacted in 1927* different information was j
j
| required in certain fields than had been reported prior j
i ' I
| to that time. Similarly, in the four year span from 1938 *
!
*
j to 1942 the general accounting reporting procedures were
modified appreciably to conform more to accepted standards I
of other leading municipalities. This report has been
supplemented from several other sources.
The Budget of the City of Los Angeles is published
each year, and submitted by the Mayor to the City Council.
The Budget gives a detailed review of the Mayor's expecta
tions for the City for the year for which it is prepared,
^Information gathered from Mr. Carl B. Poland,
Chief Accountant, City of Los Angeles, in conversation
with the author, January 3 > 1958.
! 10
i -
as It requests funds the Mayor believes necessary to serve
the City. This document spells out the duties of the
various departments, and indicates their expected expendi- !
tares•
The Charter of the City defines both long- and
short-term requirements of all eity activities. The
Charter acts as the basis for all legal actions of the
City, and all departments are required to conform to its
provisions. j
* !
! Most departments of the city publish an annual re- I
I ®
iport indicating their activities for the previous year. j
1 I
Examining these reports for any given year provides one
with valuable information on recent activities of that
unit, and related material can be gathered from past publi-
' I
cations. These reports are mainly for public information, j
and concentrate on providing the public with the informa
tion the publishing department wishes it to know. Careful
examination, however, may help indicate trends of action
of the given department and help to provide an overall view
j
of general eity activity.
In preparing for the issue of revenue bonds for
general city use official statements are put together to
supply information for prospective bidders for the bonds.
These official statements contain much information on
1 1:
I
financial and economic activities of the department pre- !
I
iparing the bond issue. The City must compete for capital !
iwith other financial firms and uses these official state*
! I
ments to present its business standing. Information from ;
i
this type of source will be used extensively in the chapter
on public service enterprises.
Information gathered on private economic activity in ‘
the Los Angeles area has been obtained to a large degree
through the Los Angeles Chamber of Commerce. This source
of supply has been especially useful for the gathering of
;hlstorical data. The Chamber of Commerce is also interest-
led in financial and economic information to use as an
I
j inducement to draw private enterprise and population into
| i
| the City. A yearly document, Los Angeles City and County. ■
] ;
! published by the Chamber from 1903 to 1920 has been used
i i
often. Several other periodicals are published by this
agency, inoluding information on population, employment, j
: manufacturing, marketing, utilities, and industrial growth !
' j
i
and development. ;
I
The City newspapers provide a very valuable source ;
j ^ ;
jof information. In supplying daily topics to the reading
j public a running commentary on growth and development of
i
|the area is provided the reader. Fere time available,
' . i
nearly all the information obtained in the aforementioned j
t i
'Sources could, be. gathered from .this one. source of. supply.__j
There are several local papers and no claim is made for an
I I
{even elementary review of their literature. However, ;
I '
'information is obtained from this source, and credit is
!
given where due♦ !
}
Several other reports containing pertinent informa- j
i
, tion from various sources are used. Where such is the j
, i
i
lease, the information source will be acknowledged. j
! |
i III. PLAN OF STUDY j
This thesis will be mainly concerned with the in
creases and trends of municipal government activity* It
may be assumed that Los Angeles municipal expenditures have
| grown immensely over the years. A comparison will be made
i ;
!between present monetary outlays with those of the period 1
!
'around 1910. This should Indicate the areas of greatest
i
|expansion, and relative expansion. j
| Chapter II will provide a short review on the J
j !
{economics of public expenditures. The total growth of j
I government expenditures will be indicated, with generalized j
i
{causes for this growth. Municipal expenditure activity
, ' |
{will be noted from available published material. Trends |
! ’ ■ I
| that are present in this field of economic activity will j
be mentioned, with a look at currently planned government ,
1
, 1
|thought• !
The economy of the City of Los Angeles In 1910 and
i
J at the present time will he compared in Chapter III.
j Economic conditions of the City in 1910 will he observed,
■ to he compared with those in effect today. Economic
I
1 growth will he observed from a general overall level in
1 Chapter III, reserving a more detailed study of the
municipal financial activity for Chapter IV.
Chapter IV will compare the specific municipal
expenditures in 1910 with those of 1955* with an indica
tion of trends in the interim period. It will he noted
here that, as Wagner stated, the increase "Is both
; extensive and intensive."1^ Population increased almost
! seven-fold during this period. During the same time,
| expenditures Increased twenty-eight times. This chapter
i
, will he supported with statistical tables providing a
j greater detail of the financial picture for the period
j covered.
t
The area of greatest expansion of municipal activity
has been that of the public service enterprises, which
i will he examined in greater detail in Chapter V. The
1
; four departments in this group perform valuable public
services and each maintains control of Its finances.
^•3^agner, oj>. cit.. p. 24.
1
}
Services are performed for the public, and charges made. j
They thus operate much like private enterprises, except I
I
that they are government monopolies. I
I
An attempt will be made to tie together the separate
threads brought out in the thesis in the conclusion,
Chapter VI. If there are definite trends in city activity,
it is hoped they may be pin-pointed. Statistics in the j
!
interim chapters should indicate the areas of greatest !
]
growth, from which comments on city activity may be made. j
I CHAPTER II
THE ECONOMICS OF PUBLIC EXPENDITURES
, ComprehensIve comparisons of different countries
and different times show that, among progressive
i peoples, with which alone we are concerned, an in-
■ crease regularly takes place in the activity of
I both the central and the local governments. This
increase is both extensive and intensive: the
central and local governments constantly undertake
! new functions, while they perform both old and new
functions more efficiently and completely. In
this way the economic needs of the people, to an
increasing extent and in a more satisfactory fashion,
are satisfied by the central and local governments.
The clear proof of this Is found in the statistics
which show the increased needs of central govern
ments and local political units.1
: The above *'lawM was formulated by Wagner near the
'end of the last century, and casual observation would
appear to eonfirm it. The increase in total government
i g
|expenditures in this country from $1,507 million in 1902
I to $109,000 million in 1952^ illustrates the tremendous
!monetary increase. The objects of expenditure, from
, ^Alolph Wagner, Grundlegung der Polltischen
!Oekonomie. Book VI, Chapter 3, Third Edition, lo93*
i Quoted in translation, C. J. Bullock, Selected Readings in
»Public Finance. (New York: Ginn and Company, 1906), p. 2TT
I o
j R. A. Musgrave and J. M. Culbertson, ”The Growth
of Public Expenditures in the United States, 1890-1948,”
!National Tax Journal. June, 1953, P» 114.
i ^Statistical Abstract of the United States. 1054
| (Washington, D.G.j United States Government Printing
;Office, 1954), P. 323*
. - ......- - ......3.6
i
i
national Defense to Welfare activities indicate that
government has expanded both extensively and intensively j
in this country during the past half century. Although I
i the object of this study is to indicate the increasing
5 j
economic activity of the City of Los Angeles it might be
: !
I vise to first consider the overall field of public j
I
[expenditure. This will-point'out areas of increasing j
j general governmental activity with which we may wish to i
j !
|compare our analysis of the local city government.
• I
I. THE THEORY OF GOVERNMENTAL EXPENDITURES I
Governments make expenditures expected to produce
a general social benefit. As these social benefits will
[be derived from undertakings ”touched with a public '
| . i
, interest,” the public interest activities must be defined. •
! I
This has long been one of the more pressing ques- i
jtlons regarding governmental activity. What activities
are touched with a public interest? Expenditures for
military and civil protection, and civil administration
of government are almost universally considered as govern
mental functions with a public interest. Following this ;
'agreement political thought toward governmental activity
| ranges between two poles— the Anarchist, and the Communist
; j
I States. The Anarchist State advocates a minimum of j
I • ;
[ governmental activity with all necessary economic and j
soGial controls exercised in free markets and by voluntary J
groupings of individuals. The Communist State, on the j
I other hand, would he the source of all economic enter-
a i
i prise, exercising ownership and operation of all productive;
property and allocating the national income as it deemed i
1 desirable. Activities of most governments vary between !
; i
' these extremes. i
In endeavoring to mediate between the Anarchist,
; or individualist and the Communist, or collectivist doe-
: i
t
trines economic study has tried to analyze the element
of “productivity1 1 in governmental functions. It has
attempted to use the principle of “comparative social
benefit*1 as a yardstick by which to approve or condemn
j governmental activity. Does governmental spending stimu- .
i i
j late employment or merely add to the forces of inflation?
j Attempts have been made to establish standards to compare
I public functions between governments and over periods of
i . . . . . .
time, and to define economic limits of governmental ;
expenditures. !
'i
The principle of marginal utility may be applied j
i
I to the “social benefit1 1 concept. As governmental ser-
; viees are increased the marginal utility, or "marginal
! soGial benefit" of each additional benefit decreases*
i
Any single governmental function is subject to j
j the law of diminishing utility. So also is the I
j _ sum total of governmental functions. If a govern- _ J
mental unit is spending $2 0 0, 0 0 0 ,0 0 0 a year where !
formerly it spent only $100,000,000, surely It Is
a fair assumption that some at least of the addition- I
; al services provided by the extra $1 0 0, 0 0 0 ,0 0 0 are j
! less vital, less valuable to the community than*the j
| services provided by the original $1 0 0, 0 0 0, 00 0* !
f - ■
! ' ‘ - I
The "marginalia t" doctrine suggests that the last j
i ■ j
i Increment, or enlargement of a governmental function would
i
J be justified when the social benefit derived, from the i
! 1
; final dollar outweighs the sacrifice imposed upon the j
I taxpayer who contributed the final dollar. :
j !
The marginal utility doctrine of "social benefit" j
has a misleading quality of finality, as no measures oof j
such concepts have as yet been encountered. There is no *
way to calculate a governmental expenditure^ marginal
social benefit, nor may the personal Inconvenience of the
j ‘
j taxpayer be measured. Properly used, however, it does i
i i
I i
I have a substantial, practical value. This value is
exhibited if the public official or voter is caused to
compare alternatives, to look at the "margin" regarding
governmental expenditures. The responsible individual
should consider the effects of a small change in spending
as compared to a comparable change in taxes. Which would
provide the greater social benefit?
Sfilliam J. Schultz and C. Lowell Harrlss, American
iPublic Finance (New York: Prentiee-Hall, Inc., 19^9),
I pp. 17-is:
II. THE GOVERNMENT ECONOMY |
i
! Economic activity of government— eentral, state, and I
i |
! local— encompasses a vide variety of actions. During re- j
! cent decades the government has risen to a position of !
i
j !
! impressive influence vith relation to much of our private j
i
activity. It is the duty of our central government to
| provide for the national defense; governments may employ
l
I expenditures for goods and services produced hy private
I ;
: sectors of the economy; transfer payments, such as sub- I
i
sidles, are made in many forms; and government may itself I
engage in economic activity quite similar to that of pri
vate units in the economy.
Many of these government actions are entered into !
i i
jat the same time by all three levels of government. Hov- j
ever, prime responsibility for certain actions rests vith
j
one or another of the three classes. j
The national defense requirements of the federal j
government has been the most expensive one to date. The
federal government also engages in the preservation of our j
i
jnatural resources, and operates such enterprises as the j
! Panama Canal and Postal System. Its activities include j
i . i
|in addition the making of loans to farmers and business
j
ienterprises, and the care of veterans. j
I |
I State governments undertake the major burden of <
design and construction of our highway system; hear prime
|responsibility for the costs of higher education; and
conduct such services as toll bridges and toll roads,
and air and sea port facilities* The more important role
Jof local governments is that of providing for the health
land protection of its members. City governments frequent-
|
|ly operate such utility enterprises as water, gas,
I electricity, and transportation services for the citizens1
j benefit. Most of our primary and secondary school systems
I
are operated by government units known as school districts
created expressly for this purpose.
As will be noted throughout this study, the in
creased governmental expenditures have followed rises in
ipersonal income, although not in the same proportion.
iFrom I87O to the present time capital per person in this
|
; country has consistently increased at the rate of more
itban two per cent per year.5 Thus, with each individual
Shaving more money to spend (and of course spending more)
jother activities in the economy, including government,
|would be expeeted to handle money more freely..
i
I
i
I
5s. L. Fabricant. Economic Progress and Economic
Change (Princeton University Press, 195^)» P» 7*
21
III. OVERALL LEVEL OP PUBLIC EXPENDITURES
Table I illustrates the growth of total government
expenditures. To understand more fully this growth we
might well consider some factors contributing to it.
As noted earlier in the chapter, the increasing
government expenditures have come at a time of greatly
! increased personal income for the population. To better
I
illustrate this parallel Table I indicates government j
expenditures for selected years and their ratio to Net
. National Product. We see that during the first quarter 1
; of this century, for years 1902 and 1 9 2 3, the overall
level of government expenditures remained at about one-
, tenth of Net National Product. In the depression this s
j ratio doubled. It is noted that in 1952 the ratio has
’ i
I
again taken a definite upturn. I
'National Defense Expenditures
As indicated in Table I National Defense expendi
tures have shown the greatest increase by any measurement,
either absolute or relative. Yearly expenditures in this j
i
area were comparatively small prior to World War II. These;
• i
*%et National Product represents "total expenditures
on new output by final users less capital consumption allow*
anees.” Robert Aaron Gordon, Business Fluctuations (New i
York: Harper and Brothers, 1952), p. 33* i
TABLE I
COMBINED FEDERAL, STATE, AND LOCAL GOVERNMENT, EXPENDITURES, AND NET NATIONAL
PRODUCT FOR SELECTED YEARS, 1902-1952, BY PURPOSE OF EXPENDITURE
Fiscal years— millions of dollars
1902^ 19237
19327
1940/ 194S7 1952^.
National Defense
(Per cent of Net
National Product)
# 160
1.1
$ 613
.8
1 738 |
1.2
1,546
1.7
|10,0B5
4.2
139,990
12.1
Veterans’ Benefits
147
.9
6 85
.9
928
1.5
572
.6
7,205
3.0
3,643
1.1
Education 233
1.6
1,626
2.2
2,449
4.0
2,574
2.7
4,621
1.9
9,59S
2.0
Economic Development 163
1.1
1,536
2.1
2,539
4.2
3,60 8
3.9
5,35^
2.2
10,976
3.4
Interest on Debt iob
.S
1,5*4
2.2
1,444
2.4
1,652
1.7
5,706
2*4
6,405
2.0
Total Government
Expenditures
1,537
10.0
B, 034
10.9
11,795
19.4
IB,010
19.8
49,00B
20.3
109,000
34.0
Net National Product^ 15,000 74,000
60,677 93,003 241,433 320,995
7qp, cit., Musgrave and Culbertson, p.
114.
%p. cit., Statistical Abstract of U.£>., pp. 300,
323, 416.
9op. cit., Musgrave and Culbertson, p.
9*.
fO
fU
expenditures appeared to be returning to a comparable
i level following the War, as the 1948 figures indicate*
| Now, however, it appears that we may look forward to
!
; continued yearly expenditures for national defense in
excess of $40 billion*'1 ’0
Both the government’s and the citizens' attitude
toward national defense seems to have undergone a drastic
change in the past decade. Following World War II the
generally accepted policy in this country was to ”get
the boys home” as soon as possible. Now, however, our
country seems committed to a large standing military
force with an efficient and expensive weapons system.
This is presently considered the only ’ ’safe” way to sur
vive in the world, by being strong enough to retaliate
promptly if attacked.
The underlying cause for this change of attitude
Is the constant threat of Communism, ably represented
in the word and deed by Soviet Russia. We are constantly
reminded by persons in authoritative government levels
that Russia now has a quantitative edge in military
equipment and is threatening to surpass this country
First National City Bank (of New York) Monthly
Letter Business and Economic Conditions . February, 195©*
p. 1 6.
qualitatively. As military equipment becomes increasingly
expensive, the United States' drive toward more and better
military equipment shows little indication of a monetary
reduction in the near future.
Other components of expense for national defense
follow a similar pattern. A larger Navy is needed to
prevent any aggressive attempt against us. This Wavy
needs more and larger ships, more men, and also a larger
air department. A larger land army is required, as we all
know ”a war was never won except by foot soldiers.”
This brief review is not to say that these methods
are not correct methods. However, they are methods in
being and cause our government expenditures for national
defense to remain at very high levels.
Veterans 1 Benefits
Table I indicates that government expenditures for
the benefit of veterans is no new thing in the United
States economy. Expenditures for this purpose in 1952
were but slightly higher relative to Wet Wational Product
than they were in 1902. Although the national government
contributes by far the greater amount in this area, state
and loeal governments also participate; in 1948 state
governments expended $657 millions for veterans'
benefits, 11 while local governments contributed some j
1 P *
$9 million. I
There are several reasons, both good and bad, for j
j
this type of government expenditure. It may be considered I
! ;
| a compensation by responsible government authorities and i
i j
j the populace for actions by the veterans in helping to J
maintain an economic system and way of life. It is
usually considered this way and voted by a grateful
nation.
j
Veterans * benefits may also be used as a method of
1 f
i - ;
gaining support of the voters by politicians, both honest j
j
and unscrupulous. In this way these benefits may be used j
as a reward for votes in past elections, and as entice
ments to secure votes in future elections. As the poli-
| tieians engaging in these practices have both honest and
i
| ulterior motives the results obtained may be of varying
i
! degree.
i Education and Economic Development
\ " ” • " r"""
It Is difficult to indicate a trend for educational
i
| and economic development expenditures. Government expendi
tures for these purposes change with time, as the
»
i
11 1
■Musgrave and Culbertson, 0£. cit.. p. 112. j
j ^Ibid., p. 1 1 3» j
individual’s concepts of government responsibilities
change. It -would be safe to say* however, that these
expenditures have increased, both relatively and absolute
ly, in the first half of this century.
The government accent on fiscal policy appreciably
influences expenditures for education and economic de
velopment. This may be noted by the varying relative
amounts expended by the government as indicated in
Table I. Both these types of expenditures reached their
highest relative point in the late 1 9 2 0’s, a period of
high economic activity and progressive government actions
in this country. They slackened greatly during the
depression of the 1 9 3 0*s, and again commenced to rise
following World War II.
Individual attitudes toward these expenditures have
changed in the past twenty years on the theoretical
level, with these changes accepted by many government
leaders. It is recognized by many that expenditures for
these purposes would help to counteract deflationary
tendencies in the economy, and in a like manner, would
prove inflationary if the economy were operating at or
near full capacity. But even with this used as a
criterion in the allocation of government funds it still
remains difficult to achieve a just dispensation. A pro
blem jof_de_termining.when government assistance „ is. regulred
27
for the private economy is always present, and many groups
push for such allocations for personal, selfish reasons.
At the same time public demands for more adequate school
systems and economic development projects are constantly
prevalent. It is for these reasons that such public
expenditures should be planned.^
Interest on the Debt
Although the interest now paid is on a higher
government debt than ever before, the interest payments
in relation to Net National Product were greater in
1932 than in 1952. This is due to our much greater Net
(
I
National Produet at the later date. Government debt
itself increased over four times 3ince the 1930's,
j It is generally agreed that debt should be incurred
! in time of low private economic activity as the government
attempts to assist the economy and should be paid off in
14
’ ’good times”. After the debt has been incurred its
"^For planning, ’ ’three considerations are important:
the usefulness of the structure of activity in itself,
the ability to provide needed relief, and the ability
to expand national Income.” Phillip E. Taylor, The
Economics of Public Finance (New York: The Macmillan
Company, 1948), p . 123•
14
An excellent discussion of this problem may be
found in Robert Aaron Gordon, Business Fluctuations (New
York: Harper and Brothers, 1952) , Chapter l6, pp. 484-499*
28 i
I
handling may have varying effects on the economy. !
Since management of deht may influence interest
I rates, markets for goods and services, and the
i distribution of income, various management pro-
t cedures cannot be appraised adequately without
| reference to the general direction which ehanges
J in interest rates- markets, and income distribu-
! tion should take.
t
Thus the amount of these expenditures should be
1
determined in advance by the government facility incurring j
the debt, and must be included in the planning for debt j
i
management. The debt itself and interest expenditures j
!
on the debt may be incurred and managed in a manner to I
! i
! counteract economic fluctuations.
i
i
Prom this brief examination of government expend!- j
\
tures during the past half century, it appears that
government expenditures on all levels, national, state, i
and local, have increased appreciably. During the period
of time under consideration we would find little evidence j
| contradicting the "law” of Fagner quoted at the beginning
i
jof the chapter. Possibly a stronger description of
!
j government expenditures trends could be used. For this
i
iperiod of time, government expenditures appear to have
I ■
j increased at an increasing rate.
IS
; 0. H. Brownlee and Edward D. Allen, Economics of
! Public Finance (New York: Prentice-Hall, Inc."^ 195^-) » P»
153^
IV, TRENDS OP MUNICIPAL EXPENDITURES
i
| Complementing the federal and state governments >
| which more or less provide the framework within which the j
jindividual operates, the municipal governments influence j
the Individual directly In his everyday activities. While j
i
the federal government provides for the national defense
the local government assists in the everyday defense.
Local governments have taken an increasing Influence in j
regulating the individual's activities— an influence j
paralleled by their expenditure growth. j
i *
t An important characteristic of the American economy !
has been change. Since the nation's founding, each genera- ;
tion has witnessed changes in the conditions of life— of
' i
individual work and in the concepts of our economic j
activity. The territory of the United States has in- i
• creased from a comparatively small colony on the eastern j
i
I seaboard of the continent to include the central portion !
j !
of the continent as well as Alaska and Hawaii. Work of
the individual has changed from one of a predominantly |
1 rural character to one of an urban nature. This has *
i 1
; inaugurated changes In the individual's living conditions \
j i
| causing an increasing contact with other people. During I
i _ !
j this time the education of the populace has also Increased
! in the social studies and in the sciences. Thus, while
the individual is becoming more aware of his capabilities j
i
he also becomes aware of his liabilities. He becomes !
i
more sensitive to the social evils and to the collective ;
I i
S faults of the populace.
| i
I Each of the three layers of government attempts to \
‘ !
assist in correcting these alterations. In providing the ;
jmany services expected of it, however, the local govern- j
ment perhaps comes more intimately in contact with the !
contradicting requirements of the individual than do !
| either the state or federal governments. Municipal govern-‘
; meats are more directly associated with the everyday
requirements of the individual citizen, and their activi
ties are aimed expressly toward routine functions.
| !
Municipal governments commonly expend funds for j
services to local inhabitants to assist them in their
[
^everyday activities. Police protection is available to
! protect the individual from physical violence. Policemen
!
| also render a great deal of miscellaneous assistance such
5
jas traffic direction, pedestrian guidance, and immediate j
i !
jemergency relief. Protection to the individual’s property j
and other emergency services are provided by the local
fire departments.
; The municipal administrative government maintains
ja close contact with many of the individual *s activities.
It determines the general appearance of the city, an import'
ant aspect for individual satisfaction. The police protec
tion is complemented by the judiciary system which may
assist appreciably the overall stability of the community.
I
Education is ordinarily one of the more important
functions of a municipal government, as the system in
Lffeet has a great influence on the succeeding generations.
i
A somewhat similar function is that of the recreation
facilities. Thus, by providing a good education system
and adequate recreational activities the municipal govern
ment may favorably influence a significant amount of
jtime of the growing population of the community.
! In endeavoring to provide greater services for the
i
populace the municipal government may engage in further
activities. Municipal health service is available in many
!
cities to insure minimum health conditions for the popula
tion. In this way groups that could not otherwise afford
such services may secure medicinal benefits.
Larger cities often provide utility services., such
as water, electric power, and transportation. Engaging
in these services, the municipal government enters into
i
jthe field ordinarily serviced by private industry,
ostensibly as the city is able to provide more economical
I
services.
i
i Many of these municipal government activities are
of a comparatively recent origin. Health services on a
municipal departmental level would not have been con
sidered a half century ago. Utility functions, although
practiced for some time, have expanded greatly in recent
i
| years. This has been primarily due to the increased
facilities required by modern utility operations. When
the physical size of a water or electric power utility
is considered it is not difficult to visualize the ex
penditure increases of the municipal governments.
, Expenditures on the Municipal Government Level
i
Expenditures by municipal governments have exhibited
a pronounced upward tendency. As municipal governments
, are primarily concerned with services for their inhabi-
i
; tants, the Increase in services offered and the growing
population have caused these activities to be greatly
increased in recent years.
The most significant increase at the municipal level
i
! has been in the eapital outlay field.
! The construction of new schools, highway improve-
i ments, water supply and sewage Improvements, and
; other permanent facilities to serve growing popula-
, tions is becoming one of the principal factors In
the rising government costs.1®
• 1^, , Wew Census Bureau Report on City Government
i Finances,” The American Cit?. September, 195^» P* 17 •
These growing expenditures present a new and diffl- !
cult problem to local governments. State and municipal
i
i
governments are finding difficulty raising enough revenue j
to meet the added obligations forced on them by the ever j
i i
| increasing population. In many cases, so many taxes have j
been levied that “there seems to be no new way to extract j
cash."1?
A suggestion for correcting this problem has been
suggested by Professor Simeon E. Leland, of northwestern
University, who states: ■
* ^
It is my conviction that instead of giving j
I cities permission to adopt various taxes of their j
own, or allowing them to enact additions to state |
i administered taxes, it is better to develop for i
the state a well-balanced revenue system of good !
taxes eentrally administered, and to provide an j
equitable and stable system of allocatingsrevenues j
to the localities, especially to cities. 10 j
Municipal Expenditure Policy j
£
Along with the concern over government expenditures j
1 on the municipal level must be considered the function j
j these outlays perform. It has been estimated that almost j
i two-thirds of public construction is for local account. j
1 Where Spending Is in a Boom,” U.S. Hews and World
Reports. October, 1952 *, P» 126.
^Professor Simeon E. Leland, “Municipal Revenue--
ja Seeond Look after Twenty Years," The American City.
; November, 1953s P» 159*
f ' ' ' ' "................... 34
While it is highly important that the planning,
scheduling, and financing of local facilities re
main the business of the states and municipalities,
the federal government should be prepared in case
of serious need to help the state and local govern
ments work out their problems.
This quotation well illustrates factors discussed
above. The municipal government is the government unit
most intimately connected with the individual in his
everyday activities. However, in attempting to satisfy
desires and demands presented by the local populace the
local government encounters difficulty in raising suf-
I ficient funds.
; The above quotation makes a suggestion for assist-
I ance in this problem, implying that the federal govern
ment should lend a helping hand in time of need. If
j this were done it would greatly assist the local govern-
; ments temporarily. It is doubtful, however, whether this
would be an answer to the problem. If the federal
! government assisted by making loans it would merely
i plunge the local government further in debt. If entered
; into on an appreciable scale throughout the country
!
! outright grants-in-aid would place these expenditures in
i
t
I the position of a political football. Those local
■^'‘ Loeal Spending Policies— Their Role in the
| National Economy, The American City. April, 1954, p. 9«
governments with the loudest voices and the greatest i
publicity could be expected to gather the larger share J
i i
i of federal assistance. •
V. A TREED OF GOVERNMENT EXPENDITURES
Present trends of government expenditures are well
illustrated by the fiscal policy dilemna of the United j
j
States government* i
The budget was balanced in 1930 at a $3*% j
billion level of federal expenditures with a i
100-cent dollar.
! It was balanced next in 1947 at a $39*0 bil
lion expenditure level with a 75-cent dollar. 5
i . :
It was balanced the last time in 1951 at a
$44.1 billion expenditure level with a 64-cent
I dollar.
! Now the prospect is for a balance at a $64_bil-
lion expenditure level with a 62-cent dollar. 20 • ;
Here it may be seen that the federal government
; ' i
: faces the same problems as do municipal governments. j
, Governments are forced to make a decision between a
1 sound fiscal policy for continued solvent government,, or j
a spending policy to satisfy many of the citizens. A
! ,
t
< - - - - - - 1
! oc\ *
I First National City Bank of New York Monthly !
Letter Business and Economic Conditions. February, 1956,
1 pTTBT It should be noted that the 75-cent dollar has 100 j
; cents In it. However, it buys only 75 per cent as much as ■
! would a dollar in 1930. The same relationship holds true !
L.for the,.64rcent, and the 62-eent._dollars.___ !
decision, must toe made on many levels as to one of the
following courses of action:
1# Discard the idea of a balanced budget in
order to spend more. i
; 2. Use substantially all revenues ... to j
i enlarge ... spending programs.
i
i 3. Control expenditures to develop surpluses j
I for debt retirement. I
; s
Pi i
4. Control expenditures to reduce taxes.x 1
The above choices were listed as those available I
for the Congress of the United States. It will be recog- I
j j
• nized, however, that many governments on the state and 1
- j
' municipal level must make the same decisions. !
i i
VI. SUMMARY OP GOVERNMENT EXPENDITURES j
<
1
All evidence appears to indicate that government !
activity does increase both extensively and intensively. ;
Combined expenditures for all governments— federal, state, j
and local— have increased over twenty-one times in the \
1
period from 1902 to 1952. Relatively, these expenditures
1 have grown from ten per cent of Net National Product to
thirty-four per cent.
This increase has been eaused by a growing activity
! of governments on all three levels. The government exerts
t
! ___________________
I 21Ibid.
a much greater influence on the individual now than it
did in 1 9 1 0, vith its activities ranging from postal !
service to private loans. By endeavoring to supply the
services offered at the turn of the century to a larger j
population and in a more satisfactory manner, the govern
ment expenditures have risen greatly. The greatest expen- I
diture growth has been for national defense, a function |
i
exercised mainly by the federal government.
Expenditures on the state and municipal level have
been mainly for services. The most significant increase
on the municipal level has been in the capital outlay
field. Municipal governments have constructed new schools,!
engaged in improvements of highways, water supplies, :
j
sewage and other permanent facilities.
1
CHAPTER III
THE ECONOMY OF LOS ANGELES IN 1910 AND 19551 A COMPARISON
j This chapter will attempt to compare the economy of
j the City of Los Angeles in 1910 with the economy of 1955 •
1 To do this a brief Investigation of activity in the eco-
1
| nomlc sphere in 1910 will be conducted, with salient
features indicated. Following this, the present city
economy will be explored to a limited extent. The pur-
1
pose of this chapter will be to indicate the overall
. . - • . . . . /
result of Los Angeles 1 economic growth. This is one of
| the prime tests of the municipal government; has private
I :
j economic activity expanded adequately? It is realized
| that this question will not be answered (or an attempt
; made) but the general private economic climate should
: provide some indication as to municipal governmental
I adequacy.
I. THE CITY OF LOS ANGELES IN 1910
The metropolis of Los Angeles was the fastest
i growing city on the west coast in 191cA with a population
^•Harry Ellington White, The City and County of Los
Angeles. Published for distribution by the Los Angeles
Chamber of Commerce, 1910, p. 1 7.
of 3 1 9* 1 9 8 .2 Orowth potential of the area was recognized
in some circles, and several growth projects were in pro
gress. Steps were being taken to provide a mnch greater
supply of water to the city.3 Construction of a break
water was Tinderway for the Harbor Department.2 * The City
boasted of a ’ ’ very complete” street railway system,5 and
460 miles of graded and graveled streets were maintained
by the city.^
Los Angeles Population Growth prior to 1910
Los Angeles was proud of its rapid growth and
| popular name, the ”City of the Angels.” The population
! had increased from 44 at the time of the founding of the
!
! original pueblo in 1781? to over 3 0 0 ,0 0 0 in 1910. A large
j
| expansion had taken place in the preceding quarter of a
, century, as population had increased from 11,000 in 1880
i ^Official Statement Water Works Revenue Bonds.
mimeographed by the City of Los Angeles Department of
Water and Power, 1954, p. 1 9.
3Harry E. White, op. cit., p. 21.
^Ibld.
5Ibid.
1 ' r ‘ TT~rn 1
1 forbid.. p. 19-
I
70P. cit., Official Statement. Department of Water
and Power, 1954* P* 19*
to the 1910 figure.®
The Chamber of Commerce of Los Angeles attributed
this growth to three factors: climate, soil, and location.
“Any one of these advantages would be sufficient to build
a large city, but talcen together they insure the future of
Los Angeles as the metropolis of the southwest.
Economic and Financial Aspects of 1Q10
Banks of the City of Los Angeles had deposits
aggregating $1 2 5, 0 0 0 ,0 0 0 in 1910, with clearings of
$811,377,487.10 Adequate capital was necessary for this
area to sustain the rapid growth being experienced. In
vestment advantages claimed for Los Angeles (again by the
Chamber of Commerce) included mild climate and year-round
working conditions, as well as cheap fuel and the high
cost of finished goods shipped overland from the east.1- * -
The benefits of an international trading center were
present. Transcontinental railways allowed inland
12
merchandisers to trade with other countries.
O
Harry E. White, jg£. cit. . 1912, p. 16.
9Ibld.. 1912, p. 1 5.
10Ibld.. 1911, p. 19.
i:LIbid.. 1 9 1 0, p. 57*
12
Ibid.. p. 21.
Services of a new and growing seaport, owned and
operated by the City were available to businessmen of the
area, The Harbor presented a frontage of twenty-two
miles, and although the breakwater shelter was not as
yet completed, ocean vessels from many areas of the world
called at the Fort of Los Angeles
The Gity of Los Angeles acted as the center of the
large growing area of Southern California, This area of
45,000 square miles^ complemented the economic advantages
of the City, providing raw materials needed by many eity
groups and offering room for any desired expansion. In
1910, as today, Los Angeles and Southern California were
synonymous terms. Although this examination is of the
City of Los Angeles, it must be borne in mind that the
City's growth and activity were closely linked to the
* -
surrounding territory."" ^ -
Cultural Aspects in 1910
In 1910, Los Angeles liked to think of itself as
a cosmopolitan, mature city. Indeed, due to the ad
vantages and opportunities available it was the largest
and most rapidly growing city on the West Coast, and
13Ibid.. p. 35
14
Ibid.. p. 5*
municipally was trying to live up to its obligations.
A large public school system was maintained, and
several institutions of higher learning were available. i
An excellent drawing point of advanced educational schools!
i
was (as it still is) the mild climate* For this reason, J
i
the University of Southern California, Min the south end i
of the eity,w1^ end Occidental College were well attended j
by students from the cooler sections of the country, as j
well as from local areas. |
!
By 1910 the Los Angeles Public Library was reeog-
■ nlzed among similar institutions in the United States.18
I Many artists viewed the mild climate and contrasting
<
I scenes as too tempting an opportunity to pass up and i
i spent most of their time in Los Angeles.1? The musical !
. . . . . .... . |
{
, education of the citizens was enhanced by the Los Angeles j
: symphony orchestra, which had been established in 1897*18 !
I
' !
' Municipal Economic Activity. 1910 j
Municipal expenditures and related economic acti- !
i
vity were conducted in an adequate manner. Per capita
^ibid.. p. 49. !
! f
l6Ibid.. 1911, P. 47. '
i 17Ibld.. p. 6 3. I
| l8Ibid., 1 9 1 0, p. 6 5. I
expenditures for the City amounted to $42 per person,1^
with the newly formed Department of Water and Power
accounting for the majority of these* This department's
activities were comparatively expensive and have had
long-lasting effects on activities of the City.
The municipal government, through the Department
of Water and Power, took upon itself the responsibility
for the construction of the Los Angeles Aqueduct, as one
method of insuring an adequate supply of water for the
| City. This step laid the framework for the other public
i
!service enterprises, activities that are important fac-
i tors in the present stature of the City.
]
j The City bonded itself for funds to construct the
i
! aqueduct.20 It was later decided to allow the Department
of Water and Power, operator of the aqueduct, to control
1 its own funds. By this method the supply of water to the
ultimate users was permitted to be supplied economically,
i.e., those receiving the water would pay for its acquisi
tion. This is considered a more appropriate manner for
j 19See Table VII.
1
i 2QWater and Power 50th Annual Report. printed and
'distributed by the Los Angeles Department of Water and
|Power, 1951j p. 8.
• " "' ' ” 44
distribution of water than a seemingly free use for all,
paid for by general tax funds.
II. THE LOS ANGELES ECONOMY OF 1955
The Los Angeles of 1955 bore small resemblance to
the Los Angeles of 1910. The City’s population was
2,241,433,21 and the Los Angeles area presented the
third largest market in the United States, surpassed only
by the markets of New York and Chicago. 22
The population growth is probably the most out
standing faetor of the metropolitan Los Angeles area.
From 1950 to 1956 the City added 300,000 persons to its
population. Los Angeles1 growth has been “herculean”
since the close of World War II;23 indeed, it has been
at a pace no other city in the nation has been able to
match since the early iBSO’s.2^
The population growth of the City must be paral
lelled by economic growth. Working opportunities and
21The Los Angeles Times. April 7, 1956, p. 1.
22"Midwinter, 1956," The Los Angeles Times. Janu
ary 3, 1956.
2^
-^Article in Southern California Business. a weekly
publication of the Los Angeles Chamber of Commerce, Janu
ary 2, 195^> P* 1*
24
"Midwinter, 1956," op. cit.. p, 1 3.
living facilities are required to support the rapidly
increasing population and to act as the attraction for
migration to the City of Los Angeles. j
I
Economic Growth of Los Angeles !
' Perhaps the hest indication of the economic growth i
, of the City of Los Angeles is that provided by the figure i
{
I for assessed valuation recorded in the Annual Report of
I
- the Controller. City of Los Angeles. The assessed valua-
I
tion figure is used by the municipal government as its |
: tax base, against which to levy tax assessments for j
; municipal revenues • j
All government expenditures must follow the col- j
’ ' t
i lection of revenues, and as indicated in Chapter II the j
s ;
: collection of revenues for government purposes is diffi- j
I t
| cult. It would thus be expected that a municipal govern- \
i ment would be very thorough in determining all value J
! .........
I under its jurisdiction against whieh to levy taxes. ;
: Political requirements also dictate a thoroughness in j
| assuring that all values are taxed. Given these precepts j
i this study accepts assessed valuation as representing
* i
; the relative economic value of the area.
! luring the period of this report assessed valuation ;
i ' ■ ' _ i
I of the City has represented approximately twenty-five
.................................. i
per cent of fair market value of private property in the !
city.2^ Although this does not represent all the economic
i worth of the City It suggests a relative worth against
which to hase municipal expenditures.
It must be recognized that government expenditures
! may only expand as does the eeonomy served by it. If
| municipal expenditures are to double over a period of
i
time the government unit must receive the revenue for
this growth from the economy. Assessed valuation thus
represents relevant figures for this study. If economic
values of the City are assessed by comparable methods
the figures for different years will represent relative
i expansion. In the case of Los Angeles, total value of
I
private economic property may be approximated by multi-
j plying assessed valuation by four.
Assessed valuation of the City of Los Angeles is
indicated in Table VII, Chapter IV. It has expanded
from $3 1 3> 8 6 3,364 in 1910 to $3,234,518,880 in 1955*
^This twenty-five per cent figure is a rough ap- J
proxlmation but is considered reasonably accurate by Mr. j
Carl B. Poland, Chief Accountant of the Gity of Los Ange- j
; les. Mr. Poland indicated that personal real estate will
ordinarily, receive four times the assessed valuation fig
ure if sold on the open market, that personal property— j
j commercial inventories— is assessed at about forty per j
I cent market value, and personal property— as privately j
■ owned furniture— at less than fifteen per cent market [
value. Information received during conversation with :
; the author, April 15, 1956. j
Using ”fourM as the multiple figure, total value of
economic property of the private sector of the Los Ange-
i „
les economy would have increased from approximately
$1,255,245,456 in 1910 to $12,938,075,520 in 1955.
It is recognized that all components contributing
, to the City*s growth cannot be adequately analyzed, as
j suitable statistical studies have not been undertaken
! for the City of Los Angeles. It will be possible,
however, to examine some of the more important factors
contributing to the growth of the economy of the City
of Los Angeles.
i
Total Los Angeles Sales
i Table II illustrates total sales— both retail
J and wholesale— recorded in the City of Los Angeles for
the years 1933, 1939, 1948, and 1954. Although this
does not provide sales figures for the entire period
i covered by this thesis it suggests the growth in private
! activity from 1933 to 195^•
Retail sales increased over seven times. Whole
sale statistics for Los Angeles are not available prior
] to 1948, but the more than fifty per cent increase in
■ wholesale sales from 1948 to 195^ indicates a significant
, business increase.
TABLE II:
TOTAL SALES FOR THE CITY OF LOS ANGELES
1933 1939
1946
1954
Retail Sales
$453,340,000 $762,342,000 $2,370,761,000 $3,258, 950,000
Wholesale Sales (Not available) 4,366,013,000 6,553, 221,000
Source: Census of American Business, U.S. Bureau of the Census for the
above years.
Industrial Activity In the Los Angeles Area
Los Angeles’ industry took its big jump during
i
World War II. During this struggle the City assisted
in the production of ships, aireraft, and other war
material. A great influx of war workers arrived at
this time, along with thousands of servicemen and their
families. In the transition period following the cessa
tion of hostilities, the local industry provided working
opportunities for the expanded population. These addi-
| tional workers set the stage for the industrial growth
i
; by supplying the needed manpower. Table III indicates
■ the major industries in the Los Angeles area in 1954,
j ranked according to size.
The aircraft manufactaring industry. The aircraft 1
industry is the largest manufacturing group in the Los
Angeles Metropolitan Area,2^ a fact illustrated by Table
; III. The total volume of products in this industry for
: 1954 has been estimated at $2 .5 billion per year with a
value added by manufacturer of about $1«5 billion per
year.2? |
| ^The Aircraft Indus try: Its Size and Importance in j
• the Los Angeles Economy. a mimeographed study of the j
; Security-First national Bank of Los Angeles, 1954, p. M-l6i
! 2?Ibid. !
TABLE III
MANUFACTURING INDUSTRIES IN THE LOS ANGELES METROPOLITAN AREA
RANKED ACCORDING TO SIZE IN THE THIRD QUARTER OF 1954
Average Total
employment payrolls
3rd quarter 3rd quarter :
1954 1954
)
1
1. Aircraft and parts
179,393
1223,797,600 !
2. Machinery (except electrical)
51,103
43,351
64,414,232 '
3.
Electrical machinery, equipment and supplies 55,313,636 ,
4*
Food and kindred products
47,494
54,327,396 ;
5.
Fabricated metal products (exeept ordnance,
46,329
6.
machinery, and transportation equipment
54,306,739 1
Apparel, fabricated textiles 42,216
27,335
32,455,360 ,
32,335,201 !
7.
Printing and publishing
3 . Primary metal industry
21,414 24,739,317 ;
9.
Stone, clay, and glass products
19,254 20,616,415
10. Petroleum products 19,070
26,366,737
11. Furniture and fixtures
13,757
20,236,672 i
12. Chemicals and allied products 13,250 22,360,011 \
13.
Motor vehicles and equipment 16,643 19,939,310 :
14.
Rubber products 14,295
15,115,120
15.
Instruments and related products '
13,093
15,644,'693 ,
16. Paper and allied products
10,547 11,917,455 i
17.
Ordnance, and accessories 3,332
11,400,447 i
13: Lumber and wood (exc,ept furniture)
/ k/a rtAvifi \
7,035 7,935,041 j
...... ........
(To be continued)
TABLE III (continued)
MANUFACTURING INDUSTRIES IN THE LOS ANGELES METROPOLITAN AREA
RANKED ACCORDING TO SIZE IN THE THIRD QUARTER OF 1954
Average
employment
3rd quarter
1954
Total
payrolls
3rd quarter
1954
19. Leather and leather products
20. Textile mill products
21. Ship building and repairing
22. All other industries combines
4,225
3,990
3,309
16,023
3,574,56$
4,064,20$
4,064,20$
15,675,363
Total, all manufacturing 639,010
1746,776,733
Source: The Aircraft Industry: Its Size and Importance in the Los Angeles |
Economy. Security "First National Bank of Los Angeles, SeptemberTO, 1955,
p. MF 1-4.
The 19 0,0 00 wage and salareid employees In air
craft work accounted for twenty-eight per cent of factory
employment in the Los Angeles Area in 195^*^ A backlog \
I of orders in 1955 of $3*9 billion2^ from both military
and civilian sources should insure a high rate of pro
duction and maintenance of employment for some time. The |
aircraft industry provides more employment than the next !
[
three ranking industries combined. j
Although the aircraft industry is the largest in !
the area, the City is not entirely dependent on it. In
; 1953 it was estimated that a twenty-five per cent cut in j
* aircraft employment would boost total unemployment to six
I and nine-tenths per cent, still below the immediate pre- ;
t I
j Korea level in Los Angeles.3° Thus, even were employment j
arbitrarily reduced in the aircraft industry, it is doubt- |
: |
ful if this in itself would cause much of a downturn in 1
1
the Los Angeles economy. Its effect would be felt, but |
the end result would not be expected to be too severe. 1
An economy operating at the present high level as is Los \
29"Midwinter, 1956," op. elt.. p. 15 6.
* ^The Influence of the Aircraft Indus try on the
Economy of the Los Angeles Metropolitan Area. a mimeo-
, graphed survey by the Aircraft Industries Association,
I Western Region, 1953» p» 8.
53
Angeles should he ahle to absorb the displaced employees
and capital in short notice*
The machinery manufacturlng industry* The industry'
' !
following aircraft according to size in 1954 was ma
chinery* Divided in many instances as to "machinery
(except electrical)" and “electrical machinery, equipment
O] |
and supplies, “ this industry accounted for nearly j
sixteen per cent of total employment in the Los Angeles {
Area with a quarterly payroll of $11 9, 727,968 in the !
third quarter of 1954*^ This industry is performing I
I j
! a very important function at the present time in manu- i
: i
faeturing the machinery used in the expanding activity
( i
• of the other industries of the area* As activity in (
i :
I this Industry is caused by the growth in others, its
number two position attests to the economic health and
- • • • • i
I
activity of the area* As long as this industry maintains
; its present comparative rank in local industries the Los
Angeles area may contemplate a high level of economic j
i
; 1
jS^The caiifornj _ a state Department of Employment j
breaks its figures down this way, as does the Security-
First Rational Bank in The Aircraft Indus try: Its Size
and Importance in the Los Angeles Economy. and the Los
1 Angeles Chamber of Commerce in The Researcher. a monthly
1 publication. !
’ j
i *32
j The Aircraft Industry: Its Size and Importance. ,
| Qit* . p. MF 1-4. j
activity. i
j
! Cons traction lndu3 try in Los Angeles. Construction'
j f
i has long "been one of Los Angeles * more important Indus-
! ,
! tries. This would of course be expected In a city with j
i
a growth such as that exhibited in Los Angeles.
Prior to World War II Los Angeles * year of greatest
i
construction activity was 1928 when permits valued at J
$1 0 1, 678,768 were I s s u e d .33 As this Industry was greatly j
i
affected by the depression the construction figure dropped j
to $9 3* 061,160 for 1929*34 and reached a low figure of j
$14,591*595 for 1934.3-* Construction activity picked up j
I to $3 6, 672,983 In 19353^ and expanded by relatively small !
! i
i amounts from then until World War II. j
! Like many other cities, Los Angeles emerged from
! *
1 World War II with a very definite housing shortage. I
j
; Great strides have been taken in this line and the acute
t ■
• shortage of adequate housing is no longer a pressing
!
1 33Konthly Summary of Business Conditions in the
Pacific Southwest. Security-First National Bank of Los
Angeles , Volume 9* Number 1, January 2, 1930*
3^lbid. !
"35
-•^Monthly Summary Business Conditions in Southern
! California. Security-First National Bank of Los Angeles,
‘ Volume 15* Number 1, January, 1936.
36ibid.
i 55|
p r o b l e m . 37 jn the 19^5*“ 1955 decade, 760,000 new dwelling j
units were constructed in Los Angeles County,38 but this j
i j
| construction activity has not exceeded the demand for
i
! homes. The growing population provides a growing demand ;
for more dwelling facilities.
New real estate markets are well publicized by
i
local communities and the press as these homes are pre- j
sented for sale. Due mainly to this publication it is j
estimated that during National Home Week in September, j
!
1955» the 500 model homes on display in the Los Angeles i
,
i
; residential communities were viewed by some 1,000,000 j
| persons.39 i
i !
i !
, The construction industry presents one of the ;
! i
| better indices of economic activity and health of the j
| Los Angeles Area. As long as the area continues to ex- j
j
; pand its economic activity there will tend to be an j
! increase in population, whieh will in turn cause a high
37lqs Angeles Cl tv and County. a pamphlet prepared
and distributed by the Los Angeles Chamber of Commerce,
pages not numbered, not dated. |
oo '
Southern California Business. a weekly publica- !
tion of the Los Angeles Chamber of Commerce, Volume XVIII,!
i January 2, 1954, Number 1, p. 1. !
39HMidwinger, 1956,” op. cit., p. 44.
I I
demand for new homes. As long as the building industry !
prospers, the local economy will he bolstered by it.
i ;
Growth in Utility Activity !
* !
i 1
j Perhaps one of the more accurate measurements of
i the growth of economic activity within an area is that j
I ;
j of the utility expansion. Utilities serve the public j
I i
and are necessary for many economic activities, as well j
i
as for ordinary living purposes. In an industrialized |
I i
| country such as the United States, nearly all economic
i
| activity utilizes some form of utility service during j
| the course of the day. The day is started to the signals J
f
t ?
. of an electric clock. Electric energy is used to prepare
. the morning meal and heat residential quarters. The same j
! i
j type of energy is used by many business activities for j
j I
i warmth or cooling, and for many industrial purposes. The j
! telephone provides a rapid, convenient means of communica-
J tion between individuals, and between businesses. Thus,
■ the more each of these utility produced units is used
the greater must be our economic activity and the higher ;
our standard of living.
i
Electric energy. The increasing use of electric j
energy by the City of Los Angeles is indicated by Table t
IV with growing per capita use in Table V. From these
, ...... i
! tables it is seen that total electric energy used has ■
57]
TABLE I?
ELECTRIC ENERGY USE LOS ANGELES CITY
Thousands of kilowatt-hours distributed
Los
Angeles
Department
of Water -
and Power Pr i vat e
Utility Electric wat er power
Year service railways system plants Total
1913 114,591 137,000 5,942
257,333
1915
131,630 145,032 9,163 235,375
1920
293,354 160,494
9,646
3,166
467,514
1925
666,101
136,337 15,649 377,733
1930 1,109,672 195,069 19,300 19,572
1,344,113
1935 1,190,341 167,724
6,110
19,999 1,334,174
1940 1,713,220
1,333,957
150,300
2,073
25,223
1,937,344
1941 136,115 1,907 25,254 2,047,223
1942 2,164,203 145,400
1,339 21,953 2,332,395
1943
3,032,300 143,033
2,441
19,613
3,202,397
3,493,417 1944 3,321,345
154,652 2,505 19,915
1945 2,302,559
2,363,134
159,205 6,902 17,204 2,933,797
1946 155,230 5,733
17,204
3,041,406
1947
3,101,452
3,330,334
157,331
3,633
10,310 3,273,276
194^
144,790 10,166 6,004 . 3,491,344
1949 3,495,052
136,497 13,293
6,696 3,651,533
3,355,713 . 1950 3,711,912
4,040,703
120,631
11,250
11,925
1951 100,933 15,044 24,619 4,131,304 1
4,476,331 1952
4,354,753 39,291 9,364 23,433
1953 4,703,774
79,356 1,953 24,306
4,314,394
Source: Utilities, Los Angeles Metropolitan Area,
a pamphlet prepared by the Los Angeles Chamber of
Commerce, 1954.
TABLE V
ELECTRIC ENERGY USED IN KILOWATT-HOURS PER CAPITA*
CITY OF LOS ANGELES
Year
Utility
service
Electric
railways
Los
Angeles
Department
of Water
and Power
water
system
Private
power
plants Total
1913 264
316
14 594'
1915
270
297 19
536
1920
4^4
260
13
756
1925 643
160
9 15 347
1930 £92 157
16 16 1,060
1935
912
129 5 15
1,061
1940 1,126
99
1
17 1,243
1941
1,135
66 1 16 1 ,2 6 6
1942 1,312 66 1
13 1,414
1943 1,731 67
1 12 1,661
1944 1,901 69
1 11
2,003
1945 1,573 69 4 11
1,677
1946 1,579
66
3 9
1,673
1947 1,667 35 5
6
1,763
1946
1,753
76
5 3
1949 1,302 70
7 3.
1 ,6 6 2
1950 1,675
61 6 6
1,947
1951
2,001 50 7
12 2,071
1952 2,117 43 5
11 2,176
1953
2,243 33 1 12 2,293
*Based on the mean of January 1, and December 31
population estimates.
Source: Op. cit., Utilities.
| Increased, some eighteen times since 1913» while per capita
1 use has quadrupled in the same period. This increase has
heen maintained in spite of a decrease in use of electri
city by the electric railways, the largest user in 1913*
j
i
Use of natural gas. The use of natural gas in the
Los Angeles Area has increased by large measures. Prom
delivery of the first natural gas to the area from fields
near Taft, California, in 1913,^° developments have taken
place in the San Joaquin Valley, in the Coastal and Los
Angeles Basin Area of Southern California. "Today every
| major oil and gas field in Southern California is con-
t
t
j neeted by a network of natural gas pipelines to the Los
| Angeles Metropolitan market.”^
j . ' '
| Natural gas is also imported by the utility eom-
i panles from fields in west Texas and south east New Mexico.
: From a comparatively small beginning of 125 million cubic
| feet daily in 1947, these imports had reached over 700
' kp
: million cubic feet daily by the end of 1954. The
I
till ties Los Angeles Metropolitan Area. pub
lished and distributed by the Los Angeles Chamber of
Commerce, 1954, p. 5.
^Ibld.
kp
Utilities, op. cit., p. 5.
i continued, growth and investment of this type of utility
1 has insured an adequate supply of natural gas for required
i purposes.
i
i
The increasing use of the telephone. Table VI
compares the use of telephones in the City of Los Angeles
for the years from 1939 to 1953* It may be noted here
that although the total population is increasing, the
use of the telephone by business and the residential
population is Increasing faster. The number of persons
per telephone station has decreased from 3.22 in 1939,
' to 2.04 In 1954* This indicates an Increasing use of
; this communicative method whleh Itself denotes greater
i
j economic activity In the area.
i
i
I
: Transportation activity. All types of transport
, activity in the Los Angeles Area experienced a successful
year In 1954. A milestone in aviation history was
reached by the first trans-polar flight to Europe from
! Los A n g e l e s .^3 Air connections were available to many
foreign countries, with direct flights to Canada, Mexico,
South America, and Hawaii. Domestic air passenger ser
vice provided adequate flights to most cities In the
^^Utilities, oj3. cit., p. 9.
61
TELEPHONE STATIONS
TABLE VI
IN SERVICE CITY OF LOS ANGELES
June Number of stations-
Persons
per
30 th Business Residence Total station#
1939
200,732 254,622 455,534
3.22
1940
209,3~35
271,966 431,299 3.16
1941 217,015 233,294 505,399 3.15
1942 •221,041
303,330 529,371
3.12
1943 230,503 343,361 573,364 2*97
1944 245,990 342,234 533,224 2.97
1945 261,764 334,54#
596,312 2.99
1946 237,262
374,943 622,205 2.92
1947 316,931
414,432 731,413 2.54
194$ 344,714 463,765 313,479 2.34
1949
357,750 514,713 372,463 2.23
1950 364,372 533,217 902,539 2.19
1951 375,241 554,747 929,937
2.13
1952 396,196 530,770 976,966
2.13
1953
411,231 617,596 1,023,377 2.04
^Computed from average population.
Source: 0£. eft., Utilities.
62:
| United States, with non-stop service to many. Helicopter
| service was available from Los Angeles International
i ' ' . ' : ' ■
: Airport to neighboring communities. With regard to air
• cargo service, several companies in the area provide this
service to almost any destination^ local, national, or
foreign.
Some thirty local and suburban mass transit systems
serve Los Angeles County, operating over 2500 vehicles.^
These systems provided service to 405,084,000 passengers
! in 1953, covering 82,902,000 vehicle miles.^ Rail con-
t
i
j nectlons are also available to many points in the United
States, Mexico, and Canada.
Highway carrier operations within the metropolitan
area employed an estimated 60 ,000 persons In 1953 with
1
i 4,168 carriers operating some 27 ,86 8 vehicles.The
; coordination of these systems of transportation provided
I .
j Los Angeles with a transportation system adequate for
i
j most purposes required by the large economy of the area.
^Ibid., p. 10.
45lbid.
46Ibid.
I
63
III. PROBLEMS OP GROWTH IN LOS ANGELES
As may toe expected, the large growth of the Los
Angeles Area has not come atoout without several growth
difficulties. Many of these problems are adequately
solved during the growth process, tout many are constantly
re-occurring and need detailed attention at periodic
intervals.
Problems of Food Supply
The marketing problem of supplying food to the Los j
i
Angeles area has increased as has the population. In the j
City of Los Angeles alone it has been necessary to increase \
the food supply from one adequate for 300,000 persons in ’
1910 to one capable of providing sustenance for over !
2,000,000 in 1955. Indeed, the whole concept of food buy- 1
1
l
lag has changed for the average family unit of the populace . j
\
At the turn of the century, grandmother went to j
town each Saturday to do the week's marketing. To
day, giant supermarkets have gone to the suburbs to I
1 find the customers.^7 j
;The population growth of the area brought with it a new j
marketing system for the sale of food supplies to the
consumer.
Near the turn of the century the ordinary retail
^"Midwinter, 1956," op. cit•, p. 113*
--------------------------------- --- ...- .... - - 64 j
*
food market consisted of three individuals— a butcher, j
. . . . . . !
a produce man, and a grocery man. This system was re-
1
placed to a great extent during and following the depres-
i
sion of the 19 3 0's by the supermarket, which concentrated
on large turnover at relatively small profit margins and j
henee lower prices to the consumer. The frozen, pre-
i
packaged system of food distribution is in relatively j
wide use at the present time and growing rapidly. Looking 1
to the future, complete lines of frozen foods may at j
some future date eliminate the expensive butcher shop
j
and other high priced components of the present grocery j
t
stores. At that time, however, although the consumer may
pay slightly more for the pre-packaging methods, these \
higher costs will be countered by lower distribution j
expenses and less wastage. j
Growth and the School Dilemna
The shortage of adequate school facilities has been
a national problem since the end of World War II, and has
been very pronounced In the Los Angeles and Southern Cali-
i
fornia Area. The following quotation well illustrates j
causes of this shortage. j
1
The number of school children in the southern !
half of California has increased by more than 50$
since 1950. Enrollment in grades 1 through 8 in
creased from 76 1,9 69 in the spring of 1950 to .
1,182,675 in the fall of 1955— an expansion of
420,706 or 5 5.2$. In the same interval, popula
tion increased 29$»°
A 500 school network, the second largest in the
nation, operates in this area. Although a $263,000,000
bond issue for school construction purposes was approved
in 19 52, leading educators estimate that another large
issue may be required by 1958 to meet the problem.
The school problem has not been solved at the
present date. It may be hoped, however, that future
aetions may bring the matter under control. An adequate
schooling system is necessary for any growing economy,
and the currently used methods of multiple shifts cannot
be expected to provide the requisite education necessary
if the Los Angeles economy is to continue to expand.
Will Smog Hinder Los Angeles Economic Activity'?
Smog is the name given to a cloud-like layer of
air made up of smoke and other pollutants which lowers
visibility appreciably, has an eye-irritating effect, and
forms throughout the Southern California Area west of the
48
Monthly Summary Business Conditions in Southern
California. Security “First national Bank of Los Angeles,
Vol. 3 5, No. 2, February, 1956, p. 3«
66'
I mountain range from ground level to above 10,000 f e e t . ^ 9
This Is a problem suffered by many other industrialized
i sections of the United States, although Los Angeles smog
!appears to be the most publicized.
Although many dire predictions have been made con
cerning the effect of smog on the future of Los Angeles,
its deterring effect on growth of the area to date has
not been excessive. In fact, notwithstanding the in
creasingly crowded condition of the city and the smog,
1 population has increased more in the ten years following
: the Vorld War II than it did in the ten year period from
1930 to 19^0 .5 0
1 Summary of Los Angeles Economic Growth. 1910 to 195*5 |
Population of the City of Los Angeles expanded some :
; seven times from 1910 to 1955, increasing from 319*198 in
,1910 to 2,241,433 in 1955* Market value of private j
^■9in eighteen pamphlets each entitled Smog Brief
I distributed by the Air Pollution Control District for the
| express purpose of educating the public to the evils,
'causes, and cures of smog, smog” itself was not,once
defined. The above description is believed to cover the
( main elements of this phenomenon.
I ^population increase from January 1, 1946, to Janu
'ary 1, 1955* was over 350*000- From April 1, 1930 to
April 1, 1940, population increased some 270,000.
! Utilities, o£. cit., p. 12.
6?
j property In the City increased almost twelve times during
i
; the same period. Los Angeles industries of which aircraft
i Is the largest, have maintained adequate employment oppor-
j tunities for the growing population while producing many
! of the articles needed by that populace. Factors necessary
for the continued growth of the area have been made avail
able when needed, ordinarily by private facilities. The
Increasing growth of the utility industry accents the
continuing economic growth of the area. To assist when
needed, the Los Angeles Municipal Government has made
available necessary resources, as water and electricity,
Snot readily available in the local geographical area.
i
i
!
CHAPTER IV
INCREASE IN LOS ANGELES MUNICIPAL ACTIVITY
The economic activity of the City of Los Angeles
has expanded tremendously over the years.1 The Inventory
of City property of $40,873,574 in. 1910 amounted to a per
capita figure of $128 for the population of 319,198. A
thriving city at this time, steps were underway to afford
greater opportunities for a larger population in the
future. By 1955, the inventory of city owned property
tallied over $1 billion, and amounted to a $515 per capita
figure for the two million population. The present chapter
I
will examine in more detail this Increase In municipal
government activity and indicate the growth in economic
l
i stature of the various departments of the city government.
I. GROWTH OF TOTAL CITY ACTIVITY
Total public expenditures for the City of Los Ange
les increased In a manner very similar to city inventory.
$13 millions were expended by the city government in 1910, j
amounting to some $42 per capita. These municipal expend!-j
tures climbed to over $163 per capita in 1955; the total
Statistics quoted In this section will be taken
from Tables VII and VIII unless otherwise noted.
TABLE VII
INVENTORY OF CITY-OWNED PROPERTY, DOLLAR VALUE, 1910-1955
1910
Selected years
.. ~T920 "
I
1930 j
General Government
.975,229
1,390,915
32,645,632
Protection (of life and property)
1,264,059 2,101,643 9,047,535 !
Conservation (of health)
3,773,641
11,645,334
675,296 j
Education
6,154,471
7,739,630 9,006,906 |
Recreation
7,212,359
17,364,362
39,197,913 i
Miscellaneous 1,310 66,162
50,534 1
Public Service Enterprises 20,623,425 31,924,541 239,391,419 :
Highways
£63,530 3,966,505
Totals 40,373,574
119,199,642
330,515,277!
City Population 319,193
576,673
1,233,048'.
City Area (sq. 'miD 100.7 365.7 333.3:
City Inventory/Capita |128 |208
|267:
City Assessed Valuation 313,336,364 636,147,965 1,876,277,195
City Inventory per Assessed Valuation 14.3$
18.7$ 17.7$:
(To be continued)
o^
.
TABLE VII (continued)
INVENTORY OF CITY-OWNED PROPERTY, DOLLAR VALUE, 1910-1955
*
1940
Selected years
1950
1955
General Government 34,636,170 46,593,150 85,805,069
Protection (of life and property)
9,779,315
22,045,320 29,659,820
Conservation (of health) 521,233 2,365,069 3,590,259
Education
9,524,094 10,037,771 10,603,700
Recreation 45,204,573'
56,439,905 56,950,643
Miscellaneous 177,233 472,151 766,647
Public Service Enterprises 451,640,675 669,060,394 962,532,849
Totals
551,433,443
807,064,261 1,154,913,812
City Population
1,504,277 1,970,353
2,241,433
City Area (sq. mi.) 450.3
453.5 454.1
City Inventory/Capita 13.66 $410
#515
Gity Assessed Valuation
1,281,632,625
2,430,144,170 3,234,518,880
City Inventory per Assessed Valuation
42.91 *
32,6% 35.8%
Source: .Annual Report of the Controller, City of Los Angeles. ^J
TABLE VIII
TOTAL CITY EXPEIDITUBES, 1910-1955
1910
Selected years
1920 1930
General Government Budget Funds
3,276,973
7,531,062
24,523,023
Goliseum, Library, Park and Recreation Funds 235,633 1,497,023 3,752,176
Public Service Enterprises
7,525,537 9,707,997
20,266,433
Revenue Funds Expense
247,065
3,393,231
5,434
Total Operating Expense
11,235,313 22,534,363 43,574,062
Capital Funds
117,329
425,650 6,736,431
Special and Trust Funds
527,474 17,926,215
Bond Redemption and Interest 1,315,706 3,204,211
13,326,924
Total City Expenditures
13,236,547 26,164,224
36,536,631
Expenditures per Gapita 142
145 $70
City Government Employees 3,450 6,639 17,237
Expenditure per Employee 13,350 $3,760 $5,030
(To be continued)
-j
|~J
TABLE VIII (continued)
TOTAL CITY EXPENDITURES, 1910-1955
1940
Selected years
1950
1955
General Government Budget Funds 21,523,023 67,335,239 93,280,997.
Coliseum, Library, Park and Recreation Funds 3,046,588
9,362,127 12,985,136
Public Service Enterprises
38,116,209 78,145,849
125,142,070
Revolving Funds Expense
680,909 1,238,438 1,668,186:
Revenue Funds Expense 5,459 110,691 191,360;
Total Operating Expense
63,215,735 156,192,344 233,267,749
Capital Funds 10,086,221 75,442,121
42,460,164
Special and Trust Funds
14,159,324 36,262,674 62,441,156
Bond Redemption and Interest
23,105,744 20,262,679 25,920,502.
Total City Expenditures
110,567,725 288,160,119 364,089,591
Expenditures per Capita
.174
|146 |163
City Government Employees 19,666
29,171 32,446
Expenditure per Employee 15,640 19,900 $11,200
Source: Annual Report of the Controller, City of Los Angeles.
expenditures reached $364,089,591* These increases are
well illustrated in Tahle VIII
The increasing service activity of the municipal j
i
government has not been on a steadily rising scale. It
has grown in fitful spurts following roughly the business j
conditions of the private economic sector of Los Angeles.
Accumulation of municipal inventory expanded in a fairly j
......... ■ ■ I
constant manner from 1910 to 1930 as did private economic ,
activity, both being disturbed but not permanently affected)
by political happenings and World War I. The depression
i
of the 1930*3 brought more pronounced changes. It caused j
... - j
many city activities to be curtailed and brought about j
serious cutbacks to the private economy.
In each ten-year period from 1910 to 1920 and from |
1920 to 1930* value of city property almost tripled. In !
i
the decade from 1930 to 1940, however, less than a 50 per |
cent Increase was recorded. City expenditures acted simi- j
larly, increasing by a much smaller relative amount from ;
1930 to 1940 than in the two previous decades. j
To examine more adequately the effect of the de-
I
I
pression on the economy of Los Angeles, it may be apropos J
to consider the assessed valuation of the city. This ■
t
figure likewise grew in a fairly constant manner from 1910 !
to 1930. However, as Table VII indicates, instead of I
leveling off in the depression as did municipal activity, ;
74 s
i
assessed valuation actually dropped. Prom its high
point of $1, 8 7 6, 2 5 5,1 95 in 1930 it decreased in value to
a low of $1,273,744,810 in 1935, 2 climbing hack to only
$1, 2 8 1, 632,625 by 1940.
Prom 1940 to 1955 assessed valuation again in
creased tremendously. It may be noted that during this
time municipal economic activity took significant steps,
both expenditure-wise and in the accumulation of property, j
The ratio of eity-owned property in relation to assessed 1
valuation reached its highest point in 1940. In that
year the inventory of city property amounted to 42.9 per 1
cent of the assessed valuation of the city. With the '
increased economic activity in industry during and follow- |
ing the War, however, this ratio dropped; it was ten
percentage points lower, or 3 2 .6 per cent in 19 5 0*
Undoubtedly one of the factors preventing city
expenditures from dropping during the depression was the
increased welfare activity. Although not as widely recog
nized during the 1 9 3 0's as at present, the maintenance of
government expenditures during a depression helps prevent
too rapid a drop in private economic activity. Thus,
p
Controller's Annual Report, 1954, on. cit., p. 102.
although government expenditures may have been maintained
inadvertantly (and could have been higher) they surely
did not hinder the drive toward return of economic growth
to the area.
t
The private economic activity of Los Angeles seems
to have taken some very progressive steps since 19^0. j
This can be traced to environmental conditions in the !
, i
* i
city and in the Los Angeles Metropolitan Area. During i
• i
'World War II Los Angeles was a great manufacturing center
as well as distributing point for materials of war. The
population growth is indicative of private economic pro
gress following the struggle, as progress would be neees-
» . j
j sary to provide employment for the newer members of the ;
.population. One of the ma^or reasons for higher city !
, I
expenditures following World War II has been to provide j
! for the greater population; services available have had to j
|
be increased with many facilities greatly enlarged. ;
I i
i
Growth of the Several Departments j
j An accurate examination of the overall growth of
municipal economic activity can be derived by comparing
i the rates of inventory accumulation. However, it is
difficult to compare growths because of changes In concept j
i
of the various activities performed.
i
Comparing present inventories with those of 1910, ;
7 6
the miscellaneous activities show the greatest relative
Increase, with the 1955 value being some 460 times as
great as in 1910. This signifies little, however, as the
general activities that municipal government embraces have
. taken such a change of pace. Even with this big apparent
Increase, miscellaneous activities are still much smaller
than any other department of the City.
The department with the smallest relative increase
according to reported inventory values is the Department
©f Health. This is, however, explained by the changed
i i
reporting procedures initiated in the 1920*s. The value
of the municipal sewer system is no longer included as
, a part of the Health Department’s property as it was in
11910 and 1920. It is Interesting to note that the inven-
i
itory of city-owned highways, a sizeable figure in 1910
and 1920 was also dropped. This well illustrates one of
i
I the main difficulties of a report such as this, that of
maintaining continuity with the conflicting reporting
procedures and forms used by the municipal authorities•
The value of property of the General Government
section of city activities has shown one of the greatest
1
I relative increases. The Public Works Department is re-
, sponsible for erecting and maintaining the public
buildings of the city, and is Included in the General
77
Government Department. This in Itself accounts for the
greater portion of value of this section. Along with this,
the increase in size of the city and the increase in scope
of city activities' administrative expenses have increased
appreciably.
The increase, of property value of the General
Protection Department of the City has been necessitated
by the actual physical growth of the Oity. With more
territory and property to protect, more police and firemen
have been necessary. Protective facilities have also had
to be increased.
The Departments of Health and Education have each
i
shown a relatively small increase in value of inventory
j
| due to changes in reporting procedures. As mentioned
! above, the Department of Health no longer includes city
sewers as its reporting property. The Education Department
now only includes the Library as its property, whereas
in 1910 the Public School System itself was included.
1
The inventory of the Recreation Department Increased
fairly rapidly up to 1930, but has levelled out a goodly
amount since then. The Inventory of the Public Service
Enterprises remains by far the largest of all city depart
mental groups.
To grasp this subject more adequately, a breakdown
of each department’s activities will now he conducted.
It is hoped that this will contribute more to an under
standing of total growth of municipal activities.
' ■ II. GENERAL GOVERNMENT ACTIVITIES
t
i
The Controller, who exercises general supervision
| o
lover the financial accounts of the city* groups many
i . . . . . . .
j offices performing functions common to most governments
lunder a heading of "General Government" for accounting
i
purposes. Table IX provides a breakdown of accumulation
of inventories of the various activities in this group
for selected years from 1910 to 1954.
i Department of Public Works
From an examination of Table IX it is evident
that activity of the General Government group follows
I ‘
i closely the performance of the Public Works Department.
I
|The scope of activities of this department indicates the
i
'raison d’ etre for its growth:
i
The functions of the Department of Public Works
include the design, construction, maintenance and
; cleaning of streets; the installation and mainte
nance of street lighting; the design, construction,
maintenance, and operation of sewage facilities,
I
^Charter of the City of Los Angeles. Annotated. 1946
edition (Los Angeles: Parker and Company, 1946), p. 55*
79
TABLE IX
INVENTORY OF CITY PROPERTY, DOLLAR VALUE, 1910-1955
General Selected years
government 1910 1920 ""■'""T970'
Attorney- 13,916
32,613
City Administrative
Officer
1,343 6,863
Civil Service 710 2,750
21,785
Clerk 50,000
11,953 47,313
Controller 1,780
31,344
Council
2,524 6,339 65,774
Mayor 1,002 1,679 16,389
Public Defender 298 1,078
Public Utilities 6,391 23,338
Public Works 897,572 1,326,762
32,323,244
Social Service 626
1,431
1,850
Treasurer 545
11,396
46,173
Public Prosecuter 2,660 27,858
Other 19,304 3,034
Total 975,229 1,390,915 32,645,623
Value per Capita #3.60 #2.40 #26.40
(To be continued)
80
TABLE IX (continued)
INVENTORY OF CITY PROPERTY-, DOLLAR VALUE, 1910-1955
General Selected years
government 1940 1950
1955
Attorney
73,391 121,738 144,538
City Administrative
Officer
9,093
15,930 26,286
Civil Service 33,706 60,280
66,334
Clerk 53,372 161,396
216,714
Controller
57,039
92,662 114,348
Gounci1
36,293 32,021
44,991
Mayor
23,411 44,989 60,102
Planning 26,632
36,043
Public Defender 1,496 2,483 3,524
Public Utilities 14,601
23,729 29,719
Public Works 34,274,821 45,924,700 84,946,242
Social Service
4,305 7,935 7,173
Supplies 10,480
32,954
Treasurer
54,643
68,176 76,101
Total 34,636,170 46,593,150 85,805,069
Value per Capita #22.80 #23.60 #40.10
Source: Annual Report of the Controller, City of
Los Angeles.
81
including pumping and treatment plants, and of
storm drains; refuse collection and disposal; the
design, construction and maintenance of public |
buildings; and the staff duties and supporting
activities incidental to the above functions
With an assignment such as this encompassing a
territory the size of the City of Los Angeles it is not 1
t
:difficult to comprehend the increasing public activity
; necessary. Expenditures of this department for fiscal
1954 totaled over $5° million, with the Bureau of Engineer- '
j " j
iing accounting for $18 million, the Bureau of Public
: Buildings $12 million, and the Bureau of Street Main
tenance $9 million.^ |
i J
! Table IX indicates that the pattern of public-service
! i
activity for this department has followed closely that j
^mentioned for total city activity; i.e., a comparatively I
rapid and steady expansion from 1910 to 1930, a slackening
off for the decade 1930 to 1940, followed by a greater
f . . . . . . . .
economic drive from 1940 to the present. It is interest- j
i i
ing to note that the department of Public Works accumula-
i ted more property from 1950 to 1955 than for the decade |
:1940-1950. Several reasons contribute to this seemingly
i
odd factor. During World War II most facilities were used j
i
___ ' j
)
2 l
Annual Report of the Board of Public Works of the
Citv of Los Angeles, 1954, p. 1. !
^Ibid., p. 6. ;
82
longer than they ordinarily would have been due to the
difficulty of replacement caused by shortage of materials,
labor, and money. In the years immediately following
the war, plans had to be femulated for expanding the
activities, and groundwork had to be laid to secure the
necessary funds. Although many construction projects
were in process in 1950 their inventory value did not
appear for accounting purposes. Added to this, the
increased labor and material cost have raised the monetary
value of the facilities completed since the end of World
War II.
As the city "housekeeper” and builder of public
projects and buildings, the Department of Public Works
provides the city with its general outward appearance.
If city streets are cleaned frequently, and city buildings !
of a presentable nature in design and age, a favorable
impression is made for the city. Los Angeles has over
5700 miles of streets with more than 55® public buildings
Superficial appearance of these streets and buildings is
believed to be adequate.
^The Cltv of Los Angeles. Year Book. lb4Q. printed
by the Los Angeles Police Printing Bureau, 195®, P. 34.
Other General Government Activities
I
Value of property of the other departments grouped
1 under the heading of General Government Increased, but In
a much smaller comparative manner. Thus, while Inventory
i
of Public Works increased some eleven times, that of the j
general administrative government activities only doubled, j
< . i
It must be recognized that this does not give a j
I
! !
, true pie tare of the relevant activities of the departments !
t
( j
concerned, as expenditures for each group are not indl- j
cated. Also, the departments of General Government, as j
'veil as many other departments of the city base their i
<
operations in buildings maintained and charged against the •
i
i Public Works Department. Hovever, considering the rise In i
! i
i inventory of many departments this relative constancy of j
i |
S the departments of General Government may be commended. j
Several departments vith varying functions have i
been added to this group of activities since 1910* The
Public Defender, originally commanding a salary of $125
per month came Into being before 1 9 2 0 .7 From this rather
■f> i
meager beginning the Department of the Public Defender is
now composed of twelve lawyers who "give legal advice on
civil matters to indigent residents of the city."® A
7pp« clt.. City of Los Angeles Year Book, 19^9> P*
^Budget. Fiscal Year 1955-1956. Cltr of Los Angeles, ;
printed by Dan 0* Hoye, Controller, p._ (KL. ____ J
84
Municipal Charities Commission, later to become the Social
Service Commission was established in 1913 to regulate the
solicitation of funds for charitable purposes.9 in 1938,
following the recall of the mayor for corrupt practices a i
. . . . , . |
, responsible Civil Service Department was established to
provide city employment through m e r i t . j
Assuming that eitizens of the City receive as ade
quate service now as in 1910, it would appear that in the
: General Government Area a reasonable public service return !
1
is being made to them. Inventory in this group has expand-;
' ed greatly, both actually and relatively on a per capita I
basis. However, the principal expansion has been by the
' Department of Public Works, which maintains the superficial!
appearance of the city and provides for additional pro- |
I j
' jects. City buildings and other projects have increased j
i
greatly in number over the past half century. Other than
I this, General Government Activities appear to have in
creased by a relatively small amount if inventory accumu
lation may be used as a criteria. While each department
!
of this group has increased its functions, and new depart
ments have been added, inventory on a per capita basis has
1-------------- i
9 1
Board of Social Service Commissioners City of Los
Angeles. Forty-first Annual Report, 1954, p. 5.
"^City of Los Angeles Year Book, 1949* oj 3. cit. . p. '
16.
........" " "85:
merely doubled.11
III. PROTECTION TO LIFE AND PROPERTY j
i
Inventory of property accounted for by those de
partments providing for the protection to life and proper-j
ty of the Los Angeles citizen has increased from a $4.00 ;
per capita figure In 1910 to some $1 3 .7 0 per capita in
I95 5. During this period of time the assessed valuation
of the city these departments are required to protect has j
increased in value some ten times. It would thus appear
• - ■ - • (
that the city is receiving a good comparative return from ;
i
the expenditures in this section. I
There have been new departments added to this ;
group. The Building and Safety Department has been or
ganized to enforce ordinances and laws related to building j
i p i
construction. A Traffic Department, operating in con
junction with the Police Department, which studies street !
i
traffic problems^-3 has been ereated. Although not of a
!
comparable level inventory-wise as the Police and Fire
^"Merely” is a word used with reservations. Recog
nizing the growth of other activities of the city, howeverj
^merely doubled” is a very small amount relatively. j
^Budget, 1955-1956, 0£. cit., p. 2 0.
13 i
Ibid.. p. 129.
86
Departments, these newer departments do contribute to the
public activity of this group. The growth of inventory
for these departments is illustrated in Table X.
The Police Department
The Police Department, composed of some 4494 officers
and over 1200 civilian employees in 195^^^ Is the largest of
i i
the departments affording protection to life and property
of the city. Charged with the enforcement of the penal pro-!
i ;
visions of the city charter-^ the seven bureaus of this
department range from a personnel and training bureau to a
i *i fZ '
detective force in carrying out their operations, ° |
I j
‘ J
■ In maintaining law and order for the city, the police
‘ j
department has made a subs tantial growth from the one-man
force, a city marshall, in 1850.1? Growing with the city,
the department progressed to a force of 800 persons in 1887 <
1 i
ppened its first substation in 18 89, and inaugurated a
_ 18
record and identification system in 1890, Along with this
1
! »
lJ* Los Angeles Police Department Annual Report. 1984.
P. 33.
^Budget, 1955-1956, o£. cit., p. 69*
ifi
Police Department Annual Report, op. cit.. p. 3.
^City of Los Angeles Yearbook, o p . cit., p. 5 7.
l8Ibid.
TABLE X .
PROTECTION TO LIFE AND PROPERTY INVENTORY, DOLLAR VALUE, 1910-1955
1910
Selected years
1920 I936
Building and Safety 2,766
59,619
Fire, Police Signal System
96,029 1,644,401 1,500,000
Fire
932,907 4,367 4,332,463
Animal Regulation
1,195 73,979
Traffic 3,233
Police
226,677 369,651 2,216,152.
Other (Receiving Hospital, Inspectors, etc.)
6,047 30,453
307,133:
Total
1,264,059 2,101,643 9,047,535;
Value per Capita $4.00 $3.70 $7.30
Conservation of Health
Health
3,773,641 11,645,334 675,296
(Includes Sewers) (3,666, 900)
(11,455,365)
Value per Capita
$11.70 $19.70 $.60
i
(To be continued)
CD
S.
TABLE JL (continued)
PROTECTION TO LIFE AND PROPERTYINVENTORY, DOLLAR VALUE, 1910-1955
—
1950—
Selected years
1950 ..
1955
Building and Safety
147,375
175,160
362,24$
Fire, Police Signal System 1,702,050 2,102,150 2,259,110
Fire 5,433,930
10,523,249 13,101,375
Animal Regulation
53,497 340,509 393,940
Traffic 6,735 373,576
Police 2,415, 66$ 3,904,752
13,130,391
Total
*9,779,315
22,045,320 29,659,320
Value per Capita 16.50 $11.20
$13.80
Conservation of Health
Health 521,233 2,365,069 3,590,259
Value per Capita 1.40 $1.20
$4.00
Source: Annual Report of the Controller, City of Los Angeles.
I 89l
!continued growth, the traffic "bureau of the police depart
ment was organized in 1941 to assist in handling the
increasing automobile traffic problem. In 1949 a Bureau
I of Welfare and Corrections was established, charged with
i
the processing and confinement of prisoners as well as with
the welfare and rehabilitation of those serving sentences
for misdemeanors.^
Inventory of the Police Department has increased
I
from $226,6 77 in 1910 with a police force of 51020 to al- '
most $13 million in 1954 with the above indicated force of 1
4494. Thus, with an inventory per policeman of $44.50 in
1910, one policeman was available for each 625 citizens. In1
!
1954, the inventory was $2 ,9 0 0 per policeman, with protec
tion afforded on the basis of one policeman for each 470
i I
citizens. This indicates either a more adequate protection!
for the average citizen or a greater cost for the same rela-f-
time protection. There is available a large police force
in proportion to the population, and it is more expensively
'equipped. ■
1
The Fire Department
Inventory of the Fire Department has grown from
i
$2 .9 0 per capita in 1910 to over $6 .0 0 per capita in 1955.
1
.During this period the department was progressed from a
1
^Ibld.. p. 5 9.
20Ibid., p...59*
I 1
continued growth, the traffic bureau of the police depart
ment was organized in 1941 to assist in handling the
increasing automobile traffic problem. In 1949 a Bureau !
i
of Welfare and Corrections was established, charged with I
i the processing and confinement of prisoners as well as withi
i
the welfare and rehabilitation of those serving sentences J
for misdemeanors .-*-9 I
I
Inventory of the Police Department has increased from
$226,677 in 1910 with a police force of 51020 to almost $1 3;
i
million in 1954 with the above indicated force of 4494. j
1 !
I Thus, with an inventory per policeman of $44.50 in 1910, on4
; |
!policeman was available for eaeh 625 citizens. In 1954, thd
: K
iinventory was $2 ,9 0 0 per policeman, with protection afforded
; ■ 1
!on the basis of one policeman for each 470 citizens. This j
• 1
‘indicates either a more adequate protection for the average j
‘citizen or a greater cost for the same relative protection, i
1 . I
There is available a large police force in proportion to
I ' !
the population, and it Is more expensively equipped.
The Fire Department
Inventory of the Fire Department has grown from 1
i . I
$290 per capita in 1910 to over $6 .0 0 per capita in 1955* •
, 1
During this period the department has progressed from a ;
; _______________ i
1 1
1
x9ibid.. p. 59* j
20Ibid.. p. 59.
90
basically horse-drawn force to one possessing some 450
pieces of automotive equipment In 1 9 4 9 .21 In fiscal 1951
i
the fire department answered a total of 2 3 ,3 9 6 fire ;
22
alarms.
Other Protective Departments
Other departments included in the general classifi
cation of Protection to Life and Property” accounted for i
; I
i
'a comparatively small portion of municipal activity. In
i
t
1910 the inventory of these other departments, including
Animal Regulation, the Fire and Police Signal System
(and in 1910 the receiving hospital) amounted to $104,425,
or $.33 per capita. By 1955 this had increased to $1*50
iper capita, with $3,204,995 expended. It appears that in
i
this general area the municipal government has been ex- !
1
1 tremely careful In expenditure growth over the years.
1
1
j IV. CONSERVATION OF HEALTH
i
If figures of the Controller are used to compare the:
i years 1910 and 1954, the inventory accounted for due to
conservation of health has risen by a comparatively minute
!
21City of Los Angeles Yearbook, 1949* op. cit.. pp.
44-45.
22
Sixty-fifth Annual Report of the Department of
Fire. City of Los Angeles . 1951. p. 3 6.
amount. The 1910 inventory amounted to $3,778,641, rising
to $4,495,410 in 1954. Using these figures from Table IX
and comparing them with city population as recorded in
Table VL the relative per capita amount maintained by the
health department has declined.
As mentioned earlier in this chapter, however, this
;is not the case. A difference in reporting procedures of
;the municipal departments has been incorporated. It will
be noted that the inventory figures for 1910 and 1920 for
health conservation included city owned sewers, by far
the greatest portion of this group*s Inventory. As the
sewers are no longer included on the inventory of the
health conservation branch, this figure now gives a more
accurate Indication of city activity in this field.
The L6s Angeles Department of Health Is now active
in combatting all communicable diseases, especially those
of a highly contagious nature. As an example of this
action, the prevalence of syphilis in Los Angeles has
decreased some 82 per cent from 1944 to 1 9 5 3 Tubercu
losis and most other communicable diseases are declining
in this area, although not all at such a high rate.
The Health Department operates in other areas. In
^ Health Report. City of Los Angeles Health Depart-
ment. 1953-1954, p. 7-
92
195^ it was attempting to require yearly innoculations
against rabies for all dogs of the city.2^ A continuing i
battle against home accidents by education was in pro
gress,2^ and city sanitation inspectors were attempting
, to safeguard the Los Angeles Health.cw
Statistics as presented in the 1953~5^ Health
Report of the City of Los Angeles indicated a generally !
i ■ ■ ■ - - ■•■■■■ ■ ■ ■ ..... i
I
decreasing rate of most communicable diseases. Ho indica- :
• . . . . . . . . . . . |
, tion or reference was made, however, to the increasing ;
skill of the private doctors in the area. It would thus
be difficult to draw a conclusion as to the results gained
. . .
by the health Department, except as to the results of the I
cases treated and recorded by the Department. ;
I
<
V. EDUCATION !
I
i
!
The Library Department of the City of Los Angeles
includes a central library, a municipal reference library
. . . . . . _ ,
| with two divisions , fifty-two branch libraries, and four
book-mobiles.2^ With this system, an efficient circulation!
I
of the 2,180,905 volumes owned by the library is
Oh
Ibid.. p. 3*
25Ibld.. p. 5.
26Ibld.. p. 10.
27
*Los Angeles Library. Information. 1955. mimeo
graphed by the Library, p. 1.
attempted.*^
City accounting procedures have ehanged the scope of
inventory included hy this section of city activities.
In 1910 and 1920 the public school system of the City of
Los Angeles was included with the Library. Now, however, I
i the public school system is a separate entity, and has a
1 taxing power of its own.2^
i !
Inventory of the Library Department has grown from j
an $ .8 5 per eapita figure in 1910 (not including the
1
school system) to some $4.70 per eapita in 1955* The
i
j
largest portion of this inventory is of course for the
central library building opened in 1926^° and the numerous j
branches. t
; 1
i I
^ j
i Los Angeles City School Districts j
! ' i
I The public school system of the City of Los Angeles
is not controlled by the City Council. The Los Angeles
i
City Board of Education operates as a separate governmental
entity with Its own tax rate. Although the expenditures of
the School Board are not under municipal government
28Ibid.
^Information received from Mr. Carl B. Boland,
Chief Accountant, City of Los Angeles, December 17, 1955*
3°City of Los Angeles Yearbook, 19^9* QP* cit.. p.
66.
control, they are municipal expenditures. Ho study of
municipal activity would be complete without at least a
brief examination of the public school system.
Table XI indicates that public schooling, like
other municipal government activities, has shown a rela
tive increase in eost during the period covered. Total I
expenditures of the Los Angeles City School Districts
increased from $3 1* 0 6 2 ,0 0 in 1930 to $367,847,000 in j
!
I
1955. Perhaps the most significant figure of Table XI !
|
is per capita cost. The average yearly cost per pupil j
has grown from $139*50 in 1930 to $340.38 in 1955* !
Public schooling exhibits Increasing relative I
!
cost during the twenty-five years for which statistics
I
are available.
(
VI. RECREATION ACTIVITY OP LOS ANGELES j
. . |
The activities and opportunities offered by the '
Department of Recreation and Parks has grown consistently |
through the years. However, the per capita value of pro- i
perty reached Its highest point in 1930 at $31.60 per j
I
capita. This decrease In property per capita value Is not
1
due to a cessation of expenditures for recreation as j
I
Table XII will indicate. The flattening out of the growth |
of inventory value coupled with the rapid increase in
population.caused.per capita inventory to drop to $2 5 .3 0 1
95
TABLE XI
FINANCIAL DATA, LOS ANGELES CITY SCHOOL DISTRICTS
1930 to 1955 (SELECTED YEARS)
Selected years
1930 1940 1950
1955
Total Employees
i
14,503 14,613 22,629 26,052
Valuation of School
Property (Thousands)
#129,269 #163,379. #205,295 #367,647
!
Expenditures
'(Thousands | 31,062 # 36,661 # 69,700
#141,369
Daily Attendance
(Average) 222,670 259,442 334,673 415,367
Per Capita Cost
(Per Pupil) #139.50
#137.95
#266.02 #340.36
Source: Financial Data Los Angeles City School
Districts, pamphlets prepared yearly by the Budget Division
of the Los Angeles City School Districts.
TABLE III
INVENTORY OF EDUCATION, RECREATION, AND PUBLIC SERVICE ENTERPRISES DEPARTMENTS,
DOLLAR VALUE, 1910-1955
Selected years
T W ----1920---- 1990
Education
i
Library
(Includes Schools)
6,154,471
(5,664,710)
739,660 9,006,906
Value per Capita #16.40 #1.30 $7.30
Recreation
Coliseum (City Share)
Recreation and Parks
7.212,659 17,364,362
574,760'
36,623,153'
Total 7,212,659 17,364,362
39,137,913,
Value per Capita #22.60 $30.20 #31.60;
Public Service Enterprises !
Airports
Harbor Department
Power System
Water System
Other (Municipal Market and Municipal
Railroad, San Pedro)
20,623,425
29,260,636
7,661,676
44,600,239
161,566
200,691
61,415,367
66,246,659'
109,913,627;
i
Total
20,623,425 61,924,541 239,891,419'
Value per Capita #65.00 #142.00 |194.0o:
(To be continued)
vo
C\
TABLE XII (continued)
INVENTORY OF EDUCATION, RECREATION, AND PUBLIC SERVICE ENTERPRISES DEPARTMENTS,
DOLLAR VALUE, 1910-1955
Selected years
1940 1950
1955
Education
i
Library
9,524,094 10,037,771
10,603,700:
Value per Capita $6.30 $5.30 $4.70|
Recreation
Coliseum (City Share)
Recreation and Parks
930,033
44,274»494
1,253,360
55,236,045
1,553,214''
55,392,434
Total 45,204,67^ 56,439,905 56,950,643
Value per Capita 130.00 $23.60 $25.30’
Public Service Enterprises
Airports
Harbor Department
Power System
Water System
2,351,717
65,177,655
211,629,340
171,931,463
20,370,925
34,149,553
343,777,312
220,762,093
30,423,799
93,956,310
531,951,502
301,196,233
Total
451,640,675 669,060,394 962,532,349
Value per Capita $300.00 $340.00 $423.00
Source: Annual report of the Controller, City of Los Angeles. ^
98,
i
: in 1955- An indication of the number of citizens taking
i part in Los Angeles recreational facilities may be shown
! by 1949 attendance figures. In 1949, 53*303,744 visitors
| were recorded in attendance at municipal recreational
facilities
VII. MISCELLANEOUS ACTIVITIES
Inventories recorded by the miscellaneous activities
1 of the municipal government as shown in Table XIII have
f
represented the greatest relative increase since 1910.
i
This great increase in inventory, from $1,310 in 1910 to
$7 66,^ 67 in 1955 does not necessarily represent a signi
ficant increase in city activity, however, but more one
i
' of convenience. The greatest amount recorded in 1954 was j
^ i
, for the revolving fund, used as a reserve service fund by |
l
the city. Other appreciable amounts were for retirement
systems and pension plans for city employees.
; Thus inventory for miscellaneous funds represents
more a saving of funds for future use. In the case of
■ i
retirement and pension funds they are saved now to be paid (
at future dates to retired city personnel. The revolving
fund provides for maintenance of expendable supplies to
1
i
several municipal departments at a reasonable expense.
^Progress Report. 1945-1950. City of Los Angeles
Department of Recreation and Parks. p. 3 3.
TABLE XIII
MISCELLANEOUS ACTIVITIES INVENTORY, DOLLAR VALUE, 1910-1955
1910
Selected years
........1 W ..
1930
Fire and Police Pension 4,302;
Municipal Art
179 3,223!
City Planning
14,437'
Purchasing Agent 1,352
4,154.
Salvage and Stores 62,592 19,920
Miscellaneous 1,310
2.039 1,493
Total 1,310 66,162
50,534,
Value per Capita
$•04 I .10 $.04
1
I
Highways
Highways 633,530
3,966,505 (Not recorded
after 1927)
Value per Capita $2.20 p. 10
(To be continued)
vo
vo
TABLE XIII(continued)
MISCELLANEOUS ACTIVITIES INVENTORY, DOLLAR VALUE, 1910-1955
Selected years
1 ' 9 4 0 1 9 5 0
1 9 5 5
City Employees Retirement 4,231 14,097 17,001
Fire and Police Pension
7,535
14,330
13,031
Municipal Art 4,237 11,104
12,963
Revolting Fund 142,290
431,069 713,737
City Planning
14,433
Purchasing Agent 4,512
Total 177,323
472,151 766,467
Value per Capita f - . i o $.20
$.30
Source: Annual Report of the Controller, City of Los Angeles.
101
A1 though miscellaneous activity has not reached an
appreciable amount In relation to other city inventories, ;
it has expanded tremendously. Miscellaneous activity !
appears to follow the trend maintained hy other city j
government departments, i.e., it is constantly increasing* !
i
VIII. PUBLIC SERVICE ENTERPRISES
\ s
i
I
As the Public Service Enterprises represent the j
I
area of greatest growth by municipal government activity, j
a separate chapter has been devoted to them* Each depart** j
j ment in this group represents a large field of city i
activity, and each would require a very comprehensive j
I study to fully show its economic growth. In the following j
: chapter, however, the general aspects of each departments j
, I
: growth will be indicated. I
! IX. RELATIVE MUNICIPAL EXPENDITURE CROWE
I - . -. . . . . . . . . j
In examining the growth of the Los Angeles economy
* *• ' " !
j 1
i the figure for assessed valuation figures prominently.
! ' " !
jThe assessed valuation of a city is relevant for studying ;
: ~ ......... - . . . ...
economic growth as two important variables are reflected j
: ' i
in its measurement. j
j
An examination of absolute government expenditures
for differing time periods is of limited value as certain
variables are. not considered* Population is very - ____!
102
I
; Important. For Instance* If the population of a city
doubled while municipal expenditures remained constant
j the services to each individual citizen would be expected
| to be halved. Changes in the value of money affect
i
1
government activities in a similar manner. By a com
parable example* if inflation caused the value of money to
■ be lessened* constant municipal expenditures should render
lower per capita services. '
It is thus seen that before comparing expenditures
I
; on the municipal level for different times at least two
' ‘ i
i
, important variables must be considered— population* and
i
money value. Variations in either of these factors ]
changes appreciably the context of municipal expenditures. j
i
It is for this reason that attempts are made in this study |
i
to perform comparable, relative examinations* often using
the per eapita approach.
Effects of population and monetary value are
;integral factors of a city’s assessed valuation. Popula-
;tion growth’s effects on assessed valuation are of a
i ' '
relative nature* ordinarily increasing assessed valuation
as it expands. Money value changes affect assessed valua-
j tion directly, as the present worth of money is considered
jin assessing property.
| There should be a direct relationship between
t
assessed valuation and government activity. As population
increases, assessed valuation and government activity 1
i
should increase. If the value of money should he lowered,
government activity should reflect an increase in money
expended, hut this would not change the ratio to assessed
valuation. If government activity should change in |
content its ratio to assessed valuation should vary.
Municipal government activity for the City of Los
Angeles may he represented by the total of municipal
expenditures and dollar value of municipal inventory. It
is realized that this is not a highly accurate figure 1
for careful examination, as a portion of municipal ex- j
penditures for one year become inventory of the following ,
years. This total figure is, however, a relative figure,
reflecting the increase in government expenditures and the ;
government’s increasing acquisition of inventory property. 1
Each of these figures definitely reflects activity of the .
municipal government. 1
»
r
X. SUMMARY OF MUNICIPAL ACTIVITY
The population of Los Angeles has increased almost
seven times from 1910 to 1955. During this period City-
owned property has increased over twenty-six times and
municipal expenditures twenty-seven times. The economic
activity of the City, indicated by the total of municipal
expenditures and municipal inventory has shown a very
104
j definite increase when compared to assessed valuation of
J the private sector of the City. The ratio of municipal
I
! government activity to assessed valuation appeared to have
j
Jlevelled out at a relatively high level from 1940 to 1950,
hut has again exhibited increasing tendencies since 1950.
Table XIV points out the ratio of municipal govern
ment economic activity to assessed valuation for the 01ty
i
1 of Los Angeles for selected years 1910-1955* It is seen
that this is not a constant ratio, but lias Increased ■
almost three times during the period under consideration.
i
; It may prove interesting to examine this increasing ;
! i
ratio. By considering the statistics, factors contributing:
l
to the expanding activity of the municipal government will j
1 be indicated. At this point statistical data alone will be|
i
I
' considered. Variables examined will be changes in expendi
tures, changes in inventory, and changes In assessed valua
tion. i
I
' Causes of Growth of Municipal Activity !
i The ratio of municipal government activity to
assessed valuation increased five percentage points from
1910 to 1920. In this decade total expenditures and
i
, assessed valuation maintained a fairly constant variation,
I each approximately doubling. The increase in municipal
(
! economic activity during this decade would thus be
TABLE -XIV
THE RATIO OF MUNICIPAL GOVERNMENT'ACTIVITY TO ASSESSED VALUATION,
CITI OF LOS ANGELES, SELECTED YEARS, DOLLAR VALUE
Selected years
1910 " 1^20 1930
Municipal Inventory
40,373,574
119,199,642
330,515,277
Municipal Expenditure
13,236,547 26,164,224 36,536,631
Government Activity 54,160,121 145,363,366 413,101,953
Assessed Valuation
313,336,364 636,147,965 1,376,277,195
Government Activity
Assessed Valuation
17.3% 22.9% 22.2 f o
1940 1950
1955
Municipal Inventory
551,433,443
307,064,261 1,154,913,312
Municipal Expenditure
110,567,725 233,160,199 364,039,591
Government Activity 662,051,163 1,095,224,370
1,519,003,403
Assessed Valuation
1,231,632,625 2,430,144,170 3,234,513,330
Government Activity
Assessed Valuation 51.6# 44.2$ 47.0$
105
106
considered due to the growth of Municipal inventory. In 1
this instance the significant inventory increase was I
recorded by the public works department.
Municipal government activity remained relatively
constant from 1920 to 1930, decreasing from 22.9 per cent
to 22.2 per cent. Each of the three variables considered, ;
expenditures, inventory, and assessed valuation increased i
roughly three times during this decade. j
j
The great increase in government activity for Los I
i
Angeles came in the decade from 1930 to 1940. Using our
: computation figures the ratio of government activity to j
i
assessed valuation increased from twenty-two per cent I
[
in 1930 to over fifty-one per cent in 1940. Speaking in j
general terms, it may be stated that the Depression was i
overriding factor in this increased activity. j
The twenty-nine percentage points increase in the j
1
municipal government activity ratio was due to an increase j
of fifty per cent in government activity and a thirty per |
!
; cent decrease in assessed valuation.
| Municipal inventory and expenditures expanded by
■ about the same relative amounts in the 1 9 30's each slightly
j more than fifty per cent. The increase in government
* activity in this decade was considerably less than in the
previous two decades, in each of which it had almost
tripled. The variable influencing this relative government
i increase the greatest amount was assessed valuation, which
decreases some thirty per cent, from $1, 8 7 6, 277,195
1930 to $1,281,632,625 in 1940.
A relative plateau was maintained by the municipal
1
government activity ratio between 1940 and 1950, as the
ratio declined some seven percentage points. This apparent
: decline should not be misleading however. Government
'activity actually increased on a per capita basis, but not
as much as assessed valuation. The much greater increase
in assessed valuation caused the municipal government
f
|activity ratio to exhibit its decline.
1
1 Figures for 1955 indicate that the trend is again
upward. Government activity increased from 44.2 per cent
to 47.0 per cent, with municipal expenditures and municipal
inventory increasing more relatively than did assessed
valuation.
CHAPTER ¥
PUBLIC SERVICE ENTERPRISES
The public service enterprises have comprised the
area of greatest expansion of city activity. Prom a $20.6
million investment and $65 per capita in 1 9 10* the value
of city-owned property in this field has grown to $420 per
capita, with an inventory of over $900 million in 1955.^
|
Expenditures and investment in these enterprises j
have been necessary for the public benefit. Although j
private enterprise performs these functions in many eities j
i
the City has undertaken the activities in Los Angeles.
The need for additional water for the area was j
1
recognized near the turn of the century. The municipal j
plan of attaek made necessary a large organization to
carry through the construction of the Los Angeles Aqueduct,
and to provide for the distribution of the water to the
various users in the area. With such an organization, it
was deemed best to place it under an organization other |
than political for its financial control. This was brought
about by granting the Department of Water and Power control
■^See Table XII for a detailed breakdown of inventory
accumulation of the publie serviee enterprises, and Table
VIII for yearly total expend!tures of the group.
o i
over its own special funds.* = The other two departments in ,
this group, the Department of Airports and the Harbor
Department exercise similar control.3 It is due mainly
to the expansive installations owned and managed by the
public service enterprises that the inventory of municipal
property reaches the high ratio when compared to assessed
valuation of the city. This ratio was over forty per cent
in 1940^ This may be more readily understood, however,
when the nature of the projects necessary to complete the
facilities for providing the services is contemplated. i
The Los Angeles Aqueduct cost $23,000,100 in 1915*3 |
while the Colorado Aqueduct cost approximately $190,000,000,
when completed in 1941. With such expenditures for perma
nent equipment representing only a portion of the activity ;
»
engaged in by the public serviee enterprises, their total 1
t
value may be expected to be quite large. In comparing
^Budget Fiscal Year 1955-1956 City of Los Angeles. !
p. s-1.
3Ibid.
^See Table VII.
^Proposed Official Statement Respecting $9.000.000
Water Works Revenue Bonds. January. 1954. distributed by
the Department of Water and Power of the City of Los
Angeles, January, 195^, P* 5*
6Ibld. p. 7.
110
these property values with assessed valuation of the pri
vate sections of the city It should he borne in mind that
much of the property owned by these departments lies out- !
side the actual city area.
j
I. WATER WORKS OF THE DEPARTMENT OF WATER AND POWER j
^ ' i
I From the date of the incorporation of the city of |
Los Angeles in 1850 the problem of an adequate water supply^
has required attention and planning for the future. Action
by the municipal government has prevented this problem from;
. . . . . . . . . , . . .. . . . . . . . . . . . . . . j
becoming too pronounced and a shortage of water has never
been allowed to develop into an acute problem.
i
The forerunner of the present city was established :
.in 1781. "El Pueblo de Nuestra Senora la Relna de los i
. " 1
Angeles de Poreiuncula,*1 or the City of our Lady the Queen
of the Angels of Poreiuncula was established under the
Spanish regime.^ The King of Spain authorized the pueblo j
paramount use of the waters of the Poreiuncula, now the
Los Angeles River. The use of these waters for the city
i
requirements has existed to the present time. When the
! 'l
United States gained Control of the area the City of Los
1
!
- i . M l . l l l « 1 II..... illllV IM I
* 7 1
Official Statement respecting $5.000.000 Water
Works Revenue Bonds. 1953. Department of Water and Power, 1
City of Los Angeles, 1953. P* 1
Ill
Angeles retained possession of the water rights, heing the
successor of the original Spanish Pueblo.
Physical make-up of the Area
The sources of the Los Angeles river lie in the
mountains surrounding the San Fernando Valley. The drain
age from this area, lying to the north of the central
i
section of the city, partly in and partly out of the city
limits, forms the Los Angeles River. The area forming this '
watershed has an average rainfall of from 15 inches in the
valley floor to 30 Inches in the mountains. The alluvial
character of the floor of the valley limits surface flow
to periods following the comparatively heavy rainfall, and ,
the narrow opening of the valley allows the water to perco- ,
late out near the center of the city* A large underground ;
• i
reservoir is formed in the Valley due to a natural sub
terranean dike In the mouth of the valley.
Water is extracted from this underground reservoir
for uses other than those of the city as it is used for ;
'agricultural and domestic purposes. Wells and Infiltration
: ... ■ - ^
galeries in the San Fernando Valley make the water available
to the city and other uses. Courts may terminate' by in
junction private uses of the underground water if the city !
has need of it. ;
Alluvial soil in the area from the entrance of the
ii2:
i :
San Fernando Valley to the ocean causes another large j
source of underground water throughout much of this flat
section. During the early years of the city numberous
wells located on this coastal plain supplemented the sup
ply of water from the Los Angeles River.
Ocean River Valley and Mono Basin
When it became evident soon after the turn of the
century that the local sources of supply would not be
able to indefinitely meet the needs of the growing city,
t
other sources were examined. On May 22, 1905* the Board j
t
' of Water Commissioners, predecessor of the present Board t
of Water and Power Commissioners, selected the watershed
i
of the Owens River as the best source for future use by j
the city.® Heights of over 12,000 feet average in this
area provide a "snow pack" throughout much of the year and
1
insure a constant souree of supply of water. The Los
j Angeles Aqueduct, of gravity flow, was completed in 1913
for construction costs of approximately $2 3* 00 0, 00 0.^
1
The City later acquired use of the waters of the
Mono Basin, the watershed adjacent to the north of the
! . j - -1..... -
I Q
O p . clt., Official Statement Respecting $5,000,000 !
Water Works Revenue Bonds, 1953* P« 5» ;
\ ‘
9 1
Ibid., p. 5. i
Owens River system. The Mono Basin Extension was con
structed to divert the waters of the Mono Basin to the Los
Angeles Aqueduct some 80 miles to the south.
The Colorado River, and the Metropolitan Water District
of Southern California
As early as 1923 the city began investigations of
the Colorado River as an additional source of supply for
water. In 1928, the Metropolitan Water District of South
ern California was incorporated.^-0 The district now
Includes the city of Los Angeles and all adjacent commu
nities .
The Colorado River Aqueduct was completed in 19^1,
costing approximately $1 9 0,0 0 0, 00 0, and extends some 300
miles westerly from the River into the area served. Tun
nels and other principal features of the aqueduct have
been constructed to enable it to supply water for an
additional six million people.
Cltv Use of Water
During the fiscal year 1952-1953> the City of Los
Angeles used water from the various sourees in the follow
ing amounts:
10
Ibid.. p. J,
/
114
Dally Average Per Cent;
(Millions of Gallons) of Total
Local Sources of Supply^1 102.7 26.0$
(Los Angeles River and
wells in the central
plain)
Owens River and Mono Basin12 2 7 8.0 70.2$
Colorado River1^ 15.2 3.8^
Total 395*9 lOOTof
• - !
From the statistics, it is evident that exclusive of the
■ i
Colorado River supply, the city can rely upon a minimum
of 381 million gallons per day. This source of supply is
guaranteed by long established rights; from local sources ]
of supply of the Los Angeles River and Coastal Plain wells,;
and from the Los Angeles Aqueduct with water from the Owens :
River and Mono Basin Extension. !
; " j
Value of property owned by the City in connection j
j
iwith its function of supplying water has grown from j
$65 per capita in 1910 to over $144 per capita in 1955*
.Planning for future growth is apparent in the building of
the Colorado River Aqueduct. When the Los Angeles Aqueduct
was constructed, it was evident that new city sources of
water were being rapidly depleted. Costs of this Aqueduct
1: L Ibid.. p. 5*
ip
Ibid.. p. 6.
^Xbid., p. 8 .
amounted to about $70 per person. Compared to this, the
Colorado Aqueduct was completed in 19^1 at a greater cost
(over $120 per person) but in 1953 (with a much larger
population) it was used for only 3.8 per cent of city
requirements for water. As indicated, it has been con
structed so as to supply a much larger population. With
regard to water for the City, the Los Angeles Municipal
Government has enacted adequate measures in supplying the
needs of the residents of the city. Water is a basic
requirement for nearly all activities. The City govern
ment, in conjunction with other activities, appears to be
i
actively endeavoring to supply the needed water. ;
II. ELECTRIC WORKS OP THE DEPARTMENT OP WATER AND POWER
In the planning stages of the Los Angeles Aqueduct
soon after the turn of the century, the possibility of
using the falling water (the Los Angeles Aqueduct is a
gravity flow system) as a source of generating electric
power for Los Angeles was explored. A bond issue of
$3 , 500,000 was passed in 1910 for this purpose,and the
first electric energy from this source was sold in Los
Angeles in 1916. In 1911 a municipally-owned utility was
14 , I
Water and Power. 50th Annual Report (City of Los 1
Angeles, Department of Water and Power, 1951) ,p. 8. 1
116
established (which sold the above power In. 1916) and the
first municipal power plant was completed in 1917 in the
San Franclsquito Canyon.^
Electric energy developed by the Hoover Dam has been
!
distributed in Los Angeles since 1936.
Electric System Description j
The present power supply available to the Department |
16
and its users comes from four principal sources. °
(1)
i
I (2)
j (3)
i
: w
Hoover Dam Power. The Hoover Dam Power Plant is located
on the Colorado River approximately 266 miles from the
City of Los Angeles; the dam and equipment are owned by
li?Ibld.
1 6
Official Statement respecting &18.000.000 Electric
Plant Revenue Bonds Second Issue of 1965 (City ofLob
Angeles, Department of Water and Power, 1955)» P» 3*
Hoover Power Plant, owned by the United States, i
located on the Colorado River.
Steam Generating Plants, located in or near j
the City.
s
Hydroelectric plants located along the lower !
' i
end of the Lbs Angeles Aqueduct. !
i
Hydroelectric plants located in the Owens :
River Gorge, in Inyo and Mono Counties,
California.
117:
i
the United States. The generating plant is operated joint-;
I ly by the Department of Water and Power and the Southern
California Edison Company, each operating a separate sec
tion of the plant. At the present time the Department
17
operates eleven generating units of 82,500 KVA ' each and
one unit of 62,500 KVA. Six of these larger units are
i
10 j
used to supply the Department’s requirements.±0 !
The department purchases power from the Hoover
: Power Plant under an energy contract. Under this contract j
the United States has the obligation to deliver and the j
.
Department to take firm energy for each year of operation j
; !
according to a pre-deterained formula. For the fiscal j
year ending May 31# 1956, the United States will deliver
and the Department take approximately 468,000,000 kilowatt
j
hours of energy. Besides this, the Department has the j
; option, but not the obligation to accept 55 cent of i
: I
all secondary energy available at the Hoover Power Plant. ;
; I
!
Steam generating plants. The Department owns three i
. steam generating plants: The Seal Beach Steam Plant; the
Harbor Steam Plant; and the Valley Steam Plant. These
I
^•TlCVA represents one thousand volt amperes, a unit
of electrical measurement. j
~^0p. cit., Official Statement Respecting $18,000,
000 Electric Plant Bonds, p. 8.
Il8 :
I
steam plants supply a two-hour dependable quantity of !
1* 338,0 00 kilowatts of energy.1^ j
!
Hvdroelectrie plants. The Department owns four hydro
electric plants located along the lower end of the Los
Angeles Aqueduct, whieh extends approximately 2k0 miles 1
south of its source of supply, the Owens River. Three j
! hydroelectric plants in the Owens Valley area are also |
; owned by the Department. These plants supply a dependable j
two-hour quantity of 2 1 0 ,0 0 0 kilowatts of energy.
Operations. Practically all retail customers in
i Los Angeles are served by the Department of Water and
| Power, with the average number of monthly billings for
fiscal 1955 being over 800,000. Resources are presently ;
= available for the Department to supply a reasonable growth
....................■ ' ■ ■ 1
I in demand for electric energy in the future. J
I III. HARBOR DEPARTMENT
I ’
, I
I
1 The harbor of the City of Los Angeles handles more 1
• 1
traffic than any other harbor on the Pacific Coast, and i
: has since 1923* In fiscal 1954, 26,513,998 tons were
I
: moved across its six million square feet of wharves. This J
19Ibid.. p. 8. I
: was over twenty-six times as great as operations in 1907*
Its first year of operation as a municipal port; it was
over four thousand times as much as in 1855# the first
year operating records were kept* 2*94-5 American ships
and 1*762 foreign vessels were serviced here, and 568*867
passengers arrived or departed in 1954-.20
Earlv History of the Harbor
Juan Rodriguez Cabrlllo made the first anchor in
this port in 154-2.2* Commanding two Portuguese ships*
he sent his company ashore in the “Bahia de los Fumos"
(Bay of Smokes) following brush fires set by Indians
during a rabbit drive.
?he Port*s next visitor was Sebastian Viscaino in
1602 with a “fleet" of three small vessels. 22 In 1734,
Cabrena Buena* charting a sea route for Manila galleons
jnamed it San Pedro Bay the name it still carries.23 in
1 1805* the Leila Byrd, of Boston, dropped anchor in San
Pedro Bay and traded cloth, household goods* and sugar for
2Q46th Annual Report. City of Los Angeles: Board of
Harbor Commissioners, 1954# P* 6.
21
Ibid.. p. 11.
22Ibid.. p. 1 1.
23Ibid..
120
pil '
hides and tallow. This was the hay's first commercial
transac tions.
In the 1850's, General Phineas Banning developed the
inner harhor sufficiently to land military supplies used in
the Civil and Indian Wars in the West. He named this area
Wilmington, for his home town in Delaware. In 1869j the
first railroad in Southern California was constructed be
tween Wilmington and Los Angeles, and a harhor improvement
program was begun by the Federal Government in 1879*2^
The first barge-load of rocks was dumped in 1899 to
begin construction of the San Pedro breakwater. Construc
tion of the first section was completed in 1 9 1 2.2^ ^ pre- j
sent, this breakwater is the longest in the world, over
nine miles long.
Annexation of Wilmington and San Pedro by the City
of Los Angeles in 1909 brought municipal control, and provi
ded an opportunity for action by the Harbor Commission crea-!
ted in I9 0 7. Bond issues of $3,000,000 were voted in 1909*
and have been followed by others totaling $2 9, 0 0 0,0 0 0. !
]
24lbid.
! 25Ibid., p. 1 2.
i
26Ibid., p. 1 2. !
27pprt of Los Angeles . a mimeographed information '
pamphlet distributed by the Los Angeles Harbor Department,
1954, p. 4.
1 2 1 i
Over $23,000,000 of these Issues have been retired, and
other improvements have been self-liquidating.2®
In 1953t a $6,000,000 terminal for the American
President Lines was completed, as well as a $9,000,000
terminal for the Matson Navigation C o m p a n y .2^
Harbor Operations
The Harbor is at present a self-sufficient activity.
In 1954, total receipts were over 5*5 million dollars,
\
received from shipping operations, rental fees, and !
other activities.3° Expenditures for this year were 5 ;
million dollars. This provides us with a measure of growtti.
of the Harbor. In 1 8 9 7, the United States Congress ap- j
propriated $2, 9 0 0 ,0 0 0 for the first major improvements in J
the Harbor, in 1954, $4,964,4-68 was spent on operating !
expenditures alone.31
Not withstanding these improvements, further activi
ties are planned for the future. The Matson Navigation
and American President Lines terminals were completed in
1 9 5 3* New construction projects with an estimated eost of j
28Ibid.
2^Ibid., p. 5«
®^46th Annual Report, Harbor Department, op,, cit. ,
p. 30.
31lbM., p. 11.
122
over $3, 0 0 0 ,0 0 0 are now underway, to improve fishing and
shipping industries in the Port*
It has been estimated that every ship arriving
brings with it $60,000 to Southern California in factory
production, transportation revenues, sales.3^ 4,707 ships
arrived in the Port bringing with them in 1954 (by these
calculations) a total of $282,420,000. Every ton of
cargo worked brings $5 dollars of wages to the neighboring
communities. 1954's tonnage of 2 6, 5 1 3,9 9 8, computed in
this manner, meant $132,569*990 tor the a r e a .33
In the harbor area, more than 200,000 jobs are in
| some measure the result of the Port's operations, with
over 35,000 jobs solely concerned with the Harbor and its
34
ocean commerce.^
Growth of Value of Harbor Department Pr oner tv
| City investment in harbor department property de
clined from a per capita investment of $51 per person in
1920 to $41.6 dollars per person in 1954. As this depart
ment is a self-supporting activity, no city tax expendi
tures are required for its maintenance.
!
i
32Ibid.. p. 43.
I
33ibid. . p. 43.
3^lbid. . p. 43.
123 ■
It is expected that the Los Angeles Harhor will
continue to provide Its service to the community, and
under present arrangements, will not beome a financial
, burden. There is and will continue to be a demand for
harbor facilities to serve the Los Angeles area. The
Independent operation of the Harbor Department appears to
be an efficient method of maintaining this service.
! IV. DEPARTMENT OF AIRPORTS
The present site of the airport of the City of Los
; Angeles was leased on September 26, 1928.35 This square i
; ' I
! mile site, "Miles Field,” was not the first air field in !
i I
the area but had been selected by city engineers as the ;
1 !
most logical spot for the anticipated air growth to be
centered. \
The first International Air meet in the United
States was conducted in 1910 in the fields of Dominguez j
1 Rancho south of Compton*36 This was the birth of pub- j
licized aviation interest in Los Angeles, and was followed
| by other notable events in the following years. The first
. . . . . . .
■ transcontinental flight, 103 flying hours spread over ^9
35Aviatlon Center of the West, printed and distri-
! buted by North American Aviation, Inc., 1952, 12 pages,
1 not numbered.
36ibid.
days, was completed on November 5, 1911# when Galbraith
Rogers landed at Pasadena*37 Douglas biplanes started the
first round-the-world flight from Santa Monica on March 1 7,
1 9 2 ^ .3 8 in 1 9 2 8, the year the city leased the site, the
National Air Races were conducted at Miles Field.39
The airport began to grow rapidly after North
American Aviation, Inc., moved its 250 employees into a
160,000 square foot factory at the airport in 1 9 3 5*^
1 9 3 6, installations at the airport consisted of the North
American Aviation Plant, five hangars, and a single land
ing strip. Open fields surrounded the airfield on all
sides. Encouraged by the increasing use of the airfield,
41
the City of Los Angeles purchased the site in 1937*
Expansion plans of the City for the airport were .
retarded by the War, but the field served a purpose during
this period. Thousands of military planes built by North
American Aviation, Inc., and the nearby El Segundo Division1
37Ibid.
38Ibid.
39Ibid.
40
Los Angeles Intemationa1 Airport, printed folder
type pamphlet of the Department of Airports, City of Los
Angeles, 195^, pages not numbered.
^Aviation Center of the West, crp. clt. j
of Douglas Aircraft Company used the Los Angeles Municipal
Airport as a delivery terminal*
At the end of the War, preparations were intensified
to prepare the field for use by airlines which badly need- ,
ed the room for expansion. In December, 1946, several
airlines moved into temporary structures on the north side
of the field, and regular scheduled flights to many sec
tions of the world were commenced.^ The change of name
• i
to "Los Angeles International Airport” in 1949 was merely
recognition of an existing faet. I
Today the Los Angeles International Airport covers j
40 -
over 3000 acres of land. J Aircraft manufacturers employ !
nearly 45,000 persons with an annual payroll of
, 44
$240,000,000. Ten airlines operate regular passenger j
1
and cargo scheduled flights to major cities of this country
and the world.^ Air travel for many individuals of Los !
f
!
Angeles has become commonplace. j
Passenger travel does not tell the complete story
1
of the value of the Los Angeles Airport to the city. The j
ho j
^cLos Angeles International Airport, pp. cit. |
^3Ibid. j
44 :
Aviation Center of the West, op. cit. ^
^^Los Angeles International Airport, ojd. cit. !
rapid movement of cargo Is becoming increasingly important
to the livlihood of the city. Los -Angeles ranks second in
the nation in volume of air express handled, third in air
ii.fi
mail, and fifth in air freight.
Besides the thousands of personnel employed in the
aircraft factories at the airport, another 66,000 indi
viduals are employed in 245 companies within one mile of
the airport.^7 Facilities of the airport are also avail
able and used by many of the manufacturing industries in |
the Greater Los Angeles area. These facilities thus aid I
*
in the livlihood of the 6 3 9 ,0 0 0 persons employed in manu- j
factaring in the area, whose quarterly payroll is j
$7 5 0, 0 0 0, 0 0 0.
Realizing that present facilities will not long be i
able to satisfy the increasing demand for aircraft uses,
large expansion plans are nearing temporary completion. j
Fifty-five million dollars in expansion funds are planned
for the airport. This includes construction of a 440,000
square foot passenger terminal and another full length
46
Aviation Center of the West, on. cit.
^Los Angeles International Airport, gp* d t .
4ft
The Aircraft Indus try: Its Size and Importance in
the Los Angeles Economy (Security-Firs t Rational Bank of
Los Angeles, 1955)» p. mf-1-4.
system of runways and taxiways.^9
This construction, coupled with recent improvement
expenditures of over $1 million per year^0 is planned to
make the Los Angeles International Airport potentially the
most important field in the eountry.
V. PUBLIC SERVICE ENTERPRISES SUMMARY
The public service enterprises supply important
services to the citizens of the Los Angeles Area, and are
owned by the City* In this group are the Department of
!
Water and Power, the Department of Airports, and the \
I
Harbor Department. Each department has control over its *
i
financial resources and may pursue its own operating !
procedures.
Governmental activity of these departments, con- i
side red as a whole, has grown extensively and intensively* j
Aviation Center of the West, o p * cit*
5°Pinancial Report for the Fiscal Year Ended June
30. 195*5 (Department of Airports, City of Los Angeles,
p* 2.
CHAPTER VI
CONCLUSION
It Is rather difficult to comment on the growth of
Los Angeles municipal expenditures for the period covered
by this report as no comparable studies of other cities
have been located to use as a criterion. An interesting
comparison may be made, however, by comparing expenditures
of the City of Los Angeles with those recorded by the total
of all governments in the United States for a similar period.
In 1902, the United States had a population of about 1
‘ I
8 0. 0 0 0. 00c , 1 and all government activities spent j
$l*537,000,000.2 In 1952, with a population of
160.000.000.3 all governments spent $1 0 9, 0 0 0, 0 0 0, 0 0 0.^
As Tables VI and VII indicate, the City of Los Angeles had
a population of 3 1 9 ,1 9 8 in 1910 and expended $13,286,547.
By 1955 the population had increased to 2,241,433 with
municipal expenditures of $364,089,591.
1The population of the United States was 75,995,000
in 1900, and 91,972,000 In 1910. Robert Aaron Gordon,
Business Fluctuations (New York; Harper and Brothers, 1952} '
P. 157. <
2See Table I.
^United States population in 1952 was 159,829,
Federal Reserve Bulletin. September, 1955, P» 1034.
4
See Table I.
Examining these figures further, it is found that
total government expenditures increased from $191 per
capita in 1902 to 68l per capita in 1 9 5 2, thus growing
over three and one half times. Los Angeles municipal
expenditures grew from $42 per capita in 1910 to $165
per capita in 19 5 5# & four-fold increase.
This is, admittedly, neither an accurate nor
conclusive comparison. It may indicate, however, that
municipal activity expansion of Los Angeles has been
greater relatively than that of all governments en to to
of the United States.
I. AREAS OP MUNICIPAL GROWTH !
All areas of Los Angeles municipal activity have
expanded over the past half-century, but the expansion
has been of varying degrees • Some departments have grown j
i
more than others, and as may be expected, the area of j
greatest absolute growth has not exhibited the greatest
relative growth. j
Municipal Groups with the Greatest Absolute Growth
Those departments which have shown the greatest
absolute growth since 1910 have been those of the public
service enterprise section. Considering those depart
ments operating in the city in 1910, growth of the public
130
service enterprises has heen both intensive and extensive*
Intensive activity growth of the public service
enterprises. The public service enterprises have extended
their field of activity from their operations in 1910 by
a goodly amount* In 1910, the Board of Water Commission
ers , predecessors of the Department of Water and Power,
was in the process of constructing the Los Angeles Aque
duct, which was not completed until 1913* Prior to the
completion of this aqueduct, water supplied the City of
Los Angeles was limited to that from local sources— from
the Los Angeles River basin, and from the coastal plain.
As water was supplied to the city by the municipal
government in 1 9 1 0, growth of the water distributing
activity must be considered of an intensive nature. In
supplying this water “more efficiently and completely”
expenditures by the municipal government have increased
greatly.
The Harbor Department was created with the appoint
ment of the Harbor Commission in 1 9 0 7. Their activity
was of a limited nature at this time, however, as the
first section of the San Pedro Breakwater was not com
pleted until 1 9 1 2.
Growth of the Harbor Department has been mainly of
an intensive nature. There has been little room for
physical expansion, as the harhor area is limited. Thus
activity growth has been due to the Departments attempts
' to supply in a more adequate manner harbor facilities to
J the Los Angeles populace, and to visiting ships berthing
in the Los Angeles Harbor.
!
Extensive growth of the public service enterprises.
I ” ' ' ....... "
i
The majority of activity growth by the public service
enterprises has been of an extensive nature. The Electric |
: Works of the Department of Water and Power was an outgrowth
of the department's water works. This activity came into
being by using the falling water of the gravity flow j
Los Angeles Aqueduct for the generation of eleetric power, j
; Table IV indicates the use of electric energy for the J
i
Gity of Los Angeles since 1913» and shows that per capita
use has quadrupled. As population has increased almost
seven times from 1910 to the present, use of electricity j
1
by the area must have increased some twenty-eight times.
This has caused a great increase in municipal activity,
as inventory of the electric works indicated in Table XII
will confirm.
The maintenance of a municipal department of air
ports was little contemplated in 1910» The growth of
aviation, however, coupled with city population growth
caused such a municipal activity to appear more desirable.
132;
The Department of Airports was created in 1940. At the !
- present time the City of Los Angeles operates the two
principal passenger airports in the city, the Los Angeles
International Airport, and the Van Nuys Metropolitan
Airport.
. Municipal Groups with the Greatest Relative Growth
Departments of the city exhibiting the greatest
relative growth from 1910 to the present have been those
i
classified as “miscellaneous.1 1 This is due both to their
activity growth over this period and to their limited !
; functions in 1 9 1 0. !
i |
Present activity in these departments would be i
classed mainly as services, and of a nature hardly con
templated in 1910. In 195f* provisions for the administra- i
!
tion of the City employee's retirement program, and the
. . . . . . . (
, fire and police pension were included in this group's J
.. .. . . . . (
! activities. The largest monetary growth in this group has j
been the inventory accumulated by the revolving funds. ;
The revolving funds are service funds, created
for the express purpose of providing supplies and other
j expendable items to the city departments (not including
i
j the publie service enterprises, which are large enough
to maintain their ora supply function) at a nominal cost.^
The revolving fund administrators purchase expendable
supplies in large quantities for distribution to other
city departments. By using such a facility, the various
departments are allowed to procure expendable supplies at
a more reasonable cost than if they were required to
purchase them at market prices*
Growth of Other Municipal Groups
The departments classified as "general government"
have shown a large intensive growth of activity, from
$3*60 per capita in 1910 to $40.10 per capita in 19 5 5.
I
The greatest growth in this group has been shown by the j
Department of Public Works* The public buildings and
other city projects are designed and constructed by this
department, which exhibits the greatest absolute growth
of all city departments, except those of the public
service enterprises♦
Many departmental groups of the city government
have shown a comparatively small relative increase in ;
j
economic activity. For instance, recreation department I
inventory increased from $22.60 per capita in 1910 to !
1
i
i
r
Information gathered from Mr. Carl B. Poland,
Chief Accountant, City of Los Angeles, in conversation !
with the author March 6, 1956.
134'
$26.20 per capita in 195^» a growth of sixteen per cent. ^
II. SERVICES TO THE LOS AHQ-ELES CITIZEN
The greatest expansion by the municipal government
has come as a result of an increase in services. If the
effects of the growing population are considered, it may
be seen that all departments have increased their services.
Some departments have, of course, shown a greater relative
expansion than others.
Services of the Public Service Enterprises I
I
i The public service enterprises have provided a much !
i i
| greater relative increase of service over the years than ;
I ■ ■ :
, have other departments. Operating in a manner similar to
... |
: that of private utilities, the public service enterprises
! have grown rapidly, and have provided many of the re
quisites for the eity*s growth. I
i
It is a recognised fact today that Los Angeles could
‘ not have attained its present size with only the water 1
i
: available from local sources. A question may be raised i
as to the feasability of using the municipal operation in
, place of a private utility to supply this water service.
I Without commenting further on this question a few observa-
| tions may be made. The municipal government did provide
the organization, and design and build the present water
----»
135'
supply system. With this organization's activities, no
acute shortage of -water has manifested itself over the
J past half century. As indicated earlier in this study
j permanent facilities have been constructed to furnish
i
water to an additional six million people in the area.
The services required for the distribution of water to the
| Los Angeles Area appear to have been handled adequately.
* i
Growth and use of electric energy for Los Angeles, |
and its distribution has closely paralleled activity of i
! the water supply system. Electric power is supplied the j
i city and its residents in amounts required, with a margin
i • i
: available for a greater future demand. j
J The Department of Airports and the Harbor Department1
supply a necessary function for city activity, in operating;
; terminals for two major types of transportation. Private
! enterprise could adequately operate these facilities. It
is doubtful, however, that private ownership would provide ;
; these facilities at an appreciably lower economic cost.
i
General Municipal Government Activities
In providing services ordinarily administered by
| municipal governments Los Angeles has greatly increased
I
jits activities in several areas. In others, due to
; accounting procedural changes, the expenditures incurred
~ ~ 136
as reflected la inventory may appear not to have Increased
significantly.
If the function of providing for adequate public
buildings and projects is considered a service, the ser
vices of the Los Angeles Public Works Department have
expanded greatly. This is veil indicated by the inventory
i
of this department which has expanded torn less than
,$ 9 0 0 ,0 0 0 in 1910 to $85 million in 1 9 5 5*
i
Services incorporated since 1910. The municipal
government provides many services which have come into use
isince 1 9 1 0.
A Department of Social Service acts as a regulatory
i
agency and clearing house for the solicitation of funds by
welfare organizations within the city. Although not
actively soliciting funds itself, this department assists
worthy welfare organizations by actively combatting those
of a doubtful nature.
A Public Defender is provided by the City to advise
indigent persons on criminal and civil matters. This de
partment also gives assistance to the welfare agencies.
Civil service activity has been increased greatly
in the Los Angeles municipal government in order to main
tain a uniform system of supplying qualified personnel for
government positions. This department has func tioned for
the City on an all-inclusive basis since 1938, a year when
reform action of the city government placed a demand for
civil service activities. At the present time, only a
small minority of city employees are exempted from eivil
service requirements.
III. MUNICIPAL EFFECTS OF THE GROWING POPULATION
The increasing activity of the municipal government
has been caused in a large degree by the growing population
and the demands it has made on the government. It may
prove interesting to compare growth of activity as mea
sured by inventory on a per capita basis for the several
departments.
Those departments of the general government category
have increased their inventory on a per capita basis some
eleven times. As pointed out earlier, the great increase
here has been by the Public Works Department, with other
departments in this group doubling their per capita
; inventory. Activity has grown here due mainly to new |
'services, namely, to the construction of real property
facilities by the municipal government.
I
I Per eapita inventory of the police department has
expanded some four and one-half times with more policemen
j now available. This indicates that service in this area
!
has grown, along with a greater than average growth in
138
jcost. Other departments affording protection have not
j shown such a relative increase, hut have expanded appre-
:ciably.
j
If the value of inventory of the Health Department
for 1910 is computed so as to disregard the sever system,
the per capita inventory of this department has increased
some ten times from 1910 to 1955* This Increase could he
'brought about by additional services offered the Los Ange
les citizen.
As no new significant facilities have been offered 1
1 '
[ by the Education Department since the central library ;
building was opened in 1926 and followed by its branches,
!
,the per capita inventory has gradually declined since 1 9 3 0.:
|More facilities have been offered by the library, but thesej
services have not increased as fast as has the population*
Inventory of the Recreation Department has behaved
1 in a manner similar to that of the Education Department.
F
Thus, while inventory has increased for this department,
it has not grown as fast as has the population for the !
i
;past twenty years. The per capita increase of inventory
is about twenty per cent greater now for the recreation
1 department than it was in 1 9 1 0.
Per capita Inventory of the miscellaneous depart-
I ments has increased some six times since 1910. This has
! been almost entirely due to new, additional services.
139
i
Measured per capita-vise, inventory of the public ■
service enterprises has increased almost seven times. As
has been shown, nearly all this Increase has been due to
an increase of services offerbd to the area.
It appears from the above short suBaaary that ser
vices offered by the several departments of the city have
increased at a greater rate than has population for the city
If inventory of the various departments is compared on a
per capita basis for 1910 and 1955 » and considering only
comparable functions, it is seen that all activities
increased.
IV. TRENDS IN MUNICIPAL ACTIVITY FOR LOS ANGELES
- .„ .e*
Portions1 of Wagner’s "lav” could be quoted verbatim
tin describing the growth in municipal activity for the
I
City of Los Angeles. City municipal activity has expanded
greatly during the period of time covered by this report.
Expenditures have expanded due to the governmental
services offered of a new and different nature.
1. General government services have increased to
include a Public Defender, a Public Prosecuter,
and now offer protection to worthy charitable
organizations •
2. For protection to life and property, a building
r \
and safety department has been organized to.
assist in building regulations* A traffic j
department attempts to provide technical traf
fic problem solutions.
3* Miscellaneous departments now include facilities
to provide for retirement and pensions of cer
tain city employees, maintain facilities for
municipal art, and assist city departments in
procuring supplies at reasonable costs.
4. All activities of the public service enterprises)
are of a comparatively new nature. The services;
these departments supply the city have been in '
effect only since the turn of the century. i
. . . . . . i
l
Expenditures have expanded intensively as the local ;
government has attempted to provide facilities in a more j
adequate and efficient manner. !
s
1. An increase in general governmental activities
has been necessary to provide previous services
to a larger population.
2. A greater relative number of policemen protect
us now than in 1 9 1 0.
Other protective departments have been required to
increase their facilities in a greater proportional manner
than the increase in population to provide adequate pro
tection.
3. Several libraries have been constructed by the
! ' ”” i 4 i
! Education Department to provide more facilities
| for the Los Angeles citizen*
!
I 5* The recreation department inventory has
l
, expanded rapidly as the municipal government
! has attempted to provide adequate recreational
facilities for the city*
It is thus seen that sections of Wagner's' "law"
express rather accurately the municipal expenditure
l
! history of the City of Los Angeles. j
: I
. . . an increase regularly takes place in the
activity of the * . . local governments. This in
crease is both extensive and intensive ....
• . . local governments constantly undertake new |
functions, while they perform both old and new I
functions more efficiently and completely.' !
| Alolph Wagner, Grundlegung der Foiltischen Oeko-
; nomie. Book VI, Chapter 3, Third Edition, 1893* Quoted in
. translation, C. J. Bullock, Selected Readings in Public
! Finance (New Yorks Ginn and Company , 19 0 6), p. 24.
\
BIBLIOGRAPHY
BIBLIOGRAPHY
A, BOOKS
Adams, Henry C • The Science of Finance: An Inves tigatlon
of Public Expenditures and Public Revenue* New York:
Henry Holt and Company, T8'9Tn xiii, 573*
Brownlee, 0. H., and Edward E. Allen. Economics of Public
Finance. New York: Prentice-Hall, Inc., 1954. xiv,
no:
Bullock, C. J. (ed.) Selected Readings in Public Finance.
New York: Ginn and Company, 1906. viii, 6 7 1.
Charter of the City of Los Angeles, Annotated. 1946 Edi- |
tion. Parker and Company, 1946. xviii, 84. j
0 1
Fabricant, Soloman L. Economic Progress and Economic
Change. Princeton University Press, 19 5 4. vii, 3 8 7.
. ' i
_______• The Trend of Government Activity in the United j
States Since 1900. New York: National Bureau of !
Economic Research, 1952. xix, 2 6 7. i
Gordon, Robert Aaron. Business Fluetuations. New York:
Harper and Brothers, 1952. 624. <
Schultz, William J• and C• Lowell Harris. American Public
Finance. New York: Prentiee-Hall, Inc., 1949• xix,
62?:
Taylor, Phillip E. The Economics of Public Finance. New
York: The Macmillan Company, l$i¥ 8. xxii, 6 1 7.
B. PUBLICATIONS OF THE GOVERNMENT AND OTHER ORGANIZATIONS
Statistical Abstract of the United States. 1954. Washing
ton. D.C.: United States Government Printing Office,
1954.
White, Harry Ellington. The City and County of Los Ange
les . Los Angeles Chamber of Commerce, published
yearly from 1903 to 1 9 2 0.
144,
G. PERIODICALS j
; „ I
; Leland, Simeon E. "Municipal Revenue— A Second Look After
■ Twenty Years,” The American Cl tv. November, 1953*
P. 9.
i
j Musgrave, R. A., and J. M. Culbertson. ”The Growth of
j Public Expenditures In the Whited States Since 1900,”
National Tax Journal. June, 1953. PP« 97“H5«
1
1 Murphy, Charles J. V. ”The Wild Blue Chip Yonder,”
' Fortune. Volume LII, Number 1, July, 1955.
' Federal Reserve Bulletin. September, 1955* p. 1034.
I First National City Bank Monthly Letter Business and
Economic Conditions. New York, February, I95S. pp. j
11-20.
■ I
Monthly Summary of Business Conditions in Southern Cali
fornia. Printed and distributed by the Security-
First National Bank of Los Angeles. j
’ ’ How Cities Get and Spend Their Money,” The American City.
November, 1953, p* 9. 1
”Loeal Spending Policies— -Their Role in the National
Eeonomy,” The American City. April, 1954. p. 9.
’ ’ New Census Report on City Government Finances.” The
American City. September, 1954. p. 1 7.
’ ’ Where Spending Is in Boom,” W.S. News and World Reports .
October 1 5, 195^- P« 9*
D. WNPWBLISHED MATERIAL
The Aircraft Indus try: Its Size and Importance in the Los
Angeles Economy. Security-First National Bank of Los
Angeles, 1954. (mimeographed)
Annual Report of the Board of Public Works of the City of
Los Angeles. 1954.
Annual Report of the Controller. Printed each fiscal year
by the City of Los Angeles 1 Controller's Department.
Each report over 100 pages.
145 '
Aviation Center of the West. Printed and distributed by I
North American Aviation, Inc., 1952. Twelve pages,
j not numbered.
Board of Social Service Commissions City of Los Angeles.
! Forty-first Annual Report, 1954. ?3 pp.
! Budget Fiscal Year 1955-1956. City of Los Angeles. Print
ed by Dan 0. Hoye, Controller, xviii, 139.
The City of Los Angeles Year Book. 1949. Printed by the !
| Los Angeles Police Printing Bureau, 1950. 99 PP«
| Financial Data Los Angeles City School Pis tricts. Com-
; piled and printed by the Budget Division of the Los
' Angeles City School Districts.
I
i
Financial Report for the Fiscal Year Ended June 50. 1955.
City of Los Angeles Department of Airports. 53 pp.
I Forty-sixth Annual Report. City of Los Angeles Board of j
! Harbor Commissioners, 1954. 78 pp. j
! Health Report. City of Los Angeles Health Department. !
I953-5 4. 2Fpp. t
i j
I The Influence of the Aircraft Indus try on the Economy of
the Los Angeles Metropolitan Area. Mimeographed and !
distributed by the Aircraft Industries Association, >
Western Region, 1953* 14 pp.
Letter from Mr. Conacher, Civil Service Commission, City
of Los Angeles. Letter dated December 8, 1955* •
Los Angeles City and County. A pamphlet prepared and
distributed by the Los Angeles Chamber of Commerce,
pages not numbered, pamphlet not dated.
Los Angeles International Airport. Printed folder type
pamphlet of the City of Los Angeles Department of
Airports, pages not numbered.
! Los Angeles Library. Information. 1955. Mimeographed by
1 the City of Los Angeles Library Department. 14 pp.
1 D°3 Angeles Police Department Annual Report. 1954.
Printed and distributed by the City of Los Angeles
1 Police Department. 73 PP*
146
Official Statement Respecting £l8 .000.000 Electric Plant
Revenue Bonds. Second Issue of 1955* City of Los
! Angeles Department of Water and Power. 77 pp.
I ■ -
| Official Statement Respecting £15.000.000 Water Works
Revenue Bonds . 1955. City of Los Angeles, Department
i of Water and Power.
!
■ Official Statement Water Works Revenue Bonds. City of Los
j Angeles Department of Water and Power, 1954. 70 pp.
I Population of Southern California Counties . 1900-1950;
With Estimate for 1955. A mimeographed sheet circu-
! lated by the Los Angeles Chamber of Commerce.
I
; Progress Report 1946-1950. City of Los Angeles Department
| of Recreation and Parks.
Proposed Official Statement Respecting £9.000.000 Water
Works Revenue Bonds. January. 1954. Printed by the
City of Los Angeles Department of Water and Power.
85 pp.
; Recreation Los Angeles Style. 1955. Mimeographed by the
City of Los Angeles Department of Recreation and
Parks, 1955• 21 pp.
The Researcher. Printed and distributed quarterly by the
Los Angeles Chamber of Commerce.
Sixty-fifth Annual Report of the Department of Fire. City
of Los Angeles, 1951.
Smog Brief. Eighteen pamphlets distributed by the Air
Polutlon Control District, 434 South San Pedro, Los
Angeles 1 3, California.
Southern California Business. The Los Angeles Chamber of
Commerce, January 2, 1954. 6 pp.
Utilities Los Angeles Metropolitan Area. The Los Angeles
j Chamber of Commerce, 1954. lio pp.
! Water and Power 5Qth Annual Report. Printed and dis tribu-
; ted by the City of Los Angeles Department of Water and
Power, 1951* ^9 pp.
E. NEWSPAPERS
"Midwinter, _1956,M Los Angeles Times. January 5. 1956. -
QtaXvers'ity Of for'hern California

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Asset Metadata

Creator Burton, James Dale (author)

Core Title Trends in municipal government activity for the City of Los Angeles, 1910-1955

Degree Master of Arts

Degree Program Economics

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag economics, general,history, United States,OAI-PMH Harvest,Political Science, public administration

Language English

Contributor Digitized by ProQuest (provenance)

Advisor Anderson, William H. (committee chair), Garis, Roy L. (committee member), Phelps, Clyde William (committee member)

Permanent Link (DOI) https://doi.org/10.25549/usctheses-c20-444355

Unique identifier UC11265139

Identifier EP44743.pdf (filename),usctheses-c20-444355 (legacy record id)

Legacy Identifier EP44743.pdf

Dmrecord 444355

Document Type Thesis

Rights Burton, James Dale

Type texts

Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the au...

Repository Name University of Southern California Digital Library

Repository Location USC Digital Library, University of Southern California, University Park Campus, Los Angeles, California 90089, USA