The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-02-25
WATER RATES.
They Will Remain Substantially
Unchanged.
The Supervisors Pass the Order to Print, Also
the New Fire Order and the Street
Paving Law.

The matter of chief importance for the
consideration of the Board of Supervisors
last night was the order establishing water
rates for the ensuing year.
When the Mayor called on the Chairman
of the Water Committee for his report Mr..
Burling handed the clerk bulky bundle of
parchment paper that proved, when opened,
to be not the usual manuscript of committee
reports, but an elaborate typewriter docu-
ment.
The report reviewed the figures given be-
fore the committee when the matter was
being heard, most of which were published
at the time. The company paid during the
last year $4,000 in dividends, and in the
previous year S3j0.000, which on the par
value of 100000 in stock is equivalent to
81 per cent annual dividend.
SIX PER CENT NOT EXCESSIVE.
The company insists that it should be
allowed at least per cent, and we are of
the opinion declares the report, THAT
this rate is not excessive, provided the actual
yalae of the stock is equal to the par value.
The stock represents the value of the COM
pany's property in excess Of its bonded and
other Indebtedness. Bonds to the amount
of S9,475,0O0 are now issued, and there is
about 100000 floating indebtedness, making
a total Indebtedness of SO, 1856, 900.
Your committee finds that this money
has been used in new construction in the
last fifteen years. We may assume that the
property produced by these expenditures
should equal in value the amount of such
expenditures. If we deduct this from the
total value of the company's property the
remainder would represent the value of the
stock.
1.-THE works will now afford a daily sup
ply of 30,0O0.000 gallons. This gives safe
margin beyond any immediate possible de-
mauds, and shows that the city has an ample
water supply for fire, domestic and sanitary
purposes. Besides. it appears that the works
are so situated that their capacity may be
enlarged at a comparatively small expendi-
ture to keep pace with the growing demands
Of the city. A daily supply exceeding
100000 gallons may be obtained by en-
largiug these works.
AVAILABLE SUPPLIES CONTROLLED.
Undoubtedly the company has appro-
priated or controls all the available water
supplies and reservoir sites upon the penin-
sula. 1t has also control of what is known
as the Calayeras supply in Alameda aud
Santa Clara counties This was valued
last year by an expert engineer employed by
the ely at S5000 coo. The company paid
Sl,O00,0O0.
The estimate evidently allows for its
natural increase in value. If we apply the
same rules that are usually applied to land
we must allow for an increase in value of
the land aud water rights purchased by the
company years ago.
Taking this property as whole, there
fore, We are inclined to the opinion that
S2O,0O0.OO0 is not an excessive value to bs
placed upon this property, and we are dis
posed to accept that valuation as basis for
the fixing of rates. We are aware
that objections may he made to this yalua-
ton by some who will insist that the lowest
possible valuation should be placed by us
upon this property that the company is not
entitled TO equitable consideration because
OF It's course in buying up all available prop
eTty, to shut out competitors and to prevent
the city Itself from acquiring its own sup
ply cheaply; in other words, to maintain a
monopoly of furnishing water to the city
anditS inhabitants. This course upon the
part oil this corporation is Dut an incident to
the policy Of allowing the business of fur
nishing water supply to city to be con-
Quoted by private capital for profit.
CAPITAL WILL MAKE THE MOST.
at must be expected that capital will
make the most of its opportunities, and
these considerations make it obvious that
the city should have long since acquired Its
own water supply and conducted il en-
tlrely in the interest Of the people. But the
city cannot allow private capital to engage
In such business and deny 1t the right 10 a
ialr income upon the value of The property
in use. Until the city enters upon the
business OF furnishing its people with
water supply ii must, as we understand the
law, allow the private capital engaged in
such business fair return.
There can be no question that the people
should have the cheapest and best water
supply attainabe. To lower the price of
this necessity is TO earn the favor of those
who-are taxed for it, and this would be so
OF any other commodity in use by all the
people. But some point must be liked be-
tween the conflicting interests of tile water
consumer on the one side and the water
company on the other. We are to arbitrate
and judge fairly between these interests,
and not to act from prejudice, or merely to
earn popularity or favor.
If we accept the valuation above stated
1t must follow that no reduction in the
present rates should be made. and this con-
elpSlon Is the more readily accepted in view
of the fact that there is no popular or gen.
eral demand for reduction Of these rates.
1t appears that nearly all the consumers
acquie5ce without objection in paying the
present regular fixed rates, and complaints
10 this committee have been wholly confined
to cases where these rates are increased by
charges for waste, although an opportunity
has been afforded to all rate-payers to ap-
pear before the committee and offer any
complaints or suggestions they might feel
disposed to make.
But FOR THE METERS.
''It is evident that but for the use of me-
tiers the consumption OF water through
waste and excessive use would by this time
have reached nearly 100000 gallons per
day, and it would have neceSsltated large ex-
penCitureS to furnish supply TO KEGS pace
with this eXtravagant use, and necessarily
an Increase of rates, which have been thus
avoided.
''The present average daily consumption
is about %, 100000 gallons, which, if paid
for by meter measurements at very low
rates, would net the company about all the
revenue desired, or 81, $50, 925 year, at 1874
cent per 1000 gallons This is more than the
present receipts"
The report makes the statement that the
company is anxious TO avoid trouble aud
friction with its patrons, and is willing in
consequence to make all reasonable conces-
sions. and then in conclusion declares:
FIXING WATER RATES
In recommending the accompanying
order fixing water rates at the same figures
as those OF last year and to carry out the
views expressed, your committee has altered
the rates by increasing the 20 per cent TO
40 per cent as the amount OF water that can
be used over and above the amount allowed
by the fixed rates before incurring pen
atty, and when in excess that waste or ex-
cessive use can be charged for. We have
also provided that no charge or collection
can be made to exceed IS for the
first month or So for any following
month. We have therefore stricken. out the
| $40 charge allowed by the present order IN
cases OF waste for the third and succeeding
months, which charge we think unnecessary
| TO prevent waste, besides it bears heavily
upon the smaller rate-payers. This course,
| your committee believes, will be satisfactory
| TO all falr-ininded rate-iayers, the purpose
being to afford every consumer an abundant
| supply, and, at the same time, allow the
| company every just means for checking the
wasteful use OF water"
When the order with the above changes
noted was read, Ebert demanded that the
vote on passing it to print be taken by roll
| call. and the result was:
| Ayes-Jackson, Burrlng, Curtis, Aver, Carnes,
! Coffee, Hunt aud Taber-3.
! nNoes-klieIt and Heyer-2.
Absent-Eyans and WiiKinson-2.
NEW FIRE LAW.
| The new fire law proposed by Burlng at
| the previous meeting was submitted for
passage to print, the committee having made
| few amendments. The most important of
| them are that no member OF the Fire De-
| partment shall hold more than Que saaried
| position under the municipal or Federal
| governments, except that clerks of engine,
| hose or hoOk-and-ladder companies may re-
| celve 50 per month for such service addi-