The morning call., 1893-02-18
THECOSTOFWATER
Many Figures Presented
to the Supervisors.
A QUESTION AS TO INTEREST.
The Officials of the Spring Valley
Water Company Have Their
Say in Court.

Water rates was the subject yesterday
morning before the Board of Supervisors,
| which met as a committee of the whole.
| Supervisors Refs. Forman, Kennedy, Day.
| Goodwin. Rodgers. Heyer, Ryan. Hinton
| and Montgomery were present.
| Attorney Herrin. Chief Clerk Booker, En-
gineer Schnssler and Adjuster Quinlan rep
| resented the Spring Valley Water Company.
| Quite number of rate-payers were in al
tendance. The meeting was presided over
| by Supervisor Denman, and Cltus Barbour.
on behalf of the people. cross-examned the
| representatives. OF the water company.
| Chief Clerk Booker was asked by Mr.
| Denman how discrimination was made be-
tween old work and new.
| lie said, in reply, that all accounts were
based on the actual expenses OF the work
| done.
| Mr.. Denman then desired TO know what
| was meant by the term stand pipes, and
| Mr. Booker explained that they were pipes
| used only to supply water in ease Of fire.
| and added that the company made no extra
| charge for them, even though they were
! kept In constant use.
| Mr. Booker presented a statement show
! ing the comparative rates between this and
| other cities, and, notwiths landing all ex-
| PLANTATION, it was shown tnat the water rates
! of San Francisco are excessive.
The question of Supervisor Forman, re-
| garding the probable saving that might be
| turned to the city's benefit II IL owned its
| own water works, was not pressed and met
| with no answer.
Mr. Booker read a further statement,
| showing that the company's losses during
| the past five years amounte to SIP, 797.
| In reply to Mr. Denman'5 inquiry as 20
no hoA rofif a ipf
! bends during the period in which this heavy
! loss was experienced Mr.. Booker said that
| dividends had been suspended and that the
| seeming profits had accrued before that
| time.
| Mr.. Barbour wanted 10 know how the
rates compared with cities which owned
| their own water works.
kr. Booker was unable to state.
The witness said the rates were not in
! &C ordnance with the city ordinance when
! further questioned by Mr.. Barbour, and
| stated that considerable care had TO be eX-
| ercised in adjusting rates, according TO the
| neighboIhood and customers. as Door
| people In certain districts would other
wise he unable TO pay for water.
Attorney FranagaD. WHO Is employed by
| the water works. asked if the company ever
| charged more than the rates fixed by the
! ordinance, to which the witness replied in
| the negative.
Mr.. Barbour said that the cost of pump
| ing water in Chicago was 81 per 100000
| gallons. and wanted 20 know how il came
| to cost $500 10 do the same amount OF
| pumping here.
| Engineer Schusser denied this statement,
! and said that the cost here was $40 per
! 1000, eco gallons.
| Mr.. Sclussler said that the introduction
| OF meters would reduce the consumption of
| water 20 about thTee-hfthS of what it is at
| present, and that this would result IN seri-
| Gus damage 10 the sewers, as the present
| y aSte Of water was great aid in keeping
| them clear, and that even at the present
! rate of consumption, siXiy-hye gallons per
capita, IL was much less than in other cities,
| some of which consumed as high as 225 gal
| Ions per capita.
! In the matter Of supplying shipping with
| water the witness said that this business,
| owing to he frequent breakage of pipes, by
! shipping and weather, was not a source of
| profit to the company. and he doubted If 20
| cents on 1000 gallons was realized.
| An adjournment Was then taken until 3
| o'clock.
When the meeting was called to order
! again Engineer Schussler returned to the
| wllness-stand aud quoted from Won
| Schmdts estimate of the value Of the
| Spring Valley Water Company's property
| the figures S13. go, CSC SO which he saId did
| not include certain property which ii should
have done. The value of the property
| omitted in this estimate, Mr.. Schussler
|
| had been an Increase ip value amounting TO
! 1902, go % which, when added TO the
! figures Of Won Schmidt. would bring the
total up 70 SIS, Sol. 51S 50.
The witness further explained that from
| April 10, 1880, to January l. 1898. there had
been expended for rights of way real estate.
new construction. etc, 81, 134. $50 90, and
| that prior to this So. 373C54 % had been ex-
pended. making total of S17.507. 934 II.
George Re, nolds. the compauy's expert
accountant. then took the witness-char.
| aud Mr.. DeDmaD, referring to report pre-
| pared by the witness some two or three
! years ago, asked how lie had arrived at The
| value o the investments of the stockholders.
| and Mr.. Reynolds explained that he had
| placed all the contributions in one column
and all the dividends and assessments in
| another and had computed the interest Oh
| both at the current rate. claiming that the
stockholders were entitled TO as much inter-
| est on their investment as they could get on
| a mortgage.
Then followed lengthy discussion re-
| gardiDg the current rates Of interest pre-
vailing in 1858. and many figures were
| quoted from statement prepared by the
| expert accountant showing the rates OF in
| tetest allowed the st0 kholders in those
| years. This statement further showed that
| the total contributions since 1853 amounted
| to Sc 400. coo, and that the total dividends
| paid during the same period aggre gated
| SIS 000, 900, making the total credit of the
stockholders at the beginning of the present
! year Sl6 81. 931 "a.
| MI. Reynolds was requested by Attorney
| Herrin to furnish 10 the board within the
| next day or two such data as he convent
emily could, justifying the rates of interest
| paid.
Mr.. Herrin, as attorney for the company,
| then summed up his case, in the course of
| which he said he thoughtti board inteD ded
| to treat the company fairly, and that lie
thought there would be little difficulty in
! arriving at satisfactory arrangement.
The board then adjourned till Monday
aVenInP.