The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-04-11
THE MAYORS VETO.
Full Text of the Vigorous Docu-
meut

HlGUI.
The veto to the water ordinance, pre-
scented to the Board of Supervisors last
night by Mayor Ebert, is strong and in
teresting document.
The Mayor takes firm stand in behalf
of the rights of the people and is vigorous
in the EXPRESSIONS OF his reasons.
He presents a concise summary Of his
seven principal reasons for his disapproval
of the ordinance and follows it by present
ing convincing arguments in support OF his
seven objections. The veto message in full
is as follows:
To the Honorable Board Of Supervisors Of the
citB aud county If san FrGnciscO-G EMILE
MEN: II is my duty 10 return 10 your Honorable
Board Order No 2622, determining water Tales
and nXing the compensation for water furnished
FOR family uses, for private purposes. for muHlc-
j. al uses apd for pubic purposes Tor the year
commencing July l, 1898, without my approval
and Win my reasons for non-c con currence with
your action in the proposed establishment OF
water rates. In my opinion The water rates now
eXi.tlng are excessive and should be materially
reduced. Tie proposed order, so far from re-
ducing the present rates. increases them.
Ii is understood thar this subject has been con-
sidered IN all Its bearings and operations by The
members OF your Honorable Board, and AN In
and the Spring Valley Water Works by the com
mittee OF the whole, with the ex ress under
standing that a fair reduction shonld be made Of
existing rates IL IS evident that some miscon-
cepllon OF the rights OF the company aud tie
ratepayers mas uuintentioDally secured the pass
age Of This order.
SUMMARY OF REASONS.
The reasons for non-approval of said order
may be summarized as follows:
First-A reduction OF about $4,000 should
be made In the revenue OF The corporation for he
next year. based upon the revenue collected
during The year 1892, and the existing rates
should be reduced to correspond 10 afford fair
reduction IN the water rates.
Seeond-The rates proposed In the order Will
moi ahect me revenue Of NE corporation, as the
the receipts over and above the proposed reduc.
tlon. As shown by the report Of the committee
OF the whole; while The total receipts OF 1892
mated TO realize for 1898 81 ,GS2. 900.
Ihnd-Ihe household (generaD rates should
cover and Include he use OF a bathtub water.
closet, washbasin and urina1, and no special
cha re should be made for these cOuYenenees
under the caption Of special rates.
FOuTth-Ibe order in paragraph . OF section l.
after the note, would In its plain construction,
increase Instead OF decrease The revenue. while
tie remainder OF said paragraph. iu its language
does not clearly Indicate anything but
increase.
Filth Meters attached TO houses TO detect
waste. II KEPT attached for over period Of
sixty days, should vest the right IN the rate
FayeT TO pay by meter measurement.
SiXlh-Hydrants for ire protection and flush
charge per month for eacl: hydrant but should
be placed III such numbers and IN such oca-
tons as ordered by your board, at yearly Com
peusation not exceeding the appropriation
Seventh-The order should provide and make
II the duty Of the corporation. 10 lay down and
extend its mains and pines In such localities as
your board may determine and order.
AN IMPORTANT QUESTION
The question. ana az important one, Is what
basis OF valuation OF the property actually used
in the water supply should be taken upon which
10 pay water rates?
1t Is proper that corporations, associations or
Individuals engaged in supplying public neces-
stiles should receive a compensation sufficient
10 earn fair rate OF interest on the amount OF
their actual Investment, besides their legitimate
opei aiing expenses, and no objection could be
urged II The amount OF such Investment and
operating expenses is definitely and indispuI
ably determined.
IN tie case OF Spring Valley Water Company
your committee reports that they estimate the
present value OF tie works 10 be s2I, 600 900
This valuation includes EXPENSIVE properties
which In my opinion the company holds Tor lie
express purpose OF debarring competition ana
are not Intended TO be used for the purpose of
supplying wafer 10 this municipality.
WliIle this Is an important factor 10 be lnvesti-
gated yet under lie pr sent circumstances thar
may he waved ~ the consideration Of The rates
hAed by the present order as II can readily be
shown that, admitting OF the statements OF the
corporation Ia This matter, sufficient reasons
exist on It's own showing TO demand q very rea-
sonabe reduction If he proposed rates for the
benefit OF the rstepayer and the ultimate benefit
and security OF the corporation.
The showing made by lie corporation of The
cole cllons made from all souI ces for The wear
was S1,674,S2s SO. The disbursements being
for operating expenses S395.3S7 70. for inter
est S529339 80, for taxes SOL $50 %, for div-
dends SG0o,O0O; total S1.676,G62 Ga; loss
SlS33 GS.
COST OF THE WORKS.
AS shown from lie invest lgatiOn. contained In
The report OF your committee OF the whole the
actual cost OF the works OF The CORPORATION
as esiihed o By The engineer of the company.
was about SIT. 100000 and the actual valuation
OF the works S21, 655.U00 The bonded indebt.
edness OF the company is represented to be
S9,975,000; floating indebtedness, SGSO, 900:
outstanding stock, par value, Sl1,OOO.oOo;
total, S21 ,G55 600.
There are therefore, two statements-one the
cost, The other The value. ana the value i, based
on The Indebtedness aud the par value OF The
BLOCK. AS between The Two, IL appears that
whatever may be or may have been tile financial
polcy OF the corporation, that by their own
statement. they have succeeded IN enhancing
The valuation by the issuance OF stock or by
other means in The sum OF 81, So, 900 for which
no benefit has been received either 10 new con
strucion or IN the acquisition OF property, and
That the city Is requited To keep pace with This
appreciation and afford the means 10 still
further Augment this burden. In this respect
The valuation upon which This representation
is conceded has steadily grown by what IL fed
oh-ihat i. The raIepayers, aud us cumu-
latve and aggregate valuation Is the result.
PRESENT RATES.
In the endeaYor TO accomplish results alike