The record-union., 1894-08-20
Something for Nothing.

panied by the name of the writer, not for
publication unless so desired, but as guarsn-
Tee of good faith.-EDs-
Something for Nothing.
EDS. RECORD UNION: An article IN
the Sacramento Bee of August Is, 1894,
entitled, "a Claim Settled" gives so mis-
leading and partial an account of the
matter treated of and so obviously ema-
mates from the Folsom Prison officials.
that it is due to justice and equity that
the Folsom Water Power Company
should be heard in explanation of their
side of the claim thus announced to be
settled.
1t should be understood that all that
the State proposed in this arbitration was
to pay to the company any amount that
might be awarded it when and If the
Legislature should subsequently make
an appropriation therefor.
In 1891 and 1892 the Folsom Water
Power made certain cash outlays in con-
struction work directly connected with
the State power-house at Folsom where
by the State was enabled to enter into
use of said power-house at once instead
of waiting for the entire completion OF
its contract obligations with the COM
pany, as it could have been compelled TO
do had the company treated the state on
basis of legal technicality.
The State was unable TO make this con-
struction at this time because OF lnsuftl-
cient appropriations then available, and,
had the company not paid the bills, the
work would have necessarily waited for
legal conclusion as to who should do it,
and, if adjudged to be done by the State,
she would have had TO wait Tor future
legislative appropriation.
such use of the power so advanced In
completion by the company's outlay,
and so enioved by the State, entirely out
side of its legal rights, has been worth.
in actual saving. to the State a sum very
considerably in excess of the amount
| claimed by the company as its outlay.
which should be reimb bursed by the State.
| 1t has never been denied that this outlay
was made, and that the State has had the
| benefit of the use of the power-house $50
rendered available in advance OF its legal
| contract rights since January, 1893.
The statement in the article of the Bee
that 'the company had refused to deliver
checks for power until the claim was set
tied" is entirely erroneous. 1t is perfectly
true, however, that Warden Aull (as
stated in the articie) was opposed to the
payment of the bill from first 20 last"
The peculiar feature of the entire mat
ter is that while the company has treated
with the State on a purely equitable basis,
and given to the Stale, in advance of any
legal right, the use OF the power at its
power-house, so rendered useful and
| operative by the company's outlay, which
use of power, not teg0tLy its right, has
| been worth to the State considerably
more than the company's claim for such
outlay to make it SO available, the State
officials have opposed the payment of
the bill from first to last" on purely legal
grounds, and the decision of the Board of
! Arbitration has been rendered on strictly
technical legal grounds, Ignoring all
equities, and even all consideration of
common justice.
| Another peculiar feature of this arbi-
| tration is, that anything whatever is
| awarded to the company. On the techni-
cal legal grounds, which decided the larg-
| er items in behalf of the State, there is
no logical reason why few of the
smaller items tparts of the same work.
should be decided in behalf of the COM
pany.
The Folsom Water Power Company
will decline to receive anything from
such an arbitration. Having long since
constructed, and paid for, the work
which the state is now enjoying, and
avails itself of legal technicalities to
avoid paying for it, it does not strike the
| company favorably to be treated as a
| beneficiary of the State, and to have
few scraps of bounty thrown to it.
| 1t prefers to maintain the decidedly
unique position OF being the ''victinl' in
| its dealings with the State, rather than
the gamer, in the smallest degree.
/ The State is, therefore, welcome to the
works which it never paid for.
! What is the real position of the State
with reference to the property acquired
| from the Folsom Water Power Company
may be best judged by the following ex-
tracts from State official documents:
| e A Sni,, IL
engineer then and since in the employ of
| the State as Engineering Expert. and, by
a singular coincidence, now the State arbi-
traitor on this claim of the Folsom Water
| Power Company, the same dated Sep
| tember 20, 1883, and addressed to the then
Governor r. Ii. Waterman and published
in the annual report of the State Board of
| Prison Directors for year 1888 pages II
and 7S). In this report Engineer Won
Schmidt says:
1T is somewhat difficult to give an
exact cost of horse power per year, where
said power is produced by the use
of coal, as the prices vary so much, but it
can be taken with safety at $50 to $l00 per
4 horsepower"
Therefore, the saving to the State would
! be 600 horse power at $50, or S4S, 900 per
year; or. in round numbers, would pay
interest on 100000 at per cent.
| Again, see report of State Board of
Prison Directors for year 1890 tpage 10,
where Warden Charles Aull states that
the water wheels at the State power
| house, instead of the 600 horse power
estimated by Engineer Won Schmidt,
Twill develop a total of over 800 horse
power for the six Wheels" and Warden
Aull sums up by saying: Hence the
water-power obtained by the State under
| the present arrangement is worth, as a
business proposition. over 81, ,000,0 ,000"
Still again. see report Assembly Com
mittee on State Prison, March Z, 1898
/ page 81, proceedings of the thirtieth ses-
sion California Legislature, wherein
! II. H. Johnson, Chairman, uses the fol-
lowing language:
"a. w. Won Schmidt, who is recog-
nized as one of the most competent en-
gineers on the Pacific Coast, in estimating
it's value on a basis of 600 horsepower,
figures the actual value of the plant at
$500 600. {See official report of 1888, page
t7.) When it is taken into consideration
that the present developments reach 800
horsepower, it will be seen that its value,
| when properly utilized, must proportion
ately increase, thus reaching total of
| nearly two millions, which is perpetual
for all time"
May it not well be said, in view of the
| foregoing testimony of State officials as to
the value OF property acquired from the
| Folsom Water Power Company that, if
the State officials can always be as sue
cessful in acquiring valuable property
without giving fair equivalent for it,
there may reasonably be expected very
considerable reduction of the rates OF
taxes which the State collects OF the pub
lie at large to support itself.
| In this case, unfortunately for the Fol-
som Water Power Company, the assess
ment is collected of the company instead
of from the public at large.
In this regard where does the history OF
| the State show another public benefactor