The San Francisco call., 1897-05-21


United States.
Municipal ownership is the only possible
means OF escape. -,
If the corporation which now supplies the
City with water is not willing to sell lis WORKS
for Just and reasonable consideration, tnere
are other sources of supply available.
The constr uction of new WORKS AT inis liiue
would sfford much needed employment for
both capital and labor in this CITY ana stare,
and do much 10 revive business and avert
financial and commercial disaster;
1t would n once set 10 work thousands OF
our unemployed men and m1lllons OF loie
capital, putting into circulation the money
now boarded in the banks, ana greatiy Dene-
fitting business generally. :,
materials 10 be used would very much lessen
the cost of construction Besides, never
failing supply, of pure water, say from tne
interior towns for irrigation and mining pur-
poses, and from the assured income, outside OF
Supplying this City and County, suf1cient
revenue would be realized in time 10 pay the
interest on the bonds by the increased receipts
The recommendation in favor OF the city
acquiring water works OF its own is not MADE
in any spirit OF hos1llty 10 the spring Falley
Water Works.
Your committee has the highest admiration
for the magnificent works constructed under
the direction OF Herman Schussler, its tai
ented engineer, of whose marvellous achleVe-
ments the company and this State nave just
reason TO be proud.
They have nothing but commentator for
treatment which the company has accorded TO
It's employees.
Nor in our opinion, are the salaries paid to
the officers of the company either exor Dltant
or exiravagant.
II the people of San Francisco must be de-
pendent upon private corporation Tor their
water supply we believe they will receive as
fair treatment from the Spring Valley water
Company as they can reasonably expect to re-
ceive from any other private corporation.
The fault is not in the company, but in the
system.
Your committee, in all fairness have to
state that the Spring Valley Water Works, in
the face of great difficulties, have succeeded in
giving this City supply OF water when Is
not only abundant, but OF excellent quality
and equal to that of any city in the United
States.
The City reservoirs are nine in number, at
elevations fr ON 168 feet 20 600 feet above
City base, and of joint capacity OF about
10000, 600 gallons.
The main pipes connecting the large coun-
try reservoirs and streams with the City vary
from 80 inches up to a. inches in diameter
and have an aggregate length OF over seventy
mics.
To deliver the proper amount of wat"r into
such reservoirs in this City as are Located
above the gravitation level five separate
pumping plants are employed, OF which the
ones at Belmont Lake Merced and Black
Point are double engines. While the Seven
teenth-sIreet and Ocean View stations are
single.
The City distributing pipe system has a
length OF over $50 miles, and its fire efficiency
owing TO great pressures and lal ge mains is
being constantly improved.
The policy Of this company in preventing
opposition by acquiring water sites and
sources shows all active business enterprise
to look after the main chance-the pockets of
its stockholders. And it might well be
conceded and understood that this corpora
tlon is the master of the situation, and will
continue so TO be, until, as stated, the City
and County purchases or condemns its works
or obtains water from other sources.
The condition of the people OF this City is no
longer such as to enable them 10 bear the bur
sist on imposing upon them, not from willful
and perverse desire 10 overburden and OPP
press, but from the very necessity and nature
OF the case.
And where the corporation enjoys monop-
opiy it is folly 10 hope that il VIII not insist
upon the privileges which the monopoly con-
fers upon it.
The Spring Valley Company owns real es-
tate in this City whose value depends upon
and has been largely increased by the pres
ence OF an increased population.
AS the value OF this property rises from year
to year from this cause the directors OF the
company demand that the very rate-payers
whose presence here mas increased that value
shall pay incressed rates to meet the interest
on the increased value of the property.
And it is impossible to convince the direct
ors of any private corporation that such q
course of proceeding is not fair to the ra te-
payers.
Again, the company has acquired large
properties outside of the City for the purpose
OF preventing competition-that l., 10 keep
water out OF the Cily-yet the City is called
upon to pay nterest pom these lnyes iments.
Nor, in the opinion OF your committee, will
it be possible TO convince the directors OF any
private corporation that such a course is un.
lair 10 the City.
Municipal ownership affords the only effec-
tual way out of the difficulties above enumer-
ated.
The committee of the whole have been pa tient
and have devoted great deal OF time (some
four months) to endeavors to ascert ain their
duty in the premises, and your commit tee have
in addition made it their particular study
how to erect such a material reduction as
would be percepuble TO the householders.
The practice heretofore of making an appar-
ent or 10 per cent reduction on water rates
practically resulted in little or no benefit to
the househ older.
Your committee, therefore, under the cir
cumstances, have determined that per cent
interest on the stock OF the com pany, winch
stock now issued amounts to $12 500, 900, is
not alone reasonable, but in excess OF the rate
to be derived from general Investments, loans
or deposits, and being guaranteed even for on e
year, will not disturb or reduce. except for
speculative purposes, the value OF the stock.
In addition your committee has dete mil ed
that the sum OF $4,000 is a reasonable
amount to estimate Tor the increase OF revenue
during the year.
The increase of revenue of 1896 over that OF
the year 1895 amounts TO $Sl, $50, so that the
estimate made cannot be questioned as hay
ing any element OF doubt as to the collection
OF the amount estimated
These two items Will effect an estma ted re-
duction OF SI9l 900, and il applied 10 all the
rates would secure q reduc ion OF 1867 per
cent BASED on the total revenue Of the year
1896. But that does not appear to your com
mittee to be BILE, as the purpose OF secur-
ing reduction in dependent of oiher reasons
is TO have the benefiG extended 10 household
ers and secured TO them substantial reduc-
tion OF rates.
Mr.. Booker, chief clerk of the water works.
informs us that about 5000, 900 was collected
from meter rates in 1896. This gives some
data upon which to determine the estimated
revenue received for household and special
household rates which amount to 1855, l52
And the foregoing recommen dation OF your
committee will have the effect of reducing
those rates 20 per cent su ubstantial, much
needed and demanded reduction, which every
householder will be able at once on the pre-
sentation OF his bill to understand and appre-
ciate.
This will be reduction to those who in 1us-
tice are entitled to it, and, while reducing the
rates named 20 per cent, will leave the other
rates as at present, and will make the work of
readjustment easy and inexpensive to the
company.
To illustrate:
/ per cent interest of stock allowing s In
lieu OF per cent on 81 z, ,S00,U0 Sl2S 600
Estimated additlonal revenue. $4,000
Making an estimated reduction Of $lel 900
To ascertain the reduction to be made to
householders, the revenue of 1896 shows:
From water, private consumers 553lb2
Less revenue collected for meter rates 500 o. %
The estimated amount paid by house
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