The San Francisco call., 1897-04-09
VALUE OF THE
WATER PLANT
Testimony Before the Sup
ervisors on the
Subject.
Ex.Mayor Pond Gives His Judg-
ment as a Financial
Expert.
Engineer Schussler Explains Why
Spring Valley Stock Has Risen
Two Points in Few Days.

More testimony was taken last night by
the Supervisors in committee of the
whole on the water question. Engineer
Schussler explained that Spring Valley
Water stock had risen two points within
the last few days because the public had
confidence in the showing made by the
company during the present investiga.
tion before the Supervisors.
When the board assembled DIR. Rottanzi
moved, and the motion was unanimously
carried, that when the board adjourned it
should do so out of respect to the men,
ory of Supervisor Smiths father, who
died on tho day before.
DR.. Clinton presided over the delibera-
tions of the committee of the whole and
called Il. ii. Stettin as a witness with ref
erence to the complaint made by him at
previous meeting that he had been
charged by Agent Perley of the Spring
Valley Water Com pany a rate of 20 cents
for every 1000 bricks used on his new
building on Leavenworth street, near Nc
Allister. Mr.. Stettin explained that Mr.
Perley's brother; who is not employed by
the water company in any capacity, had
informed him that 20 cents per 1000 bricks
for the water used on the building would
be charged him. At that time there were
5000 bricks in the building, and when the
building was finished it had IL 900 bricks
in it.
Mr.. Stettin's contract with Agent Per-
ley was read. 1t showed that he had
agreed to pay 81 for water used in the
construction of the building according
to the established rates." Mr.. Stettin had
not paid, and had not been charged cent
more than 81 for the whole building. The
gentleman evidently misunderstood the
matter, and the board. threatened with
astigmatism of the intellect, dropped him
and called Mr.. Perley.
Perley's initials are A. s., and he proved
to be very intelligent witness. He had
made an estimate of the numbe of brick
and the barrels OF cement to so into the
building, and he had Jumped the value of
the water at 81, and got con tract for that
sum from MIR. Stettin. He should have
charged 81, because there were cement
sidewalk and considerable plastering in
the house.
Perley made the surprising announce.
ment that since January / of this wear he
had collected 1912 10 for water for build
ings at cost OF $500, and Mayor PheIan
facetiously inquired whether he didn't
want partner III that business.
Silas A. White, pioneer school
teacher, was called by DR.. Clinton as an
expert on the market rate of interest on
gas and other securities. Mr.. White con-
fessed that he owned two buildings, one
erected in the days of 40 and the other in
the spring of So and he could not
keep them filled with tenants all the
time. He thought that per cent would
be a fair rate of interest. He did not own
any water stock. In fact, he said he was
too poor to buy any. He could rot get 5
pe- m his ol oofa inv
Would you be satisfied with 5 per
cent?" asked the Mayor.
81 wouldn't be satisfied if l got 25 per
cent. L am very grasping man." re-
sponded Mr.. White amid the laughter of
the board. He added that he would swap
his real estate at current rates for water
stock at its market price and would pay q
bonus of $1,000 beside.
1t was his opinion that the water COM
pany could figure better than the Super
yisors.
''The company will always get the best
OF you" he said. San Francisco should
own her own water works"
Ex- Mayor f. B. Pond gave his opinion
to The effect that per cent upon the COM
pany's valuation of its stock would be
fair, and 6 per cent on the actual value
would be plenty.
In answer to questions by Mayor
Phelan, witness said that $23. 600, 600 of
bonds OF the City and County OF San
francisco could be placed at So per cent.
The interest on that sum would amount
to so05,O00 while the City was paying the
water company $400 900 year more than
that sum.
The company paid Is per cent to its
stockholders some years ago, but the rate
OF interest has declined within the last
ten years. British consols return 2s< per
cent in terest and sell for ia. The Ii ,ber-
MIA Bank, he said. paid it's term deposit
tors ~ per cent and its ordinary deposit
tors g. 90
On second thought, Mr.. Pond believed
that water bonds of the City and County
OF San francisco could be sold at par and
at per cent interest. He believed that
an equal supply of water could be brought