The San Francisco call., 1897-04-16
WILL TALK
NO MORE
OF WATER
Close of the Proceedings
Before the Supervisors
Committee.
IS SIX PER CENT A FAIR
RETURN?
Daniel Meyer Tells What He
Kn' ws About Interest and
Securities.
BANKS PAY THAT RATE TC
STOCKHOLDERS.
Why Water Securities Are Not Pre-.
fsrred to Government Bonds at
Less Than Half the Per Cent.
BANKS PAY THAT RATE tt
STOCKHOLDERS.
Why Water Securities Are Not Pre-.
fsrred to Government Bonds at
Less Than Half the Per Cent.

Chief Sullivan of the Fire Department
appeared as a witness before the commit
tee of the whole of the Board of Super
visors last night and testified that in the
matter of water supply for fire-extinguish.
ing purposes Eastern cities were far better
off than San Francisco. The cisterns in
San Francisco would not hold water, he
said, and were practically useless. In the
East there were many more aydrants to
each fire engine than there were here.
Engines were enabled to concentrate
their forces at fire. having the advan-
tage OF large, well-built cisterns.
In this City, the Chief continued, it was
sometimes necessary to run out 1000 feet
of hose. This increased the friction so
much that it was necessary to use much
greater pre- ssure at the engine. This in
creased the wear and tear on the appa.
ratus and had tendency to burst the
hose. In Boston the hy orants ranged
from seventy five TO 300 feet apart. San
Francisco, with its area OF forty-two
square miles, should have at least 5000
hydrants.
Supervisor Clinton said that if the City
owned its water plant il could have 100
hydrants to the block at only the expense
of the hydrants, whereas now the City
1aQ 10 pay YOO year IOE SaCu ugoIdHt.
Chief Sullivan proceeded TO say that
larger water mains were needed for pro-
lection against fire. The water company
had done more work during the last two
years than it had done for the ten years
previous in the way OF putting in larger
mains.
But there were q good many small ones
in the Western Addition and they should
be replaced with larger ones. Larger
mains should be placed in the manufactur-
ing and large clearinghouse districts of
the City.
Mayor Phelan said that in Portland.
Me-, and other Eastern cities there was
! no charge for water used for extinguish-
ing fires.
Chief Sullivan, in reply to question by
/ the Mayor said that every city between
| ST. Paul and New YORK had a fully paid
| fire department. South of Market street.
| in this City, was not well equipped with
water facilities. Thesmall streets such as
! Stevenson, Jessie, etc, had only small
mains and not enough hydrants, but the
condition in that district had been very
much bettered since the big fire several
years ago.
Engineer Schussler asked whether it
did not cost as much for expenses in
maintaining the mains and hydrants and
! the water supply when there were no fires
| at all, and the Chief answered that he had
no doubt that such was the fact. He was
not making any complaints, but he
wished to say that San Francisco was not
! in the condition which she should be. In
the next few years there should be 500
! hydrants put In each year in order to
make the City safe. There should be 2C00
or 5000 more hydrants
The water pressure is very good.
! Spring Valley, 1 believe, has more water
than she Knows what to DO with, added
the Chief.
He did not consider that tn City was
well protected against fre-not even tho
| business portion of it.
William Ireland, geologist and mining
engineer, was asked by DIR. Clinton as to
the supply of water that could be fur
| nished from the neighborhod OF Castro
Vile He said that from $4,000 900 to S0,-
O00, 600 gallons of water could be Obtained
| from that region for San Francisco. He
! had had the water analyZed and it had
| been found that it was sometimes as
| good as the Spring Valley Water"
! Daniel Meyer capitalist. appeared be-
fore the board and said that he owned q
few shares of Spring Valley stock, but
was not large shareholder. The stock
! had fuctuated between 80 and per for
many years past and had paid per cont.
do you know what rate of interest is
being paid by the banks in this City?'
asked Mayor Phelan.
We'll" replied Mr.. Meyer, "your bank
pays 40 per cent; other banks pay 4 26
and the Hibernia pays per cent"
| This answer raised a laugh.
With reference to tho rise in the market
price of Spring Valley stock, as evidenc-
! ing the confidence of. the public, Mr..
Meyer remarked that the public was like
a woman-changing from day to day.
When asked why the stock had risen,
| notwithstan the announcements that
a new issue OF 5000 shares was to be issued
shortly, he replied that that fact had
! l. NJ
Schussler had been indiscreet in making
that announcement. If the rate were to
be fixed at per cont, the value of the
stock would fall.
my customers" said Mr.. Meyer, "call
for gas and water stock, but they are mis-
| taken"
You share their confidence, then ?"
asked the Mayor.
No." was the ready reply, II share
one-auarter OF per cent com mission"
Now" proceeded the Mayor, "assum-
ing that the Spring Valley property is
worth twenty million"
"What?'
"Twentv-three millions"
"Well," said Mr.. Meyer. reflectively,
"Is it not worth that?" inquired Mr..
| PheIan.
well" was the reply, 'if it earns 6 per
cent / think it is worth it. / don't go to
the value OF thing; L 20 on the earning
capaciiy of the stock"
In answer to further questions Mr.
Meyer said that Market-street Railway
bonds were selling at LOG and paying 5
per cent interest. He always considered
Market-street stock as better than Spring
Valley stock, because the Market-street
Railway was never subject to the domina-
ton OF the Mayor anu :he Supervisors.
| Since the election of the present Mayor
and the pre- ent Board of Supervisors his
confidence in Spring Valley stock had
been restored for two years to come.
English consols selling at 112X
and paying ~ per cent interest were .
better investment than Spring Valley
stock.