The San Francisco call., 1897-04-16
"suppose the powers com bine to destroy

''Suppose the powers com bine to destroy
Eneland?' asked the Mayor.
They have not done so," was the reply.
''They tried it in 1902. History teaches
US that during the French revolution
English consols went as low as 76. Values
were restored after the battle OF Waterloo,
and thev kept creeping up.'
Mr.. Meyer informed the board that
some savings banks paid their stock
holders 6 per cent interest, and the re-
mainder paid more.
What is the liability of stockholders
in savings banksr asked the Mayor.
None"
"Of stockholders2"
None"
"You surprise mer exclaimed the
Mayor.
IT would not be the first time, " re-
marked Mr.. Meyer drily. Then he con-
tinued: "In most every savings bank
where the directors know their business
the stockholders are not liable. 1t is a
contract which you sign when you de-
posit your first IS in the bank
Would that contract override tho law ?'
asked the Mayor.
ut is an honest contract" replied Mr..
Meyer. Stockholders are liable only for
the unpaid capital stock"
''Is not 6 per cent reasonable consid er-
ing that they are liable for the unpaid
capital stock 2" asked the Mayor.
mot in these tines" was the answer.
"They ought to pay up their capital stock
or make the capital smaller. The stock
holders of the Spring Valley Company
can be sued on the bonded indebtedness.
They are also liable for injury to private
property caused by the bursting of dams
and so FORTH"
A. l.. Langermann, stockbroker, said
that the gambling element in the Spring
Valley stock caused by the agitation by
tha Supervisors every year and by dema-
gogues always threatened and impaired
the value of the stock, so that 6 per cent
was but reasonable interest on the in
vestment. Should the safe be reduced to
per cent the stock would fall to so or 81
San Francisco could place all the bonds it
wanted at per cent.
Then if the City should issue bonds and
buy out the water company" asked the
Mayor. "the City would save money by
paying per cent on its bonds, instead Of
per cent to the water company as now? ?'
''Yes," replied the witness.
Adam Grant, the next witness, though,
that the agitation against the Spring Val
ley Water Company had hurt San Fran
cisco by driving away and keeping away
capital. United States bonds at pei
cent would be better investment than
Spring Valley bonds at per cent.
Mr.. Baldwin of the real estate firm o.
Bald Twin & Howell testified that a reduc
ton of rates would be OF great benefit tC
property.
A telegram from a. B. McCreery of San
Mateo was read in which Mr.. McCreery
regretted his inability to attend the meet
ing and favoring such reduction in rates
as would give the stockholders an incom,
of per cent on their investment
John T. Doyle of San Mateo sent in
communication setting forth that in mos
cities water works are owned by the pub
| lie. the interest on the bonds being paiC
out of the taxes, the water-consumers pay
| ing only the running expenses.
The great benefit to the City of having
cop1ous supply of water in he mains coult
hardly be overestimated, for without i
property would be valueless and uninsura
bic. The writer suggested that the Cit,
| should ultimately buv the Spring Vale!
works, raising the money by the sale o
bonds at 3 per cent.
Thi. closed the taking of testimony ant
at IL As p. N. the board ad djourned, subjec
to the call of the chair.