The San Francisco call., 1897-03-10
But There Is No otj ction to
Furnishing Them in Strict
Confidence.
MAYOR PHELAN ON MUNICIPAL
OWNERSHIP.
mT. SchuSsler Relates the Story OF
the Consolidation Effected in
Sixty-Fivs.

Inc board OF Supervisors again went
into committee of the whole last night.
with DR.. Clinton in the chair, for the pur-
pose OF continuing the water rates inves-
tigation.
communication vas received from At
torney Kellogg, accompanying detailed
statement of the taxes paid by the COM
IanY In different counties. and Of the as
1ssed Vnue OF the property belonging to
/Ihe company, the writer asking the board
10 treat the information as confidential.
1he committee decided not to deal with
the foregoing al the moment but to pro-
ceed with the consideration OF the COM
pany's advertising expenses.
Mf. Kellogg at this point said that the
company felt some little hesitancy in this
matter. 1t was really question OF busi-
ness competition between the various
newspapers In the City, and the company
did not.wish to arouse il-feeling among
those newspapers. The company had
vouchers to show for every dollar of the
$4,000 spent in advertising and he felt
sure that the committee would agree on
examination that the money was we'll
spent.
1t could not be expected that the news
papers would publish everything the
Boig OCS4icu dS dH Item VI HGHSs
During the past year vicious and savage
assault was made upon the company on
the score OF the water supplied 10 the
City, the author OF this attack being
man who had reputation in that direc-
tlon. This man succeeded in frightening
the people into believing that they were
drinking disease germs. Consequently the
company was forced to have an analysis
made OF the water by reputable chemists.
This expense really benefited the tax
payer, because it proved to him that he
was not incurring he risk OF contracting
disease, as these reports had led him to
suppose. The company therefore printed
these analyses in the papers and were
Obliged TO pay the ordinary rates for ad-
vertisemenls treated as reading matter.
Similarly with the sales of stock. n order
10 attract public attention the com pany
caused descriptions and illustrations of
the works TO be published in the news
papers.
If the stock had been sold at auction it
would not have realized the amount the
company managed to sell il tor in the
above-named manner. The newspa pers
themselves knew very we'll that the COM
pany did not pay extravagant rates for ad
vertising and had, therefore reirained
from hostile comment on this point. Mr..
kellogg assured the committee that the
company would willingly furnish the in
formation required il the members would
treat it conf entially.
Or. Dodge briefly expressed his unwill-
ingness 10 press the subject, but regretted
that the company should find itself in
these EN- barrassing positions so frequently.
1t was finally decided 20 consider these
expenditures In general way without
entering into details.
Mr. Schussler referred TO the recent at
tacks upon the water drawn from lake,
which. be said, had not been used for
linz
and the board were finally constrained 10
call in skilled chemists to analyze the
water in question. This analysis was pub-
lished in detail, Besides this, the board,
during May of last year, wished to sell
$500, 900 worth OF stock.
l. was always profitable to allow pros
pective buyers to know the condition OF
the stock and for this purpose they had
several articles published, but none the
less only few shares were disposed of
and the sale fell through. Next summer
the company had photographs and de-
scriptions published. In all 428O lines OF
description were published in ten papers
at cost OF $4231, or close upon 81 a line.
When the next lot of stock was put on
the market, 10 the extent of about
$500 OOO it was nearly ali taken up.
Secretary Ames took the stand again to
expIain several accounts in the detailed
statement o. the company's operating ex-
penses Under the head OF city engine,
SIC, ,697 AS" he stated that $9)OO wat de-
voted to coal, $4,000 to wages and $l2oo to
supplies:
Mr.. Schussler ex planned that from A to
45 per cent of the total cost OF pumping
was incurred for fuel, 5 per cent Tor sup
plies and so Per cent Tor wages.
The sum of $26s, 1913 "a was expended
under the head of new main constructor
last wear. after allowing certain credits for
al n -nUnd of XZ9S OttD.
Gle main repairs included all the pipes
tAken Ifp. together with those raised and
ldyered. During 1896 A, 160 feet OF all
kinds of pipe were taken up for the pur-
pose OF putting in larger mains.
This was done at the desire OF the Fire
Department, i'll order that new MIGRANTS
might be set. Alter the pipe was laid the
ditch was filled up and the pavement re-
placed.
The witness entered into detailed ex-
planation of the various items under
main construction. and was again sue
ceeded by Mr.. Ames, who was asked how
he distinguished real estate, personal
property and improvements.
Mr. Ames said that personal property
covered pipes and machinery not IN use,
while improvements we're part OF both the
really and machinery:
The chairman at this juncture called
upon the comm ittee 10 decide whether or
not 1t would acQulesCe III lue GUM pdAy
request to refrain from making public the
assessed value OF its property, which had
already been furnished to the committee !
with that stipulation attached.
The consensus of opinion being in favor |
meeting the company half way in this
particular DR.. Dodge moved that the
company 's.re port be referred for consider
alton to the Water Committee. which will
subsequently, present a schedule OF rates
for acce ptance by the board. The motion |
was carried.
The next question on the list was with |
reference to the real property owned by
the company, used in the supply OF water,
its original cost and present valuation.
The first part of the question having |
been previously replied to, Mr.. Ames was |
asked if he could furnish an estimate OF
original cost. ,
Vile said that this was not obtainaple. |
81 great deal of property was taken over
from the old company, and the orlglnai
price was not known. The consolidation |
of the two companies was made by the |
exchange of shares and not by placing |
any known valuation upon properties.
Supervisor Smith contended that the |
property must be beld at some figure, and
that the company should possess record