The San Francisco call., 1898-02-05
The Piedmont Plant Was Sold for $4,OOO,OOO in Stocks
 and Bonds.
CONTRA COSTA VALUATION
It's Property Estimated to Be Worth sOver Three Million
 Dollars.

the Water Committee Of the City COun- ell tonight brought out much that was interesting. President Dingee of the Oakland company and Secretary Wat kinson of the Contra Costa Company sat side by side and smoked the pipe of peace, that is, MT. Dingee supplied the cigars and MT. Watkinson did half the smoking.
 The efforts to arrive at a valuation of the plants of the companies were only partially successful but much interest ing material was brought out. MT. Din- gee was asked to tell of the value of the Piedmont Company's plant before 1t passed into the hands of the Oak land Water Company.
 T cannot tell exactly" he replied, but l can look up the books and de- termine in little time''
 Further questioning brought out the fact that the plant was sold to the Oakland Water Company for $1 1000, 900 in bonds and $3,OOOO0O in stock This stock has never been on the market and no market price can be quoted, be- ing held by MT. Dingee and MT. Hay ward.
 MT. Henneberry asked: Now, Mr. Dingee, you are the father of the Pied mont plant and know pretty we'll what 1t cost, and think you could tell me-"
 T know what I paid the Piedmont Company, and that company having gone out of existence is not in evidence now.''
 But you know" said MT. Cuvellier. that you were really the Piedmont Company and you put your own price on the plant and sold it yourself as the Oakland Company, and you should be able to tell just what it is worth and not what you charged yourself for it."
 Tomorrow evening MT. Dingee said he would be present and bring data asked for by MT. Upton.
 The examination of Mr. Watkinson proved that in 1892 the Contra Costa plant was worth $3,250,000. Since that time its value has been increased to $3.334,0 900, which Is its value to-day. MT. Cuvellier asked if the company did not write off annually a certain percentage for depreciation, and was surprised when told that such was not the case.
 The question of assessments was brought up and MT. Cuvellier said he had figures from the County Assessor, and found that last year the Contra Costa Company paid taxes in the whole county on but $944,477, which, if as- sessed for 50 per cent, would show a value of $1,574,1 ,12S, and that the Din
 
 should represent a total value of $810,- 263. MT. Cuvellier asked if this agreed with the stated value of their plants, which are placed at about six and five millions respectively, but the question was passed.
 Both companies representatives stat ed that had they not charged full rates they would not have received per cent on their investment. The commit tee will meet at z o'clock tomorrow night.
 It is probable that the committee will recommend little changes in the rates. They will certainly not raise them, al- though they will rearrange some parts of the schedule. It is pretty certain that they will take no notice of the figures of the Oakland Water Company, because it is a complete plant in the sense that it is not in all quarters of the city, and that it could not, there fore, of itself, supply the city at this time.
 This will leave the committee to fig ure on the plant of the Contra Costa Company alone. This plant, according to figures agreed on by it's officers in 1892, is now worth s3,334,60O. and it's operating expenses last year were $51.- 039. Six per cent on the value of the plant is $200, ,076, and added to the oper- ating expenses amounts to $251 ,1O5.
 The total amount paid in water rates last year was 264,000, and the repre- sentatives of both companies stated to- night that they charged about two- thirds of what the schedule permitted. This means that $352,000 more would have been collected if the companies had not cut rates and thus represents nearly 8 per cent on the value of the Contra Costa plant It is well known that the com panies have not collected much more than half the full rate, and this shows that the present schedule is perhaps too liberal and may require pruning.