The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-19
SIX"
MAY NOT Be
FOUND SOLID
Ordinances Expected
on Monday Night.
BIG INCOME DEMANDED
POLITICS ALREADY FIGURES
IN THE DEAL.
Memories Revived of the Time When
the Two Companies Were
Fighting Each
Other.
BIG INCOME DEMANDED
POLITICS ALREADY FIGURES
IN THE DEAL.
Oakland Office San Francisco Call
one Rrra q rrra Fab 1Q

90s Broadway, Feb. IS.
On Monday evening the City Council
will meet, and it is expected that an or
dinance-or perhaps two-tlxing water
rates will be introduced. One is expected
from the solid SIX" another one from
the remaining five.
The ordinance Will have TO deal with a
new condition, inasmuch as it can no
longer be argued that there are two water
companies and that the value of one plant
should serve as a basis for fixing its rev.
enue. 1t is not believed that Mr.. Dingee
will appear before the Council to give
any evidence this year, as it is understood
he is now out of the water business.
Two years ago the most oft-printed
piece of news was the statement of Presi-
dent Dfngee that he would never sell out
of the Contra Costa Water Company, and
how the breaking of this promise will
affect water rates is now interesting the
people of Oakland.
With three million dollars added TO the
original capital of the Contra Costa Water
Company an income must now be raised
that will pay dividends on eight millions of
dollars, in addition to paying operating
expenses, wear and tear Of plant and sup
plying the secret fund" found TO be nee
essary in the past. Should an attempt be
made to pay per cent on the investment
it will be necessary to raise, including
operating expenses, an income of $500, 600
That this capitalization is fictitious can
be proved by looking at the data published
two years ago While the companies were
cutting each others threats. Dingee
showed that $3.50 600 was all the Contra
Costa plant was worth; the Contra Costa
company showed that Dingee's plant was
worth about $3.50, 900. Both concerns stated
that the books kept in their early years
were destroyed, and consequently reliable
data could be obtained only from engi-
neers employed by the respective COM
panieS. While fighting, all these facts
were brought out, and now the public has
not forgotten them.
Some years ago an unpurchasable Coun-
Gil after much examination, added large
~ to its findings and fixed two million
and a quarter as basis upon which 10
make rates. AS Oakland grew it was
thought this sum could be cut down lit
tie each year, as consumers increased
The water companies took dinerent
view. and now seek to have rates fixed on
a value many times in excess Of the orig
There is possibility that solid six"
may not be found this year, and after
the experience of last February the pub
lie has little hope of any change. 1t IS
common talk that the water companies
have an active political manager az TorE'
and that he is busy on the available Dem
Ocratic timber of the Council in the in
terests of the consolidation and its de-
II is easy to see that the water monop
oily desires a big rate at this time. In
mediate value must be placed e upon me ne
spectators will be broken. II the pres
ent civ Council can be induced to
make the new stock pay dividends Tor the
next year and a half It may be unloaded
TO advantage at something near par, ana
that Messrs. Dingee and Hayward, who
hold many thousa nds of shares, are anx-
ious to unload cannot be doubted
There seems to be little doubt that the
Council TO be elected next month and
which will fix rates in February, 1900, will
make a schedule that will pay very
small dividend on the inflated capltaIlza-
lion of eight millions. Consequently, the
haste to dispose of the stock. .
1t is not improbable that an attempt to
employ the court to enforce schedule
that viii pay dividends on eight millions
may lead to a positive step on the part
of the public toward, municipal owner
shin This is rendered more probable IN
view of the fact that the platforms or
nearly all the political parties contain
rn11tnirfnai ownership plank.