The San Francisco call., 1904-06-01
Reduces Cost of Domestic
and Municipal Hydrants
About Thirty Per Cent
on the Present Schedules
COUNCIL OFFERS
TO BUY THE PLANT
Fixes Valuation of Contra
Costa Works at $4,700,000,
but Company Protests and
Viii Fight in the Courts
Oakland once San Francisco Call.

Oakland Office San Francisco Call.
IOI6 Broadway, May 81
The City Council tonight by unani-
NOUS vote reduced the water rates for
the next fiscal year 30 per cent to in
dividusI rate payers under the existing
rates
This is a horizontal cut on all do
mestic services. The reduction on
rates for municipal service, including
street sprinkling, water 10 public build
ings, school houses and the like, is 80
per cent. The fire hydrant rate is
lowered from s. TO So IS a month, or
z5 per cent The Council fixed a valu-
alton Of the Contra Costa Water Com
pany's plant in the Oakland division Of
81 700 600 and allowed the company a
net income Of 6 per cent on that valu-
alton, instead Of per cent net on a
s. 600 900 valuation as fixed by Judge
T. c. Hart in the water rates suit.
The water company has not collected
rates on this figure. According TO its
returns last year their gross income
was $e28 900 from the Oakland division.
The rates for the coming fiscal year
were. adopted tonight by resolution,
which was reported TO the Council from
recommended in the committee. by
unanimous vote. No opposition to the
cut was manifested either in the COM
mirtee or in the Council The rate of
decrease in the total revenue of the
Oakland division To- The company as
compared with current revenue will
figure 25 per The increased num-
Der OF services. however has enabled
The Council TO cut the rate TO domestic
consumers <he additional s. per cent,
enough additional revenue being esti-'
mated 10 warrant this figure. In sub
mitting the resolution to the Council,
President George W. DOrnin made the
following statement in explanation:
The committee believes that a valuation
that Is fair 10 the company ana Just 70 the
rate payers has been nXed In the amount OF
q 70o. 600. This valuation was reached after
much expert investigation and consultation.
Men with much, know ledge Of financial affairs
have been consulted with. reference 10 the
amount OF net revenue that should be allowed
The committee has. deemed il wise after a
fuI consideration. that revenue Of per
cent net should be given over and above all
expenses OF operation
lowed the company its total operating expenses
as they have been reported 'by the company
70 the Council Taxes amounting 70 S50,9T5 and
expense S25l6 for.lttlgsuon have been allowed.
has also 5000 odd for bad debts. The COM
nittee eliminated an item OF S7s.OOO for taxes
mol paid. THIS amount Is .infolEed IN lluga-
tion over some OF the County Assessors
sessnents and 10 allow IL until the question
Is settled would be simply 10 make a loan to
the company. II the company loses in tire
future il will be the duty Of the City Council
70 allow a rate sufficient 10 cover that amount.
By calculating the revenue that will accrue
from the increased number of services
lEst year the seheduie viii figure a so per
cent reduction The gross rate Of decrease to
the company viii be = per CENT on account II
the gain IN revenue by the increased revenue
from new business.
So closely calculated was the new
schedule that the exact rate Of de-
crease has been arrived at by careful
mathematical process and the figure is
BIG per cent. 1t was announced to-
night in an unofficial way that the new
rates are not satisfactory 10 the Contra
Costa Water Company and that the
company viii go into the United States
courts 10 resist enforcement of the
schedule, which viii be in effect on
July l.